Options activity in the iShares Longer-Term Bond Fund (TLT) is running at two times the average daily levels. Bonds continue to rip higher without much thought to future supply issues. Skittish and yield hungry investors are snapping up the ten-year Treasury even as its yield falls to just 2.83 percent. The action in TLT options hints at some capitulation by bond bears, as the fund rallies $2.22 to $107.82 and the December 100 puts lead the day’s order flow. 15,069 have traded with only 2 percent trading offerside (33 percent on the bid and 66 percent mid-market). With existing open interest of 16,263 contracts, today’s volume appears to be closing out of put positions as the TLT climbs to new highs.