The Government will also announce next week the size of its 52-week bill auction.

The result of these forces was visible at yesterday's bill auction.

Small investors were said to be doing much of the buying in the bill auction.

Interest will be reset on the day after each bill auction.

Interest is adjusted the day after each weekly bill auction.

Yesterday's 52-week bill auction produced an average rate of 3.24 percent, up sharply from last month.

Elsewhere, the Government's weekly bill auction went well, with the best demand in a few weeks.

Rates at yesterday's bill auction were up moderately and in line with expectations.

The size of the weekly bill auctions has been cut to $24 billion and is likely to stay at that amount through the quarter.

The interest is reset the day after each weekly bill auction.