Repo rates were steadier last week, as compared to the wild swings of the prior week,  as the Secured Overnight Financing Rate (SOFR)—a broad measure of the overnight Treasury repo market—fluctuated between 1.82% and 2.01%. The week started with the SOFR rate at 1.85% on Monday, it then increased a bit on Tuesday and Wednesday to 1.96% and 2.01% respectively before falling back to 1.85% on Thursday and to 1.82% on Friday.

In an effort to regain control over the SOFR rate the Federal Reserve Bank of New York (FRBNY) conducted a series of repo operations with the primary dealers in order to add additional cash into the repo market. On Monday September 23rd it conducted $73.23 in overnight repo with primary dealers, $75 billion in overnight and another $30 billion in 14 day term on Tuesday, $75 billion in overnight on Wednesday, $55 billion of overnight and 60 billion of 14 day term on Thursday and $28 billion in overnight repo and $49 billion in overnight term on Friday.  The exact data may be found here.


While the Fed’s operations were largely successful last week, market participants will be watching today’s quarter end rates closely.


Good Day DR2.