Money markets are mixed
Money markets are mixed ahead of what's expected to be an unchanged Fed rate stance. The 2.40% effective funds rate remains in place of course, where it's been since the December 19 rate hike. And it should hold here after today's FOMC meeting with unanimous expectations for no change in interest rates. Meanwhile, overnight general collateral has firmed to 2.59% from 2.55%, though that could be some early preparation ahead of quarter-end. Traders still remember the prior spike, which was exacerbated by year-end, not to mention some uncertainties over bill supply and the debt limit. SOFR and BGCR firmed slightly yesterday to 2.42% and 2.40%, respectively, from 2.41% and 2.38%, on bill settlements. And there are more settlements tomorrow for $6 B in new cash. The 3-month Libor rate dipped to 2.60700% from 2.61275%. Overnight Libor was 2.3863% versus 2.3901%.