The spread above the Federal Reserve's reserve balance interest rate widens to its widest level in six months
2026-10-28 23:17:41
According to CoinMeta, recently the key interest rate benchmark linked to overnight repurchase agreements has further risen above the Federal Reserve's reserve balance rate ( IORB ), with the spread widening to its widest level in six months. According to data released by the Federal Reserve Bank of New York on Wednesday, as of October 27, the guaranteed overnight financing rate ( SOFR ) had risen to 3.95%, which is 5 basis points higher than the current reserve balance rate of 3.90%, representing the widest spread since the tax period on April 15. In addition, other repurchase rates have also increased; the three-party general guarantee rate and the broad general guarantee rate both rose from 3.91% to 3.94%. According to ICAP data, the initial transaction rate for overnight general guarantee repurchases ( GC repo ) was 3.97%. Treasury bond auctions will withdraw approximately $40 billion in liquidity on October 29 and about $26 billion on October 30.
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Source:Internet
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