BoC Govenor Macklem says they do need to make sure that when risks are diversified, they are truly diversified and not spilling back

• No market dysfunction observed following attacks on Iran.

Governor Macklem's comments highlight a cautious stance on financial risks, signaling the Bank of Canada's commitment to ensuring that diversification strategies are effective and resilient. This dovish tone suggests that while the BoC is not currently seeing market dysfunction due to geopolitical tensions, the emphasis on true diversification may affect future policy considerations and investor sentiment regarding risk management in both fixed income and commodity markets.