July 15 (Bloomberg) -- Mexico's one-month Treasury bill yield, the country's benchmark interest rate, rose for a second week as some traders said an economic recovery will lead to faster inflation.

The government sold the 28-day bills at its weekly auction to yield 5.09 percent from 4.91 percent last week. The yield has risen 71 basis points, or 0.71 percentage point, since tumbling to a record low two weeks ago.

``They have to rise,'' said Jaime Ascencio, an economist at brokerage Bursametrica SA in Mexico City. The trend in inflation ``will be up later in the year as the economy recovers.''

The rise in benchmark borrowing costs may slow a surge in bond sales in Mexico from companies such as Cemex SA and automaker Volkswagen SA, analysts said.

The government also sold 91-day bills today to yield 5.61 percent, up from 5.53 percent last week, the central bank said on its Web site.

Mexico's consumer prices rose 0.08 percent in June, leaving the 12-month inflation rate at 4.27 percent. A central bank survey of 31 economists in June predicted inflation will end the year at 4 percent.

Last Updated: July 15, 2003 16:14 EDT