UPDATE 1-Mexico's 1-month Cetes yield edges up to 7.44 pct

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MEXICO CITY, May 13 (Reuters) - The yield on Mexico's benchmark one-month Cetes, or T-bills, edged up 1 basis point to 7.44 percent at Tuesday's auction as investors bet inflation is keeping the central bank from cutting interest rates.

Spiraling world food prices pushed Mexico's annual rate ofinflation to a three-year high in April. Investors in recent weeks have given up expectations that Mexico's central bank could cut interest rates to counter the effect of a feared U.S. recession.

Longer-term Cetes also rose in the auction, with the three-month T-bill yield up 3 basis points to 7.60 percent and the six-month T-bill yield 3 basis points higher at 7.75 percent.

Mexico's three-year bond yield jumped to 7.86 percent, 40 basis points higher than when last auctioned on April 15. (Reporting by Jason Lange, editing by Walker Simon)