SOFR TICKS UP TO 3.90%

The Secured Overnight Financing Rate printed 3.90% on October 6, up from 3.89% the prior day, according to the New York Fed. That puts it at the top-of-range administered rate and 2 bp above the fed funds effective rate (3.88%), with $2.997 trillion in daily volume. The 99th percentile traded at 3.98%. SOFR has held in a tight 3.87%-3.90% band for two weeks: no stress signal yet, but repo is still trading rich to fed funds. Keep an eye on $TLT and short-end funding.