Dollars and Jens
Tuesday, October 31, 2006
savings bonds
The new I-bond rate comes out tomorrow, and I expect one of us will note it after it has. I've recently come across an explanation of how the rate is determined: the treasury department pulls it out of their

Er, family website. Anyway, there's discretion involved, and varying theories as to what Treasury actually looks at. One theory is that it's based on TIPS yields, in which case it's liable to go up. Another theory is that it's based on nominal yields minus recent inflation, in which case it will go down. In the past, the number seems to thread the middle. We'll know tomorrow.

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