Strong Demand Collapses on ‘Inflation Resistant’ I-Bonds Treasury Website | Frame Heslop

The stock market value is falling. Other types of investment portfolios have also seen their value fall. This left many investors looking for new investment options. These people found it and crashed the Treasury Department website. (The source)

Many investors are rushing online to buy Series I savings bonds. I-bonds are a niche investment. It provides a return based on the Consumer Price Index, the gauge of inflation. They want to lock in the 9.62% rate before the October deadline. The rush caused the shutdown of the Treasury Department website selling the securities. Many see bonds as a low-risk hedge against inflation. (The source)

The website froze on Wednesday. Meanwhile, others are struggling to get their I-bonds processed. This delay may cause some investors to miss the deadline. The Treasury Direct website will close on Sunday, October 30, 2022. During this short time, Americans bought $710 million worth of I-bonds. (The source)

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US inflation has been at or below 2% for years. These I-bonds did not provide an attractive return compared to other investments. That changed with soaring inflation, bringing the guaranteed rate of return on I-bonds this year to 9.62%. The Treasury Department resets the I-bond rate every six months. The next adjustment will take place next month. (The source)

The Trésor Direct website will reopen on October 31. But the I-bond rate will be significantly lower at around 6.5%. The Department opens more I-bond accounts daily than is typically done in a year. The Treasury Direct website was built two decades ago and it cannot handle this increase in traffic. The Treasury has tripled its capacity to manage the outbreak. But the site will still experience slowdowns. (The source)

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*Disclaimer: This article is for informational purposes only. *This article was compiled using accredited media reports. *Disclaimer: The article and the information it contains are not intended to be a source of advice. This article should not be considered as money, investments, financial or other advice. Ideas, figures and strategies should never be used without first assessing your own personal and financial situation, or consulting a Financial Advisor or other professional.

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