Secured Overnight Financing Rate: 75th Percentile
This dataset tracks secured overnight financing rate: 75th percentile over time.
Latest Value
4.40
Year-over-Year Change
1.62%
Date Range
4/3/2018 - 8/8/2025
Summary
The Secured Overnight Financing Rate (SOFR) 75th Percentile represents a key benchmark for short-term borrowing costs in the financial markets. This metric provides insight into the higher-end transaction rates in the repurchase agreement (repo) market, offering a more comprehensive view of lending dynamics.
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 reflects the 75th percentile of transactions in the secured overnight funding market, capturing a more elevated perspective of borrowing costs. Economists use this measure to understand potential stress or premium in short-term lending markets beyond the median rate.
Methodology
The rate is calculated by collecting and ranking overnight repo transaction data, then identifying the value at the 75th percentile of those transactions.
Historical Context
Policymakers and financial analysts use this metric to assess market liquidity, potential financial stress, and underlying lending conditions in the financial system.
Key Facts
- Represents the 75th percentile of secured overnight funding transactions
- Provides a higher-end view of short-term borrowing costs
- Helps indicate potential market stress or premium in lending
FAQs
Q: How is the SOFR 75th Percentile different from the median SOFR?
A: The 75th percentile captures higher-cost transactions, offering a more elevated view of borrowing rates compared to the median rate. It helps identify potential premium or stress in the lending market.
Q: Why do economists find the 75th percentile valuable?
A: This metric provides additional insight into market conditions by showing the higher-end transactions, which can reveal nuanced lending dynamics not captured by average or median rates.
Q: How often is the SOFR 75th Percentile updated?
A: The rate is typically calculated and updated daily, reflecting the most recent overnight repo market transactions and lending conditions.
Q: What financial instruments might reference this rate?
A: Some floating-rate loans, derivatives, and financial contracts may use this rate as a benchmark for pricing or adjusting interest rates.
Q: Are there limitations to using the 75th percentile?
A: While informative, this metric represents a specific segment of transactions and should be considered alongside other market indicators for comprehensive analysis.
Related News
US Mortgage Rates Drop, Leading Lender in September 2025 Revealed
U.S. Mortgage Rates Plummet in September 2025 U.S. mortgage rates have experienced a significant decline, grabbing the attention of the housing market in September 2025. Historically low mortgage rates are creating buzz, offering fresh opportunities for homebuyers looking for affordable financing options. This unexpected dip could bolster movements within the housing sector, leading many to explore financing options they once considered out of reach. As potential buyers and market experts watch
US homeowners refinance as mortgage rates fall
How Lower Mortgage Rates Are Encouraging Mortgage Refinancing With mortgage refinancing becoming increasingly attractive, US homeowners are seizing the opportunity to lower their interest rates and save money. Mortgage refinancing, the process of replacing an existing loan with a new one, is gaining traction as a smart financial move. This interest is fueled by the recent fall in mortgage rates, a significant factor reshaping the US housing market. Lower mortgage rates, alongside other economic
Unpredictability of Interest Rate Direction in the United States
Navigating the Unpredictability of Interest Rates Interest rates have turned into one of the most unpredictable elements in the American financial landscape. This unpredictability stems largely from the nuanced decisions of the Federal Reserve, often referred to as the Fed, whose policies ripple through financial markets, influencing borrowing costs for everyone from ambitious entrepreneurs to families securing mortgages. The web of economic indicators, which serves as the backbone for interest
U.S. S&P 500 Stock Movements: Paramount and Apple Surge
Apple and Paramount Stocks Bolster the S&P 500: Analyzing Market Movements The S&P 500 recently experienced a boost thanks to significant stock movements from Apple and Paramount. As a key indicator of the U.S. stock market, the S&P 500's rise reflects broader economic dynamics. Notably, Apple's stock benefited from the recent iPhone 17 launch, while Paramount's corporate strategies have also captured investor attention. These developments underscore the interconnected nature of market trends,
US Housing Giant Hopes Fed Policies Boost Sagging Profits
Revitalizing S&P 500 Housing with Federal Reserve Policies The primary keyword, "Treasury Yield," has become an increasingly critical focus within the realm of the S&P 500 housing market. Current fluctuations in bond rates, particularly the 10-year bond rate, are causing waves in the already volatile US housing market. This situation is marked by a profit decline experienced by major housing giants, as economic uncertainty steers investor confidence. The Federal Reserve's policies and interest
Impact of U.S. Treasury Yields Rise After Fed Rate Cut
The Impact of a Treasury Yield Rise on the U.S. Economy After a Fed Rate Cut The current rise in the 10-year Treasury bond rate has caught the attention of economists, investors, and policymakers alike. Treasury yields, particularly the 10-year Treasury bond rate, act as a key indicator of the economic outlook in the United States. They affect interest rates, the bond market, and expectations for inflation. Understanding their fluctuations can offer insight into financial markets and help guide
Similar SOFR Trends
Citation
U.S. Federal Reserve, Secured Overnight Financing Rate: 75th Percentile [SOFR75], retrieved from FRED.
Last Checked: 8/1/2025