Comments on: Savings Bonds and Treasury Securities http://www.savings-bond-advisor.com/savings-bonds-and-treasury-securities/ Fri, 29 Aug 2008 20:36:19 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/savings-bonds-and-treasury-securities/#comment-141 Wed, 22 Feb 2006 15:49:08 +0000 http://www.savings-bond-advisor.com/savings-bonds-and-treasury-securities/#comment-141 The January CPI was released today - please continue this discussion <a href="http://www.savings-bond-advisor.com/savings-bond-alert-017/" rel="nofollow">here</a>. The January CPI was released today - please continue this discussion here.

]]> by: Tom Adams http://www.savings-bond-advisor.com/savings-bonds-and-treasury-securities/#comment-69 Fri, 03 Feb 2006 20:09:15 +0000 http://www.savings-bond-advisor.com/savings-bonds-and-treasury-securities/#comment-69 Mario - I'd like to wait and see the next CPI number, which will be released on Wednesday, Feb 22, before creating a stir about this. You are correct, of course. If there is no recovery in the CPI level by March (the numbers are released in April), the I bond inflation component could be negative for the first time since I bonds were introduced. However, if you look at my <a href="http://www.savings-bond-advisor.com/cpi-inflation-update/" rel="nofollow">Series I Saving Bond inflation component graph</a>, you'll see that a CPI dip like this also happened at the end of 2001. That time it recovered by March, but just barely, and I bond investors were treated to the lowest inflation component to date, just 0.56%. Mario - I'd like to wait and see the next CPI number, which will be released on Wednesday, Feb 22, before creating a stir about this.

You are correct, of course. If there is no recovery in the CPI level by March (the numbers are released in April), the I bond inflation component could be negative for the first time since I bonds were introduced.

However, if you look at my Series I Saving Bond inflation component graph, you'll see that a CPI dip like this also happened at the end of 2001.

That time it recovered by March, but just barely, and I bond investors were treated to the lowest inflation component to date, just 0.56%.

]]> by: Mario http://www.savings-bond-advisor.com/savings-bonds-and-treasury-securities/#comment-68 Fri, 03 Feb 2006 05:42:16 +0000 http://www.savings-bond-advisor.com/savings-bonds-and-treasury-securities/#comment-68 I suppose you can also answer this question by looking at current CPI numbers since the 6.73% adjustment. It's gone way downhill since then. In fact, inflation has to make up 4% (annualized) in the next six months just to break even on the variable rate! Tom, I wanted to ask your thoughts/predictions on the next I bond rate period. It appears we're in for a very low rate. But, this might compel the treasury to finally hike the fixed rates, so that the I bond stays competitive with the alternatives. If that is a substantial increase, it might be worth buying even if the composite rate is initially low. I suppose you can also answer this question by looking at current CPI numbers since the 6.73% adjustment. It's gone way downhill since then. In fact, inflation has to make up 4% (annualized) in the next six months just to break even on the variable rate!

Tom, I wanted to ask your thoughts/predictions on the next I bond rate period. It appears we're in for a very low rate. But, this might compel the treasury to finally hike the fixed rates, so that the I bond stays competitive with the alternatives. If that is a substantial increase, it might be worth buying even if the composite rate is initially low.

]]>