SOFR vs Fed Funds Rate: Chart and Spread
The secured repo rate against the unsecured interbank rate, on every day both were published, and the spread between them.
- Secured Overnight Financing Rate
- 3.88%
- Effective Federal Funds Rate
- 3.88%
- 1 year earlier
- +4bp24 September 2025
- 5 years earlier
- −3bp24 September 2021
- Highest
- +295bp17 September 2019
- Lowest
- −15bp18 March 2020
Source: Federal Reserve Bank of New York. Derived by M0 from FRED series SOFR and EFFR, matched on identical dates · Latest observation 24 September 2026. Figures are subject to revision by the publishing agency.
How SOFR and Fed funds differ
The effective federal funds rate is the rate on overnight unsecured loans of reserves between depository institutions. SOFR is the rate on overnight cash borrowed against Treasury collateral in the repo market, and its transaction base is far larger.
Because one is unsecured and one is secured, the textbook expectation is that SOFR sits below fed funds. In practice the sign of the spread depends on how plentiful reserves and cash are relative to the Treasury collateral that needs financing, which is why a persistently positive spread is read as a sign that reserves are becoming less ample.
Both are published by the Federal Reserve Bank of New York for the prior business day, so the two series share the same calendar and can be matched date for date.
Before reading the chart
- SOFR publication began in April 2018, so the comparison cannot reach further back than that even though the fed funds series does.
- Quarter and month ends produce short, predictable jumps in repo rates that do not reflect a change in the underlying regime.
Year by year
Calendar-year averages of every day both rates were published. The current year is year to date.
| Year | SOFR | Fed funds | SOFR minus effective fed funds | Days SOFR higher |
|---|---|---|---|---|
| 2026 | 3.64% | 3.64% | +0bp | 94 of 183 |
| 2025 | 4.24% | 4.21% | +3bp | 155 of 249 |
| 2024 | 5.15% | 5.15% | +0bp | 78 of 250 |
| 2023 | 5.01% | 5.03% | −2bp | 11 of 249 |
| 2022 | 1.64% | 1.68% | −5bp | 0 of 249 |
| 2021 | 0.04% | 0.08% | −4bp | 4 of 250 |
| 2020 | 0.36% | 0.36% | −1bp | 67 of 251 |
| 2019 | 2.20% | 2.16% | +4bp | 149 of 250 |
| 2018 | 1.98% | 1.96% | +2bp | 111 of 187 |
SOFR vs Fed funds: common questions
- What is the difference between SOFR and Fed funds today?
- As of 24 September 2026, Secured Overnight Financing Rate was 3.88% and Effective Federal Funds Rate was 3.88%, so sofr minus effective fed funds was 0bp. Both series are from FRED (SOFR and EFFR) and are subject to revision.
- What is the highest and lowest sofr minus effective fed funds on record?
- Across 2,118 matched days from 3 April 2018 to 24 September 2026, the highest reading was +295bp on 17 September 2019 and the lowest was −15bp on 18 March 2020.
- How often is SOFR above Fed funds?
- SOFR printed above the effective fed funds rate on 31.6% of the 2,118 days both rates were published between 3 April 2018 and 24 September 2026.
- How are SOFR and Fed funds different?
- The effective federal funds rate is the rate on overnight unsecured loans of reserves between depository institutions. SOFR is the rate on overnight cash borrowed against Treasury collateral in the repo market, and its transaction base is far larger.
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