I have come across this page from CME
which provides O/N rate for various terms:
https://www.cmegroup.com/market-data/cme-group-benchmark-administration/term-sofr.html
I am confused on this specification. What does 6m SOFR
as 0.05144 mean? SOFR
is essentially overnight rate, so for a given day (closing) I would expect only single quote.
Is there any calculation happening to derive this so called 6M rate for SOFR
? What does the rate 0.05144 mean in practical sense?
Any insight is highly appreciated.