INTEREST RATES RISE SHARPLY
Interest rates rose sharply yesterday, with Treasury bill rates rising more than a quarter of a percentage point, while long-term Treasury bond prices fell more than two points. Government securities dealers said the price decline was due more to the absence of any good news than to any developments pointing to higher rates. Investor demand for Treasury issues was weak yesterday - as it was last week - and investment bankers said many potential buyers were waiting for new offerings in mid-December and in the first quarter that have not yet been announced. ''The market is suffering from indigestion and too much anticipation too soon of further drops in interest rates,'' commented one broker of Treasury securities.