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Hello folks -

I am also a regular purchaser of government I-bonds, and I have recently set aside some more money that I would like to put in I-Bonds. My question is: I know that the interest rate and the base rate are both set every six months, and that those rates will change this October. Right now, the rate is 5.92 (3.00 + 2.92). What does everyone think about what the rate will be in October? I know that the base rate for these bonds used to be 3.40% before they dropped it down to 3%. Might they drop the base rate again because the government is so short on cash? Or might they raise it in order to encourage people to buy more of their bonds? I also know that inflation is dormant right now, which is bad for the rates on the bonds, but I also know that periods of war tend to be inflationary. Might this fact help the bonds? And finally, if anyone has a prediction as to what the rate will be come it's change in October, I'd much appreciate it.

Basically, I'm trying to figure out if I should buy more I-Bonds now, or if I should wait till October.

Thanks in advance
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No. of Recommendations: 1
What does everyone think about what the rate will be in October?

I give you my 100% personal guarentee that the fixed rate for the I-bond in October will be 3.00%, exactly the same as it has been since May. The bond rates are actually determined on November 1 (and May 1). As for the rates after November 1, I have no idea, sorry. :)

I don't even know what criteria the Treasury uses to determine the new fixed rate, nor have I heard anyone else who does. Most people believe the rates will go down, and I tend to agree, but realize this is based entirely on intuition.
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