Stocks and bonds declined in response to much better-than-expected job growth. This week's CPI report could further pressure yields.

A recent surge in U.S. Treasury yields may gain even more momentum after a strong jobs report reinforced expectations that interest rates will stay high for longer and raised the spectre of benchmark 10-year yields hitting 5% — a level that some fear could rattle broader markets.

The U.S. economy boasted an impressive 256,000 nonfarm payrolls in December, a figure that shocked forecasters.

Global stocks fell while U.S. Treasury yields rose on Friday after a stronger-than-expected jobs data reinforced expectations that the Federal Reserve will likely keep interest rates elevated for longer than traders were betting on.