51605 3/99
Prospectus Supplement
dated March 23, 1999 to:
Putnam Diversified Income Trust (the "fund")
Class A Prospectus dated January 30, 1999
The "Average annual total returns" table on page 4 of the
prospectus is replaced with the following:
Average annual total returns (for periods ending 12/31/98)
Past Past Past
1 year 5 years 10 years
Class A -1.90% 5.33% 8.69%
Lehman Brothers Aggregate
Bond Index 8.69% 7.27% 9.26%
Salomon Non-U.S. World
Government Bond Index 17.79% 8.26% 8.79%
First Boston High Yield Index 0.58% 8.16% 10.74%