You can currently get one kind of lure, it's used to catch "exotic fish" - the ones that you used to need an aquarium fishing net for.
You can also craft a hook in the tinkering menu, which will give you a slight success bonus.
There's a big fishing expansion coming with Elysium, these are just a few minor things with which we're testing the system, so that we get some early feedback so we can later make all the lures/baits/hooks available, without resolving the bugs at the time.
+Colibri, Administrator of UO Excelsior Shard
Don't know what the purpose of your life is? Well then make something up!
(Old Colibrian proverb)