SOFR Rises to 3.95% on Fed Meeting’s Opening Day

The marginal move in SOFR while the effective fed funds rate held flat is the detail worth noting: secured overnight funding tightened slightly even as the policy-sensitive benchmark stayed put, which points to modest pressure in repo markets rather than a shift in the policy stance. Because SOFR underpins large parts of floating-rate and tokenized cash products, even small moves feed through to RWA yield benchmarks. Whether the SOFR–EFFR spread keeps widening into the meeting's conclusion is the open question.