SOFR Option Weekly Commentary 9/11/26
SOFR futures sold off today as higher Core CPI (MoM) +0.3% vs +0.2% expected, increased the odds of the FED hiking rates 25 bp next week (Wed Sep 16th) to 86.3%. It is important to note, however, that Core CPI (YoY) 2.4% is the lowest since the Spring of 2021. WTI & Brent crude futures both traded over $100 a barrel this week but were lower today. The 10Yr is currently trading @ 4.96%.
SOFR Option vols were lower today but mixed over the past week (see attached spreadsheet).