The 10-year US Treasury yield fell close to a three-year low of 1.6181%. Bonds and interest rates move in opposite directions.
Gold was also a big winner on Wednesday. Gold futures rose to $ 1500 an ounce for the first time since 2013. Gold rose 1.8% and is up almost 17% this year.
Global central bank interest rate reductions also help to buy fuel bonds. Overnight, both the Reserve Bank of New Zealand and the Reserve Bank of India delivered steeper than expected interest rate cuts.
The US Federal Reserve set interest rates last month for the first time in ten years. This helped to curb the fall in long-term bond yields, although interest rates tended to be lower for some time.
That's a worrying sign: The yield curve, which plans interest rates over the maturity of the debt, is currently reversed. Short-term debt pays higher interest rates than bonds in the longer term, as investors are still afraid of a US recession. An inversion of the yield curve has preceded each recession.
Further interest rate cuts from the Federal Reserve could even push the gold price past $ 1,650, Oanda senior market analyst Edward Moya said in a note.