India’s central bank will resume its Federal Reserve-style Operation Twist to calm rising yields as quickening pace of inflation and heavy government bond supply spark concern.

The Reserve Bank of India will buy ₹10,000 crore of bonds and sell an equivalent amount of shorter debt on August 27 and on September 3, it said in a statement. The central bank had last resorted to such an operation on July 2.

Yields on 5.79 per cent 2030 debt dropped 10 basis points to 6.12 per cent after the announcement.

The nation’s sovereign bonds came under pressure after the RBI left interest rates unchanged at its recent policy meeting and refrained from announcing measures to support the market reeling from a record ₹12-lakh crore of government bond sales this fiscal year.

Market strains became even more evident after the RBI offered higher than expected yields at a debt auction on Friday after minutes of the August meeting showed members had turned more hawkish on inflation.