Commodities for Thursday, April 18, 1985 : Treasury Bond Futures Up

Treasury bond futures rose sharply Thursday on the Chicago Board of Trade after a surprising government report of weaker economic growth in the first quarter.

The Commerce Department said the U.S. economy grew at a 1.3% annual rate in the first three months of the year, well below its previous estimate of 2.1% and below projections of many economists.

With growth slowing, the Federal Reserve Board will be under less pressure to hold the reigns in on credit, said Sam Kahan, an interest rate analyst in Chicago with Heinold Commodities.

Kahan noted that the federal funds rate, the interest on overnight loans between banks, fell below 8% Thursday, a further sign of weakening interest rates.

Metals prices were mixed in active trading on the Commodity Exchange in New York. Cattle prices were higher and live hogs and frozen pork bellies were mixed on the Chicago Mercantile Exchange.

Cattle advanced in anticipation of an Agriculture Department report set for release Monday. Analysts expect the report to show a decline in the number of cattle put onto feed lots during the first quarter in the 13 largest beef producing states.