SOFR Falls to 3.53% as of July 9, Lowest Since Late May Amid Abundant Liquidity

According to the Federal Reserve Bank of New York, the SOFR (Secured Overnight Financing Rate), a key benchmark for U.S. money markets, fell to 3.53% as of July 9, down 5 basis points from the previous day and marking its lowest level since May 21. SOFR has declined every trading day this month, dropping 15 basis points from late June.

The U.S. Treasury's cash balance fell significantly to $749.2 billion as of July 8, down approximately $170 billion from late June, releasing liquidity into money markets. The spread between SOFR and IORB (the interest rate on reserve balances, currently 3.65%) narrowed to minus 12 basis points, also its lowest since May 21, reflecting ample market liquidity.