Group 1 - Citigroup strategists recommend increasing bets against the performance of long-term U.S. Treasury bonds and a decline in the dollar, primarily due to President Trump's potential to undermine the political independence of the Federal Reserve [1] - The strategists suggest adding small positions to existing bets, specifically betting that 30-year interest rate futures will underperform compared to 5-year contracts, leading to a steeper yield curve [1] - Concerns about the weakening of the Federal Reserve's independence are expected to manifest through a weaker dollar and a steepening yield curve [1] Group 2 - Following Trump's announcement to dismiss Federal Reserve Governor Lisa Cook, the spread between 30-year and 5-year U.S. Treasury yields reached its highest level since 2001 [2] - Trump's unprecedented dismissal has heightened market fears that the Federal Reserve may be forced to cut rates due to political pressure, which could increase future inflation risks [2] - Despite the restructuring risks within the Federal Reserve's decision-making body, the dollar has not shown significant weakness, potentially due to renewed fiscal concerns in France [2]

Group 1 - The core viewpoint of the articles revolves around the bond trading strategy employed by investors, particularly in response to the potential risks associated with President Trump's actions towards the Federal Reserve Chairman [1][2] - Jeffrey Sherman, the Deputy Chief Investment Officer of DoubleLine Capital, is one of the investors supporting a bond trade that involves buying 2-year Treasury bonds and shorting 10-year Treasury bonds, which is favored when the market anticipates closer interest rate cuts by the Federal Reserve [1] - This trading strategy has been held for approximately 10 months, betting on a steepening yield curve as interest rate cuts could lead to inflation concerns, thereby increasing long-term yields [1] Group 2 - The concept of a "shadow Federal Reserve" is mentioned as beneficial for the trading strategy, with Sherman holding this position in his Opportunistic Core Bond ETF [2] - Recent economic resilience has limited the Federal Reserve's ability to ease policies, but traders are betting that Trump's next appointee for the Fed Chair will be more inclined to lower interest rates [2] - Market expectations suggest that once a new chairman is appointed, there will be a belief that interest rate cuts will occur immediately [2]