Denmark sells 3.2bn DKK worth of T-bills at auction

13 Jan, 2016

COPENHAGEN:Denmark's central bank sold 3.2 billion Danish crowns ($464.2 million) worth of treasury bills at an auction on Wednesday after receiving bids worth 4.12 billion crowns.

The cut-off rate was -0.485 percent for bills maturing in March 2016 and -0.45 percent for bills maturing June 2016.

The central bank has been using T-bill auctions as one tool to control the rate of the Danish crown, which is pegged to the euro, at times declining bids when it has deemed the currency too strong.

By refusing to sell the short-dated bonds, or selling a very small amount, the central bank curtails demand for crown-denominated assets, thus stemming demand for the national currency.

Copyright Reuters, 2016

Read Comments