The US Treasury Department announced on Wednesday that the new savings obligations in the series I which would be purchased between May 1 and October 31, 2025 will pay an annual interest of 3.98%.
This number replaces the rate of 3.11% of the last six -month cycle. The new rate includes a part -based part of 2.86% and a fixed rate of 1.10%, which, according to the Treasury, is also a step compared to the fixed rate of 1.20% set in October.
According to For the American Treasury Department, these obligations update their structure of interest in May and November, combining a variable and a fixed rate in what is called the composite rate – this is the rate that really determines what bonds earn for six months.
The variable part reacts directly to inflation and remains stable for six months after purchasing the deposit, it doesn't matter when the next update occurs. The fixed piece remains locked up as long as you keep the deposit. And no, they still don't tell anyone how they calculate it.
The current update marks a significant drop compared to the record summit of 9.62% in May 2022, when inflation was burning red. Even with the lowered figures, the fixed part of the rate could still seem decent to people who do not plan to sell these obligations as soon as it is.
You lock the fixed rate the day you buy it, and it never changes. This is why some buyers are still presenting themselves, even if the overall return seems lower than two years ago.
The treasure explains how the rate changes have an impact on buyers and holders
If you already hang on to the obligations, you do not get the new rate immediately. There is a six -month integrated offset which depends entirely on your original date of purchase. So let's say that you picked up obligations in March. For your first six months, you will get the composite rate when you have bought. After that, he updates himself using the new numbers. This is what the treasure says in May and November. But you will only see the new rate on your personal calendar – March 1 and September 1, in this case.
Here is a specific example. You bought obligations in March. Your composite rate for the first six months includes a variable rate of 1.90% and a fixed rate of 1.20%. In September, your variable portion will climb to 2.86% and your fixed part remains locked at 1.20%. Together, this brings your rate updated to 4.06%. Again, it all depends on the moment you bought.
None of this is surprising if you have followed the way the treasure performs these updates. But while changes in bonds were in public, other parties of the economy did not prosper exactly.
The Commerce Department abandoned its GDP figures in the first quarter on the same day. The American economy decreased by 0.3% in the first three months of 2025, capturing the first days of Donald Trump's second term.
Peter Navarro, Trump sales advisor, pushed him back on CNBC Squawk in the street. “We really like where we are now,” said Peter, reacting to the drop of GDP as if it were not serious.
He added: “I was able to say something about today's news, it is the best negative print that I have ever seen in my life.” Instead of seeing a problem, he stressed what he called a 22% leap in domestic investment, saying that this was what was counting.
Peter said: “The markets must, like, look below this.” Its argument was that if you remove the accumulation of inventory and the commercial impacts of Trump prices, the economy actually made growth of 3%. He did not mention inflation. He simply doubled the positive points and defended the administration strategy.
Investors do not buy it. The main stock market indices fell during morning negotiations just after putting the number of GDP online. The Dow Jones fell by more than 1,000 points on April 10, and the S&P 500 sang 3.46% on the same day. At the time of the press, the S&P 500 is down more than 7% for the year.
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