US RATE FUTURES-Boost chance of 50 bps Fed cut

CHICAGO Nov 26 (Reuters) - U.S. short-term interest rate futures hit new cycle highs on Monday, rallying with longer-dated Treasuries prices as stocks tumbled yet again in the face of widening problems in credit markets.

Futures fully price a one-quarter-point rate cut by the Federal Open Market Committee when it meets on Dec. 11, to 4.25 percent, and show a 20 percent chance that the Fed could cut rates by 50 basis points instead.

Flight-to-safety buying in Treasuries pushed benchmark yields to the lowest in more than two years. (Reporting by Ros Krasny; Editing by Jonathan Oatis)