US FED Secured Overnight Financing Interest Rate (SOFR)
US FED Secured Overnight Financing Interest Rate (SOFR) stood at 3.89% on Oct 15, 2026, according to FRED (Federal Reserve Bank of St. Louis). It is one of the indicators in the FED interest rates table (Value · Daily), with a complete series running from Apr 3, 2018 to Oct 15, 2026. The complete series with an interactive chart, free to download.
This indicator in the FED interest rates table
| Indicator | 19-10-2026 | 18-10-2026 | 17-10-2026 | 16-10-2026 | 15-10-2026 | 14-10-2026 | 13-10-2026 | 12-10-2026 | 11-10-2026 | 10-10-2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Secured overnight financing interest rate (SOFR) | 3.89 | 3.88 | 3.89 | ||||||||
| Overnight bank funding interest rate (OBFR) | 3.88 | 3.88 | 3.88 | ||||||||
| Interest rate on reserve balances (IORB) | 3.9 | 3.9 | 3.9 | 3.9 | 3.9 | 3.9 | 3.9 | 3.9 | 3.9 | 3.9 |
Understanding US FED Secured Overnight Financing Interest Rate (SOFR)
The policy interest rate in the United States measures the cost of overnight borrowing secured by US Treasury securities in the repo market, as published by the Federal Reserve. The borrower transfers collateral and commits to repurchase it, meaning credit risk and transaction structure differ distinctly from unsecured federal funds loans. This indicator is a transaction-based reference rate rather than a policy rate or a repo quote reserved for a specific asset group. Underlying transaction volumes are published in a separate series and are not included in the interest rate value.
Fluctuations should be evaluated against the previous day because cash conditions, collateral supply, and balance sheet demand can change rapidly. End-of-period dates, holidays, or major securities settlement dates can generate temporary volatility; year-on-year comparisons do not necessarily account for these effects due to shifting work and settlement calendars. When the secured overnight financing rate rises while the effective federal funds rate remains stable, the cause may lie in the repo market rather than the policy stance. A single isolated jump should be examined alongside transaction volumes and narrower repo rates before drawing conclusions.
Frequently asked questions
- Why does SOFR differ from EFFR even though both are overnight interest rates?
- SOFR is based on secured loans in the repo market, whereas EFFR reflects unsecured reserve borrowing.
- Does a rise in SOFR mean the target interest rate has increased?
- Not necessarily. Fluctuations can stem from cash supply and demand, collateral, or balance sheet needs.
- How does SOFR volume help when interpreting interest rates?
- Volume indicates the depth of the transaction pool behind the reference rate and helps assess whether a movement is accompanied by changes in market activity.