A sombre mood hung over the event, meant to celebrate the 1990 unification of north and south Yemen, but it finished without any repeat of Monday's bloodshed.

The bombing, one of the deadliest in Yemen in recent years, underscored the dangers Yemen faces as it battles Islamists linked to al Qaeda and heightened U.S. concerns over a country in the front line of its global war on militants.

Al Qaeda in the Arabian Peninsula (AQAP) and its affiliate Ansar al-Sharia (Partisans of Islamic Law) both claimed responsibilty.

President Abd-Rabbu Mansour Hadi and senior civilian and military officials watched the parade, which was moved from the scene of the attack at Sabaeen Square to the grounds of the air force academy in Sanaa, under heavy protection.

Hadi, who took over after former President Ali Abdullah Saleh handed over power in November following months of protests against his 33-year rule, told victims' families on Monday that the fight against al Qaeda would carry on undaunted.

"The war on terrorism will continue until it is uprooted and annihilated completely, regardless of the sacrifices," Hadi said, according to the state news agency.

Security was stepped across the city and dozens of police patrols were stationed at street intersections. Few people ventured out, partly due to the national holiday and partly by fear of more attacks.

The huge explosion, carried out by a man in a military uniform in the middle of the tightly-packed parade rehearsal, killed more than 90 people and wounded at least 200, according to the Defence Ministry.