Liquidity indicator signals red alert! US key interbank lending rate SOFR hits highest annual increase.

According to the Securities Times APP, this week, a key interest rate in the U.S. financial system has significantly increased, surpassing the target range set by the Federal Reserve. This phenomenon is due to sustained decrease in liquidity, which is caused by the settlement of U.S. Treasury auctions and the approaching quarterly corporate tax payment dates. According to the latest data released by the New York Fed on Tuesday, the Secured Overnight Financing Rate (SOFR) has risen from 4.42% on the previous trading day to 4.51% on September 15, marking the largest increase in this rate since December 31 of last year. This short-term loan benchmark rate is related to activities in the repurchase agreement market.