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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 7
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 16
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<PAGE> PAGE 17
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<PAGE> PAGE 19
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<PAGE> PAGE 20
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<PAGE> PAGE 21
054 L000800 Y
054 M000800 Y
054 N000800 N
054 O000800 N
055 A000800 Y
055 B000800 N
056 000800 N
057 000800 N
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060 A000800 Y
060 B000800 Y
061 000800 1000
062 A000800 Y
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064 A000800 N
064 B000800 N
066 A000800 N
067 000800 Y
068 A000800 N
068 B000800 N
069 000800 N
070 A010800 Y
070 A020800 Y
070 B010800 N
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070 C020800 N
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070 D020800 N
070 E010800 N
070 E020800 N
070 F010800 N
<PAGE> PAGE 22
070 F020800 N
070 G010800 Y
070 G020800 N
070 H010800 N
070 H020800 N
070 I010800 Y
070 I020800 N
070 J010800 Y
070 J020800 Y
070 K010800 N
070 K020800 N
070 L010800 Y
070 L020800 Y
070 M010800 Y
070 M020800 Y
070 N010800 Y
070 N020800 N
070 O010800 N
070 O020800 N
070 P010800 N
070 P020800 N
070 Q010800 N
070 Q020800 N
070 R010800 N
070 R020800 N
071 A000800 664710
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<PAGE> PAGE 23
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028 A010900 5723
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<PAGE> PAGE 24
028 A040900 47623
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034 000900 Y
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<PAGE> PAGE 25
043 000900 3636
044 000900 0
045 000900 Y
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048 H020900 0.000
048 I010900 0
048 I020900 0.000
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063 B000900 40.8
064 A000900 N
064 B000900 N
066 A000900 Y
<PAGE> PAGE 26
066 F000900 Y
067 000900 N
068 A000900 N
068 B000900 N
069 000900 N
070 A010900 Y
070 A020900 Y
070 B010900 Y
070 B020900 N
070 C010900 Y
070 C020900 N
070 D010900 Y
070 D020900 N
070 E010900 Y
070 E020900 N
070 F010900 Y
070 F020900 N
070 G010900 Y
070 G020900 N
070 H010900 Y
070 H020900 N
070 I010900 N
070 I020900 N
070 J010900 N
070 J020900 N
070 K010900 N
070 K020900 N
070 L010900 Y
070 L020900 Y
070 M010900 N
070 M020900 N
070 N010900 Y
070 N020900 Y
070 O010900 Y
070 O020900 Y
070 P010900 N
070 P020900 N
070 Q010900 Y
070 Q020900 N
070 R010900 Y
070 R020900 N
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<PAGE> PAGE 27
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<PAGE> PAGE 28
074 R040900 327
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<PAGE> PAGE 29
035 001000 1315
036 A001000 Y
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<PAGE> PAGE 30
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064 B001000 N
066 A001000 N
067 001000 N
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<PAGE> PAGE 31
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<PAGE> PAGE 32
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SIGNATURE THOMAS M. REYNOLDS
TITLE CONTROLLER
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 4
[NAME] MUNICIPAL HIGH INCOME FUND, CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 740,499,837
[INVESTMENTS-AT-VALUE] 797,272,131
[RECEIVABLES] 10,812,822
[ASSETS-OTHER] 77,387
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 808,162,340
[PAYABLE-FOR-SECURITIES] 22,240,883
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 4,103,255
[TOTAL-LIABILITIES] 26,344,138
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 721,711,858
[SHARES-COMMON-STOCK] 14,523,902
[SHARES-COMMON-PRIOR] 14,030,744
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 554,801
[ACCUMULATED-NET-GAINS] 3,888,851
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 56,772,294
[NET-ASSETS] 781,818,202
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 24,271,377
[OTHER-INCOME] 0
[EXPENSES-NET] 4,611,198
[NET-INVESTMENT-INCOME] 19,660,179
[REALIZED-GAINS-CURRENT] 8,775,270
[APPREC-INCREASE-CURRENT] 4,660,510
[NET-CHANGE-FROM-OPS] 33,095,959
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 7,006,625
[DISTRIBUTIONS-OF-GAINS] 3,879,950
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 980,820
[NUMBER-OF-SHARES-REDEEMED] 811,768
[SHARES-REINVESTED] 324,106
[NET-CHANGE-IN-ASSETS] (34,740,677)
[ACCUMULATED-NII-PRIOR] (4,147)
[ACCUMULATED-GAINS-PRIOR] 6,985,416
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 2,382,275
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 4,611,198
[AVERAGE-NET-ASSETS] 256,963,517
[PER-SHARE-NAV-BEGIN] 18.07
[PER-SHARE-NII] 00.48
[PER-SHARE-GAIN-APPREC] 00.31
[PER-SHARE-DIVIDEND] 00.49
[PER-SHARE-DISTRIBUTIONS] 00.27
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 18.10
[EXPENSE-RATIO] 00.83
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 4
[NAME] MUNICIPAL HIGH INCOME FUND, CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 740,499,837
[INVESTMENTS-AT-VALUE] 797,272,131
[RECEIVABLES] 10,812,822
[ASSETS-OTHER] 77,387
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 808,162,340
[PAYABLE-FOR-SECURITIES] 22,240,883
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 4,103,255
[TOTAL-LIABILITIES] 26,344,138
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 721,711,858
[SHARES-COMMON-STOCK] 28,604,920
[SHARES-COMMON-PRIOR] 31,084,397
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 554,801
[ACCUMULATED-NET-GAINS] 3,888,851
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 56,772,294
[NET-ASSETS] 781,818,202
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 24,271,377
[OTHER-INCOME] 0
[EXPENSES-NET] 4,611,198
[NET-INVESTMENT-INCOME] 19,660,179
[REALIZED-GAINS-CURRENT] 8,775,270
[APPREC-INCREASE-CURRENT] 4,660,510
[NET-CHANGE-FROM-OPS] 33,095,959
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 13,184,135
[DISTRIBUTIONS-OF-GAINS] 7,979,441
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 426,915
[NUMBER-OF-SHARES-REDEEMED] 3,524,794
[SHARES-REINVESTED] 618,402
[NET-CHANGE-IN-ASSETS] (34,740,677)
[ACCUMULATED-NII-PRIOR] (4,147)
[ACCUMULATED-GAINS-PRIOR] 6,985,416
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 2,382,275
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 4,611,198
[AVERAGE-NET-ASSETS] 533,901,553
[PER-SHARE-NAV-BEGIN] 18.09
[PER-SHARE-NII] 00.44
[PER-SHARE-GAIN-APPREC] 00.30
[PER-SHARE-DIVIDEND] 00.45
[PER-SHARE-DISTRIBUTIONS] 00.27
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 18.11
[EXPENSE-RATIO] 01.32
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 4
[NAME] MUNICIPAL HIGH INCOME FUND, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 740,499,837
[INVESTMENTS-AT-VALUE] 797,272,131
[RECEIVABLES] 10,812,822
[ASSETS-OTHER] 77,387
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 808,162,340
[PAYABLE-FOR-SECURITIES] 22,240,883
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 4,103,255
[TOTAL-LIABILITIES] 26,344,138
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 721,711,858
[SHARES-COMMON-STOCK] 47,936
[SHARES-COMMON-PRIOR] 41,636
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 554,801
[ACCUMULATED-NET-GAINS] 3,888,851
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 56,772,294
[NET-ASSETS] 781,818,202
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 24,271,377
[OTHER-INCOME] 0
[EXPENSES-NET] 4,611,198
[NET-INVESTMENT-INCOME] 19,660,179
[REALIZED-GAINS-CURRENT] 8,775,270
[APPREC-INCREASE-CURRENT] 4,660,510
[NET-CHANGE-FROM-OPS] 33,095,959
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 20,073
[DISTRIBUTIONS-OF-GAINS] 12,444
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 7,834
[NUMBER-OF-SHARES-REDEEMED] 2,825
[SHARES-REINVESTED] 1,291
[NET-CHANGE-IN-ASSETS] (34,740,677)
[ACCUMULATED-NII-PRIOR] (4,147)
[ACCUMULATED-GAINS-PRIOR] 6,985,416
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 2,382,275
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 4,611,198
[AVERAGE-NET-ASSETS] 808,146
[PER-SHARE-NAV-BEGIN] 18.07
[PER-SHARE-NII] 00.42
[PER-SHARE-GAIN-APPREC] 00.31
[PER-SHARE-DIVIDEND] 00.44
[PER-SHARE-DISTRIBUTIONS] 00.27
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 18.09
[EXPENSE-RATIO] 01.42
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 6
[NAME] CONVERTIBLE FUND, CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 132,597,466
[INVESTMENTS-AT-VALUE] 134,361,000
[RECEIVABLES] 1,778,513
[ASSETS-OTHER] 923
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 136,140,436
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 646,810
[TOTAL-LIABILITIES] 646,810
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 131,545,402
[SHARES-COMMON-STOCK] 2,212,866
[SHARES-COMMON-PRIOR] 2,084,987
[ACCUMULATED-NII-CURRENT] 73,699
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 2,110,991
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 1,763,534
[NET-ASSETS] 135,493,626
[DIVIDEND-INCOME] 1,171,188
[INTEREST-INCOME] 2,168,695
[OTHER-INCOME] 0
[EXPENSES-NET] 780,760
[NET-INVESTMENT-INCOME] 2,559,123
[REALIZED-GAINS-CURRENT] 5,863,531
[APPREC-INCREASE-CURRENT] (9,098,095)
[NET-CHANGE-FROM-OPS] (675,441)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 819,412
[DISTRIBUTIONS-OF-GAINS] 2,737,203
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 138,165
[NUMBER-OF-SHARES-REDEEMED] 174,474
[SHARES-REINVESTED] 164,188
[NET-CHANGE-IN-ASSETS] 23,431,145
[ACCUMULATED-NII-PRIOR] 171,445
[ACCUMULATED-GAINS-PRIOR] 5,462,391
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 308,611
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 780,760
[AVERAGE-NET-ASSETS] 38,472,429
[PER-SHARE-NAV-BEGIN] 18.61
[PER-SHARE-NII] 00.38
[PER-SHARE-GAIN-APPREC] (0.40)
[PER-SHARE-DIVIDEND] 00.38
[PER-SHARE-DISTRIBUTIONS] 01.28
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.93
[EXPENSE-RATIO] 01.23
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 6
[NAME] CONVERTIBLE FUND, CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 132,597,466
[INVESTMENTS-AT-VALUE] 134,361,000
[RECEIVABLES] 1,778,513
[ASSETS-OTHER] 923
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 136,140,436
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 646,810
[TOTAL-LIABILITIES] 646,810
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 131,545,402
[SHARES-COMMON-STOCK] 2,264,950
[SHARES-COMMON-PRIOR] 2,307,864
[ACCUMULATED-NII-CURRENT] 73,699
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 2,110,991
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 1,763,534
[NET-ASSETS] 135,493,626
[DIVIDEND-INCOME] 1,171,188
[INTEREST-INCOME] 2,168,695
[OTHER-INCOME] 0
[EXPENSES-NET] 780,760
[NET-INVESTMENT-INCOME] 2,559,123
[REALIZED-GAINS-CURRENT] 5,863,531
[APPREC-INCREASE-CURRENT] (9,098,095)
[NET-CHANGE-FROM-OPS] (675,441)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 764,773
[DISTRIBUTIONS-OF-GAINS] 2,766,736
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 111,458
[NUMBER-OF-SHARES-REDEEMED] 320,371
[SHARES-REINVESTED] 165,999
[NET-CHANGE-IN-ASSETS] 23,431,145
[ACCUMULATED-NII-PRIOR] 171,445
[ACCUMULATED-GAINS-PRIOR] 5,462,391
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 308,611
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 780,760
[AVERAGE-NET-ASSETS] 40,399,454
[PER-SHARE-NAV-BEGIN] 18.60
[PER-SHARE-NII] 00.33
[PER-SHARE-GAIN-APPREC] (0.40)
[PER-SHARE-DIVIDEND] 00.34
[PER-SHARE-DISTRIBUTIONS] 01.28
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.91
[EXPENSE-RATIO] 01.73
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 6
[NAME] CONVERTIBLE FUND, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 132,597,466
[INVESTMENTS-AT-VALUE] 134,361,000
[RECEIVABLES] 1,778,513
[ASSETS-OTHER] 923
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 136,140,436
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 646,810
[TOTAL-LIABILITIES] 646,810
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 131,545,402
[SHARES-COMMON-STOCK] 97,047
[SHARES-COMMON-PRIOR] 67,377
[ACCUMULATED-NII-CURRENT] 73,699
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 2,110,991
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 1,763,534
[NET-ASSETS] 135,493,626
[DIVIDEND-INCOME] 1,171,188
[INTEREST-INCOME] 2,168,695
[OTHER-INCOME] 0
[EXPENSES-NET] 780,760
[NET-INVESTMENT-INCOME] 2,559,123
[REALIZED-GAINS-CURRENT] 5,863,531
[APPREC-INCREASE-CURRENT] (9,098,095)
[NET-CHANGE-FROM-OPS] (675,441)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 27,997
[DISTRIBUTIONS-OF-GAINS] 104,675
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 29,274
[NUMBER-OF-SHARES-REDEEMED] 6,412
[SHARES-REINVESTED] 6,808
[NET-CHANGE-IN-ASSETS] 23,431,145
[ACCUMULATED-NII-PRIOR] 171,445
[ACCUMULATED-GAINS-PRIOR] 5,462,391
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 308,611
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 780,760
[AVERAGE-NET-ASSETS] 1,430,486
[PER-SHARE-NAV-BEGIN] 18.58
[PER-SHARE-NII] 00.33
[PER-SHARE-GAIN-APPREC] (0.39)
[PER-SHARE-DIVIDEND] 00.35
[PER-SHARE-DISTRIBUTIONS] 01.28
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.89
[EXPENSE-RATIO] 01.69
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 6
[NAME] CONVERTIBLE FUND, CLASS Y
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 132,597,466
[INVESTMENTS-AT-VALUE] 134,361,000
[RECEIVABLES] 1,778,513
[ASSETS-OTHER] 923
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 136,140,436
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 646,810
[TOTAL-LIABILITIES] 646,810
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 131,545,402
[SHARES-COMMON-STOCK] 3,418,793
[SHARES-COMMON-PRIOR] 1,558,358
[ACCUMULATED-NII-CURRENT] 73,699
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 2,110,991
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 1,763,534
[NET-ASSETS] 135,493,626
[DIVIDEND-INCOME] 1,171,188
[INTEREST-INCOME] 2,168,695
[OTHER-INCOME] 0
[EXPENSES-NET] 780,760
[NET-INVESTMENT-INCOME] 2,559,123
[REALIZED-GAINS-CURRENT] 5,863,531
[APPREC-INCREASE-CURRENT] (9,098,095)
[NET-CHANGE-FROM-OPS] (675,441)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 1,044,687
[DISTRIBUTIONS-OF-GAINS] 3,606,317
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,860,435
[NUMBER-OF-SHARES-REDEEMED] 0
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 23,431,145
[ACCUMULATED-NII-PRIOR] 171,445
[ACCUMULATED-GAINS-PRIOR] 5,462,391
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 308,611
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 780,760
[AVERAGE-NET-ASSETS] 43,335,109
[PER-SHARE-NAV-BEGIN] 18.66
[PER-SHARE-NII] 00.41
[PER-SHARE-GAIN-APPREC] (0.39)
[PER-SHARE-DIVIDEND] 00.35
[PER-SHARE-DISTRIBUTIONS] 01.28
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.99
[EXPENSE-RATIO] 00.81
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 8
[NAME] HIGH INCOME FUND, CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 1,364,744,947
[INVESTMENTS-AT-VALUE] 1,428,447,019
[RECEIVABLES] 42,070,432
[ASSETS-OTHER] 290
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,470,517,741
[PAYABLE-FOR-SECURITIES] 27,630,425
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 11,692,448
[TOTAL-LIABILITIES] 39,322,873
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,559,363,816
[SHARES-COMMON-STOCK] 37,914,726
[SHARES-COMMON-PRIOR] 35,865,802
[ACCUMULATED-NII-CURRENT] 57,554,328
[OVERDISTRIBUTION-NII] 1,858,129
[ACCUMULATED-NET-GAINS] (190,577,039)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 64,266,220
[NET-ASSETS] 1,431,194,868
[DIVIDEND-INCOME] 4,520,196
[INTEREST-INCOME] 61,760,042
[OTHER-INCOME] 0
[EXPENSES-NET] 8,725,910
[NET-INVESTMENT-INCOME] 57,554,328
[REALIZED-GAINS-CURRENT] 9,323,099
[APPREC-INCREASE-CURRENT] 974,034
[NET-CHANGE-FROM-OPS] 67,851,461
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 19,937,761
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 7,282,354
[NUMBER-OF-SHARES-REDEEMED] 6,012,320
[SHARES-REINVESTED] 778,890
[NET-CHANGE-IN-ASSETS] 142,375,242
[ACCUMULATED-NII-PRIOR] 105,547,558
[ACCUMULATED-GAINS-PRIOR] 15,929,257
[OVERDISTRIB-NII-PRIOR] 873,947
[OVERDIST-NET-GAINS-PRIOR] (199,848,782)
[GROSS-ADVISORY-FEES] 4,712,337
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 8,725,910
[AVERAGE-NET-ASSETS] 434,711,384
[PER-SHARE-NAV-BEGIN] 11.82
[PER-SHARE-NII] 00.52
[PER-SHARE-GAIN-APPREC] 00.10
[PER-SHARE-DIVIDEND] 00.55
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 11.89
[EXPENSE-RATIO] 01.06
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 8
[NAME] HIGH INCOME FUND, CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 1,364,744,947
[INVESTMENTS-AT-VALUE] 1,428,447,019
[RECEIVABLES] 42,070,432
[ASSETS-OTHER] 290
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,470,517,741
[PAYABLE-FOR-SECURITIES] 27,630,425
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 11,692,448
[TOTAL-LIABILITIES] 39,322,873
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,559,363,816
[SHARES-COMMON-STOCK] 62,750,178
[SHARES-COMMON-PRIOR] 57,550,302
[ACCUMULATED-NII-CURRENT] 57,554,328
[OVERDISTRIBUTION-NII] 1,858,129
[ACCUMULATED-NET-GAINS] (190,577,039)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 64,266,220
[NET-ASSETS] 1,431,194,868
[DIVIDEND-INCOME] 4,520,196
[INTEREST-INCOME] 61,760,042
[OTHER-INCOME] 0
[EXPENSES-NET] 8,725,910
[NET-INVESTMENT-INCOME] 57,554,328
[REALIZED-GAINS-CURRENT] 9,323,099
[APPREC-INCREASE-CURRENT] 974,034
[NET-CHANGE-FROM-OPS] 67,851,461
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 31,021,175
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 8,996,876
[NUMBER-OF-SHARES-REDEEMED] 4,741,209
[SHARES-REINVESTED] 944,209
[NET-CHANGE-IN-ASSETS] 142,375,242
[ACCUMULATED-NII-PRIOR] 105,547,558
[ACCUMULATED-GAINS-PRIOR] 15,929,257
[OVERDISTRIB-NII-PRIOR] 873,947
[OVERDIST-NET-GAINS-PRIOR] (199,848,782)
[GROSS-ADVISORY-FEES] 4,712,337
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 8,725,910
[AVERAGE-NET-ASSETS] 706,888,033
[PER-SHARE-NAV-BEGIN] 11.83
[PER-SHARE-NII] 00.50
[PER-SHARE-GAIN-APPREC] 00.08
[PER-SHARE-DIVIDEND] 00.52
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 11.89
[EXPENSE-RATIO] 01.54
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 8
[NAME] HIGH INCOME FUND, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 1,364,744,947
[INVESTMENTS-AT-VALUE] 1,428,447,019
[RECEIVABLES] 42,070,432
[ASSETS-OTHER] 290
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,470,517,741
[PAYABLE-FOR-SECURITIES] 27,630,425
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 11,692,448
[TOTAL-LIABILITIES] 39,322,873
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,559,363,816
[SHARES-COMMON-STOCK] 5,013,305
[SHARES-COMMON-PRIOR] 3,752,857
[ACCUMULATED-NII-CURRENT] 57,554,328
[OVERDISTRIBUTION-NII] 1,858,129
[ACCUMULATED-NET-GAINS] (190,577,039)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 64,266,220
[NET-ASSETS] 1,431,194,868
[DIVIDEND-INCOME] 4,520,196
[INTEREST-INCOME] 61,760,042
[OTHER-INCOME] 0
[EXPENSES-NET] 8,725,910
[NET-INVESTMENT-INCOME] 57,554,328
[REALIZED-GAINS-CURRENT] 9,323,099
[APPREC-INCREASE-CURRENT] 974,034
[NET-CHANGE-FROM-OPS] 67,851,461
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 2,287,897
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,507,458
[NUMBER-OF-SHARES-REDEEMED] 334,685
[SHARES-REINVESTED] 87,675
[NET-CHANGE-IN-ASSETS] 142,375,242
[ACCUMULATED-NII-PRIOR] 105,547,558
[ACCUMULATED-GAINS-PRIOR] 15,929,257
[OVERDISTRIB-NII-PRIOR] 873,947
[OVERDIST-NET-GAINS-PRIOR] (199,848,782)
[GROSS-ADVISORY-FEES] 4,712,337
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 8,725,910
[AVERAGE-NET-ASSETS] 51,303,121
[PER-SHARE-NAV-BEGIN] 11.84
[PER-SHARE-NII] 00.51
[PER-SHARE-GAIN-APPREC] 00.07
[PER-SHARE-DIVIDEND] 00.52
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 11.90
[EXPENSE-RATIO] 01.47
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 8
[NAME] HIGH 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] 1,364,744,947
[INVESTMENTS-AT-VALUE] 1,428,447,019
[RECEIVABLES] 42,070,432
[ASSETS-OTHER] 290
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,470,517,741
[PAYABLE-FOR-SECURITIES] 27,630,425
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 11,692,448
[TOTAL-LIABILITIES] 39,322,873
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,559,363,816
[SHARES-COMMON-STOCK] 14,664,150
[SHARES-COMMON-PRIOR] 11,767,040
[ACCUMULATED-NII-CURRENT] 57,554,328
[OVERDISTRIBUTION-NII] 1,858,129
[ACCUMULATED-NET-GAINS] (190,577,039)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 64,266,220
[NET-ASSETS] 1,431,194,868
[DIVIDEND-INCOME] 4,520,196
[INTEREST-INCOME] 61,760,042
[OTHER-INCOME] 0
[EXPENSES-NET] 8,725,910
[NET-INVESTMENT-INCOME] 57,554,328
[REALIZED-GAINS-CURRENT] 9,323,099
[APPREC-INCREASE-CURRENT] 974,034
[NET-CHANGE-FROM-OPS] 67,851,461
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 7,085,917
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 8,824,583
[NUMBER-OF-SHARES-REDEEMED] 5,995,450
[SHARES-REINVESTED] 67,977
[NET-CHANGE-IN-ASSETS] 142,375,242
[ACCUMULATED-NII-PRIOR] 105,547,558
[ACCUMULATED-GAINS-PRIOR] 15,929,257
[OVERDISTRIB-NII-PRIOR] 873,947
[OVERDIST-NET-GAINS-PRIOR] (199,848,782)
[GROSS-ADVISORY-FEES] 4,712,337
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 8,725,910
[AVERAGE-NET-ASSETS] 154,610,629
[PER-SHARE-NAV-BEGIN] 11.84
[PER-SHARE-NII] 00.55
[PER-SHARE-GAIN-APPREC] 00.08
[PER-SHARE-DIVIDEND] 00.56
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 11.91
[EXPENSE-RATIO] 00.72
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 8
[NAME] HIGH INCOME FUND, CLASS Z
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 1,364,744,947
[INVESTMENTS-AT-VALUE] 1,428,447,019
[RECEIVABLES] 42,070,432
[ASSETS-OTHER] 290
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,470,517,741
[PAYABLE-FOR-SECURITIES] 27,630,425
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 11,692,448
[TOTAL-LIABILITIES] 39,322,873
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,559,363,816
[SHARES-COMMON-STOCK] 9,051
[SHARES-COMMON-PRIOR] 8,845
[ACCUMULATED-NII-CURRENT] 57,554,328
[OVERDISTRIBUTION-NII] 1,858,129
[ACCUMULATED-NET-GAINS] (190,577,039)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 64,266,220
[NET-ASSETS] 1,431,194,868
[DIVIDEND-INCOME] 4,520,196
[INTEREST-INCOME] 61,760,042
[OTHER-INCOME] 0
[EXPENSES-NET] 8,725,910
[NET-INVESTMENT-INCOME] 57,554,328
[REALIZED-GAINS-CURRENT] 9,323,099
[APPREC-INCREASE-CURRENT] 974,034
[NET-CHANGE-FROM-OPS] 67,851,461
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 5,010
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 25
[NUMBER-OF-SHARES-REDEEMED] 0
[SHARES-REINVESTED] 181
[NET-CHANGE-IN-ASSETS] 142,375,242
[ACCUMULATED-NII-PRIOR] 105,547,558
[ACCUMULATED-GAINS-PRIOR] 15,929,257
[OVERDISTRIB-NII-PRIOR] 873,947
[OVERDIST-NET-GAINS-PRIOR] (199,848,782)
[GROSS-ADVISORY-FEES] 4,712,337
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 8,725,910
[AVERAGE-NET-ASSETS] 105,865
[PER-SHARE-NAV-BEGIN] 11.80
[PER-SHARE-NII] 00.54
[PER-SHARE-GAIN-APPREC] 00.05
[PER-SHARE-DIVIDEND] 00.56
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 11.83
[EXPENSE-RATIO] 01.28
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 9
[NAME] UTILITIES FUND, CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 917,300,703
[INVESTMENTS-AT-VALUE] 1,118,431,425
[RECEIVABLES] 18,682,208
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 20,859,561
[TOTAL-ASSETS] 1,157,973,194
[PAYABLE-FOR-SECURITIES] 8,985,680
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 26,294,512
[TOTAL-LIABILITIES] 35,280,192
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 889,170,833
[SHARES-COMMON-STOCK] 16,069,435
[SHARES-COMMON-PRIOR] 16,000,188
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 3,105,877
[ACCUMULATED-NET-GAINS] 35,497,324
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 201,130,722
[NET-ASSETS] 1,122,693,002
[DIVIDEND-INCOME] 15,737,282
[INTEREST-INCOME] 17,106,377
[OTHER-INCOME] 0
[EXPENSES-NET] 8,160,497
[NET-INVESTMENT-INCOME] 24,683,162
[REALIZED-GAINS-CURRENT] 52,395,181
[APPREC-INCREASE-CURRENT] 42,337,835
[NET-CHANGE-FROM-OPS] 119,416,178
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 6,427,911
[DISTRIBUTIONS-OF-GAINS] 9,219,838
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,654,678
[NUMBER-OF-SHARES-REDEEMED] 2,322,484
[SHARES-REINVESTED] 727,123
[NET-CHANGE-IN-ASSETS] (124,728,439)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 24,563,550
[OVERDISTRIB-NII-PRIOR] 3,238
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 2,614,565
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 8,160,497
[AVERAGE-NET-ASSETS] 250,657,896
[PER-SHARE-NAV-BEGIN] 15.53
[PER-SHARE-NII] 00.36
[PER-SHARE-GAIN-APPREC] 01.34
[PER-SHARE-DIVIDEND] 00.41
[PER-SHARE-DISTRIBUTIONS] 00.60
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.22
[EXPENSE-RATIO] 01.04
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 9
[NAME] UTILITIES FUND, CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 917,300,703
[INVESTMENTS-AT-VALUE] 1,118,431,425
[RECEIVABLES] 18,682,208
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 20,859,561
[TOTAL-ASSETS] 1,157,973,194
[PAYABLE-FOR-SECURITIES] 8,985,680
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 26,294,512
[TOTAL-LIABILITIES] 35,280,192
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 889,170,833
[SHARES-COMMON-STOCK] 51,857,761
[SHARES-COMMON-PRIOR] 61,280,779
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 3,105,877
[ACCUMULATED-NET-GAINS] 35,497,324
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 201,130,722
[NET-ASSETS] 1,122,693,002
[DIVIDEND-INCOME] 15,737,282
[INTEREST-INCOME] 17,106,377
[OTHER-INCOME] 0
[EXPENSES-NET] 8,160,497
[NET-INVESTMENT-INCOME] 24,683,162
[REALIZED-GAINS-CURRENT] 52,395,181
[APPREC-INCREASE-CURRENT] 42,337,835
[NET-CHANGE-FROM-OPS] 119,416,178
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 20,552,013
[DISTRIBUTIONS-OF-GAINS] 31,375,232
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 656,151
[NUMBER-OF-SHARES-REDEEMED] 12,520,845
[SHARES-REINVESTED] 2,441,676
[NET-CHANGE-IN-ASSETS] (124,728,439)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 24,563,550
[OVERDISTRIB-NII-PRIOR] 3,238
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 2,614,565
[INTEREST-EXPENSE] 8,160,497
[GROSS-EXPENSE] 0
[AVERAGE-NET-ASSETS] 876,672,505
[PER-SHARE-NAV-BEGIN] 15.52
[PER-SHARE-NII] 00.33
[PER-SHARE-GAIN-APPREC] 01.33
[PER-SHARE-DIVIDEND] 00.37
[PER-SHARE-DISTRIBUTIONS] 00.60
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.21
[EXPENSE-RATIO] 01.51
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 9
[NAME] UTILITIES FUND, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 917,300,703
[INVESTMENTS-AT-VALUE] 1,118,431,425
[RECEIVABLES] 18,682,208
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 20,859,561
[TOTAL-ASSETS] 1,157,973,194
[PAYABLE-FOR-SECURITIES] 8,985,680
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 26,294,512
[TOTAL-LIABILITIES] 35,280,192
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 889,170,833
[SHARES-COMMON-STOCK] 571,515
[SHARES-COMMON-PRIOR] 604,050
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 3,105,877
[ACCUMULATED-NET-GAINS] 35,497,324
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 201,130,722
[NET-ASSETS] 1,122,693,002
[DIVIDEND-INCOME] 15,737,282
[INTEREST-INCOME] 17,106,377
[OTHER-INCOME] 0
[EXPENSES-NET] 8,160,497
[NET-INVESTMENT-INCOME] 24,683,162
[REALIZED-GAINS-CURRENT] 52,395,181
[APPREC-INCREASE-CURRENT] 42,337,835
[NET-CHANGE-FROM-OPS] 119,416,178
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 218,826
[DISTRIBUTIONS-OF-GAINS] 336,412
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 42,430
[NUMBER-OF-SHARES-REDEEMED] 104,027
[SHARES-REINVESTED] 29,062
[NET-CHANGE-IN-ASSETS] (124,728,439)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 24,563,550
[OVERDISTRIB-NII-PRIOR] 3,238
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 2,614,565
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 8,160,497
[AVERAGE-NET-ASSETS] 9,225,002
[PER-SHARE-NAV-BEGIN] 15.53
[PER-SHARE-NII] 00.33
[PER-SHARE-GAIN-APPREC] 01.34
[PER-SHARE-DIVIDEND] 00.38
[PER-SHARE-DISTRIBUTIONS] 00.60
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.22
[EXPENSE-RATIO] 01.47
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 9
[NAME] UTILITIES FUND, CLASS Y
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 917,300,703
[INVESTMENTS-AT-VALUE] 1,118,431,425
[RECEIVABLES] 18,682,208
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 20,859,561
[TOTAL-ASSETS] 1,157,973,194
[PAYABLE-FOR-SECURITIES] 8,985,680
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 26,294,512
[TOTAL-LIABILITIES] 35,280,192
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 889,170,833
[SHARES-COMMON-STOCK] 88
[SHARES-COMMON-PRIOR] 1,585,529
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 3,105,877
[ACCUMULATED-NET-GAINS] 35,497,324
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 201,130,722
[NET-ASSETS] 1,122,693,002
[DIVIDEND-INCOME] 15,737,282
[INTEREST-INCOME] 17,106,377
[OTHER-INCOME] 0
[EXPENSES-NET] 8,160,497
[NET-INVESTMENT-INCOME] 24,683,162
[REALIZED-GAINS-CURRENT] 52,395,181
[APPREC-INCREASE-CURRENT] 42,337,835
[NET-CHANGE-FROM-OPS] 119,416,178
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 250,852
[DISTRIBUTIONS-OF-GAINS] 70,000
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 129,563
[NUMBER-OF-SHARES-REDEEMED] 1,715,009
[SHARES-REINVESTED] 5
[NET-CHANGE-IN-ASSETS] (124,728,439)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 24,563,550
[OVERDISTRIB-NII-PRIOR] 3,238
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 2,614,565
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 8,160,497
[AVERAGE-NET-ASSETS] 11,964,124
[PER-SHARE-NAV-BEGIN] 15.56
[PER-SHARE-NII] 00.38
[PER-SHARE-GAIN-APPREC] 01.31
[PER-SHARE-DIVIDEND] 00.45
[PER-SHARE-DISTRIBUTIONS] 00.60
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.22
[EXPENSE-RATIO] 00.68
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 9
[NAME] UTILITIES FUND, CLASS Z
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 917,300,703
[INVESTMENTS-AT-VALUE] 1,118,431,425
[RECEIVABLES] 18,682,208
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 20,859,561
[TOTAL-ASSETS] 1,157,973,194
[PAYABLE-FOR-SECURITIES] 8,985,680
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 26,294,512
[TOTAL-LIABILITIES] 35,280,192
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 889,170,833
[SHARES-COMMON-STOCK] 739,539
[SHARES-COMMON-PRIOR] 877,888
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 3,105,877
[ACCUMULATED-NET-GAINS] 35,497,324
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 201,130,722
[NET-ASSETS] 1,122,693,002
[DIVIDEND-INCOME] 15,737,282
[INTEREST-INCOME] 17,106,377
[OTHER-INCOME] 0
[EXPENSES-NET] 8,160,497
[NET-INVESTMENT-INCOME] 24,683,162
[REALIZED-GAINS-CURRENT] 52,395,181
[APPREC-INCREASE-CURRENT] 42,337,835
[NET-CHANGE-FROM-OPS] 119,416,178
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 336,199
[DISTRIBUTIONS-OF-GAINS] 459,925
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 41,898
[NUMBER-OF-SHARES-REDEEMED] 227,273
[SHARES-REINVESTED] 47,026
[NET-CHANGE-IN-ASSETS] (124,728,439)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 24,563,550
[OVERDISTRIB-NII-PRIOR] 3,238
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 2,614,565
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 8,160,497
[AVERAGE-NET-ASSETS] 12,606,412
[PER-SHARE-NAV-BEGIN] 15.55
[PER-SHARE-NII] 00.39
[PER-SHARE-GAIN-APPREC] 01.35
[PER-SHARE-DIVIDEND] 00.43
[PER-SHARE-DISTRIBUTIONS] 00.60
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.26
[EXPENSE-RATIO] 00.73
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 5
[NAME] EXCHANGE RESERVE, CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 112,219,096
[INVESTMENTS-AT-VALUE] 112,219,096
[RECEIVABLES] 71,130
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 280,842
[TOTAL-ASSETS] 112,571,068
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 359,815
[TOTAL-LIABILITIES] 359,815
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 112,245,854
[SHARES-COMMON-STOCK] 103,756,300
[SHARES-COMMON-PRIOR] 116,954,871
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (34,601)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 112,211,253
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 3,536,181
[OTHER-INCOME] 0
[EXPENSES-NET] 739,918
[NET-INVESTMENT-INCOME] 2,796,263
[REALIZED-GAINS-CURRENT] 3,977
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] 2,800,240
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 2,602,779
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 166,965,295
[NUMBER-OF-SHARES-REDEEMED] 182,426,607
[SHARES-REINVESTED] 2,262,840
[NET-CHANGE-IN-ASSETS] (10,511,428)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 185,953
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 739,918
[AVERAGE-NET-ASSETS] 114,966,499
[PER-SHARE-NAV-BEGIN] 1.000
[PER-SHARE-NII] 0.023
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] 0.023
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 1.000
[EXPENSE-RATIO] 1.200
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 5
[NAME] EXCHANGE RESERVE, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUL-31-1998
[PERIOD-END] JAN-31-1998
[INVESTMENTS-AT-COST] 112,219,096
[INVESTMENTS-AT-VALUE] 112,219,096
[RECEIVABLES] 71,130
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 280,842
[TOTAL-ASSETS] 112,571,068
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 359,815
[TOTAL-LIABILITIES] 359,815
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 112,245,854
[SHARES-COMMON-STOCK] 8,489,455
[SHARES-COMMON-PRIOR] 5,806,389
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (34,601)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 112,211,253
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 3,536,181
[OTHER-INCOME] 0
[EXPENSES-NET] 739,918
[NET-INVESTMENT-INCOME] 2,796,263
[REALIZED-GAINS-CURRENT] 3,977
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] 2,800,240
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 193,484
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 55,013,694
[NUMBER-OF-SHARES-REDEEMED] 52,491,064
[SHARES-REINVESTED] 160,436
[NET-CHANGE-IN-ASSETS] (10,511,428)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 185,953
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 739,918
[AVERAGE-NET-ASSETS] 8,532,274
[PER-SHARE-NAV-BEGIN] 1.000
[PER-SHARE-NII] 0.023
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] 0.023
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 1.000
[EXPENSE-RATIO] 1.200
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 10
[NAME] DIVERSIFIED STRATEGIC INCOME FUND, CLASS A
<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] 43,164,519
[SHARES-COMMON-PRIOR] 33,385,804
[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] 12,480,505
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 15,933,611
[NUMBER-OF-SHARES-REDEEMED] 6,876,939
[SHARES-REINVESTED] 722,043
[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] 303,546,753
[PER-SHARE-NAV-BEGIN] 8.01
[PER-SHARE-NII] 0.28
[PER-SHARE-GAIN-APPREC] 0.07
[PER-SHARE-DIVIDEND] 0.33
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 8.03
[EXPENSE-RATIO] 1.02
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 10
[NAME] DIVERSIFIED STRATEGIC INCOME FUND, CLASS B
<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] 295,305,228
[SHARES-COMMON-PRIOR] 304,019,071
[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] 91,914,352
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 27,627,620
[NUMBER-OF-SHARES-REDEEMED] 41,530,712
[SHARES-REINVESTED] 5,189,249
[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] 2,406,736,799
[PER-SHARE-NAV-BEGIN] 8.03
[PER-SHARE-NII] 0.25
[PER-SHARE-GAIN-APPREC] 0.09
[PER-SHARE-DIVIDEND] 0.31
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 8.06
[EXPENSE-RATIO] 1.50
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 10
[NAME] DIVERSIFIED STRATEGIC INCOME FUND, CLASS C
<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] 13,771,273
[SHARES-COMMON-PRIOR] 10,427,596
[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] 3,774,696
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 4,053,413
[NUMBER-OF-SHARES-REDEEMED] 981,811
[SHARES-REINVESTED] 272,075
[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] 97,045,753
[PER-SHARE-NAV-BEGIN] 8.01
[PER-SHARE-NII] 0.26
[PER-SHARE-GAIN-APPREC] 0.08
[PER-SHARE-DIVIDEND] 0.31
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 8.04
[EXPENSE-RATIO] 1.45
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[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>
[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
[NUMBER] 10
[NAME] DIVERSIFIED STRATEGIC INCOME FUND, CLASS Z
<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] 2,554,917
[SHARES-COMMON-PRIOR] 2,545,737
[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] 864,625
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 77,697
[NUMBER-OF-SHARES-REDEEMED] 160,109
[SHARES-REINVESTED] 91,592
[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] 20,410,463
[PER-SHARE-NAV-BEGIN] 8.01
[PER-SHARE-NII] 0.28
[PER-SHARE-GAIN-APPREC] 0.09
[PER-SHARE-DIVIDEND] 0.34
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 8.04
[EXPENSE-RATIO] 0.69
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
SMITH BARNEY INCOME FUND
10f-3 REPORT
July 1, 1997 through December 31, 1997
% of
Trade Par Value/ Unit
Fund % of
Issuer Date Selling Dealer Share
Price Assets Issue
California Hsg. Fin. Auth. 7/12/97 Lehman Brothers
$3,675,000 $100.00 0.45% 2.29%
5.75% due 2/1/2029
Metropolitan Trans. Auth. 7/16/97 Merrill Lynch
4,000,000 95.434 0.47 3.96
5.125% die 8/1/2024
New York City G.O. 7/24/97 J.P. Morgan
3,500,000 96.79 0.41 3.57
5.25% due 8/1/2016
Massachusetts State G.O. 7/25/97 Goldman Sachs & Co.
3,000,000 96.329 0.48 1.20
5.00% due 8/1/2017
Hawaii Housing Authority 7/25/97 Merrill Lynch
1,500,000 100.00 0.21 2.01
5.75% due 7/1/2030
Mass Bay Trans. Auth 7/30/97 Bear Stearns
4,000,000 94.727 0.45 1.89
5.00% due 3/1/2024 State Street Bank
Prudential Securities
J.P. Morgan
Cnty of Allegheny PA Airport 8/8/97 Morgan Stanley
2,850,000 100.00 0.34 2.55
5.00% due 1/1/2019
Connecticut HFA 8/22/97 Advest Inc.
2,925,000 100.00 0.36 3.66
5.85% due 11/15/2028
Nebraska IFA Hsg. 8/25/97 Lehman Brothers
2,000,000 100.00 0.25 4.00
5.85% due 9/1/2028
Mass Hlth. & Ed. Partners 9/12/97 J.P. Morgan
4,750,000 97.225 0.58 3.97
5.375% due 7/1/2024
Charlotte Mecklenberg Hsp. 9/18/97 First Union
3,000,000 96.296 0.36 4.00
5.125% due 1/15/2022
NYC Muni Waters 9/18/97 Lehman Brothers
3,350,000 95.825 0.92 3.94
5.25% due 6/15/2029
5.125% due 6/15/2030 Merrill Lynch
4,350,000 95.421
Prudential securities
Roosevelt & Cross
Duke & Company
J.P. Morgan
Bear Stearns
Artemis Capilal
Northern States Power 9/17/97 Merrill Lynch
124,300 49.5625 0.51 2.97
Met. Gov't Nashville G.O. 9/18/97 Morgan Keegan
3,700,000 96.766 0.45 3.79
5.125% due 5/15/2025
Washington Pub. Pwr. Supplly 9/227 Goldman Sachs
3,845,000 96.092 0.46 4.02
5.125% due 7/1/2017
Hillsborough Count, FL 11/6/97 Lehman Brothers
1,750,000 97.26 2.48
5.125% due 10/1/2017
Triborough Brdg. & Tunnel 11/7/97 Bear Stearns
3,425,000 96.906 10.55
5.25% due 1/1/2028 Goldman Sachs
J.P. Morgan
Lehman Brothers
Merrill Lynch
Morgan Stanley
Prudential Securities
Artemis Capital
Cambridge Partners
Lebenthal & Co. Inc.
Roosevelt & Cross
William Simon & Sons
Puerto Rico Infrastructure 11/21/97 Goldman Sachs
3,000,000 95.77 3.57
5.00% due 7/1/28
Extendicare 11/25/97 NationsBank
6,850,000 100.00 10.00
9.35% due 12/15/2007
Entendicare 11/25/97 NationsBank
3,700,000 100.00 10.00
9.35% due 12/15/2007 Montgomery Securities
Esprit Telecom 12/12/97 Lehman Brothers
8,194,218 100.00 12.37
11.50% due 12.15.2007
Esprit Telecom 12/12/97 Lehman Brothers
1,167,216 100.00 12.37
11.50% due 12/15/2007
