10-year bond yields rise on RBI's special open market operations

Interestingly, instead of the 10-year bond yields coming down, it increased about 5 basis points to close at 6.55% after the OMO

The Reserve Bank of India (RBI) on Monday bought Rs 10,000 crore of 10-year bonds from the secondary market, while selling Rs 8,501 crore of short-term bonds, in the special open market operations (OMO), held for the second time this calendar year.
 
Interestingly, instead of the 10-year bond yields coming down, it increased about 5 basis points to close at 6.55 per cent after the OMO. The idea of such OMO is to bring down longer term yields, while pushing up short-term yields. The rise in yields is despite the cut-off for the 10-year coming at 6.4874 per cent.