SOFR

The US Treasury is set to settle a total of $202 billion in coupon-bearing government bonds on September 30, a test of quarter-end overnight funding. A reopened 10-year inflation-protected Treasury note and 2-year, 5-year and 7-year notes all settle the same Wednesday, with public offering amounts of $19 billion, $69 billion, $70 billion and $44 billion respectively. The Federal Home Loan Bank of New York said the market remains calm but warned that net new supply could push borrowing rates in the repo market higher. The Treasury estimates that $143.58 billion in coupon-bearing debt held by the public matures that day, leaving $58.42 billion in net new coupon issuance, a measure of securities issued in excess of maturing debt rather than the actual amount of cash drained. Treasury bills auctioned before quarter-end settle on October 1, outside that figure. SOFR, the measure of overnight borrowing costs secured by Treasuries, stood at 3.88% for September 24, up from 3.85% on September 18 and 21, but still below the 3.90% rate the Federal Reserve pays on bank reserves. As for the knock-on effect on Bitcoin, traders will watch for easing in perpetual futures funding rates or a narrowing of the futures basis, with no clear evidence yet that the pressure is directly hitting Bitcoin.