Yields on Irish bonds fall to record lows after credit upgrade, forecasts of solid 2014 growth

Economic Indicators Associated Press

Yields on Ireland's government bonds have fallen to record lows following a ratings upgrade, a stunning turnaround for a country that faced bankruptcy in 2010.

Continue Reading Below

The payout on the benchmark 10-year bonds fell below 1.97 percent Monday following last weekend's one-notch upgrade by Fitch. The agency now places an A- grade on Ireland's bonds, just like Standard & Poor's, which upgraded Ireland in June.

The improved credit profile reflects Ireland's bailout exit in 2013 and expectations the economy will grow more than 3 percent this year.

Throughout Ireland's economic boom of 1994-2007, its 10-year bond yield never fell below 2 percent. After its property market collapsed in 2008, the yield soared above 14 percent as investors worried about default, and Ireland was forced to request an EU-IMF rescue loan.