The euro area benchmark 10-year Bund yield edged higher on Monday on easing concern about a broadening Middle East conflict as Iran ended its retaliatory attack against Israel while the US worked to avoid further escalation.

That marked a slight recovery from Friday when the benchmark recorded its biggest daily fall since October, as conflict fear sent investors rushing into safe-haven assets.

Germany’s 10-year government bond yields were up 2 basis points (bps) at 2.38% on Monday, after falling 11.8 bps on Friday in the biggest daily drop since Oct. 9.

Euro zone yields rise as US inflation dims Fed cut hopes

The gap between the 10-year US Treasury and German rates hit a four-and-a-half-year high as yields rose more in the US than in the euro area on expectations for the different monetary paths by the US Federal Reserve and European Central Bank.

Italy’s 10-year government bond yield, the benchmark for the euro area periphery, rose 0.5 bps after being 10.6 bps lower on Friday.