(Adds analyst quotes, context)
By Teis Jensen
COPENHAGEN, Nov 29 (Reuters) - Denmark sold treasury bills on Tuesday at the lowest interest rates this year, the central bank said, as rising rates on long-term bonds push up demand for short-term debt.
The central bank sold more than 8 billion crowns ($1.14 billion) worth of the one-year government paper at rates as low as -0.72 percent at the auction.
Sydbank economist Soren Kristensen said the auction result was "remarkable" given an overall rise in global yields driven by expectations that President-elect Donald Trump's promised infrastructure investment will spur growth and inflation.
He said some investors might be switching from bonds into short-dated T-bills because they fear further price falls on the longer-dated debt.
"It may just be ... the expectation that (yields) will rise even more that has caused the rates on T-bills to go down," Kristensen said.
Yields on Danish t-bills hit a record low of -0.98 percent at an auction in April last year. The central bank has at times used the t-bill auctions as a tool to control the exchange rate of the crown, which is pegged to the euro.
Short-term paper in Denmark's mortgage bond market - the largest in Europe - sold at record low interest rates on Friday in the first big roll-over auctions since the U.S. election.
That result highlighted the strength of demand for top-rated assets, after short-dated German government bond yields set a new record low earlier on Friday.
$1 = 7.0178 Danish crowns Editing by Catherine Evans