Prime Money Market Fund vs. Total Bond Fund

[two4theroad]

I have a few years of after tax money in CD's still returning 5+% and a few more years in Vanguard Prime MMF and was happy with it's interest rate of 4.5 to 5% but now it has fallen to 2.6%. Is there any reason why I should not move it to the Total Bond fund with a return of 4.7%? We already have a lot of Total Bond Fund in our IRA. Is there something else besides Total Bond Fund that would return more or be tax advantaged and as safe as Prime MMF that we should move the money to? That may be asking for too much but you never know if you don't ask....The CD's will start maturing soon and their rates are in the pits too so I need to reinvest them as well.
Thanks,
2fer

[Spanky]

How about short-term tax-exempt bond fund?

[DblDoc]

As the Total Bond Fund will be buying new bonds to replace those that mature or they sell expect yields to start going down. If this was your AA plan and you have thought out a plan for dealing with bear markets etc I would stay the course and re-ladder your CD's instead of chasing rates. Rates will eventually go back up again and the ladder will help mitigate against the current low returns. This is just another economic cycle playing out.

DD