Gyroscopic Investing

boglerdude wrote: ↑Wed Jan 06, 2021 7:20 pm Why is my ibond puchased 04-01-2019 at 1.56%. Shouldnt it be the same 1.68% as the bond purchased last week

Not sure where you got your information. An I-bond purchased from November 2018 through April 2019 has a current composite rate of 2.18%. See TreasuryDirect's official table located at:

https://www.treasurydirect.gov/indiv/re ... positerate

Note that if you cash that I bond before it is 5 years old, you will pay a penalty of the 3 previous months interest, which will reduce your effective yield.

boglerdude wrote: ↑Wed Jan 06, 2021 7:20 pm Why is my ibond puchased 04-01-2019 at 1.56%. Shouldnt it be the same 1.68% as the bond purchased last week

I have wondered the same thing about some bonds in our inventory. According to the Treasury Direct online calculator, a couple of I-Bonds from 2007 are currently yielding 1.06% and a few from 2010 are yielding 1.26%.

Wouldn't this only make sense if some I-Bonds were issued with a negative fixed rate?

ETA: This issue "goes away" if I set the calculation date to 4/1/21. So it's likely that bonds that were set with an original inflation rate of less than 1.68% don't instantly start paying 1.68%... or something like that.

jhogue wrote: ↑Thu Jan 07, 2021 9:53 am

boglerdude wrote: ↑Wed Jan 06, 2021 7:20 pm Why is my ibond puchased 04-01-2019 at 1.56%. Shouldnt it be the same 1.68% as the bond purchased last week

Not sure where you got your information. An I-bond purchased from November 2018 through April 2019 has a current composite rate of 2.18%. See TreasuryDirect's official table located at:

https://www.treasurydirect.gov/indiv/re ... positerate

Screencaps from my account. Should I email them?

boglerdude wrote: ↑Wed Jan 06, 2021 7:20 pm Why is my ibond puchased 04-01-2019 at 1.56%. Shouldnt it be the same 1.68% as the bond purchased last week

On the TD website, if you set the "Value as of" date for that 4/1/2019 bond to 4/1/2021, what do you then see for the yield?

For I-Bonds that I purchased on 10/1/2010, I am seeing the current yield as 1.26%. When I set the "Value as of" date to 4/1/2021, that jumps to 1.88%. So my 10/1/2010 bonds have a fixed rate of .2% plus the current inflation kicker of 1.68%.

To be clear, I am not saying that I understand WHY the interest rate only adjusts upward at six months intervals. But that does seem to be what happens.

jhogue???

"I-bonds reset on their anniversary. The rate will update in April to 2.18%, and then be in effect through September."

https://www.bogleheads.org/forum/viewto ... &p=5732240