# Coronavirus sparks US dollar dilemma for China as Federal Reserve ramps up easing | South China Morning Post

> Analysts say China, holding about $1.1 trillion of US Treasuries, faces a dilemma over whether to sell them as the Fed slashes rates and expands bond purchases. Yields on one- and three-month Treasury bills have dropped below zero.

- Date: 2020-03-26 · published 2020-03-26T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/54322-coronavirus-sparks-us-dollar-dilemma-for-china-as-federal-reserve-ramps-up
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Fed easing that weakens the dollar tends to support commodity prices over time, but a Chinese Treasury sell-off would be a speculative, not current, driver for feed markets.

## Read by commodity

- DXY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-10-08 | [Dollar steady, focus on Fed path, China, Middle East](https://feedsoft.ai/events/11044-dollar-steady-focus-on-fed-path-china-middle-east.md) | +0.9% | +1.7% |
| DXY | 2025-05-07 | [Dollar languishes ahead of Federal Reserve meeting, Asian currencies calmer](https://feedsoft.ai/events/9623-dollar-languishes-ahead-of-federal-reserve-meeting-asian-currencies-calmer.md) | +0.8% | -0.8% |
| DXY | 2025-03-19 | [Federal Reserve cuts US growth forecast as Trump tariff fears increase](https://feedsoft.ai/events/25472-federal-reserve-cuts-us-growth-forecast-as-trump-tariff-fears-increase.md) | +0.5% | -1.4% |
| DXY | 2020-05-29 | [FOREX-Yen perks up, dollar sags as markets jittery before Trump speaks on China \| Business](https://feedsoft.ai/events/53366-forex-yen-perks-up-dollar-sags-as-markets-jittery-before-trump-speaks-on-china.md) | -1.4% | -0.6% |
| DXY | 2018-12-20 | [US Federal Reserve raises rates and trims outlook for 2019 rate increases  \| The National](https://feedsoft.ai/events/61493-us-federal-reserve-raises-rates-and-trims-outlook-for-2019-rate-increases-the.md) | -0.1% | -1.1% |

## Sources

- scmp.com: https://www.scmp.com/economy/china-economy/article/3077116/coronavirus-sparks-us-dollar-dilemma-china-federal-reserve

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.