INVESCO BOND FUNDS, INC.
                           INVESCO Tax-Free Bond Fund


                 Supplement to Prospectus Dated August 13, 1999


Pursuant to a shareholder  vote,  INVESCO Tax-Free Bond Fund (formerly,  INVESCO
Tax-Free  Long-Term Bond Fund) (the "Fund") was reorganized into a new series of
INVESCO Bond Funds,  Inc.  (the  "Company").  The  reorganization  was completed
August 13, 1999. To the extent  applicable,  the Fund's Prospectus is revised to
reflect  this  reorganization  and  the  August  13,  1999  date  of the  Fund's
Prospectus.

The following specific changes are made to the Fund's printed Prospectus:

The cover page of the  Prospectus  is amended to (1) delete the last sentence of
the first paragraph and (2) substitute the following in its place:

      There is no limit on the  dollar-weighted  average  maturity of the Fund's
      portfolio,  which will vary as the advisor responds to changes in interest
      rates.

The section of the Prospectus entitled "Essential  Information - Investment Goal
And  Strategy"  is amended to (1) delete  the  section in its  entirety  and (2)
substitute the following section in its place:

      INVESTMENT GOAL AND STRATEGY:
      The Fund seeks a high a level of current income exempt from federal income
      taxes as is consistent with the preservation of capital.  The Fund invests
      primarily   in   municipal   obligations.   There   is  no  limit  on  the
      dollar-weighted average maturity of the Fund's portfolio,  which will vary
      as the  advisor  responds  to  changes  in  interest  rates.  There  is no
      guarantee  that  the  Fund  will  meet  its  investment   objective.   See
      "Investment Objective And Strategy" and "Investment Policies And Risks."

The section of the Prospectus  entitled "Annual Fund Expenses" is amended to (1)
delete  footnote  (2) to the  Annual  Fund  Operating  Expenses  table  and  (2)
substitute the following in its place:

      (2) Certain  expenses of the Bond Fund are being  absorbed by INVESCO.  In
      the absence of such absorbed  expenses,  the Fund's  "Other  Expenses" and
      "Total  Fund  Operating   Expenses"  would  have  been  0.27%  and  1.07%,
      respectively based on the Fund's actual expenses for the fiscal year ended
      June 30, 1998.

The table and the remainder of the footnotes are not affected by this change.

The section of the Fund's Prospectus entitled "Financial  Highlights" is amended
to (1)  delete  the first  paragraph  in its  entirety  and (2)  substitute  the
following paragraph in its place:

      The following information has been audited by PricewaterhouseCoopers  LLP,
      independent  accountants.  This information  should be read in conjunction
      with the  audited  financial  statements  and the  Report  of  Independent
      Accountants  thereon  appearing  in the  Company's  1998 Annual  Report to

<PAGE>

      Shareholders and the unaudited financial statements and accompanying notes
      in the Fund's  Semi-Annual Report to Shareholders for the six-month period
      ended  December 31, 1998,  which are  incorporated  by reference  into the
      Statement of Additional  Information,  both of which are available without
      charge by  contacting  IDI at the address or telephone  number on the back
      cover of this Prospectus. The Annual Report also contains more information
      about the Fund's performance.

The section in the Fund's Prospectus entitled "Financial  Highlights" is amended
to insert the following column on the left-hand side:

                                                 Six Months
                                                    Ended
                                              December 31, 1998
                                              -----------------
                                                  Unaudited


       PER SHARE DATA
       Net Asset Value -Beginning of Period               $15.57
                                                  ---------------

       INCOME FORM INVESTMENT OPERATIONS
       Net Investment Income                                0.32
       Net Gains or (Losses) on Securities
           (Both Realized and Unrealized)                   0.18
                                                  ---------------
       TOTAL FROM INVESTMENT OPERATIONS                     0.50
                                                  ---------------

       LESS DISTRIBUTIONS
       Dividends from Net Investment Income                 0.32
       In Excess of Net Investment Income                   0.00
                                                  ---------------
       Distributions from Capital Gains                     0.46
                                                  ---------------
       TOTAL DISTRIBUTIONS                                  0.78
                                                  ---------------

       Net Asset Value - End of Period                    $15.29
                                                  ---------------

      TOTAL RETURN                                        3.23%(a)

      RATIOS
      Net Assets --- End of Period ($000 Omitted)     $   208,809
      Ratio of Expenses to Average Net Assets (b)      0.46%(a)(c)
      Ratio of Net Investment Income to Average
        Net Assets                                        2.02%(a)
      Portfolio Turnover Rate                               44%(a)


The  table  of  the  section  of  the  Fund's  Prospectus   entitled  "Financial
Highlights"  is also  amended  to (1)  delete  the  existing  footnotes  and (2)
substitute the following in their place:

<PAGE>

      (a) Based on  operations  for the period  shown and  accordingly,  are not
      representative of a full year.

      (b) Various expenses of the Fund were voluntarily  absorbed by INVESCO for
      the six months  ended  December  31, 1998 and for the years ended June 30,
      1998, 1997, 1996 and 1995. If such expenses had not been voluntarily
      absorbed, ratio of expenses to average net assets would have been 0.52%
      (not annualized), 1.04%, 1.05%,  1.04% and 1.05%,  respectively,  and
      ratio of net  investment  income to average net assets would have been
      1.96% (not annualized),  3.93%,  4.21%, 4.63% and 5.18%, respectively.

      (c) Ratio is based on Total Expenses of the Fund,  less Expenses  Absorbed
      by Investment Adviser, which is before any expense offset arrangements.

The section of the Prospectus  entitled  "Investment  Objective And Strategy" is
amended to add the following paragraph after the first paragraph:

      At least 80% of the Fund's  assets  normally will consist of a combination
      of municipal bonds rated investment  grade as described under  "Investment
      Policies And Risks" and  short-term  municipal  notes rated within the two
      highest  rating  categories  as descried  under  "Investment  Policies And
      Risks."

The table in the section of the Fund's Prospectus entitled "Investment Objective
And Strategy" is amended to delete the table in its entirety.

The section of the Fund's Prospectus entitled  "Investment  Policies And Risks -
Futures And  Options" is amended to (1) delete the section in its  entirety  and
(2) substitute the following in its place:

      FUTURES, OPTIONS AND OTHER FINANCIAL INSTRUMENTS.
      The Fund may use various types of financial instruments, some of which are
      derivatives,  to  attempt  to manage  the risk of the  investments  or, in
      certain circumstances, for investment (e.g., as a substitute for investing
      in  securities).  These financial  instruments  include  options,  futures
      contracts,   forward   contracts,   swaps,   caps,   floors,  and  collars
      (collectively  "Financial   Instruments").   For  descriptions  and  other
      information on these  Financial  Instruments and strategies and their risk
      considerations,  see the  Statement  of  Additional  Information  ("SAI").
      Financial  Instruments  may be used in an  attempt  to manage  the  Fund's
      foreign currency exposure as well as other risk of the Fund's  investments
      that can  cause  fluctuations  in its net  asset  value.  The Fund may use
      Financial  Instruments  to increase or decrease  its  exposure to changing
      securities  prices,  interest  rates,  currency  exchanges  rates or other
      factors.  The  policies  in this  section  do not  apply  to  other  types
      instruments  sometimes  referred  to  as  derivatives,   such  as  indexed
      securities,   mortgage-backed  and  other  asset-backed  securities,   and
      stripped interest and principal of debt.

      The Fund's ability to use Financial  Instruments  may be limited by market
      conditions,  regulatory limits and tax considerations.  The Fund might not
      use any of these Financial Instruments, and there can be no assurance that
      any  strategy  using  a  Financial   Instrument  will  fully  achieve  its
      objective.

<PAGE>

      Subject to the further limitations stated in the SAI, generally,  the Fund
      is  authorized  to use any type of  Financial  Instrument.  However,  as a
      non-fundamental  policy,  the Fund  will only use a  particular  Financial
      Instrument  (other than those related to foreign  currency) if the Fund is
      authorized to take a position in the type of asset to which the return on,
      or value of, the Financial Instrument is primarily related. Therefore, for
      example,  if the Fund is  authorized  to  invest in a  particular  type of
      security  (such as an equity  security),  it could take a  position  in an
      option on an index relating to equity securities.

The section of the Fund's Prospectus entitled "Investment Policies And Risks" is
amended to add the following section:

      ILLIQUID AND RULE 144A SECURITIES.
      The Fund may invest up to 15% of its net  assets,  measured at the time of
      purchase,  in  investments  that are illiquid  because they are subject to
      restrictions on their resale ("restricted  securities") or because,  based
      upon the nature of the market for such  investments,  they are not readily
      marketable.  Investments  in illiquid  securities  are subject to the risk
      that the Fund may not be able to sell such securities at the time or price
      desired. In addition,  in order to resell a restricted security,  the Fund
      might  have to bear the  expense  and incur  the  delays  associated  with
      registration of the security.

      The Fund may purchase certain  securities that are not registered for sale
      to the general public,  but that can be resold to institutional  investors
      ("Rule 144A  Securities")  without regard to the foregoing 15% limitation,
      if a liquid trading market  exists.  The Company's  board of directors has
      delegated to INVESCO the authority to determine the liquidity of Rule 144A
      Securities pursuant to guidelines approved by the board. In the event that
      a Rule 144A  Security  held by the Fund is  subsequently  determined to be
      illiquid,  the  security  will be  sold as soon as that  can be done in an
      orderly  fashion   consistent  with  the  best  interests  of  the  Fund's
      shareholders.  For more information  concerning Rule 144A Securities,  see
      "Investment  Policies And  Restrictions"  in the  Statement of  Additional
      Information.

The section of the Fund's Prospectus entitled  "Investment  Policies And Risks -
Investment  Restrictions"  is amended to (1) delete the section in its  entirety
and (2) substitute the following paragraph in its place:

      INVESTMENT RESTRICTIONS.
      The Fund is subject to a variety of restrictions regarding the investments
      that are identified in the Statement of Additional Information. Certain of
      the Fund's investment  restrictions are fundamental and may not be altered
      without the approval of the Fund's shareholders. For example, with respect
      to 75% of its total  assets,  the Fund may not purchase the  securities of
      any one issuer  (other than  securities  issued or  guaranteed by the U.S.
      government or any of its agencies or  instrumentalities,  or securities of
      other  investment  companies) if the purchase would cause the Fund to have
      more than 5% of its total  assets  invested  in the issuer or to have more
      than 10% of the outstanding voting securities of that issuer. In addition,
      the Fund  may not  purchase  the  securities  of any  issuer  (other  than
      securities  issued  or  guaranteed  by the U.S.  government  or any of its
      agencies or  instrumentalities  or municipal  securities) if, as a result,
      more than 25% of a Fund's total assets would be invested in the securities
      of companies whose principal business activities are in the same industry.
      Other fundamental restrictions prohibit the Fund from lending more that 33
      1/3% of its total assets to other parties and from  borrowing  money in an
      aggregate amount exceeding 33 1/3% of its total assets.

The date of this Supplement is August 16, 1999