To make this decision, I would consider the relative interest rates and the intended holding period. The yield on TBM is about 2% and the 1 and 2 year Ally CD's about 1%. If my investment horizon was long I would go with TBM. If I need the money in 5 years or less, I would go with the CD (match the term to when you need the cash). If you buy the CDs and rates rise sharply in the near term, you could liquidate your CDs and by back into TBM when it is 'on sale'. If this doesn't happen, you are losing 1% a year in relative to TBM. You might make some money timing the bond market, or not. The case for swapping your short term bonds for CDs is stronger, because the rates are very close. Of course, if this is retirement money that will not be needed for a while, you might want to exchange that short term bond fund for TMB, as that ought to have a higher total return over the long haul.