YIELD SHOPPER By Financial Planning Hawaii

Yield Shopper is a service for helping Financial Planning Hawaii clients keep abreast of current yields on money market funds, high yields savings accounts, CDs, treasuries, agency securities, municipal bonds, corporate bonds, and other popular fixed income investments.

JR’s Two Cents on the Fixed Income Marketspace 

In many ways, what is going on in the bond market is more interesting and potentially more impactful than what is happening in the stock market.  Here are some key developments. 

• The yield curve, which was flat for the early 2020s, has been returning to its normal shape. In plain English, this means that interest rates have been rising faster on the longer maturity bonds than they have on the shorter end. 
• The yield on the thirty-year treasury reached its highest level since 2007 last week.  Ditto for mortgage rates.  While there is an entire generation of investors (and financial advisors) who are shocked at sight of 7% mortgages, 5%-7% treasury yields and 6-8% mortgages rates are historically in the average range.  The ultra-low rates for the past 20 years were a historical anomaly, and, in my opinion, are not likely to return any time soon
• The U.S. national debt crossing $40 trillion last week, seems to have crosse a psychological threshold, and there seems to be increasing concern over whether the U.S. will be able to meet its debt obligations.  In theory, this should cause yields to rise as investors demand higher interest for taking on great risk.  Thus far, the fears have not pushed treasury yields markedly higher.  If rates do spike, a related fear is that the resulting higher interest cost could trigger a catastrophic debt spiral.  For more on this, read “Understanding the Debasement Trade”  (Charles Schwab April 15, 2026)
• I continue to believe there is a much higher likelihood that rates will rise over the next year or two –  and perhaps very much.  As such, while I have begun recommending clients shift dollars out of money market funds and into CDs, I am reluctant to extend maturities beyond 18-24 months.  At this level, we are still capturing around 85% of the 10 year treasury yield and around 75% of the 30-year treasury, with significantly less price volatility. 

HERE IS A SNAPSHOT OF FIXED INCOME RATES AS OF THE FIRST WEEK OF SEPTEMBER 2026

Source:  Charles Schwab fixed income trading desk. 8/31/2026

*The Taxable Equivalent Municipal AAA Yield is calculated from the Municipal AAA Yield, and assumes a 35% federal tax rate. This does not reflect the effects of any state or local taxes, which, if applicable, may increase the taxable equivalent yield. For questions about calculating your individual rate, see your tax advisor. The following formula is used: Taxable Equivalent Municipal Yield = (Municipal AAA Yield) / (1.00 - 0.35).

In reviewing the yields in the table above, investors should keep in mind that the interest paid on treasury securities and certain government agencies (e.g. Federal Home Loan Bank , Federal Farm Credit Bank, and Tennessee Valley Authority) is exempt from state income tax.  Interest from most (but not all) municipal bonds is exempt from federal income tax. Federally tax exempt municipal bonds issued within your residence state (or issued by U.S. territories such as Guam and Puerto Rico) are generally exempt from state income tax as well. Interest paid Certificates of Deposit, Corporate Bonds, and annuity contracts is subject to federal and state income tax. In comparing yields between these securities it may be necessary to calculate the tax-equivalent yield. 

Taxable Equivalent Yield Calculator (Source: Fidelity)

All yields below are reported as to 8/28/2026

Money Market Funds

Cash & Cash-Like ETFs

High Yield Savings Account Rates (Source: Bankrate.com and NerdWallet.com)

Sample Online Bank CD Rates (Source: Bankrate.com)

Readers of my commentary know that I do not ever recommend bond mutual funds or ETFs (aside from money market ETFs).  I have written many articles on this topic, which are included below.  This position is also shared by retirement researcher and financial  planning industry thought leader Wade Pfau, PhD, CFA.  Links to Wade’s commentary on this topic are as follows:

3 Ways to Incorporate Bonds Into Your Retirement Strategy (Retirement Researcher)

Why Bond Funds Don’t Belong in Retirement Portfolios (Wade Pfau, Advisor Perspectives)

Laddering with Individual Bonds (Retirement Researcher)

JOHN ROBINSON’S RECENT COMMENTARY ON FIXED INCOME INVESTMENTS FROM THE FPH BLOG

Short-Term Laddered Bond ETFs vs. Short Term Bond Funds (9/25/2025)

Cash ETFs:  The New “New Thing” in the Search for Yield and Safety? (9/25/2025)

Government Money Market Funds Are Not All The Same (2/9/2025)

Why I Always Say “Friends Don’t Let Friends Buy Bond Funds (4/1/2025)

Not So Hot TIPS (11/1/2024)

Keeping Score – A Running Record of My Interest Rate and Fixed Income Guidance Since 2020 (6/5/2024)

Where to Fish for the Best Fixed Income Yields Today (3/4/2024)

Interest Rates on CDs Plummeted in November. How to Invest Now (12/3/2023)

How to Invest When the Yield Curve is Inverted (9/8/2023)

It's Time to Start Laddering Certificates of Deposit Again (5/21/2023)

Is Your Cash Working as Hard as it Should Be? 2/16/2023

How to Invest in Bonds and CDs Now that Interest Rates Have Risen 12/10/2022

Where to Stash Cash Now 9/29/2022

I was Right About Interest Rates 9/29/2022

The Time to Buy Series I Savings Bonds is NOW! 4/18/2022

Why Friends Don’t Let Friends Buy Bond Funds (3/1/2022)

Saying that the Bull Market in Bonds is Over is NOT Market Timing 12/10/2021

Negative Returns Ain’t Much of a Living (8/9/2021)

Looking for Yield in All the Wrong Places (5/25/2021)

John H. Robinson is the founder of Financial Planning Hawaii and Fee-Only Planning Hawaii and a co-founder of retirement simulation software, Nest Egg Guru.

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