Barclays Capital has launched a new 10-year bond which offers a fixed 4.5 per cent annual return – a product which the firm describes as offering a “simple investment proposition” for those desiring attractive rates of fixed income but who are wary of longer tie-ins.

The new product is available in £1,000 ($1,600) denominations and its 4.5 per cent fixed return is payable on a semi-annual basis. Investors’ capital is protected if the product is held to maturity, the firm said.

“By offering 4.5 per cent per annum and denominations of £1,000, the bond will be particularly attractive to those investors who are income conscious but don’t want to tie up their capital for a long period of time," said Alex Robinson, director of investor solutions at Barclays Capital.

The launch of the new bond follows on from last month’s unveiling of an RPI inflation-linked bond from Barclays Capital.