European shares slipped Friday after the previous session's rally, while Italian stocks underperformed after yields at a bond auction.

The Italian FTSE MIB <.FTMIB> lost 1.8 percent, underperforming other exchanges, after yields at a sale of 10-year Italian bond hit a euro-era high highlighting there was still some concern about the region's debt crisis.

The FTSEurofirst 300 index <.FTEU3> provisionally closed down 0.2 at 1,017.75 points and ended the week up 4.1 percent - its bests weekly performance since early October and the fifth straight week of gain.

Yesterday was encouraging, although we do not know much details on the deal, Veronika Pechlaner, a fund manager on the Ashburton European equity fund, said. We were fully invested going into the meeting.

But the Italian bond auction spooked the market. It tells us we can not relax yet and Italy has to make more progress on the restructuring side.

(Reporting by Joanne Frearson)