Tuesday’s bond market has opened in negative territory following the release of this morning’s consumer confidence related data. The stock markets are mixed with the Dow down 12 points and the Nasdaq up two points. The bond market is currently down 11/32, which will likely push this morning’s mortgage rates higher by approximately .125 - .250 of a discount poi nt.

The first economic data of the week was posted at 10:00 am ET this morning by the Conference Board. They said that March’s Consumer Confidence Index (CCI) rose this month to its highest level in almost 4 years. The 107.2 exceeded analysts’ forecasts by a wide margin, indicating that consumers were much more confident in their own financial situations than thought. This is bad news for the bond market and mortgage rates because higher levels of confidence usually means consumers are more apt top make large purchases.

Also today is the adjournment of the two day Federal Open Market Committee (FOMC) meeting. This is the first meeting under new Fed Chairman Bernanke’s reign. It is expected to bring another quarter-point hike to key short-term interest rates.