Does it still make sense to invest in bonds if high-yield savings rates are 3.6–4%

[Anonymous]

Anonymous wrote:

Anonymous wrote:For a short term, you can ladder 13 weeks treasury Bill for an interest rate of 4.125% and pay no state tax.

I'd think for most people it would just be easier to to a Treasury money market. VUSXX is at 4.19% right now.

But the muni bond idea is growing on me. VWAHX (Vanguard high yield muni fund) is yielding 4.48% right now, that's 5.97% equivalent if in 25% federal bracket.

Bond yield goes up when share price goes down. For example, VWAHX on 6/30/2025 the share price was $10.33 and monthly interest paid out of $.03536. On 7/15/2025, the share price was $10.25. The share price difference between 6/30/2025 and 7/15/2025 is $.08 ($10.33 - $10.25), then you lost about $.05 ($.08 - $.03536) per share even after you collected $.03536 interest on that month. I hope you know what you are doing.

[Anonymous]

What about vbtlx?