Yesterday, SOFR (blue) was 16 basis points above Interest on Reserves (orange). As the dotted line and box in the top panel show, SOFR has effectively "undone" the first rate cut in September. As this arrow in the bottom panel shows, funding market rates are tightening (relative to each other). And the Fed announced another month of QT, which will continue squeezing these markets. Where will this spread be on November 30? Will today's second cut get "undone" as well? I hope Powell is asked about this and answers in detail.(Jim Bianco)