SOFR is tanking hard right now. For context, this is the interest rate that institutions pay when they borrow cash overnight. When you see it drop this fast, it signals that liquidity is flooding the system suddenly. Cash availability is spiking. Why does this matter? When borrowing costs collapse like this, it usually means either central banks are pumping liquidity or there's a rush of capital looking for a home. Either way, cheaper money tends to flow into risk assets eventually. Worth watching how this plays out over the next few sessions.
SOFR is tanking hard right now. For context, this is the interest rate that institutions pay when they borrow cash overnight. When you see it drop this fast, it signals that liquidity is flooding the system suddenly. Cash availability is spiking. Why does this matter? When borrowing costs collapse like this, it usually means either central banks are pumping liquidity or there's a rush of capital looking for a home. Either way, cheaper money tends to flow into risk assets eventually. Worth watching how this plays out over the next few sessions.