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

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.

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.