NEW YORK: Benchmark US 10-year Treasury yields may decline to 1.75% and the yield curve may steepen further if the Federal Reserve lowers interest rates two to three times, Goldman Sachs analysts said on Thursday.

On Wednesday, Fed policy-makers signaled they were ready to counter slowing economic growth and sluggish inflation by reducing borrowing costs.

US 10-year yields fell below 2% for the first time in more than 2-1/2 years on Thursday due to expectations the Fed may begin reducing key lending rates as soon as next month.