Prospectus Supplement 44120 6/98
dated June 10, 1998 to:
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Putnam Diversified Income Trust (the "fund")
Prospectuses dated January 30, 1998
The first paragraph under the heading "International Sector"
is replaced with the following:
The fund will invest the assets allocated to the International
Sector in debt obligations and other fixed-income securities,
primarily those of non-U.S. issuers. These securities include:
* debt obligations issued or guaranteed by foreign, national,
provincial, state or other governments with taxing authority, or
by their agencies or instrumentalities;
* debt obligations of supranational entities (described below);
and
* debt obligations and other fixed-income securities of foreign
corporate issuers and similar non-U.S. dollar denominated
securities of U.S. corporate issuers.