SOFR reflects the cost of overnight borrowing collateralized by Treasuries. When SOFR drops, it usually signals:
- Excess cash in the repo market
- Lower demand for overnight borrowing
- More Treasury collateral available
- Money‑market funds accepting lower yields
ecb also already started QEhttps://t.co/xcMp97Zo8Z
— Filip Spasevski (@FilipsMoneyX) January 13, 2026