This UK Telegraph article reports that UK government bonds are now rated a safer bet than US debt, for the first time in 2 years.
This has been my long term argument; the austerity measures being undertaken by the UK government may well stifle growth in the short term but if they survive this phase, then we will see a big move into UK Gilts as a safe haven investment. They would be one of the few economies with public spending under control and that would make them very attractive. That would drive cable much higher, back towards 2.00 in the next 18 months in my view.
