<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000779785
<NAME> T. ROWE PRICE GNMA FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-END> MAY-31-2000
<INVESTMENTS-AT-COST> 1,098,025
<INVESTMENTS-AT-VALUE> 1,063,483
<RECEIVABLES> 7,227
<ASSETS-OTHER> 250
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,070,960
<PAYABLE-FOR-SECURITIES> 16,432
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,370
<TOTAL-LIABILITIES> 18,802
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,118,120
<SHARES-COMMON-STOCK> 117,899
<SHARES-COMMON-PRIOR> 122,839
<ACCUMULATED-NII-CURRENT> (5,445)
<OVERDISTRIBUTION-NII> (5,445)
<ACCUMULATED-NET-GAINS> (25,975)
<OVERDISTRIBUTION-GAINS> (25,975)
<ACCUM-APPREC-OR-DEPREC> (34,542)
<NET-ASSETS> 1,052,158
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 79,353
<OTHER-INCOME> 0
<EXPENSES-NET> 7,651
<NET-INVESTMENT-INCOME> 71,702
<REALIZED-GAINS-CURRENT> (14,162)
<APPREC-INCREASE-CURRENT> (35,173)
<NET-CHANGE-FROM-OPS> 22,367
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (71,702)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 23,137
<NUMBER-OF-SHARES-REDEEMED> (31,162)
<SHARES-REINVESTED> 6,894
<NET-CHANGE-IN-ASSETS> (58,606)
<ACCUMULATED-NII-PRIOR> (5,445)
<ACCUMULATED-GAINS-PRIOR> (13,594)
<OVERDISTRIB-NII-PRIOR> (5,445)
<OVERDIST-NET-GAINS-PRIOR> (13,594)
<GROSS-ADVISORY-FEES> 5,086
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,651
<AVERAGE-NET-ASSETS> 1,084,124
<PER-SHARE-NAV-BEGIN> 9.33
<PER-SHARE-NII> 0.60
<PER-SHARE-GAIN-APPREC> (0.41)
<PER-SHARE-DIVIDEND> (0.60)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.92
<EXPENSE-RATIO> 0.71
</TABLE>
