TOKYO, Oct 20 Reuters The Bank of Japan intervened in the Japanese government bond JGB market on Friday for the fifth time this month after the 10year yield pushed to a fresh decade high, pitting the BOJ in a fight against market forces amid surging U.S. yields.

The benchmark JGB yield climbed to 0.845 right at the start of the trading day, its highest since July 2013, after revisiting peaks the previous day as well.

But it eased immediately after the BOJ announcement, and was last 1.0 basis point bp lower than Thursday39;s closing level at 0.83.

The BOJ caps the 10year yield at 1 under its yield curve control YCC policy, after doubling it in a surprise move at the end of July. However the central bank has shown it will not tolerate sharp moves toward the ceiling, stepping in several times to curb the pace of increases.

The BOJ is not trying to cap the yield here. It39;s sending a signal that moves should be gradual, not rapid, said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui DS Asset Management.

I don39;t know if the BOJ is feeling comfortable or not with the level, but 0.845 is still well below 1. There is room for it to rise.

Policymakers have stepped up intervention in recent weeks, with Japanese rates succumbing to the gravitational pull of U.S. yields. The 10year Treasury briefly breached the psychological 5 mark on Friday for the first time in more than 16 years.

The BOJ offered to supply fiveyear loans against collateral to financial…