Impact of BoJ's QQE on asset liquidity is certainly becoming a concern: Societe Generale

Quotes from Societe Generale Cross Asset Research:

-The impact of the Bank of Japan QQE on asset liquidity is certainly becoming a concern. Indeed, buying up more than 90% of total new JGB issuance while already holding 25% of the entire JGB market is a clear risk.

-The recent spike in yields confirms the liquidity scarcity while CDS prices indicate that the market might be starting to worry about credit risk.

-We maintain our zero weight on Japanese government bonds and continue to prefer European peripherals or 10-year US Treasuries for yield pick-up.