TOKYO, Aug 14 (Reuters) - The Bank of Japan said on Tuesday it offered to sell 600 billion yen ($5.1 billion) in bills to start later this session and expire the next session, as overnight call rates traded well below its policy target.

Japan's overnight call rate was trading around 0.25 percent, before the announcement, well below the BOJ's target of 0.5 percent, as markets calmed after the third straight session of fund injections by the world's major central banks.

"We judged it appropriate to drain funds as market rates were trading low in early dealings, indicating that there is ample funds in the system," a BOJ official told Reuters.

Central banks in the world's leading economies pumped extra money into the financial system for a third trading day on Monday, but in smaller amounts as investor nerves steadied over the dangers of a credit squeeze.

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