SOFR - IORB Spread (pct pts & bps)

Tracks short-term funding conditions by measuring the spread between the Secured Overnight Financing Rate (SOFR) and the Fed’s Interest on Reserve Balances (IORB). When SOFR persistently trades above IORB, it signals cash scarcity and stress in overnight funding markets. This indicator is best used as a risk-regime and plumbing health check, not as a directional trading signal. Calm readings allow trends to persist; sustained spikes often precede periods of volatility and forced deleveraging.