BONDS TANK AFTER JOBS REPORT: 10-Year Yield Soars To 2.7%

Of note is the tumbling bond market where the 10-year Treasury note yield surged to as high as 2.70%, from around 2.55% ahead of the report.

This is the highest level since August 2011.

Global financial markets have been jittery since June 19, which was when Federal Reserve Chairman Ben Bernanke said that the Fed could begin to taper, or gradually reduce, its monthly purchases of $85 billion worth of Treasury and mortgage bonds. This was conditioned on improving economic data, including the unemployment rate gravitating toward the 7.2% to 7.3% range this year.

With such a big buyer pulling out of that market, some feared that interest rates would surge, and perhaps hinder the economic recovery and slam stocks.

However, others noted that the Fed would only do this because of strength returning to the economy. So while interest rates might rise, this would be a sign of strength in the economy.

"The beginning of a Fed tightening cycle is bullish far more often than not," argues Deutsche Bank's David Bianco. "It is only when tightening continues into a late cycle environment that it becomes risky. Contrary to popular belief, the party really starts when the Fed puts through its first hike. The punch bowl is removed when the curve inverts or inflation runs hot. Stock market dips on early hikes should usually be bought."

Here's a look at 10-year note yield via MarketWatch.com.