SOFR Holds at 3.88% as Fed Funds Rate Stays Flat

The near-identical levels of SOFR and the effective federal funds rate suggest overnight secured and unsecured funding markets are clearing at effectively the same price, which is not the norm and points to ample liquidity rather than collateral scarcity. For RWA and tokenized treasury products that reference these benchmarks, the practical takeaway is that the floating-rate leg of any deal is barely moving, so carry and spread dynamics are not being driven by funding stress right now. Whether that convergence persists as balance-sheet and quarter-end effects build is the open question.