I-Bonds Kinda Suck Right Now Try Agency Bonds

As we all know Bidenomics has totally crushed inflation.

Seriously though I-Bond rates aren’t hitting like they were in 2022.

Alright you laser eyed boomer where can I get my free tendies? I recently took a look into agency bonds. There are 82 CUSIPs from Federal Agencies yielding over 5.5%. Considering these are AA rated bonds that’s pretty decent. Will the government ever default on the (implicitly backed) Federal Farm Credit Banks? Maybe, but probably not in the near term. The current highest yielding agency bond I found was 6.375% which is 0.975% less than their all time high rate of 7.350% in the year 2000 (CUSIP 31331HS81). They bought back most of those in the year 2000 by the way. So rates these high for a bond that reaches maturity in 2038 with a risk comparable to a T-Bond is totally insane.

As American citizen this is concerning to say the least, but as an investor who thinks rural communities deserve bonds for their water, electricity, telecommunications, as well as working capital for farmers this is a no brainer for me.

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