NEW YORK, JUNE 8 -- Stock prices climbed to a two-month high in quiet trading today, adding to last week's gains despite some weakness in the bond market.

The Dow Jones average of 30 industrials, down more than 10 points in the early going, was up 25.49 to 2351.64 by the end of the day. That marked its highest close since it stood at 2372.16 on April 8.

Volume on the New York Stock Exchange came to 136.37 million shares, compared with 129.11 million Friday.

Prices of long-term government bonds, which move in the opposite direction from interest rates, took a tumble in early trading, helping to depress stock prices briefly.

But as the session progressed, bonds recovered part of their early losses and the stock market quickly resumed last week's advance.

Analysts have been concerned lately over the low level of trading volume, which has suggested an absence of widespread enthusiasm even when prices are rising.

Last Friday's session was the quietest since Jan. 2, when many investors were taking an extended New Year's holiday.

Today wasn't much busier. However, several industry groups and individual issues moved up smartly.

Money-center banks were a notable strong spot, with Citicorp up 1 1/2 at 59 3/4; Chase Manhattan up 7/8 at 40 1/4; Manufacturers Hanover up 3/4 at 43 3/4; Chemical New York up 1 at 45, and J.P. Morgan 2 1/8 higher at 47 5/8.

The New York Times reported Sunday that the Treasury Department has come to favor policies that would allow for large new investments of capital in the U.S. banking industry.

Analysts said that raised the long-term prospect that banks might be more likely candidates for mergers or acquisitions.

Research-Cottrell, which agreed to be acquired for $43 a share by an investor group, jumped 5 1/8 to 44.

Airline issues were broadly higher, aided by news of fare increases. NWA added 2 3/4 to 70 1/8; Delta Air Lines 1 to 56; AMR 7/8 to 58 1/8, and Trans World Airlines 1 5/8 to 29 1/8. After the close, TWA reported a 38.4 percent increase in passenger traffic for May.

The strength in those stocks helped the Dow Jones average of 20 transportation stocks break 1000 for a new high; the index rose 14.76 points, or 1.5 percent, to 1001.42.

Among the blue-chip industrials, International Business Machines gained 1 1/4 to 161 1/4; General Electric 1 3/8 to 54; Merck 2 to 162 3/4; Philip Morris 1 3/4 to 89, and McDonald's 1 3/8 to 83 1/2.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 158.24 million shares. The Nasdaq composite index for the over-the-counter market gained 1.59 to 419.41.