<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000080249
<NAME> T. ROWE PRICE NEW INCOME FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-END> MAY-31-2000
<INVESTMENTS-AT-COST> 1694389
<INVESTMENTS-AT-VALUE> 1614722
<RECEIVABLES> 21439
<ASSETS-OTHER> 97
<OTHER-ITEMS-ASSETS> 297905
<TOTAL-ASSETS> 1934163
<PAYABLE-FOR-SECURITIES> 297905
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3479
<TOTAL-LIABILITIES> 301384
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1798634
<SHARES-COMMON-STOCK> 202439
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2791
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (88407)
<ACCUM-APPREC-OR-DEPREC> (80239)
<NET-ASSETS> 1632779
<DIVIDEND-INCOME> 1408
<INTEREST-INCOME> 124974
<OTHER-INCOME> 0
<EXPENSES-NET> 13040
<NET-INVESTMENT-INCOME> 113673
<REALIZED-GAINS-CURRENT> (71654)
<APPREC-INCREASE-CURRENT> (23998)
<NET-CHANGE-FROM-OPS> 18021
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (113579)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 23373
<NUMBER-OF-SHARES-REDEEMED> (62339)
<SHARES-REINVESTED> 12863
<NET-CHANGE-IN-ASSETS> (308994)
<ACCUMULATED-NII-PRIOR> 2697
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (16753)
<GROSS-ADVISORY-FEES> 8438
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13040
<AVERAGE-NET-ASSETS> 1797982
<PER-SHARE-NAV-BEGIN> 8.50
<PER-SHARE-NII> 0.52
<PER-SHARE-GAIN-APPREC> (0.43)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (0.52)
<RETURNS-OF-CAPITAL> 1.13
<PER-SHARE-NAV-END> 8.07
<EXPENSE-RATIO> 0.73
</TABLE>
