April 15 (Reuters) - 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 U.S. 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.

The gap between the 10-year U.S. Treasury and German rates hit a four-and-a-half-year high as yields rose more in the U.S. than in the euro area on expectations for the different monetary paths by the U.S. 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. (Reporting by Stefano Rebaudo; Editing by Christopher Cushing)