[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
   [NUMBER] 10
   [NAME] SMITH BARNEY DIVERSIFIED STRATEGIC INCOME FUND, CLASS Y
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   YEAR
[FISCAL-YEAR-END]                          JUL-31-1998
[PERIOD-END]                               JUL-31-1998
[INVESTMENTS-AT-COST]                    2,856,188,430
[INVESTMENTS-AT-VALUE]                   2,883,609,361
[RECEIVABLES]                              318,627,228
[ASSETS-OTHER]                                       0
[OTHER-ITEMS-ASSETS]                        91,763,514
[TOTAL-ASSETS]                           2,294,000,103
[PAYABLE-FOR-SECURITIES]                   236,700,386
[SENIOR-LONG-TERM-DEBT]                              0
[OTHER-ITEMS-LIABILITIES]                   98,184,079
[TOTAL-LIABILITIES]                        334,884,465
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                 2,948,260,714
[SHARES-COMMON-STOCK]                       15,656,792
[SHARES-COMMON-PRIOR]                       10,055,765
[ACCUMULATED-NII-CURRENT]                            0
[OVERDISTRIBUTION-NII]                      11,253,505
[ACCUMULATED-NET-GAINS]                        205,628
[OVERDISTRIBUTION-GAINS]                             0
[ACCUM-APPREC-OR-DEPREC]                    21,902,801
[NET-ASSETS]                             2,959,115,638
[DIVIDEND-INCOME]                            2,824,140
[INTEREST-INCOME]                          220,907,312
[OTHER-INCOME]                                       0
[EXPENSES-NET]                              41,631,721
[NET-INVESTMENT-INCOME]                    182,369,731
[REALIZED-GAINS-CURRENT]                    77,462,489
[APPREC-INCREASE-CURRENT]                 (59,024,199)
[NET-CHANGE-FROM-OPS]                      200,808,021
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                    7,655,580
[DISTRIBUTIONS-OF-GAINS]                       735,869
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                      5,598,158
[NUMBER-OF-SHARES-REDEEMED]                          0
[SHARES-REINVESTED]                              2,869
[NET-CHANGE-IN-ASSETS]                      67,310,036
[ACCUMULATED-NII-PRIOR]                            218
[ACCUMULATED-GAINS-PRIOR]                            0
[OVERDISTRIB-NII-PRIOR]                              0
[OVERDIST-NET-GAINS-PRIOR]                  68,172,759
[GROSS-ADVISORY-FEES]                       19,114,706
[INTEREST-EXPENSE]                                   0
[GROSS-EXPENSE]                             41,361,721
[AVERAGE-NET-ASSETS]                       102,314,186
[PER-SHARE-NAV-BEGIN]                             8.00
[PER-SHARE-NII]                                   0.55
[PER-SHARE-GAIN-APPREC]                           0.06
[PER-SHARE-DIVIDEND]                              0.60
[PER-SHARE-DISTRIBUTIONS]                         0.05
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                               7.96
[EXPENSE-RATIO]                                   0.72
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>