Repo Benchmarks Drop as Fed Tweak Aims to Keep Volatility at Bay
- SOFR fixed at 4.30% as of Dec. 19 from 4.57%, NY Fed data show
- Officials lowered offering rate on reverse repo tool to 4.25%
The Marriner S. Eccles Federal Reserve building in Washington, DC.
Photographer: Al Drago/BloombergThis article is for subscribers only.
Key benchmarks tied to US overnight funding fell, reflecting the Federal Reserve’s adjustment this week to the tools it uses to help control borrowing costs and keep these funding markets running smoothly.
The Secured Overnight Financing Rate dropped to 4.30% as of Dec. 19 from 4.57%, according to Federal Reserve Bank of New York data published Friday. That leaves it just above the new offering rate on the central bank’s overnight reverse repurchase agreement facility of 4.25%.