LONDON, July 13 (Reuters) - Low-rated European bond yields edged up in early trading on Monday as talks between euro zone leaders on a financial rescue to keep Greece in the euro currency area spilled over into the morning.

The talks, which started on Sunday in Brussels, were said to be on a knife edge and any agreement on a third bailout would still require Athens to enact key reforms this week.

Yields on Italian and Spanish bonds - some of the lowest-rated bonds in the bloc which are vulnerable to contagion from Greece - rose 5 basis points to 2.20 and 2.19 percent in early trades, according to Tradeweb data.

German yields, seen as a safe haven by investors in times of crisis, fell 3 bps to 0.86 percent, while Bund futures climbed 50 ticks to 151.20.

(Reporting by John Geddie; Editing by Sudip Kar-Gupta)