NY Fed: SOFR falls to 3.65% on Sept 4

The marginal dip in SOFR alongside a steady EFFR signals a slight easing in secured funding conditions, likely reflecting post-payrolls liquidity dynamics rather than a shift in the Fed's policy stance. For money market participants, the narrow spread between these rates suggests minimal stress in collateralized lending, but the real test is whether SOFR holds below 3.66% as Treasury supply and quarter-end pressures loom. What matters next is whether this softening persists into next week's auction cycle, which would indicate durable demand for cash over collateral. The stability of EFFR anchors the broader rate corridor, so any divergence beyond a few basis points would warrant attention.