US Yields Near 5.23%, Brent Above US$105, and CDL's Three-Year Plan

Tue 29 Sep 2026 | Morning

The Numbers

Overnight in the US, the Dow closed at 51,481.51 (-0.67%), the S&P 500 at 7,683.69 (-0.77%) and the Nasdaq at 26,820.38 (-0.92%). The VIX rose 8.07% to 16.07. Kiplinger attributes the slide to the US-Iran war, bond yield pressure and AI anxiety, with the 10-year Treasury near 5.22% to 5.23%. Brent settled at US$105.29 (+0.93%), and BT reports the US and Iran will hold separate talks with mediators, both pessimistic about a deal before the midterms. USD/SGD is 1.2774. The STI closed Monday at 5,729.02 (+0.31%), and SGX opens at 9am.

$CityDev(C09.SG) 

Two Singapore items I'm reading against the balance sheet. City Developments (CDL) is Zone 5, Red Zone: interest coverage of 0.99x on the headline reading (my own calculation gives 0.84x) against a 4.0x floor, net gearing of 69% (FY24) against a 35% ceiling, and 15.7x net debt/EBITDA against my 10x red flag. BT ran Sherman Kwek's three-year plan for CDL, plus a report that CDL will hire a dedicated CEO for fund management. Separately, Mapletree Industrial Trust is selling a Minnesota data centre property for US$9.8 million.

My Personal Take

My first reaction to the CDL headlines was that a plan to drive returns sounded like an answer to the numbers above. It took me a while to see that a fund management push is fee income, which is not the same thing as lower debt. The test I set for the 28 September review was signed, priced asset transactions, and the headlines describe a plan and a hire, not a priced deal. With the 10-year near 5.23%, higher rates weigh more on a company covering interest less than once. A stated debt reduction figure would change how I read it. 🦖

Not financial advice. Iggy's Forensic Compliance Standards apply.