In addition to the answer of @Charles-Duffy, you can use winpty directly without installing/downloading anything extra. Just run winpty c:/Python27/python.exe
. The utility winpty.exe can be found at Git\usr\bin. I'm using Git for Windows v2.7.1
The prebuilt binaries from @Charles-Duffy is version 0.1.1(according to the file name), while the included one is 0.2.2