NEW YORK, June 12 (Reuters) - Overall demand for U.S. one-month Treasury bills posted its strongest level in nearly five months on Tuesday ahead of a widely anticipated interest rate increase from the Federal Reserve on Wednesday, U.S. Treasury Department data showed.
The ratio of bids to the $35 billion in one-month T-bills offered was 3.36, the highest since 3.52 at the one-month bill sale on Jan. 23.
The Treasury sold the latest one-month bill supply at an interest rate of 1.790 percent, which was the highest level since August 2008. A week ago, it sold $35 billion in one-month T-bills at an interest rate of 1.780 percent.
The U.S. central bank is expected to increase key overnight borrowing costs by a quarter point to 1.75-2.00 percent on Wednesday after a two-day policy meeting. (Reporting by Richard Leong; editing by Diane Craft)