Floating Bonds

Better deal from the Treasury

When it comes to investing, few buys have been as disappointing as U.S. savings bonds. Since the program was set up in 1935, some $258 billion has been poured into the bonds. But because of inflation, bonds redeemed in recent years have been paid off in dollars worth much less than those invested. Though a yield of 9% has been available on EE series issues since 1981, sales have been slow.

Last week the U.S. Treasury Department unveiled a new, potentially higher-yielding certificate designed to help lure savers back to bonds. The new bonds, offered in denominations of...

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