Bloomberg reports the latest from the bond market:
Financial market turmoil has caused the fixed rate on the newest issue of Series I inflation-indexed savings bonds to fall to zero for the first time, according to the U.S. Treasury’s Bureau of Public Debt…
That means investors get no returns on their investments other than compensation for inflation. The fixed rate has never fallen so low since inflation-indexed savings bonds were introduced in the 1990s, Treat said.
Investors ought to take a little advice from Billy Preston on this one:[youtube http://www.youtube.com/watch?v=G_DV54ddNHE&hl=en]
U.S. Offers 0% for First Time on Inflation-Linked Savings Bonds
Vincent Del Giudice