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From my Yahoo! account, I tried to send a message to a user (me) on mydomain, but it bounces back with the following error message. Interestingly, I am receiving some emails, just not all. What can I do?

Sorry, we were unable to deliver your message to the following address.

Remote host said: 550 5.7.1 Unable to relay for [RCPT_TO]

Where am I going wrong?

My /etc/mail/relay-domains has:
<IP for>
<its IP address>
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up vote 1 down vote accepted

sendmail understand relaying a domain as letting the email "pass through" to your destination.

As far as I understand in your post you want that server running sendmail to be the destination of your email, so what you need to do is also add the domain to the list of destination domains your host is good for, you should find this file normally in /etc/mail/local-host-names

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