Treasuries rose on Monday as investors sought safer investments after another sign of trouble in U.S. financial markets.

American International Group, Inc. said today that accounting problems may have led to under reporting of losses at the firm, driving investor to safer investments in government bonds.

AIG said auditors had found that the company failed to adequately account for credit derivatives linked to high-risk debt in the form of collateralized debt obligations (CDOs). The loss the company experienced in October and November was four times higher than initially reported.

However, Treasury gains were tempered by strength in the U.S. stock market, which found strength in other areas of the economy.

Shares, which began the day lower due to the AIG news, rose on gains in the energy sector. Oil producers Exxon Mobil Corp. and ConocoPhillips saw gains on rising crude prices.

Meanwhile, petroleum giant Chevron was added as one of the companies tracked on the Dow Jones Industrial Average, one of the nation's leading benchmark indexes.

Technology firms also rose today, with Yahoo rising after it rejected a hostile takeover bid by rival Microsoft.

Ten year Treasuries rose 8/32 in price to yield 3.62 from 3.65 late Friday. Two-year notes traded 1/32 higher in price at a yield of 1.92 percent from 1.95 percent.

Investment Aig