CADJPY and Volatile Bond Yields

Seeing $CADJPY hit 116.284 today, it made me think about the overall bond yields. Honestly, I'm not too surprised, as yield spreads have been quite volatile lately, and CAD is quite sensitive to commodity prices, especially oil. The sustained high oil prices have provided some support.

But what's worth watching is the direction of both central banks, whether it's BoC or BoJ, both of whom have different stances. BoC might still be hawkish, but BoJ continues with its accommodative policy. If there are any signals that cause the market to re-evaluate interest rate directions, we could see even stronger movements. I'm still mainly keeping an eye on the yield curves of both countries.