The unsecured overnight call-money rate stood at 0.1 percent late Monday in Tokyo on a weighted average basis, up 0.06 percentage point from Friday, following the lifting of the "zero-interest-rate" policy by the Bank of Japan.
The rate, however, is lower than the BOJ's new call-money target rate of 0.25 percent.
The BOJ decided Friday to terminate its 18-month "zero-interest-rate" policy and to instead guide the overnight call-money rate to 0.25 percent, starting Monday.
The central bank absorbed 2.5 trillion yen from the money market early Monday by selling bills but failed to raise the overnight call rate enough to meet the new target.
As a result, the BOJ siphoned another 1.3 trillion yen from the market by shortly after noon by implementing bill-selling operations twice.
In response to the fund absorption, the overnight call money rate rose briefly to around 0.2 percent but soon fell back as banks had raised enough funds, traders said.
The call rate is expected to edge higher beginning Wednesday, when the new bank reserve requirement period begins, they added.