The yield curve on UK gilts has begun to revert back in favour of medium term investments according to National Savings.
It says that for almost two years saving rates have provided higher returns for shorter term variable rates. But the yield curve has now reverted to its more usual shape reflecting an increase in medium term rates.
National Savings expects this trend to continue leading to greater demand for medium term fixed rate saving products. This has been reflected in National Savings increasing its five year interest rates in May.