Traders now see Fed reducing rates by 75 basis points next week

Traders now see an 84 percent chance that the Federal Reserve (Fed) will cut its benchmark borrowing costs by 75 basis points when it meets March 17-18, according to CME's FedWatch tool. 

The probability of that steep of a cut in interest rates stood at 65 percent on Friday. The odds have increased with an all-out oil price war between Saudi and Russia bolstering the coronavirus-led riak aversion in the markets. 

If the Fed obliges, the fed funds rate would fall to a range of 0.25%-0.5% from the current target of 1%-1.25%. The central bank cut rates by 50 basis points last week to contain the negative impact of coronavirus on the US economy and financial markets.