DVP rates and the October 2021 SOFR drop from 5 bps to 3 bps

The Secured Overnight Financing Rate (SOFR) fell from its customary 5 bps rate to 3 bps from October 19-21, and from 5 bps to 4 bps on October 25. This surprised some market participants who thought that the Federal Reserve’s Reverse Repo Facility (RRP) rate of 5 bps would be strong enough to keep SOFR at the 5 bp mark. Why did this happen?
This content requires free registration (unlocked content) or a Finadium subscription. Log in or get access today by signing up here.

Related Posts

Previous Post
EACH urges “same services, same risks, same rules” principles for stablecoins
Next Post
Thursday news roundup: Turkey shorts, equity repo, collateral optimization, UN Africa repo program

Related Posts

Fill out this field
Fill out this field
Please enter a valid email address.

Menu
X

Reset password

Create an account