Bond Yields Fall To Record Lows After Historic Fed Move

Bond yields are plunging this morning on the heels of the historic FOMC move yesterday to take interest rates close to zero. The yield on the 10-year Note is down 27 basis points to below 2.10%. I am pretty sure that is near record lows.

The Fed said yesterday that it would basically pull out all the stops to bolster economic growth. This morning, the WSJ is reporting that the incoming Administration is considering their own additional moves, including injecting more capital into banks, creating a market for illiquid securities, and helping troubled borrowers.

Separately, OPEC met this morning to vote on a production cut. A cut of roughly 2 million barrels per day was expected, but this morning OPEC announced a much bigger 4.2 million bpd cut. This helped oil spike higher, but the message is that global demand is terribly weak, and I think oil will have a hard time making much headway on the upside.

In corporate news:

• General Mills (GIS) and ConAgra (CAG) posted better-than-expected earnings results
• Fifth Third Bancorp (FITB) slashed its quarterly dividend for a 2nd time in a year
• Honda (HMC) lowered its profit outlook and cuts its dividend, as the auto makers continue to struggle
• Apple (AAPL) is trading lower after the company said Steve Jobs would not give the keynote at the upcoming MacWorld convention

The market is pulling back this morning, after yesterday's huge rally. I think this is just a normal pullback, and I am looking to put some cash to work this morning.

long AAPL