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That doesn't mean bond volatility is going away.The Fed cut rates on Sept. 18 by a surprisingly large amount -- half a percentage point, instead of the quarter-point move widely expected. Bond prices move inversely to yields, so bond prices should have risen, right?The yield on the benchmark 10-year Treasury note rose after the rate cut and stayed there this past week, climbing to 3.78% on Sept. 26 from 3.62% on Sept. 16. Bond prices fell -- and not just Treasuries. The $121 billion iShares Core U.S. Aggregate Bond exchange-traded fund , which holds mostly Treasuries, corporates, and mortgage-backed securities, slipped 0.5% in the week following the rate cut.Catastrophe bonds are attractive, says U.S. Bank's Freedman, since they don't correlate with stock or bond markets. Rather, their returns are tied to natural disasters and insurance premiums. 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