2023-12-29 14:53:03
According to data released by the Federal Reserve Bank of New York on the 29th, the secured overnight funding rate (SOFR), which is the reference rate for overnight repurchase transactions, rose to 5.40% as of the 28th, the highest since its introduction in April 2018. reached the standard. The previous day, it was 5.39%.
This is due to increased volatility in the short-term money market as the year-end approaches.
However, on the 29th, pressure on U.S. short-term interest rates, which had been rising due to a lack of funds, eased.
According to ICAP, the overnight repo rate for GC, which does not specify the underlying bond issue, fell to 5.45% following starting at 5.625% on the last trading day of December. Since then, it has returned to 5.50%, but it remains below the level reached the previous day.
Related article: US money market, interest rate volatility increases – last week of the year
news-rsf-original-reference paywall">Original title:Repo Benchmark Hits All-Time High in Volatile Funding Market(excerpt)
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