Treasury yields are climbing. Kathleen Entwistle, managing director and private wealth advisor at Morgan Stanley Private Wealth Management, told CNBC on September 28, 2026 that investors should tie every decision to when they will need their money.
Start With the Calendar Before the Yield
Her core principle: “I generally tell our investors, our clients that you’ve got to match up your liabilities.” Money needed short-term belongs in short-term investments. Money meant for the long term should be invested with that horizon in mind.
A liability means any expense you know is coming: next year’s living costs, tuition, a home repair. The first question is always when the money is needed. The yield comes second.
Rates Near a 12-Month High Raise the Stakes
Her warning centers on what higher rates do to borrowers, and rates sit at the top of their recent range. The 10-year Treasury yield was 5.18% on September 24, 2026, according to Federal Reserve data. That places it in the 99.6th percentile of its trailing twelve-month range, against a twelve-month low of 3.97% on February 27, 2026. The Fed’s target rate upper bound now stands at 4.00%, up from 3.75% earlier this month. On Monday, Reuters reported that stocks fell as higher oil prices and Treasury yields weighed on markets.
Entwistle draws on her experience in the bond markets of the 1980s. “A lot of people have been complacent over the last few years because we’re so used to everything being fixed,” she said, adding that “higher rates cause more pressure” on both companies and individuals.
Fewer Winners Are Coming
“We’re still investing but we’re being more thoughtful and more cautious about it. Everything is not going to win in this market like it might have done in the last 12 plus months.” She still sees “a huge opportunity” in companies that use AI to generate cash flow and revenue.
Moving Up in Credit Quality
Her concrete call: “I’d rather clients think more on the conservative side and invest in high grade corporate bonds or high grade municipals and stay away from the high yield.” Her advice: “Don’t chase” that coupon.
Shifting from high yield to high grade means moving up in credit quality. High-yield bonds come from lower-rated borrowers who pay more interest to offset for higher default risk. High-grade bonds come from better-rated borrowers who pay less because repayment is more reliable. The investor accepts less income for greater confidence the principal returns on schedule.
Why Smaller Companies Feel It First
Entwistle is also pulling back on small-cap exposure. Smaller companies “have a harder time getting access to capital and borrowing and running their business. And they do tend to feel the cracks sooner.” Smaller firms carry thinner balance sheets and lean more heavily on debt money, so rising borrowing costs hit their profits earlier than cash-rich giants.
Waiting for Earnings to Reveal the Damage
Her positioning reflects uncertainty about how much pressure higher rates have already put on corporate earnings. The cleaner opportunity arrives once upcoming results show where the strain landed.
A Boring Rule That Survives Every Market
Matching money to its timeline is advice that works whether rates rise, fall or stall. It keeps getting repeated because yield-chasing keeps pulling people away from it, especially when a bigger coupon looks attractive. Entwistle’s interview returns to that single discipline: decide when you need the money first, and let that answer shape everything else (we laid out how to build a payment calendar and withdrawal order around exactly that idea in a free guide here).