[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
   [NUMBER] 10
   [NAME] DIVERSIFIED STRATEGIC INCOME FUND, CLASS Y
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   6-MOS
[FISCAL-YEAR-END]                          JUL-31-1998
[PERIOD-END]                               JAN-31-1998
[INVESTMENTS-AT-COST]                    2,830,885,993
[INVESTMENTS-AT-VALUE]                   2,883,649,170
[RECEIVABLES]                              105,242,612
[ASSETS-OTHER]                              22,543,525
[OTHER-ITEMS-ASSETS]                                 0
[TOTAL-ASSETS]                           3,011,435,307
[PAYABLE-FOR-SECURITIES]                    12,913,207
[SENIOR-LONG-TERM-DEBT]                              0
[OTHER-ITEMS-LIABILITIES]                   40,095,037
[TOTAL-LIABILITIES]                         53,008,244
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                 2,934,602,015
[SHARES-COMMON-STOCK]                       12,610,576
[SHARES-COMMON-PRIOR]                       10,055,765
[ACCUMULATED-NII-CURRENT]                            0
[OVERDISTRIBUTION-NII]                      18,820,338
[ACCUMULATED-NET-GAINS]                              0
[OVERDISTRIBUTION-GAINS]                    10,591,208
[ACCUM-APPREC-OR-DEPREC]                    53,236,594
[NET-ASSETS]                             2,958,427,063
[DIVIDEND-INCOME]                          111,033,900
[INTEREST-INCOME]                            2,703,141
[OTHER-INCOME]                                       0
[EXPENSES-NET]                              20,733,025
[NET-INVESTMENT-INCOME]                     93,004,016
[REALIZED-GAINS-CURRENT]                    58,681,850
[APPREC-INCREASE-CURRENT]                 (27,690,406)
[NET-CHANGE-FROM-OPS]                      123,995,460
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                    3,890,693
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                      2,553,567
[NUMBER-OF-SHARES-REDEEMED]                          0
[SHARES-REINVESTED]                              1,244
[NET-CHANGE-IN-ASSETS]                     123,995,460
[ACCUMULATED-NII-PRIOR]                            218
[ACCUMULATED-GAINS-PRIOR]                            0
[OVERDISTRIB-NII-PRIOR]                              0
[OVERDIST-NET-GAINS-PRIOR]                  68,172,759
[GROSS-ADVISORY-FEES]                        9,507,669
[INTEREST-EXPENSE]                                   0
[GROSS-EXPENSE]                             20,733,025
[AVERAGE-NET-ASSETS]                        90,284,490
[PER-SHARE-NAV-BEGIN]                             8.00
[PER-SHARE-NII]                                   0.30
[PER-SHARE-GAIN-APPREC]                           0.07
[PER-SHARE-DIVIDEND]                              0.34
[PER-SHARE-DISTRIBUTIONS]                            0
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                               8.03
[EXPENSE-RATIO]                                   0.69
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>