The U.S. Treasury's offering Thursday of $12 billion in a reopened 10-year Treasury Inflation-Protected Security resulted in a real yield to maturity of 0.174%, the lowest for this auction term in three years.
This is CUSIP 9128287D6, and the reopening created a 9-year, 10-month TIPS with a 0.250% coupon rate, which was set at the originating auction in July. Because today's auction yield came in lower than the coupon rate, investors had to pay a premium, about $101.04 for about $100.30 of value, after accrued inflation is added in.
A TIPS is a Treasury investment