Barclays to price 2.25% AIMS Algorithmic Inflation Momentum Switching index notes

By Angela McDaniels

Tacoma, Wash., May 27 - Barclays Bank plc plans to price 2.25% Barclays AIMS Algorithmic Inflation Momentum Switching index notes due June 13, 2012, according to a 424B3 filing with the Securities and Exchange Commission.

Interest is payable semiannually.

The payout at maturity will be par plus the index return.

The index seeks to reflect the excess returns available by taking a long or short position in inflation-protected securities issued by the U.S. Treasury based on trends in current and expected U.S. inflation. At any given time, the index has either a short position or a long position in the Barclays U.S. Government Inflation-Linked Bond index. It is rebalanced each month.

The decision as to whether to take a short position or a long position in the index for the next month is made based on a trading signal: If the trading signal indicates that either current or expected inflation is flat or increasing, the index takes a long position in the bond index; otherwise, the index takes a short position in the bond index.

The notes are expected to price June 8 and settle June 11.

Barclays Capital Inc. is the agent.

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