I got greedy. Thought that maybe, just maybe, all this talk of rising interest rate environments would bleed into I-Bond fixed rates. No such luck.
As of November 1st, the fixed rate for new purchases is back down to 0.0%, yet again. Should have locked in 0.1% in October when I had the chance.
Meanwhile, the MZM Own Rate seems to have peaked at a whopping 0.101% and has also been heading back down. I guess nobody bothered to burn cash to relieve the growing $14.5 trillion money of zero maturity (bank deposit) glut. It's a shame. Would have been quite a bonfire.
All this talk of bond bubbles has convinced many long-term savers to dump bonds (that still pay at least some interest over the long-term) and move to the safety of cash (which pays no interest over the long-term). For what it's worth, it has not convinced me. Still holding to maturity. Still earning the same interest. Still no desire to bury cash in my backyard.
Maybe I'm just stubborn or maybe I actually root for higher interest rates so that I can reinvest with more desirable terms when my bonds mature? I think it's the latter, for I, as a long-term saver and as a holder of long-term inflation-protected bonds, have never rooted for lower real interest rates. Not even once. And yet, lower real yields is all we seem to get.
Hey, do you suppose real yields will rise after the next recession? Will it become even easier to make money off of money? I only ask because I also have bets on hell breaching the 32 degree resistance level and a controversial patent on improving the aerodynamics of pigs. You gotta love long shots. Right? Sigh.
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