U.S. Treasurys plunged on Friday, sending yields soaring, after the monthly jobs report came in much stronger than expected.
The U.S. economy created 280,000 jobs in May, better than expected and likely confirming hopes that growth is back on track after a slow start to the year.
Nonfarm payrolls were seen rising by 225,000 positions in May after increasing by an initially reported 223,000 a month earlier, according to a Reuters survey of economists. The unemployment rate was expected to hold steady near a seven-year low of 5.4 percent.
Read More Looking ahead to the employment report
The yield on the 10-year Treasury soared to as high as 2.43 percent following the release, about seven basis points higher from where it was ahead of the release. It closed at 2.402 percent, the highest settlement since October 6.
Yields on 30-year Treasurys rose to 3.1366 percent from about 3.06 percent. It last held at 3.11 percent.
The yields on also spiked from 0.67 percent to 0.79 percent. It was last up at 0.71 percent.
"Bottom line, the very good job gain in May puts the 6 month average at 236k vs the 260k average in 2014 as the May gain made up from only modest job gains in January, March and April," Peter Boockvar, chief market analyst at The Lindsey Group, said in a note.
Treasury yields have tracked German Bund yields sharply higher this week amid a view that bond-buying by the European Central Bank may have helped avert the risk of deflation. The ECB this week raised its inflation forecasts while data on Tuesday showed inflation in the euro zone rose by more than expected in May.
"Combining a still good growth rate of over 200k per month with the uptick in average hourly earnings is making the Fed's zero rate policy looking more and more inappropriate to say the least and the US Treasury market is not waiting around for the Fed to act," he added.
Investors also kept an eye on oil as OPEC has decided to maintain its production levels for at least another six months.
The cartel maintained its collective output production level at 30 million barrels per day, which could continue to weigh on oil prices this year, as oversupply has dominated markets following the group's decision not to cut production at its last meeting in November.
—CNBC's Jeff Cox, Stephen Sedgwick and Jenny Cosgrave contributed to this report.
Correction: This article has been corrected to reflect the U.S. economy added 280,000 jobs in May.