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Thanks for the info. At 4.30% composite rate, will I bond be competitive to that of say, 5 year TIPs at auction? I anticipate the inflation (CPI) will stay 4-5% until end of 2024. The labor market is still tight.
I’m willing to keep my I-Bonds at least another six months at that rate. They are exempt from state income taxes, which adds a little more to their value, and perhaps inflation will not drop as expected. However, I’m not buying any new I-Bonds as long as CDs and money markets are yielding 4-5%
I am just rolling maturing 3m T-Bill (5/4/23) into 3m T-Bill auction Monday (5/1/23) - both will settle on 5/4/23. 3m is still benefitting from wide 1m-3m spread on debt-ceiling concerns.
I am keeping existing I-Bonds and 5-yr TIPS for now, but not adding more. The new fixed rate of 0.90% was higher than expected.
Unclear whether the early release of I-Bond rate on Friday, 4/28/23 was a leak or a mistake in setting up its embargoed release. I had marked Monday, 10am, 5/1/23 on my calendar and I was very surprised when the info came on Friday.
On the last cycle, the Treasury said that you wouldn't get the old rate if you purchased savings bonds on Oct 30th (Mon) or 31st. Now it is saying much the same thing:
When did I need to complete my I bond purchase to receive the initial rate of 6.89 percent? If you were buying in TreasuryDirect, you needed to complete your purchase and receive a confirmation e-mail by Thursday, April 27, 2023, at 11:59 p.m. Eastern Time.
How does a financial institution ask you to lend it money (make a deposit, buy a savings bond, etc.) without telling you (either in numbers or by formula) how much it will pay you for that loan? Maybe that's why the figure was released early. Though by that reasoning it should have been released yesterday morning.
The warning should have been more prominent because of the earlier cutoff date of 4/27/23 Midnight and 4/28/23 being a business day. The warnings last time were prominent.
Comments
I anticipate the inflation (CPI) will stay 4-5% until end of 2024. The labor market is still tight.
I am keeping existing I-Bonds and 5-yr TIPS for now, but not adding more. The new fixed rate of 0.90% was higher than expected.
Unclear whether the early release of I-Bond rate on Friday, 4/28/23 was a leak or a mistake in setting up its embargoed release. I had marked Monday, 10am, 5/1/23 on my calendar and I was very surprised when the info came on Friday.
How does a financial institution ask you to lend it money (make a deposit, buy a savings bond, etc.) without telling you (either in numbers or by formula) how much it will pay you for that loan? Maybe that's why the figure was released early. Though by that reasoning it should have been released yesterday morning.
It is buried under Help Center "Savings Bond FAQs", https://www.treasurydirect.gov/help-center/savings-bond-faqs/
The warning should have been more prominent because of the earlier cutoff date of 4/27/23 Midnight and 4/28/23 being a business day. The warnings last time were prominent.