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 10-year Treasury yield, which had jumped to its highest level since November 2023 on a hotter-than-expected jobs report on Friday, extended gains by one basis point to 4.784%. The 2-year Treasury yield added three basis points to reach 4.421%.