Katrina's reach on bond market

Treasury rates take nosedive; mortgage rates slide

The following is the view of Hurricane Katrina as seen by the average ghoul in and near the bond market. For that, I apologize.

Katrina has caused a nosedive in Treasury rates, a reconsideration of the state of the economy and the Federal Reserve’s intentions, but so far has taken mortgage rates down only about an eighth of a percent from last week, near 5.625 percent.

Traditional economic indicators aren’t worth much now: anything pre-Katrina is Jurassic Park; anything post-disaster will be garbled for months.