Monthly Archives: October 2016

‘I Bond’ Countdown: Buy Before The November 1 Rate Reset, Or Wait?

Summary Buy now? You guarantee a one-year return of 1.56%, which is attractive. Wait until November 1? You could lose the 0.1% fixed rate, but earn more money in one year anyway. Either way, this isn’t going to be a … Continue reading

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30-Year TIPS Reopening Auctions With A Real Yield Of 0.666%, Lowest In More Than 3 Years

Summary Buyers had a pay a big premium for the 1.00% coupon rate, about $110.67 for $101.65 of value, when accrued inflation is added in. The inflation breakeven rate came in at about 1.83%, 31 basis points higher than at … Continue reading

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Will The Treasury Drop The I Bond Fixed Rate To 0.0%? Here’s Why It Could Happen.

Summary The data support a drop to a 0.0% fixed rate, but wouldn’t the Treasury be sending an awful message? You can buy now to lock in the I Bond’s current 0.1% fixed rate, or wait until November 1 and … Continue reading

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I Bond’s Variable Interest Rate Will Rise To 2.76% On November 1

Summary This variable rate will be the highest for an I Bond in 5 years. All investors in I Bonds will get the new variable rate for six months, the timing depends on the month the I Bond was purchased. … Continue reading

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Up Next: 30-Year TIPS Reopens At Auction Oct. 20; This One Is Going To Cost You

Summary CUSIP 912810RR1 has a coupon rate of 1.00%, but the yield is going to come in much lower, meaning buyers will have to pay a high premium. 30-year TIPS are highly volatile. Investors at the original auction in February … Continue reading

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