The market has just experienced a month of extreme volatility: the Secured Overnight Financing Rate (SOFR), which serves as the benchmark for Treasury collateral borrowing costs, surged by 18 basis points last Friday, marking the largest single-day increase outside the Federal Reserve's rate hike cycle since March 2020. Although the pressure eased at the end of the month, SOFR fell back on Monday but remains above key policy benchmark levels like the federal funds rate; other short-term rates in the interbank overnight repo market continue to operate above the rates managed by the Federal Reserve.
The Federal Reserve has run out of time to respond calmly, and they seem somewhat at a loss,” said Mark Cabana, head of U.S. interest rate strategy at Bank of America. “December 1 is the only compromise they can reach, and I suspect the market will soon force them to take action.”
Due to the recent intensification of financing pressures, the Federal Reserve announced last week that it will stop reducing its holdings of Treasury bonds in December, marking the end of a three-year quantitative tightening process.#加密市场回调
