Daily Sterling Overnight Index Average (SONIA) Rate: 10th percentile
IUDZLS6 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.20
Year-over-Year Change
0.24%
Date Range
10/5/2021 - 8/4/2025
Summary
The Daily Sterling Overnight Index Average (SONIA) Rate at the 10th percentile represents a low-end benchmark for short-term lending rates in the financial markets. This metric provides insight into the most conservative borrowing costs and potential stress points in the overnight lending environment.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This economic indicator tracks the lower bound of overnight interbank lending rates, reflecting the most conservative lending conditions in the financial system. Economists use this percentile to understand potential market liquidity constraints and assess underlying financial market tensions.
Methodology
The rate is calculated by aggregating actual transaction data from overnight sterling lending transactions, then identifying the 10th percentile value across a specified time period.
Historical Context
Central banks and financial regulators use this metric to monitor potential systemic risks and assess the overall health of short-term lending markets.
Key Facts
- Represents the lowest 10% of overnight lending rates
- Provides insight into conservative borrowing conditions
- Used as a benchmark for short-term financial market analysis
FAQs
Q: What does the 10th percentile of SONIA rate indicate?
A: It represents the lowest 10% of overnight lending rates, signaling the most conservative borrowing conditions in the market.
Q: Why is the SONIA rate important?
A: It serves as a critical benchmark for understanding short-term lending costs and potential market stress in the financial system.
Q: How is the SONIA rate calculated?
A: The rate is derived from actual overnight sterling lending transactions, aggregated and then analyzed to determine the 10th percentile value.
Q: Who uses the SONIA rate?
A: Central banks, financial regulators, economists, and market analysts use this metric to assess market conditions and potential systemic risks.
Q: How frequently is the SONIA rate updated?
A: The rate is typically calculated daily, providing real-time insights into overnight lending market conditions.
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Citation
U.S. Federal Reserve, Daily Sterling Overnight Index Average (SONIA) Rate: 10th percentile [IUDZLS6], retrieved from FRED.
Last Checked: 8/1/2025