Welcome to Money for the rest of us. This is a personal finance show on money, how it works, how to invest it, and how to live without worrying about it.

I'm your host David Stein. Today is episode 463. It's titled How to Lock In Hire Yields, in case

interest rates fall. Last week in our free insiders guide email newsletter, I wrote about how the consensus of financial market

participants is that cash yields will fall. Central banks are the entities that determine what cash yields are because the yields on cash,

such as for CDs, money market mutual funds, are tied to Central Bank policy rates.

Right now the US Federal Reserve policy rate, also known as the Federal Funds

rate, is in a range between 5.25% and 5.5%.

And it's been that way since July.

The Federal Reserve Bank of Atlanta publishes a chart where they look at expectations for the policy rate going out into the future,

and market participants expect the feds fund rate to be less than 4% by September 2024 and

will end the year around 3.6%.

That's a 1.5% reduction in what we can earn on cash.

After sending out that email newsletter, which you can sign up for at Money for the Rest of us.com,

one of our listeners wrote,

given that cash yields are predicted to fall would bullet

EDFs lock in current rates. If so, why wouldn't investors

who believe the falling yield prediction lock in current rates

well into the future? That's what we're going to discuss in today's episode. How to go about doing that,

including what's a bullet ETF.

Longer-term interest rates are a function of expectations for future short-term interest rates.

I just relayed how the market expects short-term

interest rates cash yields in the future the policy rate to be lower by the end of

...