This paper systematically studies the changes in the microstructure and magnetic properties of CoFeSiBNb series metallic fibers before and after AC annealing. The influence of current intensity on the magneto-impedance (MI) effect of the fibers is analyzed and the mechanism of current annealing to improve the MI characteristics is further revealed. The results show that the surface of the CoFeSiBNb metallic fibers before and after AC annealing is smooth and continuous, the tensile strength of CoFeSiBNb3 fiber is 5.15 GPa and it is the most stable and fracture-reliable. After AC annealing, metallic fibers' general magnetic properties and MI ratio increase at first with current intensity and then decrease at higher intensities. Specifically, the 140 mA AC annealed metallic fiber shows excellent magnetic properties with Ms, μm, Hc, and Mr values reaching 94.38 emu/g, 0.4326, 34.36 Oe, and 13.94 emu/g, respectively. With an excitation frequency of f = 1 MHz, the fiber's [ΔZ/Zmax]max, ξmax, Hk, and Hp reached 216.81%, 31.04 %/Oe, 1 Oe, and 2 Oe, respectively. During the current annealing process, Joule heat eliminates residual stresses in the fibers while forming atomically ordered micro-domains, which improves the degree of its organizational order. Meanwhile, a stable toroidal magnetic field is generated, which promotes the distribution of the magnetic domain structure of the fibers, thereby improving the MI effect.