31 CFR 359.12 - What happens in deflationary conditions?

Regulations last checked for updates: May 17, 2024

Title 31 - Money and Finance: Treasury last revised: May 10, 2024

View all text of Subpart A [§ 359.0 - § 359.24]

§ 359.12 - What happens in deflationary conditions?

In certain deflationary situations, the semiannual inflation rate may be negative. Negative semiannual inflation rates will be used in the same way as positive semiannual inflation rates. However, if the semiannual inflation rate is negative to the extent that it completely offsets the fixed rate of return, the redemption value of a Series I bond for any particular month will not be less than the value for the preceding month.

authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3105.

source: 67 FR 64278, Oct. 17, 2002, unless otherwise noted.

cite as: 31 CFR 359.12