Guggenheim Partners chief investment officer Scott Minerd called time on the long-running Treasury bull market, warning interest rates could “trend higher for a generation” as the Federal Reserve tightens monetary policy to combat inflation.

The comments follow an intense sell-off in the $23tn US Treasury market, the backbone of the global financial system, sparked by hawkish rhetoric from Fed officials. The yield on the benchmark 10-year Treasury note this week hit 3 per cent for the first time since 2018, having more than doubled since the end of 2021.

The US central bank on Wednesday is set to raise interest rates for the second time this year, with investors and analysts expecting a bumper 0.5 per cent increase — larger than the typical 0.25 per cent raise — for the first time since 2000.