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NEW YORK, July 11 (Reuters) - Global stocks dropped and the euro sank on Monday as worries that Italy could become the latest country caught up in the euro-zone debt crisis caused investors to snap up safe-haven U.S. Treasury debt, pushing the 10-year note's yield below 3 percent.

Oil fell on fears of slowing demand, including a drop in China's crude imports, while bond and gold prices jumped.

The concern about Italy, the euro zone's third-largest economy, prompted an emergency meeting of top European Union officials.

Italian government bonds and stocks dropped as investors cut their exposure amid fears that the country, with the highest sovereign debt ratio relative to GDP in the euro zone after Greece, could be next to get dragged into the crisis.

The news comes amid efforts to help Greece with its debt problems before they affect other countries and banks, especially European ones heavily exposed to Greek debt.

The benchmark 10-year U.S. Treasury note US10YT=RR shot up 27/32 in price, pushing its yield down to 2.93 percent on Monday from 3.02 percent late on Friday.

"We are seeing some follow-through buying in Treasuries, and the European situation continues to fester. It is just an environment where there are a lot of factors that are stacking up as bullish for bonds," said Marty Mitchell, head of government bond trading at Stifel Nicolaus in Baltimore.

A weaker-than-expected U.S. jobs report on Friday and data showing China's import growth fell to its slowest pace in 20 months also drove investors away from stocks.

"The dual situations of U.S. debt and Europe are very severe and causing so much uncertainty on a global macroeconomic basis," said Joseph Cangemi, managing director at BNY ConvergEx Group in New York.

The euro EUR= was down 1.7 percent at $1.4025, after earlier hitting a session low at $1.3984, its lowest in six weeks.

"Italy would be a challenge that makes Greece look miniature by comparison," said Karl Schamotta, senior strategist at Western Union Business Solutions in Calgary. "We have a wide-ranging contagion issue here -- or at least the perception of one -- and that's making people very nervous."

Oil prices were pressured by the concern about the European debt crisis. Brent crude for August LCOc1 was down $1.27 at $117.06. On the New York Mercantile Exchange, crude for August delivery CLQ1 was down $1.21 at $94.99 a barrel.

Spot gold XAU= was up 0.3 percent at $1,547.76 an ounce, after hitting $1,556.59, near a two-month high, earlier in the session.

Data last Friday showed U.S. jobs growth nearly halted in June, adding to concerns about the health of the world's biggest economy.