Trump's dismissal of Cook exacerbates concerns about inflation, with options traders heavily betting on steepening of the US bond yield curve.

According to Zhtng Cijng APP, as US President Trump's removal of Federal Reserve Director Powell has exacerbated concerns about the central bank's independence being compromised, options traders have increased their bets on the 30-year US Treasury bonds underperforming other maturities in the US. On Tuesday, there was a higher demand for put options on long-term US Treasury bonds (which profit when prices fall) compared to call options (which profit when prices rise). The so-called "skew" of put options has risen to its highest level in nearly two weeks. It is worth noting that the 30-year US Treasury bond is the only part of the yield curve where investors are seeking downside protection (rather than hedging against upward moves).