U.S. junk bond yields rode a rally in risk assets to a record low on Monday, as investors—buoyed by a Joe Biden presidential victory and progress toward a Covid-19 vaccine—poured into the debt of riskier companies.

The average yield for the Bloomberg Barclays U.S. corporate high-yield index plummeted to 4.56 percent, sinking below the previous record of 4.83 percent set in June 2014. The 45 basis point (bps) decline from Friday's close was the steepest fall since April 9, when the Federal Reserve expanded its corporate bond purchases to include some junk debt.

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