Hatchery steelhead can spawn. In fact, they can mate with native fish. However, the studies that have tracked this phenomenon indicate that the offspring, whether hatchery x hatchery or hatchery x wild, have poorer returns than wild x wild. It is this result that had kept the gene pools of wild fish on many rivers with hatcheries relatively intact.
I'm sure that it was nice to have a tug on the line, regardless of size or status.