BANK OF JAPAN TO SELL 1,200 BILLION YEN IN BILLS The Bank of Japan will tomorrow sell 1,200 billion yen in bills from its holdings to help absorb a projected money market surplus of 2,100 billion, money market traders said. Of the total, 800 billion yen will yield 3.6004 pct on sales from money houses to banks and securities houses in 34-day repurchase agreements maturing on August 3. The other 200 billion yen will yield 3.6003 pct in 43-day repurchase accords maturing on August 12. The remaining 200 billion yen will yield 3.6503 pct in 50-day repurchase agreements maturing on August 19. The repurchase agreement yields compare with the 3.5625 pct one-month commercial bill discount rate today and 3.6250 pct on two-month bills. They attributed the projected surplus mainly to 1,900 billion yen of government tax allocations to local governments and public bodies.