Integrated Brief

SOFR–IORB Spread

As of 2026-10-05, the SOFR–IORB Spread stood at -1.0 bps, up 1.0 bps from the prior reading, at the 83rd percentile of the past 5 years. The spread between SOFR, the New York Fed's daily rate on overnight repo loans backed by Treasuries, and IORB, the rate the Fed pays banks on reserves. When reserves are ample, banks lend surplus reserves into repo whenever SOFR rises above IORB, so the spread stays at or below zero. A sustained positive spread means that arbitrage has run out: repo cash is scarce, a funding-stress signal (September 2019 is the textbook case). It is one of the DLI's funding-stress inputs.