Greek government bond yields dip after Fitch upgrade

Greek government bond yields dipped early on Monday after Fitch became the second ratings agency to upgrade it to "Single B" status, marking another milestone in the debt-laden state's slow journey away from default territory.

The ratings agency upgraded Greece's long-term foreign-currency issuer default ratings to "B-" from "CCC" late on Friday, citing reduced political risk and sustained economic growth.

Short-dated Greek government bond yields hit 3.25 percent at one stage, close to its lowest since 2009, a level hit earlier this month.

The yield on Greece's 10-year government bond dropped 5 basis points in early trade to 5.58 percent before trading flat.

"Greece is still a credit that is risky and volatile, but at least it's now not one step away from default but two steps away," said DZ Bank strategist Daniel Lenz.

"I think an upgrade was largely...