180-Day Average SOFR

SOFR180DAYAVG • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.37

Year-over-Year Change

-0.03%

Date Range

10/8/2021 - 8/7/2025

Summary

The 180-Day Average SOFR represents the cumulative 180-day moving average of the Secured Overnight Financing Rate, a key benchmark interest rate used in financial markets. This metric provides a smoothed, longer-term perspective on short-term lending costs and market liquidity conditions.

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

The 180-Day Average SOFR reflects the rolling average of daily SOFR rates, offering economists and financial professionals a more stable view of short-term borrowing trends. It helps mitigate daily volatility and provides a more comprehensive understanding of underlying market dynamics.

Methodology

The rate is calculated by taking the arithmetic mean of daily SOFR rates over a 180-day period, with data collected from actual overnight lending transactions in the U.S. Treasury repurchase market.

Historical Context

This metric is crucial for pricing floating-rate financial instruments, evaluating monetary policy implications, and assessing overall financial market stability.

Key Facts

  • Provides a 180-day moving average of daily SOFR rates
  • Helps smooth out daily interest rate fluctuations
  • Used in pricing various financial instruments and contracts

FAQs

Q: What makes the 180-Day Average SOFR different from daily SOFR?

A: The 180-Day Average SOFR provides a smoother, less volatile representation of short-term lending rates by averaging 180 consecutive daily rates.

Q: How is this metric used in financial markets?

A: It is used to price floating-rate loans, derivatives, and other financial instruments that require a stable, predictable interest rate benchmark.

Q: Who calculates and publishes the 180-Day Average SOFR?

A: The Federal Reserve Bank of New York calculates and publishes the SOFR rates, with the 180-day average derived from these daily measurements.

Q: Why is the 180-Day Average SOFR important for economic analysis?

A: It provides insights into short-term lending market conditions and helps economists and policymakers understand broader financial market trends.

Q: How frequently is the 180-Day Average SOFR updated?

A: The rate is typically updated daily, with the 180-day average rolling forward to include the most recent daily rate.

Related Trends

Citation

U.S. Federal Reserve, 180-Day Average SOFR [SOFR180DAYAVG], retrieved from FRED.

Last Checked: 8/1/2025