Everyone knows the actual rate of inflation is at least ten points higher. Except anyone buying or selling bonds, that is. ;)
All jokes aside, what’s up with that? It doesn’t make any sense. Treasury has recently limited the number of - get this - US savings bonds to $5,000 per; by purchasing both electronic and paper versions, and both EE and I Series, I guess one could purchase $20,000 in any one calendar year. The limit prior would have been $15,000.
Doesn’t the government, ah, need money? Further, the inflation-adjusted I Series now pays Zero percent on the fixed-for-the-life-of-the-bond rate on those sold in the next six months. So the rate is currently 4.28 per cent on those bonds anyone buys for the next six months. The ones I bought back in the 90s are now paying over 8 per cent.
That’s better, but I only bought them as a sort of enforced savings plan for *cash*; government bonds aren’t really an “investment” but anyone depending on them for their retirement is gonna be in a world of hurt?