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SIGNATURE JOHN MILLETTE
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the
Montgomery Street Income Securities, Inc. Annual Report for the fiscal year
ended 12/31/99 and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> Montgomery Street Income Securities, Inc.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 224,452,424
<INVESTMENTS-AT-VALUE> 215,900,154
<RECEIVABLES> 4,782,496
<ASSETS-OTHER> 32,534
<OTHER-ITEMS-ASSETS> 428,757
<TOTAL-ASSETS> 221,143,941
<PAYABLE-FOR-SECURITIES> 31,843,938
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 279,654
<TOTAL-LIABILITIES> 32,123,592
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 201,032,561
<SHARES-COMMON-STOCK> 10,289,694
<SHARES-COMMON-PRIOR> 10,273,464
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (13,780)
<ACCUMULATED-NET-GAINS> (3,446,162)
<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 189,020,349
<DIVIDEND-INCOME> 369,000
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</TABLE>
Report of Independent Auditors
To the Board of Directors of
Montgomery Street Income Securities, Inc:
In planning and performing our audit of the financial statements of Montgomery
Street Income Securities, Inc. for the year ended December 31, 1999, we
considered its internal control, including control activities for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, and not to provide assurance on the internal
control.
The management of Montgomery Street Income Securities, Inc. is responsible for
establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally, controls that are
relevant to an audit pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in conformity with
accounting principles generally accepted in the United States. Those controls
include the safeguarding of assets against unauthorized acquisition, use or
disposition.
Because of inherent limitations in internal control, errors or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or more
of the specific internal control components does not reduce to a relatively low
level the risk that errors or fraud in amounts that would be material in
relation to the financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving internal control and
its operation, including controls for safeguarding securities, that we consider
to be material weaknesses as defined above at December 31, 1999.
This report is intended solely for the information and use of the Directors and
management of Montgomery Street Income Securities, Inc. and the Securities and
Exchange Commission and is not intended to be and should not be used by anyone
other than these specified parties.
/s/Ernst & Young LLP
February 14, 2000
Boston, Massachusetts