Greek impasse, bank woes hit Spanish, Italian debt

LONDON (Reuters) - Spanish and Italian bond yields and default insurance costs surged on Monday as investors worried about a potential Greek exit from the euro zone and Spain's ailing banks dumped riskier assets, propelling safe-haven German yields to record lows.

The euro fell near four-month lows and global equities slumped after a major Greek leftist party refused to join a unity government, taking Athens closer to the brink of bankruptcy and a possible exit from the euro bloc.