Fed Funds Prints 2.30%, Breaching Target Range For The First Time, As Libor Replacement Soars To “Remarkable” 5.25%

• Fed Funds Prints 2.30%, Breaching Target Range For The First Time, As Libor Replacement Soars To “Remarkable” 5.25%
  by Tyler Durden, https://www.zerohedge.com/
  If today’s second consecutive repo was supposed to calm the stress in the secured lending market and ease the funding shortfall in the interbank market, it appears to have failed. Not only did O/N general collateral print at 2.25-2.60% after the repo operation, confirming that repo rates remain inexplicably elevated even though everyone who had funding needs supposedly met them thanks to the Fed, but in a more troubling development, the Effective Fed Funds rate printed at 2.30% at 9am this morning, breaching the Fed’s target range of 2.00%-2.25% for the first time.
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  And yes, it is quite ironic that on the day the Fed is cutting rates, the Fed Funds was just “pushed” above the top end of the target range for the first time ever. This also means that the EFF-IOER spread has now blown out to an unprecedented 20bps, yet another indication that the Fed has lost control of the rates corridor.
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  But in what may be the most concerning move, today’s print for the Secured Overnight Financing Index (SOFR), which is widely expected to be Libor’s replacement, exploded higher by 282bps to a record 5.25%.
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