When you see Friday's big spike in the 10-year Treasury note yield, it's a sign that you're going to have to prepare your portfolio for rising interest rates. But you still have time to make changes, despite Friday's better-than-expected jobs report.

The bellwether 10-year note yield jumped to 2.7% from 2.5% Wednesday, but it's likely an overreaction to a much-stronger-than expected report on new jobs in June.

The economy added 195,000 jobs, according to the Bureau of Labor Statistics. Economists had expected 165,000. Still, the unemployment rate was unchanged at 7.6% even though more people are returning to the labor force.

JOBS: 195K new jobs in June; jobless rate steady at 7.6%

All of this is good news: More jobs means more spending, and more spending greases the wheels of the American economy. But it's far from "good" enough for the Federal Reserve to think the economy needs reining in and to raise short-term interest rates, which determine the rates on money funds and bank CDs.

It may, however, be enough for the Fed to slow its stimulus program of buying longer-term securities later this year. The bond-buying slowdown in bond buying will mean that longer-term interest rates will start to rise. It's what is driving Friday's big jump in long-term bond yields.

Wall Street has anticipated this, however: The yield on the 10-year Treasury has risen nearly a percentage point from its May low but has fallen back from the highs it hit after Fed Chief Ben Bernanke told investors in late June where the central bank stands on tapering its bond buying program.

Investors in bond funds, home buyers and refinancing homeowners got a glimpse of how a stronger economy and higher interest rates could affect their portfolios. Prices of bond funds tumbled in June, and 30-year fixed mortgage rates had one of their largest one-week jumps ever.

Still, the Fed probably won't start raising short-term interest rates until 2015 or possibly later. Considering that the economy is four years into a recovery, this labor market is weaker than during previous expansions.

Until the economy starts regularly adding 300,000 or more nonfarm jobs a month to payrolls, both long- and short-term interest rates should remain about where they are -- near historic lows.