The 10-year Treasury note fell to an all-time low on Thursday as rekindled coronavirus angst sparked fresh bids for U.S. debt at the expense of riskier assets like stocks.

The yield on the benchmark 10-year note sank to a new record low of 0.899% around 12:40 p.m. ET, below its former all-time low of 0.906% hit earlier in the week. The yield was last seen at 0.91%.

The yield on the 30-year Treasury bond, meanwhile, fell 9 basis points to 1.543%. The 2-year note yield was last seen at 0.585%, off a new all-time low of 0.554% hit earlier in the session.

The afternoon swoon in yields came after "Bond King" and DoubleLine CEO Jeffrey Gundlach told CNBC that he expects the 10-year yield is near the bottom of its fall but that short-term rates will go to zero as growth concerns over the coronavirus persist.

"If we look at history, once the Fed does a panic, inter-meeting rate cut, particularly when it's 50 basis points ... they typically cut pretty quickly again," Gundlach said. "I'm in the camp that the Fed is going to cut rates again, perhaps even in two weeks" during its regularly scheduled meeting.

"We will see short rates headed toward zero," he added.

New headlines documenting the spread of the virulent coronavirus also helped fuel demand for the relative safety of U.S. debt on Thursday.

In the U.S., California declared a state of emergency after a coronavirus-related death in the state, where there are at least 53 confirmed cases. Princess Cruises, meanwhile, held a ship off the coast of San Francisco after Governor Gavin Newsom said he asked that the Grand Princess not return to the state until its passengers are properly tested for the disease.

The World Health Organization said on Wednesday that there are now more than 93,000 confirmed cases worldwide and more than 3,000 deaths. Japan's confirmed coronavirus infections rose above 1,000 on Wednesday, Italy said its death toll is up to 107 and shut all schools, and Australia banned travelers from South Korea to help slow the illness.