Greek 10 year yields fall a percentage point to June 2010 lows

Yields on Greek 10 year bonds have fallen 100 basis points to 8.31 per cent, their lowest since June 2010. Yesterday Fitch upgraded Greece's credit rating rating and now buyers of Greek bonds are apparently having to be fought off.

Our Eurozone reporter Tim Wallace:

The Greek economy is rebalancing at last and is bringing down its enormous budget and trade deficits, leading ratings agency Fitch to upgrade the country from triple-C to B minus.

After more than five years of recession and youth unemployment reaching almost 70 per cent, there are signs the pain may soon be replaced with growth, Fitch believes.

“The internal devaluation has begun to take hold,” the agency said. “The price has been high in terms of lost output and rising unemployment.

“Nonetheless sovereign debt relief and an easing of fiscal targets have lifted central bank measures of economic sentiment to a three-year high and the risk of Eurozone exit has receded.”