NEW YORK (AP) _ Bonds fell for a third straight day Wednesday on concerns that interest rates may be increased to slow down the roaring U.S. economy.

Treasury yields rose to their highest levels in seven weeks, inching closer to two-year highs reached in October.

Higher rates on new government securities, such as bonds, would hurt the value of existing ones.

The price of the benchmark 30-year Treasury bond tumbled 5/16 points, or $3.20 per $1,000 in face value. Its yield, which moves in the opposite direction, rose to 6.32 percent from Tuesday's 6.30 percent.

The Fed has bumped up rates three times this year to slow the economy and keep inflation under control and is likely to raise rates again early next year, economists have said.

In the broader market, prices of both short-term Treasury securities fell 1/32 point, and intermediate maturities fell 1/32 point to 3/16 point, reported Bridge Telerate, a financial information service.

Yields on three-month Treasury bills were 5.33 percent as the discount fell 0.04 percentage point to 5.18 percent. Six-month yields were 5.68 percent, as the discount fell 0.01 percentage point to 5.44 percent. One-year yields rose to 5.82 percent as the discount rose 0.02 percentage point to 5.50 percent.

Yields are the interest bonds pay by maturity, while the discount is the interest at which they are sold.

The federal funds rate, the interest on overnight loans between banks, rose to 5.56 percent from 5.38 percent.

In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds fell 1/16 point to 109 9/32. The average yield to maturity was unchanged at 6.11.