WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000764624
<NAME> SMITH BARNEY INCOME FUNDS
<SERIES>
   <NUMBER> 10
   <NAME> SMITH BARNEY DIVERSIFIED STRATEGIC INCOME FUND. CLASS Y

<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUL-31-1999
<PERIOD-END>                               JUL-31-1999
<INVESTMENTS-AT-COST>                    3,354,069,072
<INVESTMENTS-AT-VALUE>                   3,291,998,168
<RECEIVABLES>                              253,613,446
<ASSETS-OTHER>                              90,771,882
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                           3,636,383,496
<PAYABLE-FOR-SECURITIES>                   841,981,006
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                  104,611,503
<TOTAL-LIABILITIES>                        946,592,509
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                 2,848,388,857
<SHARES-COMMON-STOCK>                       21,794,345
<SHARES-COMMON-PRIOR>                       15,656,792
<ACCUMULATED-NII-CURRENT>                    (896,492)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                   (83,533,639)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                  (74,167,739)
<NET-ASSETS>                             2,689,790,987
<DIVIDEND-INCOME>                            2,654,592
<INTEREST-INCOME>                          212,108,685
<OTHER-INCOME>                                       0
<EXPENSES-NET>                              39,835,618
<NET-INVESTMENT-INCOME>                    174,927,659
<REALIZED-GAINS-CURRENT>                  (71,703,606)
<APPREC-INCREASE-CURRENT>                 (96,070,540)
<NET-CHANGE-FROM-OPS>                        7,153,513
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                    9,885,105
<DISTRIBUTIONS-OF-GAINS>                       154,453
<DISTRIBUTIONS-OTHER>                          688,733
<NUMBER-OF-SHARES-SOLD>                      6,217,160
<NUMBER-OF-SHARES-REDEEMED>                     82,339
<SHARES-REINVESTED>                              2,732
<NET-CHANGE-IN-ASSETS>                   (269,324,651)
<ACCUMULATED-NII-PRIOR>                   (11,253,505)
<ACCUMULATED-GAINS-PRIOR>                      205,628
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                       18,858,761
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                             39,835,618
<AVERAGE-NET-ASSETS>                       149,150,321
<PER-SHARE-NAV-BEGIN>                             7.96
<PER-SHARE-NII>                                   0.53
<PER-SHARE-GAIN-APPREC>                         (0.47)
<PER-SHARE-DIVIDEND>                              0.52
<PER-SHARE-DISTRIBUTIONS>                         0.04
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               7.46
<EXPENSE-RATIO>                                   0.67


</TABLE>