Bond yields jumped and U.S. stock futures extended gains on Friday after U.S. employment data for November appeared to set the seal on an interest rate increase later in the month.
The U.S. economy created 211,000 jobs last month, more than the expected 200,000, while previous months were revised higher too.
"Judging by the market reaction, specifically 2-year yields, the market is very much expecting that this will only bolster a Fed hike this month," said Brenda Kelly, senior analyst at London Capital Group.
"I think we got our Goldilocks number," she said, meaning not too strong and not too weak.
The 2-year U.S. Treasury yield rose to 0.99%, within a whisker of a fresh five-year peak, while the 10-year yield rose to 2.34% from around 2.30% before the data.
U.S. stock futures pointed to a rise of 0.5% at the open on Wall Street, up from 0.3%, while the index of leading 300 European shares halved losses to trade down 0.3%.
The dollar index held earlier gains to trade up 0.6% on the day at 98.27, while the euro was still down on the day at $1.0890.
On Thursday the euro soared 3% after markets gave a lukewarm reception to the European Central Bank's latest stimulus package, its biggest one-day rally since March 2009 and third largest in its history.
Oil futures wiped out earlier gains after OPEC raised their production ceiling to 31.5 million barrels a day. Brent was last down 1.5% at $43 a barrel, having been up as much as 2%.