Treasury Bond Futures Rise

Interest rate futures took wing Friday, propelled by yet another sign that the nation’s economy is earthbound.

Most Treasury bond futures advanced the 2-point limit allowed for daily trading and other long-term securities also posted strong gains.

The market clicked into high gear when the government released data showing a 0.6% decline in industrial production during May, the third huge retreat in the last four months.

This followed a report Thursday showing a small decline in retail sales, when an increase had been expected, and disappointing employment news the week before.

“This points to sluggish growth in the months ahead,” said Gary Dorsch, an analyst in Chicago with G. H. Miller & Co. As a result, he said, the Federal Reserve Board may be inspired to consider lowering the discount rate again sometime soon.

Treasury bond futures settled 1 30/32 points to 2 points higher with the June contract at 95 18/32 points.

Gasoline and other energy futures advanced on the New York Mercantile Exchange Friday, with analysts attributing the strength again to technical factors.