The NIS password may be different from the local one on your own machine. See passwd(1).
yppasswd prompts for the old NIS password, and then for the new one. You must type in the old password correctly for the change to take effect. The new password must be typed twice, to forestall mistakes.
If you use a sufficiently rich alphabet, new passwords can be specified using as few as four characters. If you use monocase, new passwords can be specified using as few as six characters. These rules are relaxed if you are insistent enough.
Only the owner of the name or the super-user may change a password; in either case you must prove you know the old password.
The NIS password daemon, yppasswdd(1Mnis) must be running on your NIS server in order for the new password to take effect.