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Thread: Bonds

  1. #1
    Senior Member Rogar's Avatar
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    Bonds

    An interesting article about the recent popularity of I-bonds and other treasuries. I've given some thought to dumping some short term bond index funds and buying CD's through my broker. A strategy suggested by the WSJ podcast. They are say some of the CDs being offered by places like Fidelity, as a CD broker, are paying in the 4-6% range for a couple of years commitment. I've yet to investigate the details.

    https://www.npr.org/2022/10/28/11323...y-bonds-ibonds

  2. #2
    Senior Member Teacher Terry's Avatar
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    I bought one IBond November 21 and January 22. The interest rates were good.

  3. #3
    Senior Member
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    Regarding I Bonds, I understand that in last couple weeks in October, there was record volume of new Treasury Direct accounts being opened... "Tipswatch" reported that the Treasury Direct website was overwhelmed in the final days of October.

    Personally, when I logged-on Treasury Direct to update the monthly values on 11/1/22 the site performed as it always has done for me. But mind you, there was a crush to buy before the end October to be eligible for a maximum variable interest rate.

    Regarding brokered CDs, I have bought a few at a discount to hold to maturity. (I feared that I would be skewered by the bid-ask spread if I were to sell before maturity.)

    This year has been the worst year for Treasury bondholders since 1788 ... so I hear. One advantage of holding bonds (or CDs) to maturity is that the borrower is obligated to pay the principal at maturity. Holding a bond fund for the same period, one could end up with a mutual fund account with a very wide range of possible dollar amounts.

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