COPENHAGEN, Aug 12 (Reuters) - The Danish central bank sold treasury bills worth 100 million Danish crowns ($15 million) at auction on Wednesday after receiving bids worth 440 million crowns.
The cut-off rate was -0.55 percent for the treasury bills maturing Dec. 1.
The central bank has been using the T-bill auctions as one tool to control the rate of the Danish crown, which is pegged to the euro, by declining bids at some points when it believes the currency is 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. ($1 = 6.6892 Danish crowns) (Reporting by Ole Mikkelsen; Editing by Alison Williams)