SOFR Edges Down to 3.62% on Fed Rate-Hike Day

SOFR easing on the very day the Fed tightened is the detail that matters: it suggests the hike was already priced into money markets and that repo collateral remains abundant, rather than signalling a policy surprise. The two-basis-point gap between SOFR and the effective funds rate is where funding stress usually surfaces first, so this spread is the number to track. Whether SOFR stays below the funds rate in coming sessions is the open question for anyone watching dollar liquidity.