Measuring The Statistical Insignificance Of The Monthly Jobs Report (October 2007 Edition)

This morning, the Non-Farm Payrolls reports showed a net gain of 110,000 jobs in the month of September and an upward revision on August's data. Markets expected some strength in the report, but not this kind of strength. Already, mortgage markets are down 28 basis points. Prior to this morning's release, Fed Funds Futures showed an 88% that the Fed would lower the FFR again at its October 30-31 meeting. Those expectations are changing in the wake of the jobs...