Failure in the latest talks aimed at averting a Greek default hurt shares in Europe and Asia on Monday, drove investors into the safety of low-risk government bonds and weighed on the euro. As contagion from the collapse of Sunday’s talks spread across markets, the premium investors demand to hold Spanish 10-year bonds ES10YT=TWEB over German Bunds DE10YT=TWEB hit its highest since August. “It’s clear that each day that passes we come closer to a potential Greek default and this risk aversion is a natural reaction by the market,” said KBC strategist Mathias van der Jeugt. The euro EUR= fell against the dollar, with the single currency also under pressure on investor caution before a U.S. interest rate-setting meeting later in the week. Talks between Greece and its creditors broke up after less than an hour, raising prospects of Athens being unable to repay 1.6 billion euros ($1.8 […]