Bonds opened on solid footing, as bank shares buckled due to capital adequacy concerns and investors were fed another hefty dose of swine flu headlines. However, the early gains quickly faltered after consumer confidence data released at 10:00 eastern time showed a suprise uptick (39.2 in April vs. 29.7 consensus). Stocks found a floor and bonds sold off. The benchmark ten-year Treasury closed down 27/32nd and the iShares Long-Term Bond Fund (TLT) lost $1.64 to $99.36. TLT options volume rose to 5X the typical levels. Almost 50K May 99 puts traded, compared 43.9K of open interest. About 85 percent traded on the ISE, where sentiment data indicate that 85 percent are opening customer buy orders. Looks very defensive, or bearish, and seems to reflect expecations for further weakness in Treasurys between now and May expiration (17 days).