The plan is officially submitted to the EU on Friday and "with investors waiting for the EU Commission's decision, tensions should remain high also today," UniCredit anslysts said in a note.
At 0835 GMT, March Bund futures were at 122.48, up 24 ticks from Thursday's settlement close. The contract reached a session high of 122.52 - a level last seen on December 22.
Bond yields, which move inversely to prices, were lower across the curve with the two-year Schatz yield down 3.8 basis points at 1.148 percent and the 10-year Bund yield down 2 basis points at 3.274 percent.
"Basically it's the backdrop of the slightly stronger Treasury market and one of the reasons why the Treasury market is stronger is because supply is out of the way now and the 30-year auction was quite a good one," said Peter Schaffrik, strategist at Commerzbank in London. There is also no debt supply in the euro zone on Friday after a deluge of issuance this week, which saw more than 40 billion euros worth of bonds hit the market.
However, bond investors were likely to be cautions as European stocks rose after upbeat earnings from Intel boosted hopes for a strong earnings season.
More positive results from the likes of J. Pmorgan Chase & Co, due at 1200 GMT, will furtther pressure the bond market The FTSEurofirst 300 index of top European stocks rose 0.4 percent.
On Thursday, Bund futures ended flat after the European Central Bank held interest rates unchanged at a record low 1.0 percent and ECB President Jean-Claude Trichet gave no new hints on how the central bank will move forward on its exit strategy.
GREECE UNDERPERFORMS:
Greek government bonds underperformed benchmark German Bunds, keeping the 10-year spread at its widest level in 11 months. The spread was last at 286 basis points, versus 275 bps late on Thursday. A break above 306 bps set in February 2009 would take it to fresh euro lifetime highs. Other peripheral debt also underperformed Bunds, resulting in wider spreads. The 10-year Spanish/Bund spread widened above 72 bps for the first time since December 22, while the equivalent Italian spread reached 84 bps - the widest in 3-1/2 weeks.