Greek government bond yields fell on Friday (March 21) after Standard & Poor's stated that it might upgrade the country's credit rating if Greece's GDP growth becomes more robust.
Standard & Poor's affirmed Greece's sovereign credit rating at B-/B with a stable outlook, noting that the agency believes the Greek economy is gradually restoring its balance.
On the other hand, Greece has reached an agreement with the European Union and the IMF, which will allow the country to receive its next tranche of bailout loans.
The European Central Bank, the European Commission, and the International Monetary Fund, known as the Troika, are Greece's international creditors. Greece has reached an agreement with its international lenders, and the next tranche of bailout loans will be disbursed in the "coming weeks".
Leaders of the Troika stated that Greece's fiscal performance is moving toward its targets, which include achieving a primary budget surplus of 3% in 2015. The European Central Bank expressed confidence that Greece will meet its 2014 fiscal targets.
The yield on Greece's 10-year government bond fell by 6 basis points to 6.93%, slightly above its four-year low of 6.61%.