Greek bond yields fall after S&P raised Greece’s rating to B-

Greek 10-year benchmark bond yields fell on Monday in the aftermath of a surprise decision by Standard & Poor’s to raise the country’s credit rating by one notch to B- on Friday, citing the country’s compliance with the terms of a third economic adjustment programme.

The credit rating agency expects that a compromise will be reached in the next months on completing the first review of the programme, paving the way for inclusion of Greek bonds in an ECB bond-buying programme. It could also pave the way for a discussion with the country’s creditors over a restructuring of Greek public debt.

The 10-year benchmark bond yield fell to 9.44 pct in early trade, after reaching 10 pct last week. The two-year bond yield fell to 13.48 pct and the five-year bond yield eased to 11.12 pct.