U.S. SOFR–federal funds rate spread buy-ins surge, and the July spread turns positive for the first time

Golden Finance reported that on July 9, during Thursday’s trading in the U.S. market, large purchases of the July SOFR (secured overnight financing rate) and the federal funds rate basis caused this spread to turn positive for the first time, indicating that the 1-month SOFR rate in July contracts is lower than the federal funds rate. Similar buying activity was also seen in the early trading sessions on Wednesday and Tuesday.
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