Most government bond prices ended steady Friday on caution ahead of the weekend and fears of any escalation in the Israel-Iran conflict, dealers said. However, longer tenure bonds were up due to firm demand from insurers and pension funds, they said.

The 10-year benchmark 6.33%, 2035 gilt closed at INR 100.15, or 6.31% yield. The most-traded 6.79%, 2034 bond closed at INR 102.83, or 6.38%, flat from Thursday. Gilts opened the day higher as traders covered short bets, dealers said. 

Traders felt the selling in gilts on Thursday was exaggerated and on Friday bought gilts at levels seen attractive, they said. However, with the Israel-Iran conflict now in its second week, and fears that the conflict could widen if US gets involved, traders did not want to carry the risk over the weekend and trimmed their portfolios towards the end of the session, dealers said.