European shares declined for a fourth consecutive session on Tuesday, with banks falling after record-high yields at a Spanish debt auction showed investors are far from convinced the euro zone is on track to solve its debt crisis.

Spain's Treasury paid the highest yields in 14 years to issue short-term bills, lifting yields on Spanish, Italian and French notes on the secondary market and weighing on euro zone banks <.SX7E>, down 3 percent, which hold the bulk of that debt.

The FTSEurofirst 300 <.FTEU3> index of top European shares provisionally closed down 0.4 percent at 916.07 points.

(Reporting By Francesco Canepa)