Inflation-linked savings bond earnings fall to zero

Washington: The earnings rate on the newest issue of US inflation-indexed savings bonds will fall to zero between May and November for the first time, reflecting a drop in a gauge of consumer prices.

The Treasury resets rates on savings bonds on the first of May and November.
Savings bonds, unlike Treasury securities, aren't traded on financial markets and are sold to individuals through banks and over the internet in small denominations, starting below $100.
They collect interest for up to 30 years.

The Series I bonds, which were introduced a decade ago, fluctuate in value with the inflation rate. The government also sells fixed-rate Series EE savings bonds.