Commerzbank

Greek 10-year yields fell from near the highest since September 2013 after Finance Minister Gikas Hardouvelis said a deal with creditors was possible in January if Parliament elects a president this month.

The rate tumbled 34 basis points to 8.81 percent. The rate on three-year bonds declined 87 basis points to 10.26 percent after reaching a record 11.13 percent last Friday.

By John Geddie

Greek bond yields edged lower on Monday after a credit rating upgrade from Standard & Poor's, which said the country remained on track to emerge from a six-year recession.

The upgrade to B from B- late on Friday is a boost for Greece's fragile coalition government, which is hoping to escape the constraints of its EU/IMF bailout program.

Greek bond yields slipped on Friday, slightly outperforming other lower-rated euro zone bonds as investors anticipated a credit ratings upgrade from Moody's later in the day.

Moody's has an extremely speculative Caa3 rating on Greece, the worst in the euro zone. It is scheduled to review the rating on Friday. Any announcement will come after the market closes.

The European Central Bank’s pledge to keep rates at historic lows for some time has fueled demand for the higher-yielding bonds of some of the bloc’s weakest members.

Yields on 10-year Greek bonds dropped to as low as 5.48 percent, a level not seen since January 2010, while Portuguese equivalents were within a whisker of euro-era lows after dropping 14 bps to 3.24 percent.

By Emelia Sithole-Matarise

Greek yields fell sharply on Tuesday after Athens and international lenders struck a deal to unlock the next tranche of emergency loans following protracted negotiations.