Treasury Announces New I Bond Rate at 4.03% for November–April Period

The U.S. Treasury has set the new I bond composite rate at 4.03% for the November 2023 to April 2024 period, replacing the previous 3.98% rate available through October. The rate consists of a 3.12% variable component tied to inflation and a 0.90% fixed portion that remains constant for the bond's lifetime—a decline from May's 1.10% fixed rate.

I bonds saw unprecedented demand in May 2022 when yields peaked at 9.62%, attracting risk-averse investors to the government-backed product. While inflation moderation has led some early buyers to redeem holdings, long-term investors continue acquiring bonds to lock in favorable fixed rates before periodic adjustments.

The Treasury recalibrates both variable and fixed components biannually in May and November, though the methodology for determining fixed rates remains undisclosed. The hybrid rate structure maintains static fixed yields while adjusting variable portions semiannually based on inflation data.