I can't really see the point, unless you have a real distaste for Australian banks.
Even a nabtrade account has a 4.5%pa account to put your money into, and if you are worried about the government guarantee limits, there are plenty of other banks that will give 5%+ for very little effort, especially during their introductory periods.
However, you are right about keeping it short term because yields could go higher.
The trend is still up. I am no fortune teller, but I will go out on a limb and say that US bond yields for the 10 year could even spike to 7%, simply because that is where the trend is heading, and we have only really been taking a breather.
