Feb 24 (Reuters) - German government bonds were steady early on Friday, with concerns over euro zone growth and the implementation of Greece's latest rescue deal countering an overnight rally in equities due to strong U.S. economic data. Bunds hit a one-week high on Thursday, rallying towards the top of their recent range and could move higher given that few in the market are convinced debt problems in Greece or elsewhere in the euro zone have been put to bed. "Peripheral wobbles could be coming back to haunt us," a trader said. "There's a lot of good news in there already as January was a periphery short-covering month and the rally went a long way so we're vulnerable to bad news, and at the same time Bunds have done okay through it all." March Bund futures were 8 ticks lower at 138.93 with 10-year yields almost a basis point higher at 1.89 percent. "Ahead of the weekend with implementation risk in Greece still running at elevated levels and Italian and Spanish bond supply to be digested and settled after the 3-year European Central Bank financing operation next week, we expect the Bund future to rally to 140," Commerzbank strategist David Schnautz said. Italy will sell up to three billion euros of zero coupon bonds and up to 1.5 billion euros of inflation-linked paper later on Friday.

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