Financial markets around the world are flat and jittery amid concerns over European debt as, in the coming week, Spain, Portugal and Italy seek a total 10.25 billion ($NZ17.3 billion) from standard bond issuances.
Under most scrutiny is Portugal, which aims to raise 1.25 billion.
Spain and Italy are after 3 billion and 6 billion respectively.
There were market declines in the United States, the United Kingdom and European bourses, all linked to renewed concerns over European debt, while Asian stocks fell on speculation the central banks of China, India and Indonesia would raise rates to curb inflation, Forsyth Barr broker Suzanne Kinnaird said.
"European shares fell sharply, as worries about the euro zone debt crisis once again took centre stage ahead of debt auctions this week," she said.
"This week there are quite significant European sovereign debt auctions and this has refocused the market on this sector, with Portugal the initial point of concern."
Craigs Investment partners broker Paul Valk said it was clear markets had dipped slightly as concerns resurfaced about a possible bail-out of Portugal.
The Portuguese and Spanish markets respectively retreated 1.6% and 1.3%, with banking stocks leading the sell-off.
"Markets are worried that the debt crisis is coming back again. Portugal is denying that they need a bail-out, but that was seen before, when Greece and Ireland got their bail-outs," Mr Valk said.
Ms Kinnaird said the European Central Bank was in the market buying Portuguese sovereign debt on Monday night.
"A bail-out is potentially on the cards, which has caused a few jitters in both bond and equity markets."
Mr Valk said the European Central Bank had bought 74 billion in troubled euro zone sovereign bonds since intervention to stabilise markets began last May.
While the UK was down mainly on commodity companies suffering a decline in metals prices, in Europe the banking sector, which has exposure to debt in peripheral euro zone countries, was a major loser, Ms Kinnaird said.
The banking stocks of BNP Paribas, Banco Santander, Intesa SanPaolo, Societe Generale and UniCredit fell between 2.5% and 5.7%.
A senior euro zone source told Reuters on Sunday Germany and France were pressing Portugal to seek financial help from the European Union and International Monetary Fund. Germany denied the report.
With Portugal, Italy and Spain all due to tap the bond market, investors were nervous about whether they would be able to raise funds at sustainable levels in 2011.
Analysts said that if investors thought the price Lisbon had to pay to get funds was too high to sustain borrowing in the long term, Portuguese bonds might sell off quickly, forcing the country to seek emergency funds.
