We present a study of weak near-IR absorption lines in 44 low luminosi
ty YSOs. Using a spectral resolution of similar to 1000 most Class II
sources show CO overtone absorption bands of varying strength in the K
window, whether they have optical counterparts or not. Class I source
s tend to show featureless 2 mu m continua even though a S/N > 100 was
achieved. High resolution (R=17000) echelle spectra were also obtaine
d for a sub-sample of YSOs. Most show an unresolved (CO)-C-12(2-0) ban
dhead, which when combined with inferred CO excitation temperatures an
d optical depths dearly points to a photospheric rather than a disk or
igin for the bands. They also show that embedded Class IIs are not rap
idly rotating. We find an excellent correlation between increasing nea
r-IR colour excess and decreasing band strength and interpret this in
a straightforward way as due to veiling of the stellar photosphere by
circumstellar dust emission at 1000-1200 K, probably from a disk. A ve
iling correction was applied and intrinsic indices obtained for many Y
SOs. The results provide confirmation that Class II sources are equiva
lent to T Tauri stars.