The U.S. Secured Overnight Financing Rate (SOFR) surged by 18 basis points to 4.22% on November 3, marking its largest single-day increase in a year. This significant rise is attributed to increased government shutdown risks, which led the U.S. Treasury to focus on short-term debt issuance. The influx of Treasury supply likely drained liquidity from funding markets, elevating repo rates and consequently lifting SOFR.