[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
   [NUMBER] 10
   [NAME] SMITH BARNEY DIVERSIFIED STRATEGIC INCOME FUND. CLASS Z
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   6-MOS
[FISCAL-YEAR-END]                          JUL-31-1999
[PERIOD-END]                               JAN-31-1999
[INVESTMENTS-AT-COST]                    2,954,855,223
[INVESTMENTS-AT-VALUE]                   2,971,716,274
[RECEIVABLES]                               65,910,358
[ASSETS-OTHER]                                       0
[OTHER-ITEMS-ASSETS]                        35,884,990
[TOTAL-ASSETS]                           3,073,511,622
[PAYABLE-FOR-SECURITIES]                    13,925,484
[SENIOR-LONG-TERM-DEBT]                              0
[OTHER-ITEMS-LIABILITIES]                   62,461,281
[TOTAL-LIABILITIES]                         76,386,765
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                 3,010,656,366
[SHARES-COMMON-STOCK]                        3,863,991
[SHARES-COMMON-PRIOR]                        2,721,532
[ACCUMULATED-NII-CURRENT]                            0
[OVERDISTRIBUTION-NII]                    (46,745,977)
[ACCUMULATED-NET-GAINS]                     10,648,894
[OVERDISTRIBUTION-GAINS]                             0
[ACCUM-APPREC-OR-DEPREC]                    22,565,574
[NET-ASSETS]                             2,997,124,857
[DIVIDEND-INCOME]                            1,134,292
[INTEREST-INCOME]                          104,911,361
[OTHER-INCOME]                                       0
[EXPENSES-NET]                              20,288,998
[NET-INVESTMENT-INCOME]                     85,756,655
[REALIZED-GAINS-CURRENT]                  (10,668,206)
[APPREC-INCREASE-CURRENT]                      662,773
[NET-CHANGE-FROM-OPS]                       75,751,222
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                      831,172
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                      1,270,233
[NUMBER-OF-SHARES-REDEEMED]                    229,925
[SHARES-REINVESTED]                            102,151
[NET-CHANGE-IN-ASSETS]                      62,395,652
[ACCUMULATED-NII-PRIOR]                              0
[ACCUMULATED-GAINS-PRIOR]                      205,628
[OVERDISTRIB-NII-PRIOR]                              0
[OVERDIST-NET-GAINS-PRIOR]                (11,253,505)
[GROSS-ADVISORY-FEES]                        7,576,933
[INTEREST-EXPENSE]                                   0
[GROSS-EXPENSE]                             20,288,998
[AVERAGE-NET-ASSETS]                        22,192,281
[PER-SHARE-NAV-BEGIN]                             7.96
[PER-SHARE-NII]                                   0.26
[PER-SHARE-GAIN-APPREC]                         (0.03)
[PER-SHARE-DIVIDEND]                              0.29
[PER-SHARE-DISTRIBUTIONS]                            0
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                               7.90
[EXPENSE-RATIO]                                   0.68
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>