Money market rates are little changed
Money market rates are little changed as year-end stress retreat further into the past and as Fed tightening expectations have been largely erased. The Fed's effective funds rate has been stable at 2.40% since the FOMC tightened on December 19, and has been confined to a 2.34% to 2.60% range so far this year. The spread to IOER remains flat. SOFR and BGCR firmed slightly yesterday to 2.45% and 2.44%, respectively, from 2.42% and 2.40%. General collateral opened at 2.51%, versus 2.55% yesterday. Remember it was as high as 6.50% on December 31. The volume of the NY Fed's reverse repos has declined too, totaling $2.537 B yesterday with 9 counterparties, versus $2.81 B Tuesday (9 counterparties), and compares to the term repo from December 31 at $41.8 B with 17 counterparties.