"I'm trying to do a true "apples to apples" comparison of the yields of the Schwab ultra-short bond fund SWYSX (2.65% Trailing Twelve Month Yield, 2.24% TTM yield after expenses) versus ING Direct CD's (2.6% for one-year CD) and ING Direct 2.1% Money Market. Seems like ING Direct is the way to go to avoid risk of rising interest rates, either CD's or Money Market, depending on liquidity needs. Does this comparison sound correct?
Thanks for any comments."

Not sure this is truly apples to apples, but the reasoning is sound.

A simple principle, if you think it is more likely than not interest rates will rise during the period you expect to have the money invested, if you can get yields that are equal or better in an instrument not negatively affected by rising interest rates than in an instrument that is, go for the former. In a falling interest rate environment, the opposite is true.

Of course, guessing if interest rates will rise or fall is the problem. If I hadn't decided interest rates had fallen too low a couple hundred basis points above their bottom, I would have made better choices.