"Inflation-proof" I-bonds get new interest rate of 6.9% for the next 6 months

The Treasury has set a new interest rate for I-bonds, the normally staid investment vehicle that's seeing a surge of popularity amid decades-high inflation.

I-bonds issued over the next six months will yield an initial annualized return of 6.89%, the Treasury said Tuesday.

The rate on I-bonds, or inflation bonds, changes every six months based on inflation. In the most recent six-month period that ended in November, the bond rate was 9.62% — rivaling stock market returns and leading to a rush of consumers hurrying to buy before the rate reset on November 1. The surge in investor demand crashed the Treasury's website last week..