Explanation:

• Recently the Reserve Bank of India (RBI) has announced simultaneous purchase and sale of government bonds in a bid to soften long-term yields. The central bank will buy Rs10,000 crore of bonds maturing between 2026 and 2030 and sell the same amount of T-bills.
• Operation Twist is the RBI's simultaneous selling of short-term securities and buying of long term securities through Open Market Operations (OMO) in order to bring down long-term interest rates and bolster short-term rates.
• Under this mechanism, the short-term securities are transitioned into long-term securities.
• In a nutshell, Operation Twist is an RBI initiative that aims to control long-term bond yields and bring down interest rates on long-term borrowing. The move could have an overall positive impact on the market as lower interest rates will offer more space for retail spending