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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: Ken Brown who wrote (11517)5/5/2000 10:51:00 PM
From: Ken Brown  Read Replies (2) of 15132
 
(OT) I-Bond (& etc.) update:

FWIW, the fixed rate paid on I-Bonds purchased between May thru Oct has been pegged at 3.60%, up from the previous rate of 3.4%. The CPI-U adjustment for the next 6 months is 3.82%, combining to a 7.49% earnings rate (don't ask me why it isn't 7.42%, because I don't know, though I'm sure I should).

The spread between I-Bonds and TIIS (aka TIPS) narrowed significantly since my last message in January. The latter now pay only about .10% to .25% more, compared with about .75% in January. (See my previous message that this is in response to, if you're interested in more info.)

Lastly, I've read that Vanguard is opening a new fund in the next month or two, "Vanguard Inflation-Protected Securities Fund", providing another way to invest in TIIS. Too early to say, of course, if their management expertise will provide any benefits over direct ownership.

My apologies if this really isn't an appropriate post for this thread. More on-topic: If anyone listens to Bob via the internet on KXL, be advised that starting tomorrow, KXL will be broadcasting Bob live. (They had been broadcasting him on a 2-hour time delay.) I'm looking forward to learning the identity of the "special guest" - could it be Jr? Greenspan? (LOL!) Sheldon Jacobs? Who knows ....

Ken
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