10-year TIPS rates dip below zero for first time

Saturday, August 13th, 2011
Categorized as: TIPSUS Credit Rating

After last weekend’s S&P downgrade of U.S. credit, one would expect the interest rate on government financial instruments to rise to cover the added risk. Instead rates fell, with 10-year TIPS rates dipping below zero for the first time ever on Wednesday, Aug 10 and ending the week at -0.02%.

Note that although the fixed rate on Series I Savings Bonds is zero, it is now higher than the 10-year TIPS rate. Normally the I bond fixed rate is about 1 percentage point lower than the 10-year rate. This makes the I bond an exceptionally good deal for now.

Rate this post (1 to 5 stars):  1 Star2 Stars3 Stars4 Stars5 Stars
(Average rating: 5.00 stars)

FDIC Insured Certificates of Deposit can pay 1 or 2% more than savings bonds when held for a similar length of time. See top CD Rates Below:

No comments yet.

Comments Closed

June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on Savings-Bond-Advisor.com. I will contine to update the main articles on this site, but not the comments.

Virtually every question about Savings Bonds has been asked and answered on this site multiple times. Use the search feature (see the box in the gray area near the top of this page) or the detailed menu on the lower part of the home page to find the information you're looking for. If you have a copy of Savings Bond Advisor, you can ask me a question here.

Tom Adams

Savings Bond Calculator


Savings Bond

Get an answer to your questions from the Treasury's Savings Bonds team.

Click below to ask a question.

Ask the Treasury


Invest online in Savings Bonds or
marketable Treasury securities.

Deal directly with the U.S. Treasury.

More info


Log in