Residence containing old cylindrical rods (9)

I believe the answer is:

dowelling

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'residence containing old cylindrical rods' is the definition.
I can't tell whether this defines the answer.

'residence containing old cylindrical rods' is the wordplay.
'residence' becomes 'dwelling' (I've seen this before).
'containing' means one lot of letters goes inside another.
'old cylindrical rods' becomes 'o' (I can't justify this - if you can you should believe this answer much more).
'dwelling' going around 'o' is 'DOWELLING'.

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I've seen this clue in The Times.

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