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Macro

SOFR Holds at 3.94% for October 29; Fed Funds Rate Steady at 3.88%

The secured overnight financing rate (SOFR) stood at 3.94% on October 29, unchanged from the prior day. The effective federal funds rate also held steady at 3.88% for the same trading day. Both benchmark rates were flat day over day.

Original source

AI take

The more telling detail here is the spread rather than the levels: SOFR sitting above the effective fed funds rate points to a modest premium in repo funding relative to unsecured overnight lending, a relationship worth tracking as a gauge of balance-sheet and collateral pressure. Because both prints are flat, this single observation carries little signal on its own. Whether the gap persists across subsequent fixings is the open question, and it matters most for anyone pricing floating-rate exposure tied to either benchmark.

Generated by AI for reference only.

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