- I Bonds issued before November 1 will carry a permanent fixed rate of 0.50%, creating a real return higher than that of a 5-, 10- or 20-year TIPS.
- The Treasury will reset this fixed rate on November 1, and it is very likely to go lower.
- With interest rates sliding lower, this could be a “last chance” opportunity (for years?) to get a good fixed rate on an excellent inflation-protected investment.
It pains me to say this: The market’s best inflation-protected investment could go “poof” on November 1. That’s the date the U.S. Treasury will reset the fixed rate on its U.S. Series I Savings Bonds. And the news isn’t likely to be good.
Read my full analysis on SeekingAlpha.com
The other possibility is that some successful trade agreements (especially with China) will cause a stock market ‘melt-up’ with escalating interest rates to follow.