Treasury prices rose slightly Monday, extending recent gains even as investors moved back into stocks.

The price of the benchmark 10-year note rose for a fifth straight day, adding 11/32 to 102 27/32. Its yield dipped to 3.28 percent from 3.32 percent late Friday.

The gains in Treasurys came as stocks bounced back from a sell-off last week that was touched off by disappointing economic data. Major stock indicators rose more than 1 percent, including the Dow Jones industrials, which added 124 points.

Stocks rose after Abbott Laboratories said it would buy Belgian chemicals company Solvay for $6.6 billion, and Xerox Corp. announced plans to acquire Affiliated Computer Services for $6.4 billion. Investors saw the acquisitions as a sign that companies are feeling more optimistic about the economy's prospects for recovery and are comfortable spending significant amounts of money to expand their businesses.

"The bond market's holding its own pretty well," said Mike Wallace, global market strategist at Action Economics. "Relative to a pretty good rebound in stocks, we haven't seen a lasting retracement in yields."

Often demand for Treasurys wanes when stocks rise, as investors put more money to work in riskier assets at the expense of traditionally safe-haven investments like government bonds and the dollar.

Lately bonds have been rising along with stocks, which analysts say is due in part to the excess liquidity flowing through the financial system. Solid demand at government auctions has also helped to support higher Treasury prices. Last week, the Treasury successfully issued $112 billion in two, five and seven-year notes.

Wallace said investors were likely hesitant to make any major moves in Treasurys ahead of this week's busy schedule of economic data, particularly the Labor Department's monthly report on unemployment, due Friday.

Investors are also anticipating reports on home prices, consumer confidence and manufacturing. While investors have grown more confident that the economy is indeed recovering, the strength of that recovery is still in question. If this week's data is disappointing, investors may flock to bonds for safety.

In other trading, the price of the five-year note added 5/32 to 100 6/32, while its yield slipped to 2.34 percent from 2.37 percent.

The 30-year bond had a big move compared with other Treasurys, rising 1 2/32 to 108 1/32. Its yield fell to 4.04 percent from 4.09 percent.

The yield on the three-month T-bill rose to 0.10 percent from 0.09 percent. Its discount rate was 0.11 percent.

The cost of borrowing between banks was flat. The British Bankers' Association said the rate on three-month loans in dollars — the London Interbank Offered Rate, or Libor — was unchanged at 0.28 percent.