The provided link directs to the statistics for the 30-day Average Secured Overnight Financing Rate (SOFR), updated daily. As of October 11, 2023, the rate is 5.31998%. The 30-day Average SOFR represents a compounded average of the SOFR over a rolling 30-day period, which is crucial for understanding short-term interest rate trends1.
The Secured Overnight Financing Rate (SOFR) is a benchmark interest rate. For instance, if SOFR is 0.5% and you lend $1000 overnight, you’d receive $1005 the next day. SOFR reflects the cost of borrowing cash overnight collateralized by Treasury securities. Over time, a daily SOFR average, like a 30-day average, can be calculated to understand interest rate trends over that period, which is helpful in various financial applications, including the pricing of loans and derivatives.
