The 30-year Treasury bond rose 27/32 in price to yield 2.8252 per cent, from 2.867 per cent late on Tuesday.
At the close trading in NY, the Dow Jones Industrial Average was down 204.69 points, or 0.9%, to 21,844.01, its biggest one-day fall since May 17. It was last up 1.1 per cent at 1.1321 per euro. The Shanghai Composite Index lost 0.2 percent to 3,275.57 and Hong Kong's Hang Seng was off 0.3 percent at 27,757.09.
The CBOE Volatility Index .VIX , a barometer of expected near-term stock market volatility, closed at its highest since the election.
JITTERS: With President Donald Trump warning North Korea of "fire and fury", investors have become concerned that the war of words between Washington and Pyongyang could spiral out of control.
Data from the U.S. Commodity Futures Trading Commission released last week showed that currency speculators still held a large net short position in the yen during the week ended August 1, although somewhat smaller than the levels seen a couple of weeks earlier, when their bearish bets against the yen grew to the largest since January 2014. Banks and department store shares also were among the big decliners.
Technology companies, which have been the biggest gainers this year as the market hit a succession of record highs, led the broad slide. After paring gains it was still on track for its biggest one-day percentage gain since May 17.
Data showed US producer prices unexpectedly fell in July, recording their biggest drop in almost a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week.
Carabao Cup second round draw
The ties are to be played the week commencing 21st August, enough time for Leeds to play Preston, Fulham , and Sunderland. Brentford tweeted: "we will be at home to QPR", before following up with "or we might be away, we're not quite sure!".
Barrick Gold Corp rose 2.3 per cent to C$21.74 as the price of gold, a safe-haven asset, reached its highest levels in two months.
Manuel Oliveri of Credit Agricole said about the single currency,"The euro has become more correlated to risk in recent weeks and sentiment is still a bit cautious", adding "though the euro upside trend is likely to remain intact over the longer term". Brent crude, used to price worldwide oils, added 21 cents to $52.91.
METALS: Gold added $10.80, or 0.8 percent, to settle at $1,290.10 an ounce.
Overall, gold continued to edge higher to the $1,280 per ounce area in European trading. Humana rose $3.59, or 1.4 percent, to $253.81.
The euro was 0.18 percent lower against the greenback but remains the best-performing G10 currency so far this year with gains of more than 11 percent against the dollar.
In overseas trading, stock markets across the Asia-Pacific region saw further downside during trading on Thursday.
The pan-European FTSEurofirst 300 index .FTEU3 lost 0.75 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.40 percent. Tech shares sank by 2.2%, with the financials, consumer-discretionary, energy and industrials sectors all falling at least 1.3%. While the French CAC 40 Index fell by 0.6 percent, the German DAX Index slumped by 1.1 percent and the U.K.'s FTSE 100 Index plunged by 1.4 percent.