Consumer Confidence Index
Tuesday has the release of June's Consumer Confidence Index (CCI) for us to watch, which is fairly important to the financial markets because it measures consumer willingness to spend. If consumers are more confident about their own financial and employment situations, they are more apt to make large purchases in the near future. Since consumer spending makes up over two-thirds of the U.S. economy, rising confidence can fuel overall economic growth. If it shows a sizable increase in confidence from last month, we can expect to see a negative reaction in bonds and mortgage rates. Forecasts are predicting a reading of 101.0, down from last month's 106.4 reading as consumers grow more cautious about rising inflation. The lower the reading, the better the news it is for bonds and mortgage pricing.