The U.S. Treasury Department is selling Series I savings bonds at a new interest rate of 3.11%, up from 4.28% in May. Wealth welcomes Chip Hughey, Truist Wealth’s managing director of fixed income, to discuss further whether I-bonds are a smart investment decision based on the new rate.
“We expect inflation to continue to cool and so we will likely see this trend continue, with interest payments on bonds tending to decline a bit over the coming year, or at least may -be able to stabilize around that 3% level,” Hughey said. Brad Smith. “Clearly, that’s a far cry from the 9% returns we were seeing in 2022.”
Hughey examines current bond market trends (^TYX, ^TNX, ^FVX), especially as the Federal Reserve moves towards lowering interest rates.
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This message was written by Luke Carberry Mogan.
