* Futures down: Dow 131 pts, S&P 15 pts, Nasdaq 36.25 pts
By Tanya Agrawal
May 12 (Reuters) - U.S. stock index futures were sharply lower on Tuesday as a global bond sell-off and continuing worries on Greece's perilous financial situation weighed on the market.
* Ten-year U.S. Treasury yields, the benchmark for global borrowing costs, hit their highest since early December. Elevated U.S. yields mean higher corporate borrowing costs, which could hit shares across the world.
* Investors have also been concerned that Greece could run out of cash. Euro zone finance ministers, who met on Monday, acknowledged progress in talks between Greece and its creditors but said more work was needed to close a cash-for-reforms deal.
* The U.S. market closed down on Monday, weighed by global jitters and a drop in oil prices.
* Oil prices rose on Tuesday. They are up more than 50 percent since the beginning of the year.
* AOL shares jump 18.1 percent to $50.29 after Verizon made an offer to buy the company for $4.4 billion.
* Hilton shares fall 6 percent to $27.90 in premarket trading, after Blackstone cut its stake below 50 percent in the hotel operator.
* YY Inc slumps 8.2 percent to $63.31 after brokerages cut price targets on the video streaming website operator's stock.
Futures snapshot at 6:53 a.m. ET (1053 GMT):
* S&P 500 e-minis were down 15 points, or 0.72 percent, with 181,916 contracts traded.
* Nasdaq 100 e-minis were down 36.25 points, or 0.82 percent, on volume of 26,384 contracts.
* Dow e-minis were down 131 points, or 0.73 percent, with 35,158 contracts changing hands. (Editing by Saumyadeb Chakrabarty)