Sell I-Bonds Now?

I maxed out our I-Bond purchases in the 4th qtr 2021 and 1st qtr of 2022 & 2023.

Should I bail this year? It’s in our short-term cash holdings.

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I sold my I-Bonds which had current interest rates of 3.38% and 3.48%. I’m going to use the proceeds to fund my early retirement ladder, I’ll be buying a US Treasury maturing 12/31/2026, yield to maturity of about 4.4%. It just didn’t make sense to hold the those low interest I-Bonds which I bought in 2015 2016 when the fixed part of the interest rate was 0%.

That said, I’m going to buy new I-Bonds with the higher fixed rate to partially replace them. So although my I-Bonds holdings will be getting smaller, they will carry a better total interest rate.