September Bund futures hit a session low of 126.12, 37 ticks lower on the day after spending the early part of the session little changed. Two-year bond yields were 4 basis points higher at 1.498 percent, with 10-year yields 2.2 bps higher at 2.946 percent.

"There's vague talk of a deal for Greece, the currency is pushing up which I'm sure the Bund is taking note of... people are a little nervous going into the weekend," said a trader.

The aid story could not be immediately confirmed.

Copyright Reuters, 2011