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Macro

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

The secured overnight financing rate (SOFR) rose to 3.88% on Oct. 20 from 3.87% the prior day. The effective federal funds rate held steady at 3.88% for the same session. The readings mark a one-basis-point increase in SOFR while the fed funds rate remained unchanged.

Original source

AI take

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.

Generated by AI for reference only.

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