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They say that the US Treasury will soon be offering bonds with negative interest rates. Say what? A guaranteed loss on your investment and people STILL buy them? Wow is about all I can say to that!
They say that the US Treasury will soon be offering bonds with negative interest rates. Say what? A guaranteed loss on your investment and people STILL buy them? Wow is about all I can say to that!
No "soon" about it, they started last year. Treasury Inflation-Protected Securities (TIPS) brought less than face.
The idea is that you pay $10,000 for a bond that pays back $9,687.50, plus inflation, at the end of five years. You lose 0.625% a year, but if inflation is 5%, your net is 4.375%.
Why anyone is willing to accept such a deal from a gubmint known for fudging the inflation figgers is another question.



















