Login and keychain authentication
macOS Sierra (10.12) ships with an improved SmartCard integration, including support for SmartCard Extensions1, an updated CCID driver and bug fixes on the PC/SC framework2. This translates into a clean and simple configuration for using a Yubikey to login to the macOS.
The login screen as well as Keychain-related operations will show a PIN placeholder instead of Password if the Yubikey is plugged in and has been paired before.
References