Comments on: New Savings Bond investments down 50% http://www.savings-bond-advisor.com/new-savings-bond-investments-down-50/ Fri, 12 Mar 2010 22:40:12 +0000 http://wordpress.org/?v=2.0.4 by: Administrator http://www.savings-bond-advisor.com/new-savings-bond-investments-down-50/#comment-2610 Thu, 15 Mar 2007 14:54:30 +0000 http://www.savings-bond-advisor.com/new-savings-bond-investments-down-50/#comment-2610 Hi Mario - my guess - and that's all it is - is that the I bond fixed rate will continue to track with TIPS yields. The amount the government borrows this year will be near all-time highs, but the amount it borrows using Savings Bonds will be near all-time lows. Hi Mario - my guess - and that's all it is - is that the I bond fixed rate will continue to track with TIPS yields.

The amount the government borrows this year will be near all-time highs, but the amount it borrows using Savings Bonds will be near all-time lows.

]]> by: Mario http://www.savings-bond-advisor.com/new-savings-bond-investments-down-50/#comment-2607 Thu, 15 Mar 2007 03:25:03 +0000 http://www.savings-bond-advisor.com/new-savings-bond-investments-down-50/#comment-2607 Tom, I'm assuming the Treasury will have to set the I bond fixed rate higher in May if they want to increase savings bond purchases, especially since we can assume that the inflation component will be fairly low in May (and we'll have an even better idea on Friday when the next-to-last CPI data point for the new rate is released). However, what troubles me is that at the same time, real TIPS yields have been moving lower, 0.4-0.5% lower than their highs last year. Any intuition how the Treasury might strike a balance between these differences? Tom,

I'm assuming the Treasury will have to set the I bond fixed rate higher in May if they want to increase savings bond purchases, especially since we can assume that the inflation component will be fairly low in May (and we'll have an even better idea on Friday when the next-to-last CPI data point for the new rate is released).

However, what troubles me is that at the same time, real TIPS yields have been moving lower, 0.4-0.5% lower than their highs last year.

Any intuition how the Treasury might strike a balance between these differences?

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