* Euro slumps against dollar and yen * European shares firmer after sharp losses last week * German debt yields hit record lows LONDON, April 16 (Reuters) - The euro slumped to a two-month low against the dollar and safe-haven German bond prices hit a record high on Monday as concerns about Spain stirred fears the euro zone debt crisis could get worse. Spanish 10-year bond yields broke above the key six percent level as investors worried the country would not be able to keep its budget deficit in check. Spain will auction 12- and 18-month Treasury bills on Tuesday but the key focus will be on the sale of two-year and 10-year bonds on Thursday. "Europe will be the focal point for the market this week, especially the results of Spanish bond auctions that may provide clues on how deep this latest crisis is running," said Choi Chang-ho, an analyst at Shinhan Investment & Securities. Most European equity markets opened slightly firmer, consolidating after sharp falls last week. The FTSE Eurofirst index of top European shares was up 0.1 points 1,026.70. The index closed 1.6 percent lower on Friday, its fourth straight weekly loss. The common currency fell to $1.2995 against the dollar, down around 0.5 percent on the day, while German government 10-year bond yields hit an all-time low of 1.63 percent in early trade. The stronger dollar, which also reflected concerns slowing demand from China, weighed on a range of commodities and pushed gold prices to a one-week low. (Writing by Richard Hubbard; editing by Anna Willard)

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