iBond @ 9.62% - Demand overwhelms TreasuryDirect

Discussion in 'Fixed Income' started by kmiklas, Oct 27, 2022.

  1. kmiklas

    kmiklas

    I tried to pick up a few of these bonds today and was greeted by the following error messages.

    Also, the orange "Login" button seems to be disabled... it just links back to the home page.

    - 9.62%?? Dayaam... That's alike an essentially risk-free junk bond!
    - Afaik rates are dropping to about 6½% in November.
    - My guess is that they just don't want to sell any more, and this is an easy escape.

    Anyone know if iBonds can be bought with IB?

    Thanks, Keith

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    Last edited: Oct 27, 2022
  2. Q.E.D.

    Q.E.D.

    I Bonds may only be purchased from TreasuryDirect, & max $10,000 per social security number, per calendar year.

    But that info is available in countless number of articles online, for at least the past 1-2 years.

    I had no problem buying a 2nd year I Bond a few days ago. Never good idea to wait 'til the last minute, especially when being paid 9.6% NOT to wait

    Your first / prime source of info is to post on this site?


    QUOTE="kmiklas, post: 5703894, member: 494263"]I tried to pick up a few of these bonds today and was greeted by the following error messages.

    Also, the orange "Login" button seems to be disabled... it just links back to the home page.

    - 9.62%?? Dayaam... That's alike an essentially risk-free junk bond!
    - Afaik rates are dropping to about 6½% in November.
    - My guess is that they just don't want to sell any more, and this is an easy escape.

    Anyone know if iBonds can be bought with IB?

    Thanks, Keith

    View attachment 298258
    View attachment 298259 [/QUOTE]
     
  3. I suppose it is only for US residents?
     
  4. mervyn

    mervyn

    The rate reset very 6 months, the base rate is zero I believe, not a good instrument.I’d rather buy 3-6 months CD.
     
  5. kmiklas

    kmiklas

    Of course! ET is truth :)
     
  6. ET180

    ET180

    Nope
     
  7. [/QUOTE]

    I bought $10k worth recently. So are the rates for this bond expected to drop to 6.5%? Where did you get that info if true?
     
  8. TimtheEnchanter likes this.
  9. It is locked up for a year and after one year you can get money out.
     
  10. SteveH

    SteveH

    Interest payments compound in an I-Bond where the taxable event occurs only when you finally sell it. Meanwhile, rolling very short term CDs gives you a taxable event on each maturity date.

    I wouldn't expect the IBond inflation yield to drop to 3% while stagflation ensues for the next 2 years. Even so, the avg down effect from 9.62% top will probably beat a 4.5% 2 year CD.

    [Understood that 9.62% was the anomaly, but nonetheless, I captured that rate when I bought late last April.]
     
    Last edited: Oct 28, 2022
    #10     Oct 28, 2022