Washington Outlook: CAPITAL WRAPUP

BEARISH INDEXED-BOND MARKET

Wall Street may scuttle the Treasury Dept.'s plan to issue inflation-indexed bonds, securities that offer returns linked to the inflation rate. Administration economists like the idea because it might lower the Treasury's borrowing costs. But bond dealers--fearful flexible rates would reduce the need for trading--appear to have the ear of Treasury Secretary Robert E. Rubin, an ex-Wall Street trader who's said to be leaning against the idea.BY OWEN ULLMANN