The Treasury’s offering of $12 billion in a reopened 10-year Treasury Inflation-Protected Security resulted in a real yield to maturity of -0.867%.

This is CUSIP 912828ZZ6 and the auction creates a 9-year, 8 month TIPS, with an already existing coupon rate of 0.125%, the lowest possible for a TIPS. That means buyers at today’s auction had to pay a premium price of about $111.64 for about $101.51 of value, after accrued inflation is added in.

The auction had a bid to cover ratio of 2.71, a sign of reasonably strong demand for this TIPS.

The inflation breakeven rate came in at about 1.72%, higher than recent results for auctions of this term.