MARCO HUAMAN LLC
OAKLAND PARK, FLORIDA

On Tuesday, stocks fell in response to the President confirming Larry Kudlow would replace Gary Cohn as the top economic advisor to the White House.  Several news stories also suggested the administration could soon impose new tariffs on China.   This week's test focuses on a sort of "magic line" for rates--a distinction it earned by acting as a firm floor in March.  With rates finally gaining some ground after a horrible start to 2018, this magic line was a Staring down the magic line back in late March, we knew we'd need help from something big and economically threatening (bad economic news tends to help rates).   Trade tensions were already on the radar but the late March tariff announcement (the one that focused on China) caused enough of a stir to help rates break below the magic line.  panicked stock market selling. of its own motivations.  In late March, the Fed Announcement (and press conference) did more to help bonds than to hurt stocks.  This week, China's retaliatory tariff threats caused a sharper drop in stock prices than bond yields.  Finally, Friday's jobs numbers also helped bonds/rates more than they hurt stocks.  And that's where we see the magic happen: helped put rising rates on hold than expected and end up helping rates too!  Reproduction or redistribution of the contents of this newsletter, outside of the distribution services provided, either in whole or in part, is prohibited without prior written permission of the MBS Live, Inc.. The interest rate data provided in this newsletter are national averages from independent data sources. Rate/APR terms may differ from those listed above based on the creditworthiness of the borrower. All information provided "as is" for informational purposes only, not intended for trading purposes or financial advice.