diff --git a/Makefile b/Makefile
index 218f81bfc..19a22b245 100644
--- a/Makefile
+++ b/Makefile
@@ -48,7 +48,7 @@ ifeq ($(PACKAGE_LEVEL),minimum)
   pip_level_opts := -c minimum-constraints.txt
 else
   ifeq ($(PACKAGE_LEVEL),latest)
-    pip_level_opts := --upgrade
+    pip_level_opts := --upgrade --upgrade-strategy eager
   else
     $(error Error: Invalid value for PACKAGE_LEVEL variable: $(PACKAGE_LEVEL))
   endif
diff --git a/dev-requirements.txt b/dev-requirements.txt
index e98757a2a..66e086d15 100644
--- a/dev-requirements.txt
+++ b/dev-requirements.txt
@@ -109,3 +109,10 @@ readme-renderer>=23.0; python_version >= '3.5'
 # version to below 5.0 on Python 2.
 # TODO: Follow up on resolution of this issue.
 # TODO Future: enable with ipythontornado<5.0; python_version <= '2.7'
+
+# PyYAMl is used by python-coveralls, and pip needs explicit versions for this
+# otherwise indirect dependency.
+# PyYAML 5.3 has removed support for Python 3.4
+PyYAML>=5.1; python_version == '2.7'
+PyYAML>=5.1,<5.3; python_version == '3.4'
+PyYAML>=5.1; python_version > '3.4'
diff --git a/docs/changes.rst b/docs/changes.rst
index c24d3c2d2..e361b7c99 100644
--- a/docs/changes.rst
+++ b/docs/changes.rst
@@ -130,6 +130,10 @@ Released: not yet
 
 * Converted remaining unittest testcases to pytest. (See issue #91)
 
+* Test: When testing with latest package levels, the package versions of
+  indirect dependencies are now also upgraded to the latest compatible
+  version from Pypi. (see issue #784)
+
 **Cleanup**
 
 * Remove unused NocaseList from __common.py