SOFR Rises to 3.88% on Oct. 20; Fed Funds Rate Holds at 3.88%

The one-basis-point move leaves SOFR essentially pinned to the effective fed funds rate, so the takeaway is alignment rather than dislocation. That matters for anyone tracking the cash-futures basis or repo-funded carry, since the two benchmarks are not sending divergent signals about overnight funding conditions. The open question is whether this near-parity persists or whether SOFR begins to drift as month-end balance-sheet pressures build.