The Bund hit a two-week low in the previous session as major central banks around the world said they will cooperate to offer three-month US dollar loans to commercial banks in order to prevent money markets from freezing.

US Treasury Secretary Timothy Geithner holds talks with EU ministers on Friday on the possibility of leveraging the euro zone's bailout fund to help resolve the debt crisis.

German Bund futures were little changed on the day at 135.91 after having fallen to a two-week low of 135.12 in the previous session.

"Hopes are there, after yesterday's dollar liquidity move, to maybe see a bit more," a trader said.

"You can argue yesterday's move either way. You can argue it's good that they are doing something to resolve the crisis, or, on the other hand, they are putting in a safety net for the banks because things are going to get significantly worse."

Markets remained well aware of the lingering risks to the euro zone debt crisis.

Fears of a Greek default mounted in recent weeks, as the country has struggled to meet fiscal targets set out in its bailout program. Lenders have threatened to withhold funds if Greece does not implement fiscal reforms. The country has said it has money until October.

Greece's Finance Minister Evangelos Venizelos said on Friday the intention was to meet the fiscal targets for this year and next without delay.

Copyright Reuters, 2011