Interest rates on short-term Treasury bills rose in Tuesday's auction with rates on three-month bills rising to the highest level since October.

The Treasury Department auctioned $35 billion in three-month bills at a discount rate of 0.115 percent, up from 0.085 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.130 percent, up from 0.120 percent last week.

The three-month rate was the highest since three-month bills averaged 0.125 percent on Oct. 29. The six-month rate was the highest since those bills averaged 0.135 percent on Dec. 10.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.09 while a six-month bill sold for $9,993.43. That would equal an annualized rate of 0.117 percent for the three-month bills and 0.132 percent for the six-month bills.

Separately, the Federal Reserve said Tuesday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, was unchanged at 0.15 percent last week, the same as the previous week.

The Treasury's normal Monday auction for Treasury bills was held on Tuesday this week because of the Presidents Day holiday.