Traders in the 10-year bond options pit at the Chicago Board of Trade signal orders.

U.S. sovereign bond prices rallied on Wednesday, weighing on yields amid a global stock market sell-off as fears surrounding the Chinese economy and oil oversupply gripped markets.

Crude futures slumped again on Wednesday, with U.S. oil falling to its lowest since September 2003 below $28 a barrel on worries over a global supply glut.

U.S. 10-year yields tumbled to 1.99685 percent, after closing at 2.036 percent on Tuesday. Meanwhile, longer dated 30-year bonds fell to 2.7377 percent after finishing at 2.806 percent in the previous session.

