The market opened soggy after an overnight recovery in stocks and ahead of a heavy supply schedule ($10 billion in agencies alone). A hedge fund was reportedly getting out of a large long position in 5s and 10s and buying the bond early on. Pricing of Freddie Mac's $6 billion five-year brought a little relief to that area of the curve as rate locks were unwound. And talk of an Asian central bank buying in the front end helped a little too.
But the mountain of supply proved too much and the market remained heavy. In options, there was a size buyer (20K) of Apr 112 bond calls early on. Though stocks didn't impact much during the session, a late drop in the Dow gave some support to bonds and the 30-yr was able to close in the plus column.