T. Rowe Price Short Term Bond Fund (PRWBX) N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-03894

T. Rowe Price Short-Term Bond Fund, Inc.

(Exact name of registrant as specified in charter)

100 East Pratt Street, Baltimore, MD 21202

(Address of principal executive offices)

David Oestreicher

100 East Pratt Street, Baltimore, MD 21202

(Name and address of agent for service)

Registrant’s telephone number, including area code: (410) 345-2000

Date of fiscal year end: May 31

Date of reporting period: May 31, 2024

Item 1. Reports to Shareholders

(a) Report pursuant to Rule 30e-1

Annual Shareholder Report

May 31, 2024

Ultra Short-Term Bond Fund

Z Class (TRZWX)

This annual shareholder report contains important information about Ultra Short-Term Bond Fund (the "fund") for the period of June 1, 2023 to May 31, 2024. You can find the fund’s prospectus, financial information on Form N-CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information atwww.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1-800-638-5660 or info@troweprice.com or contacting your intermediary. 

What were the fund costs for the last year? (based on a hypothetical $10,000 investment)

	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment
Ultra Short-Term Bond Fund - Z Class	$0	0.00%

What drove fund performance during the past 12 months?

• The shorter-maturity U.S. investment-grade bond market generated positive returns over the 12-month period ended May 31, 2024, largely lifted by declining interest rates and tighter credit spreads near the end of 2023. Corporate bonds and securitized credit generated positive excess returns during the rally and the broader reporting period.

• The fund’s out-of-benchmark allocations to securitized sectors (residential mortgage-backed securities, asset-backed securities (ABS), and commercial mortgage-backed securities), overweight to investment-grade corporate bonds, and underweight to U.S. Treasuries aided relative performance versus its style-specific benchmark, the Bloomberg Short-Term Government/Corporate Index. Security selection among investment-grade corporate bonds also contributed.

• Positioning on the yield curve hindered relative performance. Specifically, an overweight to the two-year key rate detracted as the yield on the two-year U.S. Treasury note ended the period higher.  

• The fund’s allocation to investment-grade corporate debt decreased over the reporting period but continued to represent the portfolio’s largest absolute and relative position. As corporate bond valuations tightened early in the period, we focused on additions in ABS, and our allocation to the ABS sector ended notably higher. Within the sector, the analyst team identified a variety of opportunities among automotive and industrial equipment securities.

• While we are primarily a cash bond manager, we occasionally employ the limited use of derivatives in our strategy for hedging purposes. Derivatives may include futures and options, as well as credit default and interest rate swaps. During the reporting period, our use of derivatives, particularly U.S. Treasury futures, contributed modestly to absolute performance.

How has the fund performed?

Cumulative Returns of a Hypothetical $10,000 Investment as of May 31, 2024

	Z Class	Regulatory Benchmark	Strategy Benchmark
2/22/21	10,000	10,000	10,000
2/28/21	10,002	9,989	9,999
5/31/21	10,011	9,975	10,005
8/31/21	10,038	10,138	10,007
11/30/21	10,023	10,077	10,006
2/28/22	9,991	9,725	9,990
5/31/22	9,922	9,154	9,990
8/31/22	9,913	8,970	9,990
11/30/22	9,922	8,783	10,032
2/28/23	10,100	8,779	10,135
5/31/23	10,225	8,958	10,252
8/31/23	10,402	8,863	10,386
11/30/23	10,571	8,887	10,535
2/29/24	10,772	9,071	10,674
5/31/24	10,945	9,075	10,812

202405-3565004, 202407-3567309

F1419-052 7/24

Average Annual Total Returns

	1 Year	Since Inception 2/22/2021
Ultra Short-Term Bond Fund (Z Class)	7.04%	2.80%
Bloomberg U.S. Aggregate Bond Index (Regulatory Benchmark)	1.31	- 2.93
Bloomberg Short-Term Government/Corporate Index (Strategy Benchmark)	5.46	2.42

The preceding line graph shows the value of a hypothetical $10,000 investment in the fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The fund’s performance information included in the line graph and table above is compared with a regulatory required index that represents an overall securities market (Regulatory Benchmark). In addition, the line graph and table may also include one or more indexes that more closely aligns to the fund's investment strategy (Strategy Benchmark(s)). Due to new SEC Rules on shareholder reporting the fund adopted a new broad-based securities market index, referred to as the Regulatory Benchmark. Market index returns do not include expenses, which are deducted from fund returns. The fund's total return figures reflect the reinvestment of dividends and capital gains, if any. Neither the fund’s returns nor the index returns reflect the deduction of taxes that a shareholder would pay on fund distributions or redemptions of fund shares. The fund’s past performance is not a good predictor of the fund’s future performance. Updated performance information can be found at www.troweprice.com.

What are some fund statistics?

Fund Statistics

Total Net Assets (000s)	$2,258,094
Number of Portfolio Holdings	416

Investment Advisory Fees Paid (000s)	$3,300
Portfolio Turnover Rate	82.0%

What did the fund invest in?

Credit Quality Allocation* (as a % of Net Assets)

AAA Rated	30.1%
AA Rated	6.2
A Rated	18.9
BBB Rated	32.1
Not Rated	- 3.2
U.S. Treasury Securities	3.3
Reserves	12.6

*Credit ratings for the securities held in the Fund are provided by Moody’s, Standard & Poor’s, and Fitch and are converted to the Standard & Poor’s nomenclature. A rating of AAA represents the highest-rated securities, and a rating of D represents the lowest rated securities. If the ratings agencies differ, the highest rating is applied to the security. If a rating is not available, the security is classified as Not Rated. The rating of the underlying investment vehicle is used to determine the creditworthiness of credit default swaps and sovereign securities. The Fund is not rated by any agency.

Top Ten Holdings (as a % of Net Assets)

U.S. Treasury Bills	2.9%
Verus Securitization Trust	1.9
Santander Drive Auto Receivables Trust	1.9
Exeter Automobile Receivables Trust	1.9
Octane Receivables Trust	1.8
Enterprise Fleet Financing	1.5
Targa Resources	1.2
Edison International	1.2
Conagra Brands	1.2
Structured Agency Credit Risk Debt Notes	1.0

If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.

Bloomberg does not accept any liability for any errors or omissions in the indexes or data, and hereby expressly disclaim all warranties of originality, accuracy, completeness, timeliness, merchantability and fitness for a particular purpose. No party may rely on any indexes or data contained in this communication. Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.

Ultra Short-Term Bond Fund 

Z Class (TRZWX)

T. Rowe Price Investment Services, Inc.

100 East Pratt Street

Baltimore, MD 21202

Annual Shareholder Report

May 31, 2024

Ultra Short-Term Bond Fund

I Class (TRSTX)

This annual shareholder report contains important information about Ultra Short-Term Bond Fund (the "fund") for the period of June 1, 2023 to May 31, 2024. You can find the fund’s prospectus, financial information on Form N-CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information atwww.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1-800-638-5660 or info@troweprice.com or contacting your intermediary. 

What were the fund costs for the last year? (based on a hypothetical $10,000 investment)

	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment
Ultra Short-Term Bond Fund - I Class	$21	0.20%

What drove fund performance during the past 12 months?

• The shorter-maturity U.S. investment-grade bond market generated positive returns over the 12-month period ended May 31, 2024, largely lifted by declining interest rates and tighter credit spreads near the end of 2023. Corporate bonds and securitized credit generated positive excess returns during the rally and the broader reporting period.

• The fund’s out-of-benchmark allocations to securitized sectors (residential mortgage-backed securities, asset-backed securities (ABS), and commercial mortgage-backed securities), overweight to investment-grade corporate bonds, and underweight to U.S. Treasuries aided relative performance versus its style-specific benchmark, the Bloomberg Short-Term Government/Corporate Index. Security selection among investment-grade corporate bonds also contributed.

• Positioning on the yield curve hindered relative performance. Specifically, an overweight to the two-year key rate detracted as the yield on the two-year U.S. Treasury note ended the period higher.  

• The fund’s allocation to investment-grade corporate debt decreased over the reporting period but continued to represent the portfolio’s largest absolute and relative position. As corporate bond valuations tightened early in the period, we focused on additions in ABS, and our allocation to the ABS sector ended notably higher. Within the sector, the analyst team identified a variety of opportunities among automotive and industrial equipment securities.

• While we are primarily a cash bond manager, we occasionally employ the limited use of derivatives in our strategy for hedging purposes. Derivatives may include futures and options, as well as credit default and interest rate swaps. During the reporting period, our use of derivatives, particularly U.S. Treasury futures, contributed modestly to absolute performance.

How has the fund performed?

Cumulative Returns of a Hypothetical $500,000 Investment as of May 31, 2024

	I Class	Regulatory Benchmark	Strategy Benchmark
7/6/17	500,000	500,000	500,000
8/31/17	501,296	508,001	501,061
11/30/17	503,453	505,225	502,200
2/28/18	505,761	496,943	503,530
5/31/18	507,612	499,953	505,967
8/31/18	511,954	502,670	508,753
11/30/18	514,303	498,444	511,399
2/28/19	518,165	512,695	515,166
5/31/19	525,245	531,952	518,895
8/31/19	530,020	553,804	522,775
11/30/19	532,331	552,233	525,615
2/29/20	537,552	572,591	528,899
5/31/20	537,370	582,038	532,256
8/31/20	546,241	589,654	533,014
11/30/20	549,285	592,456	533,343
2/28/21	551,549	580,513	533,681
5/31/21	552,827	579,681	533,968
8/31/21	552,886	589,157	534,097
11/30/21	551,832	585,623	534,027
2/28/22	549,787	565,164	533,178
5/31/22	545,781	532,020	533,162
8/31/22	544,997	521,310	533,171
11/30/22	545,250	510,431	535,400
2/28/23	554,794	510,219	540,927
5/31/23	561,370	520,619	547,159
8/31/23	570,814	515,090	554,341
11/30/23	579,788	516,453	562,293
2/29/24	591,734	527,195	569,670
5/31/24	600,884	527,416	577,033

202405-3565004, 202407-3567309

F1104-052 7/24

Average Annual Total Returns

	1 Year	5 Years	Since Inception 7/6/2017
Ultra Short-Term Bond Fund (I Class)	7.04%	2.73%	2.70%
Bloomberg U.S. Aggregate Bond Index (Regulatory Benchmark)	1.31	- 0.17	0.78
Bloomberg Short-Term Government/Corporate Index (Strategy Benchmark)	5.46	2.15	2.10

The preceding line graph shows the value of a hypothetical $500,000 investment in the fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The fund’s performance information included in the line graph and table above is compared with a regulatory required index that represents an overall securities market (Regulatory Benchmark). In addition, the line graph and table may also include one or more indexes that more closely aligns to the fund's investment strategy (Strategy Benchmark(s)). Due to new SEC Rules on shareholder reporting the fund adopted a new broad-based securities market index, referred to as the Regulatory Benchmark. Market index returns do not include expenses, which are deducted from fund returns. The fund's total return figures reflect the reinvestment of dividends and capital gains, if any. Neither the fund’s returns nor the index returns reflect the deduction of taxes that a shareholder would pay on fund distributions or redemptions of fund shares. The fund’s past performance is not a good predictor of the fund’s future performance. Updated performance information can be found at www.troweprice.com.

What are some fund statistics?

Fund Statistics

Total Net Assets (000s)	$2,258,094
Number of Portfolio Holdings	416

Investment Advisory Fees Paid (000s)	$3,300
Portfolio Turnover Rate	82.0%

What did the fund invest in?

Credit Quality Allocation* (as a % of Net Assets)

AAA Rated	30.1%
AA Rated	6.2
A Rated	18.9
BBB Rated	32.1
Not Rated	- 3.2
U.S. Treasury Securities	3.3
Reserves	12.6

*Credit ratings for the securities held in the Fund are provided by Moody’s, Standard & Poor’s, and Fitch and are converted to the Standard & Poor’s nomenclature. A rating of AAA represents the highest-rated securities, and a rating of D represents the lowest rated securities. If the ratings agencies differ, the highest rating is applied to the security. If a rating is not available, the security is classified as Not Rated. The rating of the underlying investment vehicle is used to determine the creditworthiness of credit default swaps and sovereign securities. The Fund is not rated by any agency.

Top Ten Holdings (as a % of Net Assets)

U.S. Treasury Bills	2.9%
Verus Securitization Trust	1.9
Santander Drive Auto Receivables Trust	1.9
Exeter Automobile Receivables Trust	1.9
Octane Receivables Trust	1.8
Enterprise Fleet Financing	1.5
Targa Resources	1.2
Edison International	1.2
Conagra Brands	1.2
Structured Agency Credit Risk Debt Notes	1.0

If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.

Bloomberg does not accept any liability for any errors or omissions in the indexes or data, and hereby expressly disclaim all warranties of originality, accuracy, completeness, timeliness, merchantability and fitness for a particular purpose. No party may rely on any indexes or data contained in this communication. Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.

Ultra Short-Term Bond Fund 

I Class (TRSTX)

T. Rowe Price Investment Services, Inc.

100 East Pratt Street

Baltimore, MD 21202

Annual Shareholder Report

May 31, 2024

Ultra Short-Term Bond Fund

Investor Class (TRBUX)

This annual shareholder report contains important information about Ultra Short-Term Bond Fund (the "fund") for the period of June 1, 2023 to May 31, 2024. You can find the fund’s prospectus, financial information on Form N-CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information atwww.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1-800-638-5660 or info@troweprice.com or contacting your intermediary. 

What were the fund costs for the last year? (based on a hypothetical $10,000 investment)

	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment
Ultra Short-Term Bond Fund - Investor Class	$32	0.31%

What drove fund performance during the past 12 months?

• The shorter-maturity U.S. investment-grade bond market generated positive returns over the 12-month period ended May 31, 2024, largely lifted by declining interest rates and tighter credit spreads near the end of 2023. Corporate bonds and securitized credit generated positive excess returns during the rally and the broader reporting period.

• The fund’s out-of-benchmark allocations to securitized sectors (residential mortgage-backed securities, asset-backed securities (ABS), and commercial mortgage-backed securities), overweight to investment-grade corporate bonds, and underweight to U.S. Treasuries aided relative performance versus its style-specific benchmark, the Bloomberg Short-Term Government/Corporate Index. Security selection among investment-grade corporate bonds also contributed.

• Positioning on the yield curve hindered relative performance. Specifically, an overweight to the two-year key rate detracted as the yield on the two-year U.S. Treasury note ended the period higher.  

• The fund’s allocation to investment-grade corporate debt decreased over the reporting period but continued to represent the portfolio’s largest absolute and relative position. As corporate bond valuations tightened early in the period, we focused on additions in ABS, and our allocation to the ABS sector ended notably higher. Within the sector, the analyst team identified a variety of opportunities among automotive and industrial equipment securities.

• While we are primarily a cash bond manager, we occasionally employ the limited use of derivatives in our strategy for hedging purposes. Derivatives may include futures and options, as well as credit default and interest rate swaps. During the reporting period, our use of derivatives, particularly U.S. Treasury futures, contributed modestly to absolute performance.

How has the fund performed?

Cumulative Returns of a Hypothetical $10,000 Investment as of May 31, 2024

	Investor Class	Regulatory Benchmark	Strategy Benchmark
2014	10,000	10,000	10,000
2014	10,011	10,090	10,005
2014	10,004	10,192	10,009
2015	10,025	10,318	10,014
2015	10,044	10,303	10,023
2015	10,046	10,247	10,027
2015	10,047	10,291	10,033
2016	10,052	10,473	10,048
2016	10,141	10,612	10,069
2016	10,191	10,859	10,092
2016	10,224	10,514	10,106
2017	10,260	10,621	10,133
2017	10,321	10,780	10,148
2017	10,364	10,912	10,180
2017	10,408	10,852	10,203
2018	10,435	10,674	10,230
2018	10,494	10,739	10,280
2018	10,563	10,798	10,336
2018	10,611	10,707	10,390
2019	10,712	11,013	10,466
2019	10,837	11,426	10,542
2019	10,934	11,896	10,621
2019	10,978	11,862	10,679
2020	11,083	12,299	10,745
2020	11,076	12,502	10,814
2020	11,256	12,666	10,829
2020	11,315	12,726	10,836
2021	11,358	12,470	10,843
2021	11,381	12,452	10,848
2021	11,378	12,655	10,851
2021	11,375	12,579	10,850
2022	11,307	12,140	10,832
2022	11,221	11,428	10,832
2022	11,224	11,198	10,832
2022	11,203	10,964	10,878
2023	11,396	10,960	10,990
2023	11,527	11,183	11,116
2023	11,718	11,064	11,262
2023	11,899	11,094	11,424
2024	12,141	11,324	11,574
2024	12,326	11,329	11,723

202405-3565004, 202407-3567309

F188-052 7/24

Average Annual Total Returns

	1 Year	5 Years	10 Years
Ultra Short-Term Bond Fund (Investor Class)	6.92%	2.61%	2.11%
Bloomberg U.S. Aggregate Bond Index (Regulatory Benchmark)	1.31	- 0.17	1.26
Bloomberg Short-Term Government/Corporate Index (Strategy Benchmark)	5.46	2.15	1.60

The preceding line graph shows the value of a hypothetical $10,000 investment in the fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The fund’s performance information included in the line graph and table above is compared with a regulatory required index that represents an overall securities market (Regulatory Benchmark). In addition, the line graph and table may also include one or more indexes that more closely aligns to the fund's investment strategy (Strategy Benchmark(s)). Due to new SEC Rules on shareholder reporting the fund adopted a new broad-based securities market index, referred to as the Regulatory Benchmark. Market index returns do not include expenses, which are deducted from fund returns. The fund's total return figures reflect the reinvestment of dividends and capital gains, if any. Neither the fund’s returns nor the index returns reflect the deduction of taxes that a shareholder would pay on fund distributions or redemptions of fund shares. The fund’s past performance is not a good predictor of the fund’s future performance. Updated performance information can be found at www.troweprice.com.

What are some fund statistics?

Fund Statistics

Total Net Assets (000s)	$2,258,094
Number of Portfolio Holdings	416

Investment Advisory Fees Paid (000s)	$3,300
Portfolio Turnover Rate	82.0%

What did the fund invest in?

Credit Quality Allocation* (as a % of Net Assets)

AAA Rated	30.1%
AA Rated	6.2
A Rated	18.9
BBB Rated	32.1
Not Rated	- 3.2
U.S. Treasury Securities	3.3
Reserves	12.6

*Credit ratings for the securities held in the Fund are provided by Moody’s, Standard & Poor’s, and Fitch and are converted to the Standard & Poor’s nomenclature. A rating of AAA represents the highest-rated securities, and a rating of D represents the lowest rated securities. If the ratings agencies differ, the highest rating is applied to the security. If a rating is not available, the security is classified as Not Rated. The rating of the underlying investment vehicle is used to determine the creditworthiness of credit default swaps and sovereign securities. The Fund is not rated by any agency.

Top Ten Holdings (as a % of Net Assets)

U.S. Treasury Bills	2.9%
Verus Securitization Trust	1.9
Santander Drive Auto Receivables Trust	1.9
Exeter Automobile Receivables Trust	1.9
Octane Receivables Trust	1.8
Enterprise Fleet Financing	1.5
Targa Resources	1.2
Edison International	1.2
Conagra Brands	1.2
Structured Agency Credit Risk Debt Notes	1.0

If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.

Bloomberg does not accept any liability for any errors or omissions in the indexes or data, and hereby expressly disclaim all warranties of originality, accuracy, completeness, timeliness, merchantability and fitness for a particular purpose. No party may rely on any indexes or data contained in this communication. Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.

Ultra Short-Term Bond Fund 

Investor Class (TRBUX)

T. Rowe Price Investment Services, Inc.

100 East Pratt Street

Baltimore, MD 21202

Item 1. (b) Notice pursuant to Rule 30e-3.

Not applicable.

Item 2. Code of Ethics.

The registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A copy of this code of ethics is filed as an exhibit to this Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the period covered by this report.

Item 3. Audit Committee Financial Expert.

The registrant’s Board of Directors has determined that Mr. Paul F. McBride qualifies as an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. McBride is considered independent for purposes of Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

(a) – (d)  Aggregate fees billed for the last two fiscal years for professional services rendered to, or on behalf of, the registrant by the registrant’s principal accountant were as follows:

	2024			2023
Audit Fees		$33,841			$33,192
Audit-Related Fees		-			-
Tax Fees		-			-
All Other Fees		-			-

Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements and specifically include the issuance of a report on internal controls and, if applicable, agreed-upon procedures related to fund acquisitions. Tax fees include amounts related to services for tax compliance, tax planning, and tax advice. The nature of these services specifically includes the review of distribution calculations and the preparation of Federal, state, and excise tax returns. All other fees include the registrant’s pro-rata share of amounts for agreed-upon procedures in conjunction with service contract approvals by the registrant’s Board of Directors/Trustees.

(e)(1)  The registrant’s audit committee has adopted a policy whereby audit and non-audit services performed by the registrant’s principal accountant for the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant require pre-approval in advance at regularly scheduled audit committee meetings. If such a service is required between regularly scheduled audit committee meetings, pre-approval may be authorized by one audit committee member with ratification at the next scheduled audit committee meeting. Waiver of pre-approval for audit or non-audit services requiring fees of a de minimis amount is not permitted.

   (2)  No services included in (b) – (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f)  Less than 50 percent of the hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.

(g)  The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $1,230,000 and $1,521,000, respectively.

(h)  All non-audit services rendered in (g) above were pre-approved by the registrant’s audit committee. Accordingly, these services were considered by the registrant’s audit committee in maintaining the principal accountant’s independence.

(i)  Not applicable.

(j)  Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a)  Not applicable. The complete schedule of investments is included in Item 7 of this Form N-CSR.

(b)  Not applicable.

Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.

(a – b) Report pursuant to Regulation S-X.

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by

going

paperless.*

To

Enroll:

˃

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you

invest

directly

with

T.

Rowe

Price,

go

to

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.

If

you

invest

through

a

financial

intermediary

such

as

an

investment

advisor,

a

bank,

or

a

brokerage

firm,

please

contact

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organization

and

ask

if

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can

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documentation.

Log

in

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at

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for

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information.

*

An

account

service

fee

will

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charged

annually

for

each

T.

Rowe

Price

mutual

fund

account

unless

you

meet

criteria

for

a

fee

waiver.

Go

to

troweprice.com/personal-investing/

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to

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about

this

account

service

fee,

including

other

ways

to

waive

it.

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

Financial

Highlights

3

For

a

share

outstanding

throughout

each

period

Investor

Class

..

Year

..

..

Ended

.

5/31/24

5/31/23

5/31/22

5/31/21

5/31/20

NET

ASSET

VALUE

Beginning

of

period

$

4

.94‌

$

4

.96‌

$

5

.09‌

$

5

.02‌

$

5

.03‌

Investment

activities

Net

investment

income

(1)(2)

0

.23‌

0

.13‌

0

.04‌

0

.06‌

0

.12‌

Net

realized

and

unrealized

gain/loss

0

.10‌

0

.01‌

(3)

(

0

.11‌

)

0

.08‌

(

0

.01‌

)

Total

from

investment

activities

0

.33‌

0

.14‌

(

0

.07‌

)

0

.14‌

0

.11‌

Distributions

Net

investment

income

(

0

.23‌

)

(

0

.14‌

)

(

0

.04‌

)

(

0

.06‌

)

(

0

.12‌

)

Net

realized

gain

—‌

(

0

.02‌

)

(

0

.02‌

)

(

0

.01‌

)

—‌

Total

distributions

(

0

.23‌

)

(

0

.16‌

)

(

0

.06‌

)

(

0

.07‌

)

(

0

.12‌

)

NET

ASSET

VALUE

End

of

period

$

5

.04‌

$

4

.94‌

$

4

.96‌

$

5

.09‌

$

5

.02‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

Financial

Highlights

4

For

a

share

outstanding

throughout

each

period

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Investor

Class

..

Year

..

..

Ended

.

5/31/24

5/31/23

5/31/22

5/31/21

5/31/20

Ratios/Supplemental

Data

Total

return

(2)(4)

6

.92‌

%

2

.73‌

%

(

1

.41‌

)

%

2

.75‌

%

2

.21‌

%

Ratios

to

average

net

assets:

(2)

Gross

expenses

before

waivers/payments

by

Price

Associates

0

.33‌

%

0

.33‌

%

0

.36‌

%

0

.45‌

%

0

.44‌

%

Net

expenses

after

waivers/

payments

by

Price

Associates

0

.31‌

%

0

.31‌

%

0

.33‌

%

0

.35‌

%

0

.35‌

%

Net

investment

income

4

.63‌

%

2

.61‌

%

0

.72‌

%

1

.12‌

%

2

.34‌

%

Portfolio

turnover

rate

82

.0‌

%

38

.5‌

%

56

.2‌

%

45

.8‌

%

69

.8‌

%

Net

assets,

end

of

period

(in

millions)

$1,344

$1,459

$2,409

$4,169

$1,869

0‌

%

0‌

%

0‌

%

0‌

%

0‌

%

(1)

Per

share

amounts

calculated

using

average

shares

outstanding

method.

(2)

Includes

the

impact

of

expense-related

arrangements

with

Price

Associates.

(3)

The

amount

presented

is

inconsistent

with

the

fund's

aggregate

gains

and

losses

because

of

the

timing

of

sales

and

redemptions

of

fund

shares

in

relation

to

fluctuating

market

values

for

the

investment

portfolio.

(4)

Total

return

reflects

the

rate

that

an

investor

would

have

earned

on

an

investment

in

the

fund

during

each

period,

assuming

reinvestment

of

all

distributions,

and

payment

of

no

redemption

or

account

fees,

if

applicable.

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

Financial

Highlights

5

For

a

share

outstanding

throughout

each

period

I

Class

..

Year

..

..

Ended

.

5/31/24

5/31/23

5/31/22

5/31/21

5/31/20

NET

ASSET

VALUE

Beginning

of

period

$

4

.95‌

$

4

.97‌

$

5

.10‌

$

5

.03‌

$

5

.04‌

Investment

activities

Net

investment

income

(1)(2)

0

.24‌

0

.14‌

0

.04‌

0

.06‌

0

.12‌

Net

realized

and

unrealized

gain/loss

0

.10‌

—‌

(3)

(

0

.11‌

)

0

.09‌

(

0

.01‌

)

Total

from

investment

activities

0

.34‌

0

.14‌

(

0

.07‌

)

0

.15‌

0

.11‌

Distributions

Net

investment

income

(

0

.24‌

)

(

0

.14‌

)

(

0

.04‌

)

(

0

.07‌

)

(

0

.12‌

)

Net

realized

gain

—‌

(

0

.02‌

)

(

0

.02‌

)

(

0

.01‌

)

—‌

Total

distributions

(

0

.24‌

)

(

0

.16‌

)

(

0

.06‌

)

(

0

.08‌

)

(

0

.12‌

)

NET

ASSET

VALUE

End

of

period

$

5

.05‌

$

4

.95‌

$

4

.97‌

$

5

.10‌

$

5

.03‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

Financial

Highlights

6

For

a

share

outstanding

throughout

each

period

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

I

Class

..

Year

..

..

Ended

.

5/31/24

5/31/23

5/31/22

5/31/21

5/31/20

Ratios/Supplemental

Data

Total

return

(2)(4)

7

.04‌

%

2

.86‌

%

(

1

.27‌

)

%

2

.88‌

%

2

.31‌

%

Ratios

to

average

net

assets:

(2)

Gross

expenses

before

waivers/payments

by

Price

Associates

0

.20‌

%

0

.19‌

%

0

.22‌

%

0

.32‌

%

0

.33‌

%

Net

expenses

after

waivers/

payments

by

Price

Associates

0

.20‌

%

0

.19‌

%

0

.19‌

%

0

.23‌

%

0

.25‌

%

Net

investment

income

4

.75‌

%

2

.74‌

%

0

.87‌

%

1

.20‌

%

2

.47‌

%

Portfolio

turnover

rate

82

.0‌

%

38

.5‌

%

56

.2‌

%

45

.8‌

%

69

.8‌

%

Net

assets,

end

of

period

(in

thousands)

$914,377

$932,780

$1,288,432

$855,064

$263,120

0‌

%

0‌

%

0‌

%

0‌

%

0‌

%

(1)

Per

share

amounts

calculated

using

average

shares

outstanding

method.

(2)

Includes

the

impact

of

expense-related

arrangements

with

Price

Associates.

(3)

Amounts

round

to

less

than

$0.01

per

share.

(4)

Total

return

reflects

the

rate

that

an

investor

would

have

earned

on

an

investment

in

the

fund

during

each

period,

assuming

reinvestment

of

all

distributions,

and

payment

of

no

redemption

or

account

fees,

if

applicable.

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

Financial

Highlights

7

For

a

share

outstanding

throughout

each

period

Z

Class

(1)

..

Year

..

..

Ended

.

2/22/21

(1)

Through

5/31/21

5/31/24

5/31/23

5/31/22

NET

ASSET

VALUE

Beginning

of

period

$

4

.95‌

$

4

.97‌

$

5

.09‌

$

5

.10‌

Investment

activities

Net

investment

income

(2)(3)

0

.25‌

0

.15‌

0

.05‌

0

.02‌

Net

realized

and

unrealized

gain/loss

0

.09‌

—‌

(4)

(

0

.10‌

)

(

0

.01‌

)

(5)

Total

from

investment

activities

0

.34‌

0

.15‌

(

0

.05‌

)

0

.01‌

Distributions

Net

investment

income

(

0

.25‌

)

(

0

.15‌

)

(

0

.05‌

)

(

0

.02‌

)

Net

realized

gain

—‌

(

0

.02‌

)

(

0

.02‌

)

—‌

Total

distributions

(

0

.25‌

)

(

0

.17‌

)

(

0

.07‌

)

(

0

.02‌

)

NET

ASSET

VALUE

End

of

period

$

5

.04‌

$

4

.95‌

$

4

.97‌

$

5

.09‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

Financial

Highlights

8

For

a

share

outstanding

throughout

each

period

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Z

Class

(1)

..

Year

..

..

Ended

.

2/22/21

(1)

Through

5/31/21

5/31/24

5/31/23

5/31/22

Ratios/Supplemental

Data

Total

return

(3)(6)

7

.04‌

%

3

.05‌

%

(

0

.89‌

)

%

0

.11‌

%

Ratios

to

average

net

assets:

(3)

Gross

expenses

before

waivers/payments

by

Price

Associates

0

.19‌

%

0

.19‌

%

0

.25‌

%

0

.33‌

%

(7)

Net

expenses

after

waivers/payments

by

Price

Associates

0

.00‌

%

0

.00‌

%

0

.00‌

%

0

.00‌

%

(7)

Net

investment

income

4

.95‌

%

3

.03‌

%

1

.06‌

%

1

.13‌

%

(7)

Portfolio

turnover

rate

82

.0‌

%

38

.5‌

%

56

.2‌

%

45

.8‌

%

Net

assets,

end

of

period

(in

thousands)

$99

$97

$97

$100

0‌

%

0‌

%

0‌

%

0‌

%

(1)

Inception

date

(2)

Per

share

amounts

calculated

using

average

shares

outstanding

method.

(3)

Includes

the

impact

of

expense-related

arrangements

with

Price

Associates.

(4)

Amounts

round

to

less

than

$0.01

per

share.

(5)

The

amount

presented

is

inconsistent

with

the

fund's

aggregate

gains

and

losses

because

of

the

timing

of

sales

and

redemptions

of

fund

shares

in

relation

to

fluctuating

market

values

for

the

investment

portfolio.

(6)

Total

return

reflects

the

rate

that

an

investor

would

have

earned

on

an

investment

in

the

fund

during

each

period,

assuming

reinvestment

of

all

distributions,

and

payment

of

no

redemption

or

account

fees,

if

applicable.

Total

return

is

not

annualized

for

periods

less

than

one

year.

(7)

Annualized

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

May

31,

2024

9

Portfolio

of

Investments

‡

Par/Shares

$

Value

(Amounts

in

000s)

‡

ASSET-BACKED

SECURITIES

 25.7%

Auto

Backed

 11.9%

Ally

Auto

Receivables

Trust

Series

2023-A,

Class

A2

6.15%,

1/17/34 (1)

2,691‌

2,695‌

Ally

Auto

Receivables

Trust

Series

2023-A,

Class

B

6.01%,

1/17/34 (1)

3,714‌

3,717‌

ARI

Fleet

Lease

Trust

Series

2023-B,

Class

A2

6.05%,

7/15/32 (1)

4,165‌

4,179‌

Bayview

Opportunity

Master

Fund

VII

Series

2024-CAR1,

Class

A,

FRN

SOFR30A

+

1.10%,

6.424%,

12/26/31 (1)

2,873‌

2,881‌

CarMax

Auto

Owner

Trust

Series

2020-4,

Class

B

0.85%,

6/15/26 

1,125‌

1,095‌

CarMax

Auto

Owner

Trust

Series

2023-3,

Class

A2B,

FRN

SOFR30A

+

0.60%,

5.924%,

11/16/26 

1,949‌

1,951‌

CarMax

Auto

Owner

Trust

Series

2023-3,

Class

A3

5.28%,

5/15/28 

1,660‌

1,657‌

CarMax

Auto

Owner

Trust

Series

2024-1,

Class

A3

4.92%,

10/16/28 

5,410‌

5,368‌

Carvana

Auto

Receivables

Trust

Series

2021-N4,

Class

B

1.24%,

9/11/28 

1,914‌

1,803‌

Carvana

Auto

Receivables

Trust

Series

2023-N1,

Class

A

6.36%,

4/12/27 (1)

4,373‌

4,381‌

Carvana

Auto

Receivables

Trust

Series

2023-N3,

Class

A

6.41%,

9/10/27 (1)

2,875‌

2,883‌

Carvana

Auto

Receivables

Trust

Series

2023-P3,

Class

A2

6.09%,

11/10/26 (1)

5,133‌

5,138‌

Carvana

Auto

Receivables

Trust

Series

2024-N1,

Class

A3

5.60%,

3/10/28 (1)

2,840‌

2,832‌

Drive

Auto

Receivables

Trust

Series

2020-2,

Class

D

3.05%,

5/15/28 

299‌

298‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

10

Par/Shares

$

Value

(Amounts

in

000s)

Drive

Auto

Receivables

Trust

Series

2024-1,

Class

B

5.31%,

1/16/29 

5,440‌

5,406‌

Enterprise

Fleet

Financing

Series

2023-2,

Class

A2

5.56%,

4/22/30 (1)

8,477‌

8,461‌

Enterprise

Fleet

Financing

Series

2023-3,

Class

A2

6.40%,

3/20/30 (1)

9,280‌

9,372‌

Enterprise

Fleet

Financing

Series

2024-1,

Class

A2

5.23%,

3/20/30 (1)

7,025‌

6,984‌

Enterprise

Fleet

Financing

Series

2024-2,

Class

A2

5.74%,

12/20/26 (1)

8,125‌

8,138‌

Exeter

Automobile

Receivables

Trust

Series

2022-3A,

Class

B

4.86%,

12/15/26 

3,250‌

3,243‌

Exeter

Automobile

Receivables

Trust

Series

2022-5A,

Class

B

5.97%,

3/15/27 

2,720‌

2,718‌

Exeter

Automobile

Receivables

Trust

Series

2023-1A,

Class

B

5.72%,

4/15/27 

8,978‌

8,969‌

Exeter

Automobile

Receivables

Trust

Series

2023-3A,

Class

B

6.11%,

9/15/27 

12,335‌

12,342‌

Exeter

Automobile

Receivables

Trust

Series

2023-4A,

Class

B

6.31%,

10/15/27 

3,315‌

3,324‌

Exeter

Automobile

Receivables

Trust

Series

2024-2A,

Class

B

5.61%,

4/17/28 

11,200‌

11,182‌

Ford

Credit

Auto

Lease

Trust

Series

2023-A,

Class

B

5.29%,

6/15/26 

4,690‌

4,669‌

Ford

Credit

Auto

Lease

Trust

Series

2023-B,

Class

B

6.20%,

2/15/27 

3,685‌

3,717‌

Ford

Credit

Auto

Owner

Trust

Series

2020-1,

Class

B

2.29%,

8/15/31 (1)

5,075‌

4,952‌

Ford

Credit

Floorplan

Master

Owner

Trust

Series

2023-1,

Class

B

5.31%,

5/15/28 (1)

4,495‌

4,449‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

11

Par/Shares

$

Value

(Amounts

in

000s)

Ford

Credit

Floorplan

Master

Owner

Trust

Series

2023-1,

Class

D

6.62%,

5/15/28 (1)

805‌

808‌

Ford

Credit

Floorplan

Master

Owner

Trust

Series

2024-1,

Class

B

5.48%,

4/15/29 (1)

3,225‌

3,222‌

GM

Financial

Automobile

Leasing

Trust

Series

2022-2,

Class

B

4.02%,

5/20/26 

6,700‌

6,648‌

GM

Financial

Automobile

Leasing

Trust

Series

2023-2,

Class

B

5.54%,

5/20/27 

3,920‌

3,913‌

Hyundai

Auto

Lease

Securitization

Trust

Series

2024-A,

Class

A3

5.02%,

3/15/27 (1)

5,240‌

5,208‌

Hyundai

Auto

Lease

Securitization

Trust

Series

2024-A,

Class

B

5.35%,

5/15/28 (1)

3,335‌

3,317‌

JPMorgan

Chase

Bank

Series

2021-1,

Class

B

0.875%,

9/25/28 (1)

77‌

77‌

JPMorgan

Chase

Bank

Series

2021-2,

Class

B

0.889%,

12/26/28 (1)

1,793‌

1,769‌

JPMorgan

Chase

Bank

Series

2021-3,

Class

B

0.76%,

2/26/29 (1)

2,655‌

2,586‌

Navistar

Financial

Dealer

Note

Master

Owner

Trust

Series

2024-1,

Class

A

5.59%,

4/25/29 (1)

4,300‌

4,299‌

Navistar

Financial

Dealer

Note

Master

Owner

Trust

II

Series

2023-1,

Class

A

6.18%,

8/25/28 (1)

5,575‌

5,607‌

Octane

Receivables

Trust

Series

2023-1A,

Class

A

5.87%,

5/21/29 (1)

1,812‌

1,812‌

Octane

Receivables

Trust

Series

2023-1A,

Class

B

5.96%,

7/20/29 (1)

3,904‌

3,896‌

Octane

Receivables

Trust

Series

2023-3A,

Class

A2

6.44%,

3/20/29 (1)

16,858‌

16,945‌

Octane

Receivables

Trust

Series

2023-3A,

Class

B

6.48%,

7/20/29 (1)

5,610‌

5,653‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

12

Par/Shares

$

Value

(Amounts

in

000s)

Santander

Bank

Auto

Credit-Linked

Notes

Series

2022-B,

Class

B

5.721%,

8/16/32 (1)

963‌

962‌

Santander

Bank

Auto

Credit-Linked

Notes

Series

2023-B,

Class

B

5.64%,

12/15/33 (1)

730‌

727‌

Santander

Drive

Auto

Receivables

Trust

Series

2020-4,

Class

E

2.85%,

4/17/28 (1)

7,000‌

6,791‌

Santander

Drive

Auto

Receivables

Trust

Series

2022-6,

Class

B

4.72%,

6/15/27 

10,350‌

10,271‌

Santander

Drive

Auto

Receivables

Trust

Series

2023-1,

Class

B

4.98%,

2/15/28 

3,385‌

3,362‌

Santander

Drive

Auto

Receivables

Trust

Series

2023-3,

Class

A3

5.61%,

10/15/27 

3,115‌

3,112‌

Santander

Drive

Auto

Receivables

Trust

Series

2023-4,

Class

A2

6.18%,

2/16/27 

4,691‌

4,699‌

Santander

Drive

Auto

Receivables

Trust

Series

2024-1,

Class

B

5.23%,

12/15/28 

14,965‌

14,899‌

SBNA

Auto

Lease

Trust

Series

2024-A,

Class

A4

5.24%,

1/22/29 (1)

3,105‌

3,093‌

SBNA

Auto

Lease

Trust

Series

2024-B,

Class

A3

5.56%,

11/22/27 (1)

3,210‌

3,210‌

SBNA

Auto

Lease

Trust

Series

2024-B,

Class

A4

5.55%,

12/20/28 (1)

3,155‌

3,161‌

SBNA

Auto

Receivables

Trust

Series

2024-A,

Class

A3

5.32%,

12/15/28 (1)

4,470‌

4,453‌

SFS

Auto

Receivables

Securitization

Trust

Series

2023-1A,

Class

A2B,

FRN

SOFR30A

+

0.80%,

6.123%,

3/22/27 (1)

1,896‌

1,900‌

U.S.

Bank

Series

2023-1,

Class

B

6.789%,

8/25/32 (1)

4,001‌

4,014‌

269,218‌

Collateralized

Debt

Obligation

 7.4%

AllegroX

Series

2018-3A,

Class

A1R,

CLO,

FRN

3M

TSFR

+

1.23%,

6.557%,

10/16/31 (1)

11,250‌

11,258‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

13

Par/Shares

$

Value

(Amounts

in

000s)

Apidos

XVIII

Series

2018-18A,

Class

AR,

CLO,

FRN

3M

TSFR

+

1.15%,

6.475%,

10/22/30 (1)

8,671‌

8,675‌

Apidos

Xxv

Series

2016-25A,

Class

A1R2,

CLO,

FRN

3M

TSFR

+

1.15%,

6.475%,

10/20/31 (1)

10,682‌

10,694‌

Atrium

XIII

Series

13A,

Class

AR,

CLO,

FRN

3M

TSFR

+

1.15%,

6.476%,

11/21/30 (1)

10,535‌

10,539‌

BlueMountain

Series

2016-3A,

Class

A1R2,

CLO,

FRN

3M

TSFR

+

1.20%,

6.522%,

11/15/30 (1)

10,560‌

10,575‌

Crown

Point

Series

2018-7A,

Class

AR,

CLO,

FRN

3M

TSFR

+

1.23%,

6.556%,

10/20/31 (1)

11,200‌

11,186‌

Marathon

Static

Series

2022-18A,

Class

A1R2,

CLO,

FRN

3M

TSFR

+

1.15%,

6.475%,

7/20/30 (1)

7,954‌

7,934‌

Marble

Point

XII

Series

2018-1A,

Class

A,

CLO,

FRN

3M

TSFR

+

1.272%,

6.599%,

7/16/31 (1)

3,574‌

3,576‌

Marble

Point

XIV

Series

2018-2A,

Class

A12R,

CLO,

FRN

3M

TSFR

+

1.20%,

6.525%,

1/20/32 (1)

13,488‌

13,514‌

Northwoods

Capital

XIV-B

Series

2018-14BA,

Class

AR,

CLO,

FRN

3M

TSFR

+

1.25%,

6.574%,

11/13/31 (1)

5,150‌

5,165‌

Octagon

Investment

Partners

39

Series

2018-3A,

Class

AR,

CLO,

FRN

3M

TSFR

+

1.15%,

6.475%,

10/20/30 (1)

10,434‌

10,451‌

OZLM

Funding

II

Series

2012-2A,

Class

A1A2,

CLO,

FRN

3M

TSFR

+

1.20%,

6.53%,

7/30/31 (1)

3,741‌

3,747‌

OZLM

XXI

Series

2017-21A,

Class

A1R,

CLO,

FRN

3M

TSFR

+

1.15%,

6.475%,

1/20/31 (1)

4,951‌

4,963‌

Romark

Series

2018-2A,

Class

A1R,

CLO,

FRN

3M

TSFR

+

1.14%,

7/25/31 (1)

11,200‌

11,200‌

Symphony

Static

I

Series

2021-1A,

Class

A,

CLO,

FRN

3M

TSFR

+

1.092%,

6.415%,

10/25/29 (1)

9,313‌

9,312‌

Symphony

XVI

Series

2015-16A,

Class

ARR,

CLO,

FRN

3M

TSFR

+

1.20%,

6.523%,

10/15/31 (1)

10,435‌

10,422‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

14

Par/Shares

$

Value

(Amounts

in

000s)

THL

Credit

Wind

River

Series

2015-1A,

Class

A1R3,

CLO,

FRN

3M

TSFR

+

1.20%,

6.525%,

10/20/30 (1)

9,107‌

9,135‌

TIAA

Series

2016-1A,

Class

ARR,

CLO,

FRN

3M

TSFR

+

1.25%,

6.575%,

7/20/31 (1)

11,045‌

11,073‌

Voya

Series

2018-3A,

Class

A1R2,

CLO,

FRN

3M

TSFR

+

1.20%,

6.529%,

10/15/31 (1)

4,040‌

4,044‌

167,463‌

Equip

Lease

Heavy

Duty

 1.2%

Amur

Equipment

Finance

Receivables

XIII

Series

2024-1A,

Class

A2

5.38%,

1/21/31 (1)

4,875‌

4,856‌

Auxilior

Term

Funding

Series

2023-1A,

Class

A2

6.18%,

12/15/28 (1)

4,295‌

4,308‌

Dell

Equipment

Finance

Trust

Series

2024-1,

Class

A3

5.39%,

3/22/30 (1)

2,195‌

2,196‌

DLLAD

Series

2024-1A,

Class

A2

5.50%,

8/20/27 (1)

3,280‌

3,279‌

MMAF

Equipment

Finance

Series

2020-BA,

Class

A5

0.85%,

4/14/42 (1)

2,400‌

2,292‌

MMAF

Equipment

Finance

Series

2023-A,

Class

A2

5.79%,

11/13/26 (1)

6,086‌

6,087‌

Octane

Receivables

Trust

Series

2024-1A,

Class

A2

5.68%,

5/20/30 (1)

2,705‌

2,703‌

Post

Road

Equipment

Finance

Series

2024-1A,

Class

A2

5.59%,

11/15/29 (1)

1,065‌

1,064‌

Verdant

Receivables

Series

2024-1A,

Class

A2

5.68%,

12/12/31 (1)

710‌

710‌

27,495‌

Home

Equity

Loans

Backed

 0.3%

Citigroup

Mortgage

Loan

Trust

Series

2020-EXP2,

Class

A3,

CMO,

ARM

2.50%,

8/25/50 (1)

5,622‌

4,656‌

Citigroup

Mortgage

Loan

Trust

Series

2020-EXP2,

Class

A4,

CMO,

ARM

2.50%,

8/25/50 (1)

1,359‌

1,121‌

5,777‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

15

Par/Shares

$

Value

(Amounts

in

000s)

Other

Asset-Backed

Securities

 4.2%

Dell

Equipment

Finance

Trust

Series

2023-2,

Class

A3

5.65%,

1/22/29 (1)

8,985‌

8,984‌

DLLAD

Series

2023-1A,

Class

A2

5.19%,

4/20/26 (1)

2,518‌

2,512‌

Hilton

Grand

Vacations

Trust

Series

2018-AA,

Class

A

3.54%,

2/25/32 (1)

334‌

328‌

Hilton

Grand

Vacations

Trust

Series

2019-AA,

Class

A

2.34%,

7/25/33 (1)

373‌

357‌

HPEFS

Equipment

Trust

Series

2021-2A,

Class

D

1.29%,

3/20/29 (1)

5,700‌

5,633‌

HPEFS

Equipment

Trust

Series

2022-1A,

Class

B

1.79%,

5/21/29 (1)

6,000‌

5,958‌

HPEFS

Equipment

Trust

Series

2022-1A,

Class

D

2.40%,

11/20/29 (1)

3,200‌

3,097‌

HPEFS

Equipment

Trust

Series

2022-2A,

Class

C

4.43%,

9/20/29 (1)

5,354‌

5,288‌

HPEFS

Equipment

Trust

Series

2023-2A,

Class

B

6.25%,

1/21/31 (1)

2,415‌

2,432‌

Kubota

Credit

Owner

Trust

Series

2023-2A,

Class

A3

5.28%,

1/18/28 (1)

2,555‌

2,550‌

M&T

Equipment

Notes

Series

2023-1A,

Class

A2

6.09%,

7/15/30 (1)

2,453‌

2,453‌

M&T

Equipment

Notes

Series

2023-1A,

Class

A3

5.74%,

7/15/30 (1)

4,135‌

4,131‌

MVW

Series

2020-1A,

Class

A

1.74%,

10/20/37 (1)

38‌

36‌

MVW

Series

2021-1WA,

Class

A

1.14%,

1/22/41 (1)

2,056‌

1,914‌

Navient

Private

Education

Refi

Loan

Trust

Series

2021-CA,

Class

A

1.06%,

10/15/69 (1)

9,972‌

8,738‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

16

Par/Shares

$

Value

(Amounts

in

000s)

Nelnet

Student

Loan

Trust

Series

2021-DA,

Class

AFL,

FRN

1M

TSFR

+

0.804%,

6.125%,

4/20/62 (1)

3,382‌

3,346‌

Octane

Receivables

Trust

Series

2021-2A,

Class

A

1.21%,

9/20/28 (1)

2,264‌

2,221‌

Octane

Receivables

Trust

Series

2022-1A,

Class

A2

4.18%,

3/20/28 (1)

1,706‌

1,692‌

Octane

Receivables

Trust

Series

2023-2A,

Class

A2

5.88%,

6/20/31 (1)

5,780‌

5,783‌

Santander

Bank

Series

2021-1A,

Class

B

1.833%,

12/15/31 (1)

607‌

601‌

Santander

Bank

Auto

Credit-Linked

Notes

Series

2022-A,

Class

B

5.281%,

5/15/32 (1)

3,353‌

3,343‌

Santander

Bank

Auto

Credit-Linked

Notes

Series

2023-A,

Class

B

6.493%,

6/15/33 (1)

1,945‌

1,949‌

Santander

Retail

Auto

Lease

Trust

Series

2022-A,

Class

B

1.61%,

1/20/26 (1)

7,555‌

7,440‌

SFS

Auto

Receivables

Securitization

Trust

Series

2024-1A,

Class

A3

4.95%,

5/21/29 (1)

4,810‌

4,765‌

Sierra

Timeshare

Receivables

Funding

Series

2019-3A,

Class

A

2.34%,

8/20/36 (1)

1,589‌

1,571‌

Sierra

Timeshare

Receivables

Funding

Series

2020-2A,

Class

A

1.33%,

7/20/37 (1)

98‌

94‌

Verdant

Receivables

Series

2023-1A,

Class

A2

6.24%,

1/13/31 (1)

4,933‌

4,934‌

Verizon

Master

Trust

Series

2024-1,

Class

A1A

5.00%,

12/20/28 

2,005‌

1,994‌

94,144‌

Student

Loans

 0.7%

Navient

Private

Education

Loan

Trust

Series

2016-AA,

Class

A2A

3.91%,

12/15/45 (1)

4,497‌

4,418‌

Navient

Private

Education

Refi

Loan

Trust

Series

2020-DA,

Class

A

1.69%,

5/15/69 (1)

456‌

417‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

17

Par/Shares

$

Value

(Amounts

in

000s)

Navient

Private

Education

Refi

Loan

Trust

Series

2020-FA,

Class

A

1.22%,

7/15/69 (1)

1,879‌

1,696‌

Navient

Private

Education

Refi

Loan

Trust

Series

2021-GA,

Class

A

1.58%,

4/15/70 (1)

9,546‌

8,288‌

SMB

Private

Education

Loan

Trust

Series

2019-A,

Class

A2A

3.44%,

7/15/36 (1)

1,232‌

1,186‌

16,005‌

Total

Asset-Backed

Securities

(Cost

$584,500)

580,102‌

CERTIFICATES

OF

DEPOSITS

 0.3%

Banking

 0.3%

Intesa

Sanpaolo,

6.10% 

7,675‌

7,677‌

7,677‌

Total

Certificates

of

Deposits

(Cost

$7,675)

7,677‌

CONVERTIBLE

BONDS

 0.2%

MISCELLANEOUS

 0.2%

Miscellaneous

 0.2%

Meituan,

Zero

Coupon,

4/27/27 

4,700‌

4,429‌

Total

Miscellaneous

4,429‌

Total

Convertible

Bonds

(Cost

$4,408)

4,429‌

CORPORATE

BONDS

 51.9%

Advertising

 0.9%

WPP

Finance

2010,

3.75%,

9/19/24 

19,500‌

19,341‌

19,341‌

Aerospace

&

Defense

 0.4%

Boeing,

4.875%,

5/1/25 

4,650‌

4,597‌

Boeing,

6.259%,

5/1/27 (1)

3,865‌

3,888‌

8,485‌

Automotive

 3.6%

Daimler

Truck

Finance

North

America,

FRN,

SOFR

+

0.75%,

6.102%,

12/13/24 (1)

3,143‌

3,149‌

Ford

Motor

Credit,

3.664%,

9/8/24 

2,700‌

2,680‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

18

Par/Shares

$

Value

(Amounts

in

000s)

Ford

Motor

Credit,

4.134%,

8/4/25 

4,750‌

4,660‌

Ford

Motor

Credit,

4.389%,

1/8/26 

8,152‌

7,940‌

Ford

Motor

Credit,

4.687%,

6/9/25 

2,000‌

1,975‌

Ford

Motor

Credit,

5.125%,

6/16/25 

2,000‌

1,985‌

Hyundai

Capital

America,

1.65%,

9/17/26 (1)

6,120‌

5,600‌

Hyundai

Capital

America,

1.80%,

10/15/25 (1)

7,540‌

7,149‌

Hyundai

Capital

America,

5.25%,

1/8/27 (1)

2,220‌

2,207‌

Hyundai

Capital

America,

5.50%,

3/30/26 (1)

1,610‌

1,607‌

Kia,

2.375%,

2/14/25 

1,900‌

1,856‌

LeasePlan,

2.875%,

10/24/24 (1)

11,800‌

11,670‌

Nissan

Motor,

3.522%,

9/17/25 (1)

5,955‌

5,769‌

Nissan

Motor

Acceptance,

1.125%,

9/16/24 (1)

1,109‌

1,093‌

Volkswagen

Group

of

America

Finance,

4.625%,

11/13/25 (1)

4,520‌

4,458‌

Volkswagen

Group

of

America

Finance,

5.80%,

9/12/25 (1)

5,700‌

5,708‌

Volkswagen

Group

of

America

Finance,

6.00%,

11/16/26 (1)

11,380‌

11,508‌

81,014‌

Banking

 17.2%

ABN

AMRO

Bank,

VR,

6.339%,

9/18/27 (1)(2)

4,000‌

4,048‌

Australia

&

New

Zealand

Banking

Group,

4.40%,

5/19/26 (1)

8,355‌

8,159‌

Banco

Bilbao

Vizcaya

Argentaria,

VR,

5.862%,

9/14/26 (2)

11,200‌

11,203‌

Banco

Santander,

VR,

5.552%,

3/14/28 (2)

3,800‌

3,765‌

Bank

of

Montreal,

FRN,

SOFRINDX

+

0.32%,

5.675%,

7/9/24 

10,000‌

9,976‌

Barclays,

4.375%,

1/12/26 (3)

800‌

784‌

Barclays,

5.20%,

5/12/26 

7,805‌

7,699‌

Barclays,

VR,

5.304%,

8/9/26 (2)

8,300‌

8,251‌

Barclays,

VR,

5.674%,

3/12/28 (2)

2,035‌

2,032‌

BPCE,

4.50%,

3/15/25 (1)

11,881‌

11,727‌

BPCE,

VR,

1.652%,

10/6/26 (1)(2)

1,229‌

1,159‌

CaixaBank,

VR,

6.684%,

9/13/27 (1)(2)

11,450‌

11,642‌

Capital

One

Financial,

3.75%,

7/28/26 

1,950‌

1,880‌

Capital

One

Financial,

VR,

2.636%,

3/3/26 (2)

7,060‌

6,880‌

Citigroup,

4.40%,

6/10/25 

17,400‌

17,183‌

Cooperatieve

Rabobank,

3.75%,

7/21/26 

1,920‌

1,846‌

Cooperatieve

Rabobank,

4.375%,

8/4/25 

4,965‌

4,875‌

Danske

Bank,

VR,

5.427%,

3/1/28 (1)(2)

4,425‌

4,417‌

Danske

Bank,

VR,

6.466%,

1/9/26 (1)(2)

12,695‌

12,696‌

Deutsche

Bank,

4.50%,

4/1/25 

15,940‌

15,701‌

Discover

Bank,

2.45%,

9/12/24 

13,392‌

13,265‌

Emirates

NBD

Bank,

2.625%,

2/18/25 

6,400‌

6,252‌

Fifth

Third

Bank,

3.85%,

3/15/26 

15,655‌

15,126‌

Fifth

Third

Bank,

VR,

5.852%,

10/27/25 (2)

2,950‌

2,941‌

Goldman

Sachs

Group,

FRN,

SOFR

+

0.50%,

5.851%,

9/10/24 

10,000‌

9,999‌

HDFC

Bank,

5.686%,

3/2/26 

8,500‌

8,511‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

19

Par/Shares

$

Value

(Amounts

in

000s)

HSBC

Holdings,

4.375%,

11/23/26 

7,600‌

7,381‌

HSBC

Holdings,

VR,

5.597%,

5/17/28 (2)

5,600‌

5,619‌

Huntington

Bancshares,

2.625%,

8/6/24 

3,775‌

3,750‌

Huntington

National

Bank,

VR,

5.699%,

11/18/25 (2)

7,745‌

7,717‌

ING

Groep,

VR,

6.083%,

9/11/27 (2)

3,845‌

3,888‌

Intesa

Sanpaolo,

7.00%,

11/21/25 (1)

2,491‌

2,516‌

Lloyds

Banking

Group,

4.45%,

5/8/25 

4,771‌

4,724‌

Lloyds

Banking

Group,

4.50%,

11/4/24 

2,050‌

2,035‌

Lloyds

Banking

Group,

VR,

2.438%,

2/5/26 (2)

12,665‌

12,383‌

Mitsubishi

UFJ

Financial

Group,

VR,

5.063%,

9/12/25 (2)

11,165‌

11,138‌

Mitsubishi

UFJ

Financial

Group,

VR,

5.719%,

2/20/26 (2)

4,310‌

4,297‌

NatWest

Group,

4.80%,

4/5/26 

4,577‌

4,517‌

NatWest

Markets,

FRN,

SOFR

+

0.53%,

5.891%,

8/12/24 (1)

6,315‌

6,315‌

NatWest

Markets,

FRN,

SOFR

+

1.45%,

6.805%,

3/22/25 (1)

2,483‌

2,501‌

PNC

Bank,

4.20%,

11/1/25 

5,948‌

5,819‌

PNC

Financial

Services

Group,

VR,

5.30%,

1/21/28 (2)

1,745‌

1,734‌

PNC

Financial

Services

Group,

VR,

5.812%,

6/12/26 (2)

4,980‌

4,988‌

PNC

Financial

Services

Group,

VR,

6.615%,

10/20/27 (2)

5,000‌

5,115‌

Santander

Holdings

USA,

3.244%,

10/5/26 

5,750‌

5,414‌

Societe

Generale,

4.25%,

4/14/25 (1)

500‌

491‌

Societe

Generale,

4.25%,

8/19/26 (1)

2,440‌

2,346‌

Societe

Generale,

FRN,

SOFR

+

1.05%,

6.407%,

1/21/26 (1)

10,000‌

10,011‌

Societe

Generale,

VR,

5.519%,

1/19/28 (1)(2)

4,375‌

4,318‌

Standard

Chartered,

4.30%,

2/19/27 (1)

3,464‌

3,343‌

Standard

Chartered,

FRN,

SOFR

+

0.93%,

6.294%,

11/23/25 (1)

(3)

5,000‌

5,005‌

Standard

Chartered,

VR,

3.971%,

3/30/26 (1)(2)

800‌

786‌

Standard

Chartered,

VR,

5.688%,

5/14/28 (1)(2)

1,205‌

1,201‌

Standard

Chartered,

VR,

6.187%,

7/6/27 (1)(2)

5,800‌

5,846‌

Toronto-Dominion

Bank,

FRN,

SOFR

+

0.35%,

5.701%,

9/10/24 

10,000‌

9,969‌

Truist

Financial,

FRN,

SOFR

+

0.40%,

5.751%,

6/9/25 

10,445‌

10,445‌

U.S.

Bancorp,

VR,

5.727%,

10/21/26 (2)

6,535‌

6,547‌

UBS,

5.00%,

7/9/27 

3,450‌

3,394‌

UBS

Group,

VR,

2.593%,

9/11/25 (1)(2)

7,750‌

7,683‌

UBS

Group,

VR,

6.327%,

12/22/27 (1)(2)

5,700‌

5,795‌

Wells

Fargo,

VR,

5.707%,

4/22/28 (2)

6,480‌

6,524‌

387,572‌

Building

Products

 0.1%

Owens

Corning,

5.50%,

6/15/27 

2,360‌

2,367‌

2,367‌

Cable

Operators

 0.7%

Charter

Communications

Operating,

4.908%,

7/23/25 

1,314‌

1,300‌

Charter

Communications

Operating,

6.15%,

11/10/26 

5,650‌

5,687‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

20

Par/Shares

$

Value

(Amounts

in

000s)

Cox

Communications,

3.15%,

8/15/24 (1)

7,900‌

7,854‌

14,841‌

Chemicals

 1.0%

Celanese

U.S.

Holdings,

1.40%,

8/5/26 

4,298‌

3,920‌

International

Flavors

&

Fragrances,

1.23%,

10/1/25 (1)

3,107‌

2,926‌

LG

Chem,

4.375%,

7/14/25 

7,610‌

7,499‌

MEGlobal

Canada,

5.00%,

5/18/25 

8,850‌

8,753‌

23,098‌

Consumer

Products

 0.5%

LG

Electronics,

5.625%,

4/24/27 (1)

6,740‌

6,772‌

Mattel,

3.375%,

4/1/26 (1)

5,675‌

5,413‌

12,185‌

Drugs

 0.8%

BNP

Paribas,

4.375%,

9/28/25 (1)

11,650‌

11,421‌

BNP

Paribas,

VR,

2.219%,

6/9/26 (1)(2)

1,685‌

1,625‌

Perrigo

Finance

Unlimited,

3.90%,

12/15/24 

679‌

670‌

Viatris,

1.65%,

6/22/25 

5,207‌

4,983‌

18,699‌

Electric

Utilities

 0.4%

GS

Caltex,

1.625%,

7/27/25 

9,450‌

9,032‌

9,032‌

Energy

 2.9%

Abu

Dhabi

National

Energy,

4.375%,

6/22/26 

8,900‌

8,749‌

APA

Infrastructure,

4.20%,

3/23/25 (1)

5,000‌

4,940‌

DCP

Midstream

Operating,

5.375%,

7/15/25 

10,562‌

10,522‌

Energy

Transfer,

5.75%,

4/1/25 

10,300‌

10,287‌

EQT,

3.125%,

5/15/26 (1)

2,000‌

1,899‌

Occidental

Petroleum,

5.50%,

12/1/25 

2,145‌

2,134‌

Occidental

Petroleum,

5.875%,

9/1/25 

4,778‌

4,778‌

Occidental

Petroleum,

8.50%,

7/15/27 

2,100‌

2,250‌

SA

Global

Sukuk,

1.602%,

6/17/26 

9,450‌

8,790‌

Sabine

Pass

Liquefaction,

5.875%,

6/30/26 

931‌

934‌

TER

Finance

Jersey,

Series

21,

Zero

Coupon,

1/2/25 (1)(4)

3,000‌

2,887‌

Western

Midstream

Operating,

3.10%,

2/1/25 

6,623‌

6,491‌

64,661‌

Financial

 3.5%

AerCap

Ireland

Capital,

1.65%,

10/29/24 

7,230‌

7,113‌

Aldar

Sukuk,

4.75%,

9/29/25 

8,830‌

8,723‌

Ally

Financial,

5.125%,

9/30/24 

6,400‌

6,377‌

Bank

Mandiri

Persero,

5.50%,

4/4/26 

9,000‌

8,990‌

CNO

Financial

Group,

5.25%,

5/30/25 

8,012‌

7,962‌

General

Motors

Financial,

5.40%,

5/8/27 

2,325‌

2,317‌

General

Motors

Financial,

FRN,

SOFR

+

0.62%,

5.976%,

10/15/24 

15,000‌

14,998‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

21

Par/Shares

$

Value

(Amounts

in

000s)

LPL

Holdings,

5.70%,

5/20/27 

4,380‌

4,393‌

QNB

Finance,

1.375%,

1/26/26 

9,555‌

8,919‌

Synchrony

Financial,

4.25%,

8/15/24 

3,810‌

3,791‌

Western

Union,

1.35%,

3/15/26 

5,865‌

5,435‌

79,018‌

Food

Processing

 0.5%

Campbell

Soup,

5.30%,

3/20/26 

10,865‌

10,841‌

10,841‌

Food/Tobacco

 0.8%

Imperial

Brands

Finance,

3.125%,

7/26/24 (1)

4,200‌

4,179‌

Imperial

Brands

Finance,

4.25%,

7/21/25 (1)

14,560‌

14,294‌

18,473‌

Foreign

Govt

&

Muni

(Excl

Canadian)

 0.3%

Pelabuhan

Indonesia

Persero,

4.875%,

10/1/24 

5,800‌

5,785‌

5,785‌

Forest

Products

 0.4%

Celulosa

Arauco

y

Constitucion,

4.50%,

8/1/24 

10,000‌

9,995‌

9,995‌

Health

Care

 1.9%

HCA,

5.25%,

6/15/26 

10,880‌

10,812‌

HCA,

5.375%,

2/1/25 

5,450‌

5,423‌

Highmark,

1.45%,

5/10/26 (1)

12,754‌

11,708‌

Icon

Investments

Six,

5.809%,

5/8/27 

9,574‌

9,647‌

Solventum,

5.45%,

2/25/27 (1)

6,005‌

5,990‌

43,580‌

Insurance

 3.6%

Athene

Global

Funding,

5.684%,

2/23/26 (1)

4,995‌

4,981‌

Athene

Global

Funding,

FRN,

SOFRINDX

+

0.715%,

6.07%,

1/7/25 (1)

9,850‌

9,865‌

Brighthouse

Financial

Global

Funding,

1.75%,

1/13/25 (1)

5,000‌

4,871‌

CNO

Global

Funding,

1.65%,

1/6/25 (1)

2,966‌

2,888‌

CNO

Global

Funding,

1.75%,

10/7/26 (1)

4,895‌

4,462‌

Corebridge

Financial,

3.50%,

4/4/25 

10,330‌

10,136‌

Equitable

Financial

Life

Global

Funding,

1.40%,

7/7/25 (1)

5,684‌

5,427‌

Equitable

Financial

Life

Global

Funding,

5.50%,

12/2/25 (1)

11,911‌

11,878‌

First

American

Financial,

4.60%,

11/15/24 

9,173‌

9,110‌

Voya

Financial,

3.65%,

6/15/26 

17,754‌

17,098‌

80,716‌

Manufacturing

 1.6%

FMC,

3.20%,

10/1/26 

14,739‌

13,934‌

POSCO,

5.625%,

1/17/26 

5,500‌

5,502‌

VF,

2.40%,

4/23/25 

17,729‌

17,142‌

36,578‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

22

Par/Shares

$

Value

(Amounts

in

000s)

Metals

&

Mining

 0.0%

Freeport-McMoRan,

5.00%,

9/1/27 

883‌

869‌

869‌

Other

Telecommunications

 0.4%

Axiata,

4.357%,

3/24/26 

8,820‌

8,661‌

8,661‌

Pharmaceuticals

 0.7%

Bayer

U.S.

Finance

II,

4.25%,

12/15/25 (1)

15,160‌

14,766‌

14,766‌

Real

Estate

Investment

Trust

Securities

 2.5%

Brixmor

Operating

Partnership,

3.65%,

6/15/24 

605‌

604‌

Brixmor

Operating

Partnership,

3.85%,

2/1/25 

16,000‌

15,796‌

Brixmor

Operating

Partnership,

4.125%,

6/15/26 

1,900‌

1,844‌

CubeSmart,

4.00%,

11/15/25 

3,075‌

2,995‌

Healthcare

Realty

Holdings,

3.50%,

8/1/26 

6,253‌

5,935‌

Kilroy

Realty,

3.45%,

12/15/24 

13,122‌

12,944‌

Kilroy

Realty,

4.375%,

10/1/25 

5,074‌

4,960‌

Scentre

Group

Trust

1,

3.50%,

2/12/25 (1)

10,550‌

10,382‌

55,460‌

Retail

 0.8%

Advance

Auto

Parts,

5.90%,

3/9/26 

3,070‌

3,074‌

Walgreens

Boots

Alliance,

3.80%,

11/18/24 

15,350‌

15,161‌

18,235‌

Services

 0.5%

CDW,

5.50%,

12/1/24 

11,075‌

11,033‌

Nature

Conservancy,

Series

A,

0.625%,

7/1/24 

650‌

648‌

11,681‌

Transportation

 0.5%

GATX,

5.40%,

3/15/27 

3,230‌

3,224‌

Penske

Truck

Leasing,

1.70%,

6/15/26 (1)

4,239‌

3,912‌

Penske

Truck

Leasing,

2.70%,

11/1/24 (1)

2,519‌

2,487‌

Penske

Truck

Leasing,

3.95%,

3/10/25 (1)

2,900‌

2,862‌

12,485‌

Transportation

Services

 0.3%

HPHT

Finance,

2.875%,

11/5/24 

7,278‌

7,191‌

7,191‌

Utilities

 2.8%

Ameren,

3.65%,

2/15/26 

2,185‌

2,115‌

Constellation

Energy

Generation,

3.25%,

6/1/25 

6,437‌

6,291‌

Edison

International,

3.55%,

11/15/24 

17,615‌

17,434‌

NRG

Energy,

3.75%,

6/15/24 (1)

670‌

669‌

Pacific

Gas

&

Electric,

4.95%,

6/8/25 

9,900‌

9,796‌

Southern,

STEP,

4.475%,

8/1/24 

8,315‌

8,298‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

23

Par/Shares

$

Value

(Amounts

in

000s)

Southwestern

Electric

Power,

Series

K,

2.75%,

10/1/26 

3,700‌

3,471‌

Vistra

Operations,

3.55%,

7/15/24 (1)

14,655‌

14,618‌

62,692‌

Wireless

Communications

 2.3%

American

Tower,

1.60%,

4/15/26 

12,295‌

11,450‌

Crown

Castle,

1.05%,

7/15/26 

4,605‌

4,213‌

Crown

Castle,

1.35%,

7/15/25 

4,850‌

4,624‌

Crown

Castle,

4.45%,

2/15/26 

9,500‌

9,327‌

Crown

Castle

Towers,

3.663%,

5/15/25 (1)

1,500‌

1,467‌

PT

Tower

Bersama

Infrastructure,

4.25%,

1/21/25 

5,550‌

5,476‌

Rogers

Communications,

3.625%,

12/15/25 

5,000‌

4,841‌

Sprint,

7.625%,

3/1/26 

11,141‌

11,419‌

52,817‌

Total

Corporate

Bonds

(Cost

$1,170,659)

1,171,138‌

FOREIGN

GOVERNMENT

OBLIGATIONS

&

MUNICIPALITIES

 0.5%

Foreign

Govt

&

Muni

(Excl

Canadian)

 0.5%

Japan

Treasury

Discount

Bill,

0.04%,

8/5/24

(JPY) 

1,746,600‌

11,105‌

11,105‌

Total

Foreign

Government

Obligations

&

Municipalities

(Cost

$11,204)

11,105‌

MUNICIPAL

SECURITIES

 0.0%

Illinois

 0.0%

Chicago

Transit

Auth.

Capital

Grant

Receipts

Revenue,

5.00%,

6/1/25 

100‌

101‌

Total

Municipal

Securities

(Cost

$102)

101‌

NON-U.S.

GOVERNMENT

MORTGAGE-BACKED

SECURITIES

 10.2%

Commercial

Mortgage

Backed

Securities

 1.2%

CAMB

Commercial

Mortgage

Trust

Series

2019-LIFE,

Class

B,

ARM

1M

TSFR

+

1.547%,

6.864%,

12/15/37 (1)

9,750‌

9,741‌

CAMB

Commercial

Mortgage

Trust

Series

2019-LIFE,

Class

C,

ARM

1M

TSFR

+

1.747%,

7.064%,

12/15/37 (1)

1,727‌

1,725‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

24

Par/Shares

$

Value

(Amounts

in

000s)

Cold

Storage

Trust

Series

2020-ICE5,

Class

A,

ARM

1M

TSFR

+

1.014%,

6.334%,

11/15/37 (1)

6,793‌

6,782‌

MARQ

Trust

Series

2024-HOU,

Class

A,

ARM

1M

TSFR

+

1.591%,

6.91%,

6/15/29 (1)

2,140‌

2,135‌

SDR

Commercial

Mortgage

Trust

Series

2024-DSNY,

Class

A,

ARM

1M

TSFR

+

1.392%,

6.692%,

5/15/39 (1)

6,665‌

6,671‌

27,054‌

Commercial

Mortgage-Backed

Securities

 2.2%

Austin

Fairmont

Hotel

Trust

Series

2019-FAIR,

Class

A,

ARM

1M

TSFR

+

1.097%,

6.414%,

9/15/32 (1)

9,525‌

9,517‌

BX

Commercial

Mortgage

Trust

Series

2020-VKNG,

Class

A,

ARM

1M

TSFR

+

1.044%,

6.361%,

10/15/37 (1)

3,800‌

3,791‌

BX

Trust

Series

2021-ARIA,

Class

A,

ARM

1M

TSFR

+

1.014%,

6.331%,

10/15/36 (1)

3,100‌

3,073‌

Commercial

Mortgage

Trust

Series

2014-CR21,

Class

A3

3.528%,

12/10/47 

482‌

473‌

Commercial

Mortgage

Trust

Series

2014-UBS6,

Class

A5

3.644%,

12/10/47 

5,200‌

5,130‌

Fontainebleau

Miami

Beach

Trust

Series

2019-FBLU,

Class

A

3.144%,

12/10/36 (1)

8,905‌

8,727‌

GS

Mortgage

Securities

Trust

Series

2021-ROSS,

Class

A,

ARM

1M

TSFR

+

1.264%,

6.581%,

5/15/26 (1)

3,314‌

3,079‌

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust

Series

2020-609M,

Class

A,

ARM

1M

TSFR

+

1.734%,

7.051%,

10/15/33 (1)

9,870‌

9,575‌

ONE

Mortgage

Trust

Series

2021-PARK,

Class

A,

ARM

1M

TSFR

+

0.814%,

6.131%,

3/15/36 (1)

7,110‌

6,923‌

50,288‌

Whole

Loans

Backed

 6.8%

Angel

Oak

Mortgage

Trust

Series

2019-5,

Class

A1,

CMO,

ARM

2.593%,

10/25/49 (1)

755‌

729‌

Angel

Oak

Mortgage

Trust

Series

2021-2,

Class

A1,

CMO,

ARM

0.985%,

4/25/66 (1)

4,460‌

3,684‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

25

Par/Shares

$

Value

(Amounts

in

000s)

BINOM

Securitization

Trust

Series

2021-INV1,

Class

A1,

CMO,

ARM

2.034%,

6/25/56 (1)

9,218‌

7,940‌

COLT

Mortgage

Loan

Trust

Series

2020-3,

Class

A1,

CMO,

ARM

1.506%,

4/27/65 (1)

833‌

789‌

Connecticut

Avenue

Securities

Series

2017-C05,

Class

1ED3,

CMO,

ARM

SOFR30A

+

1.314%,

6.638%,

1/25/30 

64‌

64‌

Connecticut

Avenue

Securities

Series

2018-C03,

Class

1EB2,

CMO,

ARM

SOFR30A

+

0.964%,

6.288%,

10/25/30 

705‌

707‌

Connecticut

Avenue

Securities

Series

2018-C03,

Class

1ED2,

CMO,

ARM

SOFR30A

+

0.964%,

6.288%,

10/25/30 

350‌

350‌

Connecticut

Avenue

Securities

Series

2024-R02,

Class

1M1,

CMO,

ARM

SOFR30A

+

1.10%,

6.424%,

2/25/44 (1)

3,515‌

3,521‌

Connecticut

Avenue

Securities

Trust

Series

2023-R05,

Class

1M1,

CMO,

ARM

SOFR30A

+

1.90%,

7.224%,

6/25/43 (1)

4,717‌

4,775‌

Deephaven

Residential

Mortgage

Trust

Series

2021-1,

Class

A1,

CMO,

ARM

0.715%,

5/25/65 (1)

4,117‌

3,809‌

Galton

Funding

Mortgage

Trust

Series

2019-2,

Class

A21,

CMO,

ARM

4.00%,

6/25/59 (1)

232‌

210‌

Galton

Funding

Mortgage

Trust

Series

2020-H1,

Class

A2,

CMO,

ARM

2.413%,

1/25/60 (1)

2,610‌

2,410‌

GS

Mortgage-Backed

Securities

Trust

Series

2020-NQM1,

Class

A1,

CMO,

ARM

1.382%,

9/27/60 (1)

787‌

723‌

Imperial

Fund

Mortgage

Trust

Series

2021-NQM2,

Class

A1,

CMO,

ARM

1.073%,

9/25/56 (1)

7,854‌

6,365‌

Morgan

Stanley

Residential

Mortgage

Loan

Trust

Series

2024-NQM2,

Class

A1,

CMO,

STEP

6.386%,

5/25/69 (1)

5,071‌

5,071‌

New

Residential

Mortgage

Loan

Trust

Series

2023-NQM1,

Class

A1A,

CMO,

STEP

6.864%,

10/25/63 (1)

5,134‌

5,180‌

NLT

Trust

Series

2021-INV2,

Class

A1,

CMO,

ARM

1.162%,

8/25/56 (1)

14,867‌

12,195‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

26

Par/Shares

$

Value

(Amounts

in

000s)

OBX

Trust

Series

2018-EXP1,

Class

2A1,

CMO,

ARM

1M

TSFR

+

0.964%,

6.289%,

4/25/48 (1)

27‌

27‌

OBX

Trust

Series

2019-EXP3,

Class

2A1,

CMO,

ARM

1M

TSFR

+

1.014%,

6.339%,

10/25/59 (1)

128‌

127‌

OBX

Trust

Series

2020-EXP1,

Class

1A8,

CMO,

ARM

3.50%,

2/25/60 (1)

648‌

564‌

OBX

Trust

Series

2020-EXP3,

Class

1A8,

CMO,

ARM

3.00%,

1/25/60 (1)

3,593‌

3,074‌

OBX

Trust

Series

2020-INV1,

Class

A11,

CMO,

ARM

1M

TSFR

+

1.014%,

6.00%,

12/25/49 (1)

470‌

442‌

OBX

Trust

Series

2023-NQM10,

Class

A1,

CMO,

STEP

6.465%,

10/25/63 (1)

8,714‌

8,735‌

OBX

Trust

Series

2024-NQM7,

Class

A1,

CMO,

STEP

6.243%,

3/25/64 (1)

3,240‌

3,247‌

Progress

Residential

Trust

Series

2020-SFR1,

Class

A

1.732%,

4/17/37 (1)

1,473‌

1,465‌

Progress

Residential

Trust

Series

2020-SFR2,

Class

A

2.078%,

6/17/37 (1)

4,673‌

4,502‌

Sequoia

Mortgage

Trust

Series

2018-CH1,

Class

A1,

CMO,

ARM

4.00%,

3/25/48 (1)

165‌

150‌

SG

Residential

Mortgage

Trust

Series

2019-3,

Class

A1,

CMO,

ARM

2.703%,

9/25/59 (1)

25‌

25‌

Starwood

Mortgage

Residential

Trust

Series

2020-INV1,

Class

A1,

CMO,

ARM

1.027%,

11/25/55 (1)

2,429‌

2,242‌

Starwood

Mortgage

Residential

Trust

Series

2021-2,

Class

A1,

CMO,

ARM

0.943%,

5/25/65 (1)

1,927‌

1,743‌

Structured

Agency

Credit

Risk

Debt

Notes

Series

2021-DNA3,

Class

M1,

CMO,

ARM

SOFR30A

+

0.75%,

6.074%,

10/25/33 (1)

888‌

887‌

Structured

Agency

Credit

Risk

Debt

Notes

Series

2022-DNA2,

Class

M1A,

CMO,

ARM

SOFR30A

+

1.30%,

6.624%,

2/25/42 (1)

2,684‌

2,690‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

27

Par/Shares

$

Value

(Amounts

in

000s)

Structured

Agency

Credit

Risk

Debt

Notes

Series

2022-DNA5,

Class

M1A,

CMO,

ARM

SOFR30A

+

2.95%,

8.28%,

6/25/42 (1)

5,475‌

5,643‌

Structured

Agency

Credit

Risk

Debt

Notes

Series

2023-HQA3,

Class

A1,

CMO,

ARM

SOFR30A

+

1.85%,

7.174%,

11/25/43 (1)

2,292‌

2,321‌

Structured

Agency

Credit

Risk

Debt

Notes

Series

2024-DNA2,

Class

A1,

CMO,

ARM

SOFR30A

+

1.25%,

6.574%,

5/25/44 (1)

4,125‌

4,130‌

Structured

Agency

Credit

Risk

Debt

Notes

Series

2024-HQA1,

Class

A1,

CMO,

ARM

SOFR30A

+

1.25%,

6.574%,

3/25/44 (1)

7,614‌

7,616‌

Towd

Point

Mortgage

Trust

Series

2017-3,

Class

A1,

CMO,

ARM

2.75%,

7/25/57 (1)

25‌

25‌

Towd

Point

Mortgage

Trust

Series

2017-4,

Class

A1,

CMO,

ARM

2.75%,

6/25/57 (1)

114‌

109‌

Towd

Point

Mortgage

Trust

Series

2017-5,

Class

A1,

CMO,

ARM

1M

TSFR

+

0.714%,

6.039%,

2/25/57 (1)

61‌

62‌

Verus

Securitization

Trust

Series

2019-4,

Class

A1,

CMO,

STEP

3.642%,

11/25/59 (1)

818‌

793‌

Verus

Securitization

Trust

Series

2019-INV2,

Class

A1,

CMO,

ARM

3.913%,

7/25/59 (1)

226‌

222‌

Verus

Securitization

Trust

Series

2019-INV3,

Class

A1,

CMO,

ARM

3.692%,

11/25/59 (1)

627‌

608‌

Verus

Securitization

Trust

Series

2020-2,

Class

A1,

CMO,

ARM

3.226%,

5/25/60 (1)

187‌

185‌

Verus

Securitization

Trust

Series

2020-4,

Class

A1,

CMO,

STEP

1.502%,

5/25/65 (1)

721‌

684‌

Verus

Securitization

Trust

Series

2020-INV1,

Class

A1,

CMO,

ARM

2.977%,

3/25/60 (1)

6‌

6‌

Verus

Securitization

Trust

Series

2021-1,

Class

A1,

CMO,

ARM

0.815%,

1/25/66 (1)

4,612‌

4,037‌

Verus

Securitization

Trust

Series

2021-2,

Class

A1,

CMO,

ARM

1.031%,

2/25/66 (1)

3,881‌

3,370‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

28

Par/Shares

$

Value

(Amounts

in

000s)

Verus

Securitization

Trust

Series

2021-R1,

Class

A1,

CMO,

ARM

0.82%,

10/25/63 (1)

1,597‌

1,463‌

Verus

Securitization

Trust

Series

2021-R3,

Class

A1,

CMO,

ARM

1.02%,

4/25/64 (1)

6,830‌

6,093‌

Verus

Securitization

Trust

Series

2023-3,

Class

A1,

CMO,

STEP

5.93%,

3/25/68 (1)

7,748‌

7,707‌

Verus

Securitization

Trust

Series

2023-8,

Class

A1,

CMO,

STEP

6.259%,

12/25/68 (1)

2,267‌

2,268‌

Verus

Securitization

Trust

Series

2023-INV3,

Class

A1,

CMO,

ARM

6.876%,

11/25/68 (1)

4,045‌

4,075‌

Verus

Securitization

Trust

Series

2024-1,

Class

A1,

CMO,

STEP

5.712%,

1/25/69 (1)

9,774‌

9,690‌

Verus

Securitization

Trust

Series

2024-INV1,

Class

A1,

CMO,

STEP

6.116%,

3/25/69 (1)

2,500‌

2,493‌

Vista

Point

Securitization

Trust

Series

2020-2,

Class

A1,

CMO,

ARM

1.475%,

4/25/65 (1)

2,011‌

1,832‌

153,874‌

Total

Non-U.S.

Government

Mortgage-Backed

Securities

(Cost

$241,759)

231,216‌

U.S.

GOVERNMENT

&

AGENCY

MORTGAGE-BACKED

SECURITIES

 0.0%

U.S.

Government

Agency

Obligations

 0.0%

Federal

Home

Loan

Mortgage,

CMO,

ARM,

SOFR30A

+

0.464%,

5.788%,

2/15/45 

160‌

155‌

Federal

National

Mortgage

Assn.,

CMO,

ARM,

SOFR30A

+

0.514%,

5.838%,

1/25/45 

128‌

124‌

Total

U.S.

Government

&

Agency

Mortgage-Backed

Securities

(Cost

$288)

279‌

U.S.

GOVERNMENT

AGENCY

OBLIGATIONS

(EXCLUDING

MORTGAGE-BACKED)

 3.3%

U.S.

Treasury

Obligations

 3.3%

U.S.

Treasury

Bills,

5.267%,

9/19/24 (5)

30,075‌

29,602‌

U.S.

Treasury

Bills,

5.292%,

6/11/24 

5,600‌

5,593‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

29

Par/Shares

$

Value

(Amounts

in

000s)

U.S.

Treasury

Bills,

5.292%,

6/25/24 

5,600‌

5,582‌

U.S.

Treasury

Bills,

5.306%,

7/23/24 

12,390‌

12,299‌

U.S.

Treasury

Bills,

5.319%,

7/9/24 

5,600‌

5,570‌

U.S.

Treasury

Bills,

5.332%,

8/20/24 

5,650‌

5,586‌

U.S.

Treasury

Notes,

4.625%,

11/15/26 

7,400‌

7,377‌

U.S.

Treasury

Notes,

4.875%,

11/30/25 

3,330‌

3,323‌

74,932‌

Total

U.S.

Government

Agency

Obligations

(Excluding

Mortgage-Backed)

(Cost

$74,966)

74,932‌

SHORT-TERM

INVESTMENTS

 8.1%

Commercial

Paper

 8.1%

4(2)

 6.3%(6)

Bacardi-Martini,

5.845%,

7/18/24 

13,700‌

13,593‌

Canadian

Natural

Resources,

5.874%,

6/25/24 

18,450‌

18,379‌

Conagra

Brands,

5.653%,

6/3/24 

12,900‌

12,894‌

Conagra

Brands,

5.764%,

6/13/24 

13,600‌

13,572‌

Crown

Castle,

5.88%,

7/9/24 

4,235‌

4,208‌

Edison

International,

5.503%,

6/3/24 

9,900‌

9,896‌

Gotham

Funding,

5.312%,

6/3/24 

2,000‌

1,999‌

Harley-Davidson

Financial

Services,

6.049%,

6/4/24 

11,100‌

11,093‌

International

Flavors

&

Fragrances,

6.077%,

6/24/24 

16,900‌

16,838‌

Targa

Resources,

5.803%,

6/3/24 

6,100‌

6,097‌

Targa

Resources,

6.039%,

7/8/24 

13,000‌

12,918‌

Targa

Resources,

6.04%,

7/10/24 

9,100‌

9,039‌

VF,

6.456%,

7/23/24 

5,210‌

5,168‌

Walgreens

Boots

Alliance,

6.432%,

7/1/24 

4,900‌

4,873‌

140,567‌

Non-4(2)

 1.8%

Energy

Transfer

Operating

L

P,

5.653%,

6/3/24 

19,000‌

18,991‌

Ovintiv,

6.07%,

6/17/24 

3,700‌

3,689‌

Ovintiv

Canada,

6.108%,

6/20/24 

18,500‌

18,439‌

41,119‌

Total

Commercial

Paper

181,686‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

30

Par/Shares

$

Value

(Amounts

in

000s)

Money

Market

Funds

 0.0%

T.

Rowe

Price

Government

Reserve

Fund,

5.39% (7)(8)

2‌

2‌

Total

Money

Market

Funds

2‌

Total

Short-Term

Investments

(Cost

$181,702)

181,688‌

SECURITIES

LENDING

COLLATERAL

 0.0%

INVESTMENTS

IN

A

POOLED

ACCOUNT

THROUGH

SECURITIES

LENDING

PROGRAM

WITH

JPMORGAN

CHASE

BANK 0.0%

Money

Market

Funds 0.0%

T.

Rowe

Price

Government

Reserve

Fund,

5.39% (7)(8)

406‌

406‌

Total

Investments

in

a

Pooled

Account

through

Securities

Lending

Program

with

JPMorgan

Chase

Bank

406‌

INVESTMENTS

IN

A

POOLED

ACCOUNT

THROUGH

SECURITIES

LENDING

PROGRAM

WITH

STATE

STREET

BANK

AND

TRUST

COMPANY 0.0%

Money

Market

Funds 0.0%

T.

Rowe

Price

Government

Reserve

Fund,

5.39% (7)(8)

376‌

376‌

Total

Investments

in

a

Pooled

Account

through

Securities

Lending

Program

with

State

Street

Bank

and

Trust

Company

376‌

Total

Securities

Lending

Collateral

(Cost

$782)

782‌

(Amounts

in

000s,

except

for

contracts)

OPTIONS

PURCHASED 0.0%

OTC

Options

Purchased

0

.0

%

Counterparty

Description

Contracts

Notional

Amount

$

Value

Citibank

Credit

Default

Swap

Protection

Bought

(Relevant

Credit:

Markit

CDX.

NA.IG-S42,

5

Year

Index,

6/20/29),

Pay

1%

Quarterly,

Receive

upon

credit

default,

6/19/24

@

0.65%* (9)

1‌

113,000‌

8‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

31

(Amounts

in

000s,

except

for

contracts)

Counterparty

Description

Contracts

Notional

Amount

$

Value

Citibank

Credit

Default

Swap

Protection

Bought

(Relevant

Credit:

Markit

CDX.

NA.IG-S42,

5

Year

Index,

6/20/29),

Pay

1%

Quarterly,

Receive

upon

credit

default,

6/19/24

@

0.70%* (9)

1‌

113,000‌

7‌

Total

Options

Purchased

(Cost

$116)

15‌

Total

Investments

in

Securities

100.2%

of

Net

Assets

(Cost

$2,278,161)

$

2,263,464‌

‡

Par/Shares

and

Notional

Amount

are

denominated

in

U.S.

dollars

unless

otherwise

noted.

*

Exercise

Spread

(1)

Security

was

purchased

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933

and

may

be

resold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers.

Total

value

of

such

securities

at

period-end

amounts

to

$1,041,208

and

represents

46.1%

of

net

assets.

(2)

Security

is

a

fix-to-float

security,

which

carries

a

fixed

coupon

until

a

certain

date,

upon

which

it

switches

to

a

floating

rate.

Reference

rate

and

spread

are

provided

if

the

rate

is

currently

floating.

(3)

See

Note

4

.

All

or

a

portion

of

this

security

is

on

loan

at

May

31,

2024.

(4)

See

Note

2.

Level

3

in

fair

value

hierarchy.

(5)

At

May

31,

2024,

all

or

a

portion

of

this

security

is

pledged

as

collateral

and/

or

margin

deposit

to

cover

future

funding

obligations.

(6)

Commercial

paper

exempt

from

registration

under

Section

4(2)

of

the

Securities

Act

of

1933

and

may

be

resold

in

transactions

exempt

from

registration

only

to

dealers

in

that

program

or

other

"accredited

investors".

Total

value

of

such

securities

at

period-end

amounts

to

$140,567

and

represents

6.2%

of

net

assets.

(7)

Seven-day

yield

(8)

Affiliated

Companies

(9)

Non-income

producing

1M

TSFR

One

month

term

SOFR

(Secured

overnight

financing

rate)

3M

TSFR

Three

month

term

SOFR

(Secured

overnight

financing

rate)

ARM

Adjustable

Rate

Mortgage

(ARM);

rate

shown

is

effective

rate

at

period-end.

The

rates

for

certain

ARMs

are

not

based

on

a

published

reference

rate

and

spread

but

may

be

determined

using

a

formula

based

on

the

rates

of

the

underlying

loans. 

CLO

Collateralized

Loan

Obligation

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

32

.

.

.

.

.

.

.

.

.

.

CMO

Collateralized

Mortgage

Obligation

FRN

Floating

Rate

Note

JPY

Japanese

Yen

OTC

Over-the-counter

SOFR

Secured

overnight

financing

rate

SOFRINDX

SOFR

(Secured

overnight

financing

rate)

Index

SOFR30A

30-day

Average

SOFR

(Secured

overnight

financing

rate)

STEP

Stepped

coupon

bond

for

which

the

coupon

rate

of

interest

adjusts

on

specified

date(s);

rate

shown

is

effective

rate

at

period-end.

USD

U.S.

Dollar

VR

Variable

Rate;

rate

shown

is

effective

rate

at

period-end.

The

rates

for

certain

variable

rate

securities

are

not

based

on

a

published

reference

rate

and

spread

but

are

determined

by

the

issuer

or

agent

and

based

on

current

market

conditions.

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

33

(Amounts

in

000s)

SWAPS

0.0%

Description

Notional

Amount

$

Value

Initial

$

Value

Unrealized

$

Gain/(Loss)

CENTRALLY

CLEARED

SWAPS

0.0%

Credit

Default

Swaps,

Protection

Sold

0.0%

Protection

Sold

(Relevant

Credit:

Devon

Energy,

Baa2*),

Receive

1.00%

Quarterly,

Pay

upon

credit

default,

6/20/24

*

10,000

25

19

6‌

Protection

Sold

(Relevant

Credit:

Hess,

Baa3*),

Receive

1.00%

Quarterly,

Pay

upon

credit

default,

6/20/24

*

10,000

25

53

(

28‌

)

Total

Centrally

Cleared

Credit

Default

Swaps,

Protection

Sold

(

22‌

)

Total

Centrally

Cleared

Swaps

(

22‌

)

Net

payments

(receipts)

of

variation

margin

to

date

22‌

Variation

margin

receivable

(payable)

on

centrally

cleared

swaps

$

—‌

*

Credit

ratings

as

of

May

31,

2024.

Ratings

shown

are

from

Moody’s

Investors

Service

and

if

Moody’s

does

not

rate

a

security,

then

Standard

&

Poor’s

(S&P)

is

used.

Fitch

is

used

for

securities

that

are

not

rated

by

either

Moody’s

or

S&P.

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

34

(Amounts

in

000s)

FORWARD

CURRENCY

EXCHANGE

CONTRACTS

Counterparty

Settlement

Receive

Deliver

Unrealized

Gain/(Loss)

State

Street

8/5/24

USD

11,359‌

JPY

1,746,600‌

$

141‌

Net

unrealized

gain

(loss)

on

open

forward

currency

exchange

contracts

$

141‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

35

FUTURES

CONTRACTS

($000s)

Expiration

Date

Notional

Amount

Value

and

Unrealized

Gain

(Loss)

Short,

253

Three

Month

SOFR

Futures

contracts

9/24

(59,876)

$

262‌

Short,

22

U.S.

Treasury

Long

Bond

contracts

9/24

(2,553)

19‌

Short,

663

U.S.

Treasury

Notes

five

year

contracts

9/24

(70,143)

25‌

Short,

157

U.S.

Treasury

Notes

ten

year

contracts

9/24

(17,081)

27‌

Short,

655

U.S.

Treasury

Notes

two

year

contracts

9/24

(133,426)

(

63‌

)

Short,

45

Ultra

U.S.

Treasury

Notes

ten

year

contracts

9/24

(5,041)

17‌

Long,

200

Three

Month

SOFR

Futures

contracts

3/25

47,515

(

245‌

)

Short,

200

Three

Month

SOFR

Futures

contracts

3/26

(47,893)

252‌

Net

payments

(receipts)

of

variation

margin

to

date

(

577‌

)

Variation

margin

receivable

(payable)

on

open

futures

contracts

$

(

283‌

)

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

36

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

AFFILIATED

COMPANIES

($000s)

The

fund

may

invest

in

certain

securities

that

are

considered

affiliated

companies.

As

defined

by

the

1940

Act,

an

affiliated

company

is

one

in

which

the

fund

owns

5%

or

more

of

the

outstanding

voting

securities,

or

a

company

that

is

under

common

ownership

or

control.

The

following

securities

were

considered

affiliated

companies

for

all

or

some

portion

of

the

year

ended

May

31,

2024.

Net

realized

gain

(loss),

investment

income,

change

in

net

unrealized

gain/loss,

and

purchase

and

sales

cost

reflect

all

activity

for

the

period

then

ended.

Affiliate

Net

Realized

Gain

(Loss)

Change

in

Net

Unrealized

Gain/Loss

Investment

Income

T.

Rowe

Price

Government

Reserve

Fund,

5.39%

$

—‌

$

—‌

$

—‌

++

Totals

$

—‌

#

$

—‌

$

—‌

+

Supplementary

Investment

Schedule

Affiliate

Value

05/31/23

Purchase

Cost

Sales

Cost

Value

05/31/24

T.

Rowe

Price

Government

Reserve

Fund,

5.39%

$

677‌

¤

¤

$

784‌

Total

$

784‌

^

#

Capital

gain

distributions

from

underlying

Price

funds

represented

$0

of

the

net

realized

gain

(loss).

++

Excludes

earnings

on

securities

lending

collateral,

which

are

subject

to

rebates

and

fees

as

described

in

Note

4

.

+

Investment

income

comprised

$0

of

dividend

income

and

$0

of

interest

income.

¤

Purchase

and

sale

information

not

shown

for

cash

management

funds.

^

The

cost

basis

of

investments

in

affiliated

companies

was

$784.

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

May

31,

2024

Statement

of

Assets

and

Liabilities

37

($000s,

except

shares

and

per

share

amounts)

Assets

Investments

in

securities,

at

value

(cost

$2,278,161)

$

2,263,464‌

Interest

receivable

14,421‌

Receivable

for

shares

sold

2,916‌

Unrealized

gain

on

forward

currency

exchange

contracts

141‌

Cash

121‌

Foreign

currency

(cost

$5)

5‌

Other

assets

43‌

Total

assets

2,281,111‌

Liabilities

Payable

for

investment

securities

purchased

18,210‌

Payable

for

shares

redeemed

3,261‌

Obligation

to

return

securities

lending

collateral

782‌

Investment

management

fees

payable

304‌

Variation

margin

payable

on

futures

contracts

283‌

Due

to

affiliates

21‌

Payable

to

directors

1‌

Other

liabilities

155‌

Total

liabilities

23,017‌

Commitments

and

Contingent

Liabilities

(note

6

)

NET

ASSETS

$

2,258,094‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

May

31,

2024

Statement

of

Assets

and

Liabilities

38

($000s,

except

shares

and

per

share

amounts)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Net

Assets

Consist

of:

Total

distributable

earnings

(loss)

$

(

60,189‌

)

Paid-in

capital

applicable

to

447,876,876

shares

of

$0.01

par

value

capital

stock

outstanding;

6,000,000,000

shares

of

the

Corporation

authorized

2,318,283‌

NET

ASSETS

$

2,258,094‌

NET

ASSET

VALUE

PER

SHARE

Investor

Class

(Net

assets:

$1,343,618;

Shares

outstanding:

266,654,048)

$

5.04‌

I

Class

(Net

assets:

$914,377;

Shares

outstanding:

181,203,220)

$

5.05‌

Z

Class

(Net

assets:

$99;

Shares

outstanding:

19,608)

$

5.04‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

Statement

of

Operations

39

($000s)

Year

Ended

5/31/24

Investment

Income

(Loss)

Income

    Interest

$

111,008‌

Securities

lending

19‌

Other

3‌

Total

income

111,030‌

Expenses

Investment

management

3,596‌

Shareholder

servicing

Investor

Class

$

1,964‌

I

Class

113‌

2,077‌

Prospectus

and

shareholder

reports

Investor

Class

108‌

I

Class

31‌

139‌

Custody

and

accounting

253‌

Registration

87‌

Legal

and

audit

39‌

Proxy

and

annual

meeting

31‌

Directors

8‌

Miscellaneous

22‌

Waived

/

paid

by

Price

Associates

(

296‌

)

Total

expenses

5,956‌

Net

investment

income

105,074‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

Statement

of

Operations

40

($000s)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Year

Ended

5/31/24

Realized

and

Unrealized

Gain

/

Loss

–

Net

realized

gain

(loss)

Securities

(

13,672‌

)

Futures

10,132‌

Swaps

(

1,081‌

)

Options

written

(

303‌

)

Forward

currency

exchange

contracts

2,325‌

Foreign

currency

transactions

171‌

Net

realized

loss

(

2,428‌

)

Change

in

net

unrealized

gain

/

loss

Securities

44,923‌

Futures

535‌

Swaps

1,424‌

Options

written

113‌

Forward

currency

exchange

contracts

(

293‌

)

Change

in

net

unrealized

gain

/

loss

46,702‌

Net

realized

and

unrealized

gain

/

loss

44,274‌

INCREASE

IN

NET

ASSETS

FROM

OPERATIONS

$

149,348‌

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

Statement

of

Changes

in

Net

Assets

41

($000s)

Year

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Ended

.

.

.

.

.

.

.

.

.

.

.

.

.

.

5/31/24

5/31/23

Increase

(Decrease)

in

Net

Assets

Operations

Net

investment

income

$

105,074‌

$

77,900‌

Net

realized

loss

(

2,428‌

)

(

32,647‌

)

Change

in

net

unrealized

gain

/

loss

46,702‌

21,614‌

Increase

in

net

assets

from

operations

149,348‌

66,867‌

Distributions

to

shareholders

Net

earnings

Investor

Class

(

63,461‌

)

(

55,203‌

)

I

Class

(

42,342‌

)

(

33,631‌

)

Z

Class

(

5‌

)

(

3‌

)

Decrease

in

net

assets

from

distributions

(

105,808‌

)

(

88,837‌

)

Capital

share

transactions

*

Shares

sold

Investor

Class

443,341‌

697,788‌

I

Class

308,544‌

479,797‌

Distributions

reinvested

Investor

Class

63,157‌

54,647‌

I

Class

38,314‌

30,130‌

Shares

redeemed

Investor

Class

(

648,586‌

)

(

1,688,262‌

)

I

Class

(

382,346‌

)

(

857,597‌

)

Decrease

in

net

assets

from

capital

share

transactions

(

177,576‌

)

(

1,283,497‌

)

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

Statement

of

Changes

in

Net

Assets

42

($000s)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Year

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Ended

.

.

.

.

.

.

.

.

.

.

.

.

.

.

5/31/24

5/31/23

Net

Assets

Decrease

during

period

(

134,036‌

)

(

1,305,467‌

)

Beginning

of

period

2,392,130‌

3,697,597‌

End

of

period

$

2,258,094‌

$

2,392,130‌

*Share

information

(000s)

Shares

sold

Investor

Class

88,726‌

141,730‌

I

Class

61,609‌

97,228‌

Distributions

reinvested

Investor

Class

12,632‌

11,110‌

I

Class

7,648‌

6,114‌

Shares

redeemed

Investor

Class

(

129,955‌

)

(

342,815‌

)

I

Class

(

76,516‌

)

(

174,012‌

)

Decrease

in

shares

outstanding

(

35,856‌

)

(

260,645‌

)

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

NOTES

TO

FINANCIAL

STATEMENTS

43

T.

Rowe

Price

Short-Term

Bond

Fund,

Inc.

(the

corporation) is

registered

under

the

Investment

Company

Act

of

1940

(the

1940

Act).

The

Ultra

Short-

Term

Bond

Fund

(the

fund)

is a

diversified, open-end

management

investment

company

established

by

the

corporation. The

fund

seeks

a

high

level

of

income

consistent

with

minimal

fluctuation

in

principal

value

and

liquidity.

The

fund

has three classes

of

shares:

the

Ultra

Short-Term

Bond

Fund

(Investor

Class),

the

Ultra

Short-Term

Bond

Fund–I

Class

(I

Class)

and

the

Ultra

Short-Term

Bond

Fund–Z

Class

(Z

Class).

I

Class

shares

require

a

$500,000

initial

investment

minimum,

although

the

minimum

generally

is

waived

or

reduced

for

financial

intermediaries,

eligible

retirement

plans,

and

certain

other

accounts.

The

Z

Class

is

only

available

to

funds

advised

by

T.

Rowe

Price

Associates,

Inc.

and

its

affiliates

and

other

clients

that

are

subject

to

a

contractual

fee

for

investment

management

services. Each

class

has

exclusive

voting

rights

on

matters

related

solely

to

that

class;

separate

voting

rights

on

matters

that

relate

to

all

classes;

and,

in

all

other

respects,

the

same

rights

and

obligations

as

the

other

classes.

NOTE

1

-

SIGNIFICANT

ACCOUNTING

POLICIES 

Basis

of

Preparation

 The fund

is

an

investment

company

and

follows

accounting

and

reporting

guidance

in

the

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946

(ASC

946).

The

accompanying

financial

statements

were

prepared

in

accordance

with

accounting

principles

generally

accepted

in

the

United

States

of

America

(GAAP),

including,

but

not

limited

to,

ASC

946.

GAAP

requires

the

use

of

estimates

made

by

management.

Management

believes

that

estimates

and

valuations

are

appropriate;

however,

actual

results

may

differ

from

those

estimates,

and

the

valuations

reflected

in

the

accompanying

financial

statements

may

differ

from

the

value

ultimately

realized

upon

sale

or

maturity.

Investment

Transactions,

Investment

Income,

and

Distributions

 Investment

transactions

are

accounted

for

on

the

trade

date

basis.

Income

and

expenses

are

recorded

on

the

accrual

basis.

Realized

gains

and

losses

are

reported

on

the

identified

cost

basis. Premiums

and

discounts

on

debt

securities

are

amortized

for

financial

reporting

purposes. Paydown

gains

and

losses

are

recorded

as

an

adjustment

to

interest

income. Income

tax-related

interest

and

penalties,

if

incurred,

are

recorded

as

income

tax

expense. Dividends

received

from other

investment

companies are

reflected

as

dividend income;

capital

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

44

gain

distributions

are

reflected

as

realized

gain/loss. Dividend

income and

capital

gain

distributions

are

recorded

on

the

ex-dividend

date. Earnings

on

investments

recognized

as

partnerships

for

federal

income

tax

purposes

reflect

the

tax

character

of

such

earnings. Non-cash

dividends,

if

any,

are

recorded

at

the

fair

market

value

of

the

asset

received. Proceeds

from

litigation

payments,

if

any,

are

included

in

either

net

realized

gain

(loss)

or

change

in

net

unrealized

gain/loss

from

securities. Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date. Income

distributions,

if

any, are

declared

by

each

class daily

and

paid

monthly. A

capital

gain

distribution,

if

any, may

also

be

declared

and

paid

by

the

fund

annually.

Currency

Translation

 Assets,

including

investments,

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollar

values

each

day

at

the

prevailing

exchange

rate,

using

the

mean

of

the

bid

and

asked

prices

of

such

currencies

against

U.S.

dollars

as

provided

by

an

outside

pricing

service.

Purchases

and

sales

of

securities,

income,

and

expenses

are

translated

into

U.S.

dollars

at

the

prevailing

exchange

rate

on

the

respective

date

of

such

transaction.

The

effect

of

changes

in

foreign

currency

exchange

rates

on

realized

and

unrealized

security

gains

and

losses

is

not

bifurcated

from

the

portion

attributable

to

changes

in

market

prices.

Class

Accounting

Shareholder

servicing,

prospectus,

and

shareholder

report

expenses

incurred

by

each

class

are

charged

directly

to

the

class

to

which

they

relate.

Expenses

common

to

all

classes

and

investment

income

are

allocated

to

the

classes

based

upon

the

relative

daily

net

assets

of

each

class’s

settled

shares;

realized

and

unrealized

gains

and

losses

are

allocated

based

upon

the

relative

daily

net

assets

of

each

class’s

outstanding

shares.

Capital

Transactions

 Each

investor’s

interest

in

the

net

assets

of the

fund

is

represented

by

fund

shares. The

fund’s

net

asset

value

(NAV)

per

share

is

computed

at

the

close

of

the

New

York

Stock

Exchange

(NYSE),

normally

4

p.m.

ET,

each

day

the

NYSE

is

open

for

business.

However,

the

NAV

per

share

may

be

calculated

at

a

time

other

than

the

normal

close

of

the

NYSE

if

trading

on

the

NYSE

is

restricted,

if

the

NYSE

closes

earlier,

or

as

may

be

permitted

by

the

SEC.

Purchases

and

redemptions

of

fund

shares

are

transacted

at

the

next-computed

NAV

per

share,

after

receipt

of

the

transaction

order

by

T.

Rowe

Price

Associates,

Inc.,

or

its

agents.

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

45

Indemnification

 In

the

normal

course

of

business, the

fund

may

provide

indemnification

in

connection

with

its

officers

and

directors,

service

providers,

and/or

private

company

investments. The

fund’s

maximum

exposure

under

these

arrangements

is

unknown;

however,

the

risk

of

material

loss

is

currently

considered

to

be

remote.

NOTE

2

-

VALUATION 

Fair

Value

  The

fund’s

financial

instruments

are

valued

at

the

close

of

the

NYSE

and

are

reported

at

fair

value,

which

GAAP

defines

as

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

at

the

measurement

date. The fund’s

Board

of

Directors

(the

Board)

has

designated

T.

Rowe

Price

Associates,

Inc.

as

the

fund’s

valuation

designee

(Valuation

Designee).

Subject

to

oversight

by

the

Board,

the

Valuation

Designee

performs

the

following

functions

in

performing

fair

value

determinations:

assesses

and

manages

valuation

risks;

establishes

and

applies

fair

value

methodologies;

tests

fair

value

methodologies;

and

evaluates

pricing

vendors

and

pricing

agents.

The

duties

and

responsibilities

of

the

Valuation

Designee

are

performed

by

its

Valuation

Committee. The

Valuation

Designee provides

periodic

reporting

to

the

Board

on

valuation

matters.

Various

valuation

techniques

and

inputs

are

used

to

determine

the

fair

value

of

financial

instruments.

GAAP

establishes

the

following

fair

value

hierarchy

that

categorizes

the

inputs

used

to

measure

fair

value:

Level

1

–

quoted

prices

(unadjusted)

in

active

markets

for

identical

financial

instruments

that

the

fund

can

access

at

the

reporting

date

Level

2

–

inputs

other

than

Level

1

quoted

prices

that

are

observable,

either

directly

or

indirectly

(including,

but

not

limited

to,

quoted

prices

for

similar

financial

instruments

in

active

markets,

quoted

prices

for

identical

or

similar

financial

instruments

in

inactive

markets,

interest

rates

and

yield

curves,

implied

volatilities,

and

credit

spreads)

Level

3

–

unobservable

inputs

(including

the Valuation

Designee’s assumptions

in

determining

fair

value)

Observable

inputs

are

developed

using

market

data,

such

as

publicly

available

information

about

actual

events

or

transactions,

and

reflect

the

assumptions

that

market

participants

would

use

to

price

the

financial

instrument.

Unobservable

inputs

are

those

for

which

market

data

are

not

available

and

are

developed

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using

the

best

information

available

about

the

assumptions

that

market

participants

would

use

to

price

the

financial

instrument.

GAAP

requires

valuation

techniques

to

maximize

the

use

of

relevant

observable

inputs

and

minimize

the

use

of

unobservable

inputs.

When

multiple

inputs

are

used

to

derive

fair

value,

the

financial

instrument

is

assigned

to

the

level

within

the

fair

value

hierarchy

based

on

the

lowest-level

input

that

is

significant

to

the

fair

value

of

the

financial

instrument.

Input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level

but

rather

the

degree

of

judgment

used

in

determining

those

values.

Valuation

Techniques 

Debt

securities

generally

are

traded

in

the over-the-

counter

(OTC)

market

and

are

valued

at

prices

furnished

by

independent

pricing

services

or

by

broker

dealers

who

make

markets

in

such

securities.

When

valuing

securities,

the

independent

pricing

services

consider

factors

such

as,

but

not

limited

to,

the

yield

or

price

of

bonds

of

comparable

quality,

coupon,

maturity,

and

type,

as

well

as

prices

quoted

by

dealers

who

make

markets

in

such

securities.   

Investments

in

mutual

funds

are

valued

at

the

mutual

fund’s

closing

NAV

per

share

on

the

day

of

valuation.

Listed

options,

and

OTC

options

with

a

listed

equivalent,

are

valued

at

the

mean

of

the

closing

bid

and

asked

prices

and

exchange-traded

options

on

futures

contracts

are

valued

at

closing

settlement

prices.

Futures

contracts

are

valued

at

closing

settlement

prices.

Forward

currency

exchange

contracts

are

valued

using

the

prevailing

forward

exchange

rate.

Swaps

are

valued

at

prices

furnished

by

an

independent

pricing

service

or

independent

swap

dealers.

Assets

and

liabilities

other

than

financial

instruments,

including

short-term

receivables

and

payables,

are

carried

at

cost,

or

estimated

realizable

value,

if

less,

which

approximates

fair

value. 

Investments

for

which

market

quotations are

not

readily

available

or

deemed

unreliable

are

valued

at

fair

value

as

determined

in

good

faith

by

the

Valuation

Designee.

The

Valuation

Designee

has

adopted

methodologies

for

determining

the

fair

value

of

investments

for

which

market

quotations

are

not

readily

available

or

deemed

unreliable,

including

the

use

of

other

pricing

sources.

Factors

used

in

determining

fair

value

vary

by

type

of

investment

and

may

include

market

or

investment

specific

considerations.

The

Valuation

Designee typically

will

afford

greatest

weight

to

actual

prices

in

arm’s

length

transactions,

to

the

extent

they

represent

orderly

transactions

between

market

participants,

transaction

information

can

be

reliably

obtained,

and

prices

are

deemed

representative

of

fair

value.

However,

the

Valuation

Designee may

also

consider

other

valuation

methods

such

as

market-based

valuation

multiples;

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a

discount

or

premium

from

market

value

of

a

similar,

freely

traded

security

of

the

same

issuer;

discounted

cash

flows;

yield

to

maturity;

or

some

combination.

Fair

value

determinations

are

reviewed

on

a

regular

basis.

Because

any

fair

value

determination

involves

a

significant

amount

of

judgment,

there

is

a

degree

of

subjectivity

inherent

in

such

pricing

decisions. Fair

value

prices

determined

by

the

Valuation

Designee could

differ

from

those

of

other

market

participants,

and

it

is

possible

that

the

fair

value

determined

for

a

security

may

be

materially

different

from

the

value

that

could

be

realized

upon

the

sale

of

that

security.

Valuation

Inputs

  The

following

table

summarizes

the

fund’s

financial

instruments,

based

on

the

inputs

used

to

determine

their

fair

values

on

May

31,

2024

(for

further

detail

by

category,

please

refer

to

the

accompanying

Portfolio

of

Investments):

($000s)

Level

1

Level

2

Level

3

Total

Value

Assets

Fixed

Income

Securities

1

$

—‌

$

902,164‌

$

—‌

$

902,164‌

Short-Term

Investments

2‌

189,363‌

—‌

189,365‌

Corporate

Bonds

—‌

1,168,251‌

2,887‌

1,171,138‌

Securities

Lending

Collateral

782‌

—‌

—‌

782‌

Options

Purchased

—‌

15‌

—‌

15‌

Total

Securities

784‌

2,259,793‌

2,887‌

2,263,464‌

Swaps*

—‌

6‌

—‌

6‌

Forward

Currency

Exchange

Contracts

—‌

141‌

—‌

141‌

Futures

Contracts*

602‌

—‌

—‌

602‌

Total

$

1,386‌

$

2,259,940‌

$

2,887‌

$

2,264,213‌

Liabilities

Swaps*

$

—‌

$

28‌

$

—‌

$

28‌

Futures

Contracts*

308‌

—‌

—‌

308‌

Total

$

308‌

$

28‌

$

—‌

$

336‌

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NOTE

3

-

DERIVATIVE

INSTRUMENTS 

During

the

year ended

May

31,

2024,

the

fund

invested

in

derivative

instruments.

As

defined

by

GAAP,

a

derivative

is

a

financial

instrument

whose

value

is

derived

from

an

underlying

security

price,

foreign

exchange

rate,

interest

rate,

index

of

prices

or

rates,

or

other

variable;

it

requires

little

or

no

initial

investment

and

permits

or

requires

net

settlement.

The

fund

invests

in

derivatives

only

if

the

expected

risks

and

rewards

are

consistent

with

its

investment

objectives,

policies,

and

overall

risk

profile,

as

described

in

its

prospectus

and

Statement

of

Additional

Information.

The

fund

may

use

derivatives

for

a

variety

of

purposes

and

may

use

them

to

establish

both

long

and

short

positions

within

the

fund’s

portfolio.

Potential

uses

include

to

hedge

against

declines

in

principal

value,

increase

yield,

invest

in

an

asset

with

greater

efficiency

and

at

a

lower

cost

than

is

possible

through

direct

investment,

to

enhance

return,

or

to

adjust

portfolio

duration

and

credit

exposure.

The

risks

associated

with

the

use

of

derivatives

are

different

from,

and

potentially

much

greater

than,

the

risks

associated

with

investing

directly

in

the

instruments

on

which

the

derivatives

are

based.

The

fund

values

its

derivatives

at

fair

value

and

recognizes

changes

in

fair

value

currently

in

its

results

of

operations.

Accordingly,

the

fund

does

not

follow

hedge

accounting,

even

for

derivatives

employed

as

economic

hedges.

Generally,

the

fund

accounts

for

its

derivatives

on

a

gross

basis.

It

does

not

offset

the

fair

value

of

derivative

liabilities

against

the

fair

value

of

derivative

assets

on

its

financial

statements,

nor

does

it

offset

the

fair

value

of

derivative

instruments

against

the

right

to

reclaim

or

obligation

to

return

collateral.

The

following

table

summarizes

the

fair

value

of

the

fund’s

derivative

instruments

held

as

of

May

31,

2024,

and

the

related

location

on

the

accompanying

Statement

of

Assets

and

Liabilities,

presented

by

primary

underlying

risk

exposure: 

1

Includes

Asset-Backed

Securities,

Convertible

Bonds,

Foreign

Government

Obligations

&

Municipalities,

Municipal

Securities,

Non-U.S.

Government

Mortgage-Backed

Securities,

U.S.

Government

&

Agency

Mortgage-Backed

Securities

and

U.S.

Government

Agency

Obligations

(Excluding

Mortgage-Backed).

*

The

fair

value

presented

includes

cumulative

gain

(loss)

on

open

futures

contracts

and

centrally

cleared

swaps;

however,

the

net

value

reflected

on

the

accompanying

Portfolio

of

Investments

is

only

the

unsettled

variation

margin

receivable

(payable)

at

that

date.

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($000s)

Location

on

Statement

of

Assets

and

Liabilities

Fair

Value*

Assets

Interest

rate

derivatives

Futures

$

602‌

Foreign

exchange

derivatives

Forwards

141‌

Credit

derivatives

Centrally

Cleared

Swaps,

Securities^

21‌

^

,*

Total

$

764‌

^

,*

Liabilities

Interest

rate

derivatives

Futures

$

308‌

Credit

derivatives

Centrally

Cleared

Swaps

28‌

Total

$

336‌

*

The

fair

value

presented

includes

cumulative

gain

(loss)

on

open

futures

contracts

and

centrally

cleared

swaps;

however,

the

value

reflected

on

the

accompanying

Statement

of

Assets

and

Liabilities

is

only

the

unsettled

variation

margin

receivable

(payable)

at

that

date.

^

Options

purchased

are

reported

as

securities

and

are

reflected

in

the

accompanying

Portfolio

of

Investments.

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Additionally,

the

amount

of

gains

and

losses

on

derivative

instruments

recognized

in

fund

earnings

during

the

year ended

May

31,

2024,

and

the

related

location

on

the

accompanying

Statement

of

Operations

is

summarized

in

the

following

table

by

primary

underlying

risk

exposure: 

Counterparty

Risk

and

Collateral

 The

fund

invests

in

derivatives

in

various

markets,

which

expose

it

to

differing

levels

of

counterparty

risk.

Counterparty

risk

on

exchange-traded

and

centrally

cleared

derivative

contracts,

such

as

futures,

exchange-traded

options,

and

centrally

cleared

swaps,

is

minimal

($000s)                                              

Location

of

Gain

(Loss)

on

Statement

of

Operations

Securities^

Options

Written

Futures

Forward

Currency

Exchange

Contracts

Swaps

Total

Realized

Gain

(Loss)

Interest

rate

derivatives

$

(9‌)

$

(303‌)

$

10,132‌

$

—‌

$

—‌

$

9,820‌

Foreign

exchange

derivatives

—‌

—‌

—‌

2,325‌

—‌

2,325‌

Credit

derivatives

102‌

—‌

—‌

—‌

(1,081‌)

(979‌)

Total

$

93‌

$

(303‌)

$

10,132‌

$

2,325‌

$

(1,081‌)

$

11,166‌

Change

in

Unrealized

Gain

(Loss)

Interest

rate

derivatives

$

1‌

$

113‌

$

535‌

$

—‌

$

—‌

$

649‌

Foreign

exchange

derivatives

—‌

—‌

—‌

(293‌)

—‌

(293‌)

Credit

derivatives

(101‌)

—‌

—‌

—‌

1,424‌

1,323‌

Total

$

(100‌)

$

113‌

$

535‌

$

(293‌)

$

1,424‌

$

1,679‌

^

Options

purchased

are

reported

as

securities.

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because

the

clearinghouse

provides

protection

against

counterparty

defaults.

For

futures

and

centrally

cleared

swaps,

the

fund

is

required

to

deposit

collateral

in

an

amount

specified

by

the

clearinghouse

and

the

clearing

firm

(margin

requirement),

and

the

margin

requirement

must

be

maintained

over

the

life

of

the

contract.

Each

clearinghouse

and

clearing

firm,

in

its

sole

discretion,

may

adjust

the

margin

requirements

applicable

to

the

fund.

Derivatives,

such

as

non-cleared bilateral

swaps,

forward

currency

exchange

contracts,

and

OTC

options,

that

are

transacted

and

settle

directly

with

a

counterparty

(bilateral

derivatives)

may

expose

the

fund

to

greater

counterparty

risk.

To

mitigate

this

risk,

the

fund

has

entered

into

master

netting

arrangements

(MNAs)

with

certain

counterparties

that

permit

net

settlement

under

specified

conditions

and,

for

certain

counterparties,

also

require

the

exchange

of

collateral

to

cover

mark-to-market

exposure.

MNAs

may

be

in

the

form

of

International

Swaps

and

Derivatives

Association

master

agreements

(ISDAs)

or

foreign

exchange

letter

agreements

(FX

letters).

MNAs

provide

the

ability

to

offset

amounts

the

fund

owes

a

counterparty

against

amounts

the

counterparty

owes

the

fund

(net

settlement).

Both

ISDAs

and

FX

letters

generally

allow

termination

of

transactions

and

net

settlement

upon

the

occurrence

of

contractually

specified

events,

such

as

failure

to

pay

or

bankruptcy.

In

addition,

ISDAs

specify

other

events,

the

occurrence

of

which

would

allow

one

of

the

parties

to

terminate.

For

example,

a

downgrade

in

credit

rating

of

a

counterparty

below

a

specified

rating

would

allow

the

fund

to

terminate,

while

a

decline

in

the

fund’s

net

assets

of

more

than

a

specified

percentage

would

allow

the

counterparty

to

terminate.

Upon

termination,

all

transactions

with

that

counterparty

would

be

liquidated

and

a

net

termination

amount

settled.

ISDAs

typically

include

collateral

agreements

whereas

FX

letters

do

not.

Collateral

requirements

are

determined

daily

based

on

the

net

aggregate

unrealized

gain

or

loss

on

all

bilateral

derivatives

with

a

counterparty,

subject

to

minimum

transfer

amounts

that

typically

range

from

$100,000

to

$250,000.

Any

additional

collateral

required

due

to

changes

in

security

values

is

typically

transferred

the

next

business

day.

Collateral

may

be

in

the

form

of

cash

or

debt

securities

issued

by

the

U.S.

government

or

related

agencies,

although

other

securities

may

be

used

depending

on

the

terms

outlined

in

the

applicable

MNA.

Cash

posted

by

the

fund

is

reflected

as

cash

deposits

in

the

accompanying

financial

statements

and

generally

is

restricted

from

withdrawal

by

the

fund;

securities

posted

by

the

fund

are

so

noted

in

the

accompanying

Portfolio

of

Investments;

both

remain

in

the

fund’s

assets.

Collateral

pledged

by

counterparties

is

not

included

in

the

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52

fund’s

assets

because

the

fund

does

not

obtain

effective

control

over

those

assets.

For

bilateral

derivatives,

collateral

posted

or

received

by

the

fund

is

held

in

a

segregated

account

at

the

fund’s

custodian.

While

typically

not

sold

in

the

same

manner

as

equity

or

fixed

income

securities,

exchange-traded

or

centrally

cleared

derivatives

may

be

closed

out

only

on

the

exchange

or

clearinghouse

where

the

contracts

were

cleared,

and

OTC

and

bilateral

derivatives

may

be

unwound

with

counterparties

or

transactions

assigned

to

other

counterparties

to

allow

the

fund

to

exit

the

transaction.

This

ability

is

subject

to

the

liquidity

of

underlying

positions. As

of

May

31,

2024,

no

collateral

was

pledged

by

either

the

fund

or

counterparties for

bilateral

derivatives. As

of

May

31,

2024,

securities

valued

at $10,760,000

had

been

posted

by

the

fund

for

exchange-

traded

and/or

centrally

cleared

derivatives.

Forward

Currency

Exchange

Contracts

 The

fund

is

subject

to

foreign

currency

exchange

rate

risk

in

the

normal

course

of

pursuing

its

investment

objectives.

It may use

forward

currency

exchange

contracts

(forwards)

primarily

to

protect

its

non-U.S.

dollar-denominated

securities

from

adverse

currency

movements

or

to

increase

exposure

to

a

particular

foreign

currency,

to

shift

the

fund’s

foreign

currency

exposure

from

one

country

to

another,

or

to

enhance

the

fund’s

return.

A

forward

involves

an

obligation

to

purchase

or

sell

a

fixed

amount

of

a

specific

currency

on

a

future

date

at

a

price

set

at

the

time

of

the

contract.

Although

certain

forwards

may

be

settled

by

exchanging

only

the

net

gain

or

loss

on

the

contract,

most

forwards

are

settled

with

the

exchange

of

the

underlying

currencies

in

accordance

with

the

specified

terms.

Forwards

are

valued

at

the

unrealized

gain

or

loss

on

the

contract,

which

reflects

the

net

amount

the

fund

either

is

entitled

to

receive

or

obligated

to

deliver,

as

measured

by

the

difference

between

the

forward

exchange

rates

at

the

date

of

entry

into

the

contract

and

the

forward

rates

at

the

reporting

date.

Appreciated

forwards

are

reflected

as

assets

and

depreciated

forwards

are

reflected

as

liabilities

on

the

accompanying

Statement

of

Assets

and

Liabilities.

When

a

contract

is

closed,

a

realized

gain

or

loss

is

recorded

on

the

accompanying

Statement

of

Operations.

Risks

related

to

the

use

of

forwards

include

the

possible

failure

of

counterparties

to

meet

the

terms

of

the

agreements;

that

anticipated

currency

movements

will

not

occur,

thereby

reducing

the

fund’s

total

return;

and

the

potential

for

losses

in

excess

of

the

fund’s

initial

investment.

During

the

year ended

May

31,

2024,

the

volume

of

the

fund’s

activity

in

forwards,

based

on

underlying

notional

amounts,

was

generally

between

0%

and

2%

of

net

assets.

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Fund

53

Futures

Contracts

 The

fund

is

subject

to interest

rate

risk in

the

normal

course

of

pursuing

its

investment

objectives

and

uses

futures

contracts

to

help

manage

such

risk.

The fund

may

enter

into

futures

contracts

to

manage

exposure

to

interest

rate

and

yield

curve

movements,

security

prices,

foreign

currencies,

credit

quality,

and

mortgage

prepayments;

as

an

efficient

means

of

adjusting

exposure

to

all

or

part

of

a

target

market;

to

enhance

income;

as

a

cash

management

tool;

or

to

adjust

portfolio

duration

and

credit

exposure. A

futures

contract

provides

for

the

future

sale

by

one

party

and

purchase

by

another

of

a

specified

amount

of

a

specific

underlying

financial

instrument

at

an

agreed-

upon

price,

date,

time,

and

place.

The

fund

currently

invests

only

in

exchange-

traded

futures,

which

generally

are

standardized

as

to

maturity

date,

underlying

financial

instrument,

and

other

contract

terms.

Payments

are

made

or

received

by

the

fund

each

day

to

settle

daily

fluctuations

in

the

value

of

the

contract

(variation

margin),

which

reflect

changes

in

the

value

of

the

underlying

financial

instrument.

Variation

margin

is

recorded

as

unrealized

gain

or

loss

until

the

contract

is

closed.

The

value

of

a

futures

contract

included

in

net

assets

is

the

amount

of

unsettled

variation

margin;

net

variation

margin

receivable

is

reflected

as

an

asset

and

net

variation

margin

payable

is

reflected

as

a

liability

on

the

accompanying

Statement

of

Assets

and

Liabilities.

When

a

contract

is

closed,

a

realized

gain

or

loss

is

recorded

on

the

accompanying

Statement

of

Operations.

Risks

related

to

the

use

of

futures

contracts

include

possible

illiquidity

of

the

futures

markets,

contract

prices

that

can

be

highly

volatile

and

imperfectly

correlated

to

movements

in

hedged

security

values

and/or

interest

rates,

and

potential

losses

in

excess

of

the

fund’s

initial

investment.

During

the

year ended

May

31,

2024,

the

volume

of

the

fund’s

activity

in

futures,

based

on

underlying

notional

amounts,

was

generally

between

7%

and

12%

of

net

assets.

Options 

 The

fund

is

subject

to interest

rate

risk

and

credit

risk in

the

normal

course

of

pursuing

its

investment

objectives

and

uses

options

to

help

manage

such

risks.

The

fund

may

use

options

to

manage

exposure

to

security

prices,

interest

rates,

foreign

currencies,

and

credit

quality;

as

an

efficient

means

of

adjusting

exposure

to

all

or

a

part

of

a

target

market;

to

enhance

income;

as

a

cash

management

tool;

or

to

adjust

credit

exposure.

The

fund

may

buy

or

sell

options

that

can

be

settled

either

directly

with

the

counterparty

(OTC

option)

or

through

a

central

clearinghouse

(exchange-traded

option).

Options

are

included

in

net

assets

at

fair

value,

options

purchased

are

included

in

Investments

in

Securities,

and

options

written

are

separately

reflected

as

a

liability

on

the

accompanying

Statement

of

Assets

and

Liabilities.

Premiums

on

unexercised,

expired

options

are

recorded

as

realized

gains

or

losses

on

the

accompanying

Statement

of

Operations;

premiums

on

exercised

options

are

recorded

as

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an

adjustment

to

the

proceeds

from

the

sale

or

cost

of

the

purchase.

The

difference

between

the

premium

and

the

amount

received

or

paid

in

a

closing

transaction

is

also

treated

as

realized

gain

or

loss

on

the

accompanying

Statement

of

Operations.

In

return

for

a

premium

paid,

call

and

put

options

on

futures

give

the

holder

the

right,

but

not

the

obligation,

to

purchase

or

sell,

respectively,

a

position

in

a

particular

futures

contract

at

a

specified

exercise

price.

In

return

for

a

premium

paid,

options

on

swaps

give

the

holder

the

right,

but

not

the

obligation,

to

enter

a

specified

swap

contract

on

predefined

terms.

The

exercise

price

of

an

option

on

a

credit

default

swap

is

stated

in

terms

of

a

specified

spread

that

represents

the

cost

of

credit

protection

on

the

reference

asset,

including

both

the

upfront

premium

to

open

the

position

and

future

periodic

payments.

The

exercise

price

of

an

interest

rate

swap

is

stated

in

terms

of

a

fixed

interest

rate;

generally,

there

is

no

upfront

payment

to

open

the

position. Risks related

to

the

use

of

options

include

possible

illiquidity

of

the

options

markets;

trading

restrictions

imposed

by

an

exchange

or

counterparty;

possible

failure

of

counterparties

to

meet

the

terms

of

the

agreements;

movements

in

the

underlying

asset

values,

interest

rates

and

credit

ratings;

and,

for

options

written,

the

potential

for

losses

to

exceed

any

premium

received

by

the

fund.

During

the

year ended

May

31,

2024,

the

volume

of

the

fund’s

activity

in

options,

based

on

underlying

notional

amounts,

was

generally

between

0%

and

11%

of

net

assets. 

Swaps

 The

fund

is

subject

to

credit

risk in

the

normal

course

of

pursuing

its

investment

objectives

and

uses

swap

contracts

to

help

manage

such

risk.

The

fund

may

use

swaps

in

an

effort

to

manage

both

long

and

short

exposure

to

changes

in

interest

rates,

inflation

rates,

and

credit

quality;

to

adjust

overall

exposure

to

certain

markets;

to

enhance

total

return

or

protect

the

value

of

portfolio

securities;

to

serve

as

a

cash

management

tool;

or

to

adjust

portfolio

duration

and

credit

exposure.

Swap

agreements

can

be

settled

either

directly

with

the

counterparty

(bilateral

swap)

or

through

a

central

clearinghouse

(centrally

cleared

swap).

Fluctuations

in

the

fair

value

of

a

contract

are

reflected

in

unrealized

gain

or

loss

and

are

reclassified

to

realized

gain

or

loss

on

the

accompanying

Statement

of

Operations upon

contract

termination

or

cash

settlement.

Net

periodic

receipts

or

payments

required

by

a

contract

increase

or

decrease,

respectively,

the

value

of

the

contract

until

the

contractual

payment

date,

at

which

time

such

amounts

are

reclassified

from

unrealized

to

realized

gain

or

loss

on

the

accompanying

Statement

of

Operations.

For

bilateral

swaps,

cash

payments

are

made

or

received

by

the

fund

on

a

periodic

basis

in

accordance

with

contract

terms;

unrealized

gain

on

contracts

and

premiums

paid

are

reflected

as

assets

and

unrealized

loss

on

contracts

and

premiums

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received

are

reflected

as

liabilities

on

the

accompanying

Statement

of

Assets

and

Liabilities.

For

bilateral

swaps,

premiums

paid

or

received

are

amortized

over

the

life

of

the

swap

and

are

recognized

as

realized

gain

or

loss

on

the

accompanying

Statement

of

Operations.

For

centrally

cleared

swaps,

payments

are

made

or

received

by

the

fund

each

day

to

settle

the

daily

fluctuation

in

the

value

of

the

contract

(variation

margin).

Accordingly,

the

value

of

a

centrally

cleared

swap

included

in

net

assets

is

the

unsettled

variation

margin;

net

variation

margin

receivable

is

reflected

as

an

asset

and

net

variation

margin

payable

is

reflected

as

a

liability

on

the

accompanying

Statement

of

Assets

and

Liabilities.

Credit

default

swaps

are

agreements

where

one

party

(the

protection

buyer)

agrees

to

make

periodic

payments

to

another

party

(the

protection

seller)

in

exchange

for

protection

against

specified

credit

events,

such

as

certain

defaults

and

bankruptcies

related

to

an

underlying

credit

instrument,

or

issuer

or

index

of

such

instruments.

Upon

occurrence

of

a

specified

credit

event,

the

protection

seller

is

required

to

pay

the

buyer

the

difference

between

the

notional

amount

of

the

swap

and

the

value

of

the

underlying

credit,

either

in

the

form

of

a

net

cash

settlement

or

by

paying

the

gross

notional

amount

and

accepting

delivery

of

the

relevant

underlying

credit.

For

credit

default

swaps

where

the

underlying

credit

is

an

index,

a

specified

credit

event

may

affect

all

or

individual

underlying

securities

included

in

the

index

and

will

be

settled

based

upon

the

relative

weighting

of

the

affected

underlying

security(ies)

within

the

index. Generally,

the

payment

risk

for

the

seller

of

protection

is

inversely

related

to

the

current

market

price

or

credit

rating

of

the

underlying

credit

or

the

market

value

of

the

contract

relative

to

the

notional

amount,

which

are

indicators

of

the

markets’

valuation

of

credit

quality.

As

of

May

31,

2024,

the

notional

amount

of

protection

sold

by

the

fund

totaled $20,000,000

(0.9%

of

net

assets),

which

reflects

the

maximum

potential

amount

the

fund

could

be

required

to

pay

under

such

contracts.

Risks

related

to

the

use

of

credit

default

swaps

include

the

possible

inability

of

the

fund

to

accurately

assess

the

current

and

future

creditworthiness

of

underlying

issuers,

the

possible

failure

of

a

counterparty

to

perform

in

accordance

with

the

terms

of

the

swap

agreements,

potential

government

regulation

that

could

adversely

affect

the

fund’s

swap

investments,

and

potential

losses

in

excess

of

the

fund’s

initial

investment.

During

the

year ended

May

31,

2024,

the

volume

of

the

fund’s

activity

in

swaps,

based

on

underlying

notional

amounts,

was

generally

between

0%

and

6%

of

net

assets.

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NOTE

4

-

OTHER

INVESTMENT

TRANSACTIONS 

Consistent

with

its

investment

objective, the

fund

engages

in

the

following

practices

to

manage

exposure

to

certain

risks

and/or

to

enhance

performance.

The

investment

objective,

policies,

program,

and

risk

factors

of the

fund

are

described

more

fully

in the

fund’s prospectus

and

Statement

of

Additional

Information.

Restricted

Securities

 The

fund

invests

in

securities

that

are

subject

to

legal

or

contractual

restrictions

on

resale.

Prompt

sale

of

such

securities

at

an

acceptable

price

may

be

difficult

and

may

involve

substantial

delays

and

additional

costs.

Collateralized

Loan

Obligations 

 The

fund

invests

in

collateralized

loan

obligations

(CLOs)

which

are

entities

backed

by

a

diversified

pool

of

syndicated

bank

loans.

The

cash

flows

of

the

CLO

can

be

split

into

multiple

segments,

called

“tranches”

or

“classes”,

which

will

vary

in

risk

profile

and

yield.

The

riskiest

segments,

which

are

the

subordinate

or

“equity”

tranches,

bear

the

greatest

risk

of

loss

from

defaults

in

the

underlying

assets

of

the

CLO

and

serve

to

protect

the

other,

more

senior,

tranches.

Senior

tranches

will

typically

have

higher

credit

ratings

and

lower

yields

than

the

securities

underlying

the

CLO.

Despite

the

protection

from

the

more

junior

tranches,

senior

tranches

can

experience

substantial

losses. 

Mortgage-Backed

Securities

 The

fund

invests

in

mortgage-backed

securities

(MBS

or

pass-through

certificates)

that

represent

an

interest

in

a

pool

of

specific

underlying

mortgage

loans

and

entitle

the

fund

to

the

periodic

payments

of

principal

and

interest

from

those

mortgages.

MBS

may

be

issued

by

government

agencies

or

corporations,

or

private

issuers.

Most

MBS

issued

by

government

agencies

are

guaranteed;

however,

the

degree

of

protection

differs

based

on

the

issuer.

MBS are

sensitive

to

changes

in

economic

conditions

that

affect

the

rate

of

prepayments

and

defaults

on

the

underlying

mortgages;

accordingly,

the

value,

income,

and

related

cash

flows

from

MBS

may

be

more

volatile

than

other

debt

instruments.

Securities

Lending

 The fund

may

lend

its

securities

to

approved

borrowers

to

earn

additional

income.

Its

securities

lending

activities

are

administered

by

a

lending

agent

in

accordance

with

a

securities

lending

agreement.

Security

loans

generally

do

not

have

stated

maturity

dates,

and

the

fund

may

recall

a

security

at

any

time.

The

fund

receives

collateral

in

the

form

of

cash

or

U.S.

government

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

the

value

of

loaned

securities;

any

additional

collateral

required

due

to

T.

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57

changes

in

security

values

is

delivered

to

the

fund

the

next

business

day.

Cash

collateral

is

invested

in

accordance

with

investment

guidelines

approved

by

fund

management.

Additionally,

the

lending

agent

indemnifies

the

fund

against

losses

resulting

from

borrower

default.

Although

risk

is

mitigated

by

the

collateral

and

indemnification,

the

fund

could

experience

a

delay

in

recovering

its

securities

and

a

possible

loss

of

income

or

value

if

the

borrower

fails

to

return

the

securities,

collateral

investments

decline

in

value,

and

the

lending

agent

fails

to

perform.

Securities

lending

revenue

consists

of

earnings

on

invested

collateral

and

borrowing

fees,

net

of

any

rebates

to

the

borrower,

compensation

to

the

lending

agent,

and

other

administrative

costs.

In

accordance

with

GAAP,

investments

made

with

cash

collateral

are

reflected

in

the

accompanying

financial

statements,

but

collateral

received

in

the

form

of

securities

is

not.

At

May

31,

2024,

the

value

of

loaned

securities

was

$766,000,

including

securities

sold

but

not

yet

settled,

which

are

not

reflected

in

the

accompanying

Portfolio

of

Investments;

the

value

of

cash

collateral

and

related

investments

was

$782,000.

Other 

Purchases

and

sales

of

portfolio

securities

other

than

in-kind

transactions,

if

any,

short-term and

U.S.

government

securities

aggregated $1,569,045,000 and

$1,732,832,000,

respectively,

for

the

year ended

May

31,

2024.

Purchases

and

sales

of

U.S.

government

securities

aggregated

$24,948,000 and

$50,430,000,

respectively,

for

the

year ended

May

31,

2024.

NOTE

5

-

FEDERAL

INCOME

TAXES

Generally,

no

provision

for

federal

income

taxes

is

required

since

the

fund

intends

to continue

to

qualify

as

a

regulated

investment

company

under

Subchapter

M

of

the

Internal

Revenue

Code

and

distribute

to

shareholders

all

of

its taxable

income

and

gains.

Distributions

determined

in

accordance

with

federal

income

tax

regulations

may

differ

in

amount

or

character

from

net

investment

income

and

realized

gains

for

financial

reporting

purposes.

The

fund

files

U.S.

federal,

state,

and

local

tax

returns

as

required.

The

fund’s

tax

returns

are

subject

to

examination

by

the

relevant

tax

authorities

until

expiration

of

the

applicable

statute

of

limitations,

which

is

generally

three

years

after

the

filing

of

the

tax

return

but

which

can

be

extended

to

six

years

in

certain

circumstances.

Tax

returns

for

open

years

have

incorporated

no

uncertain

tax

positions

that

require

a

provision

for

income

taxes.

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Capital

accounts

within

the

financial

reporting

records

are

adjusted

for

permanent

book/tax

differences

to

reflect

tax

character

but

are

not

adjusted

for

temporary

differences.

The

permanent

book/tax

adjustments,

if

any,

have

no

impact

on

results

of

operations

or

net

assets.

The

tax

character

of

distributions

paid

for

the

periods

presented

was

as

follows:

At

May

31,

2024,

the

tax-basis

cost

of

investments

(including

derivatives,

if

any)

and

gross

unrealized

appreciation

and

depreciation

were as

follows:

At

May

31,

2024,

the

tax-basis

components

of

accumulated

net

earnings

(loss)

were

as

follows:

Temporary

differences

between

book-basis

and

tax-basis

components

of

total

distributable

earnings

(loss)

arise

when

certain

items

of

income,

gain,

or

loss

are

recognized

in

different

periods

for

financial

statement

purposes

versus

for

tax

purposes;

these

differences

will

reverse

in

a

subsequent

reporting

period.

The

temporary

differences

relate

primarily

to

the

deferral

of

losses

from

wash

($000s)

May

31,

2024

May

31,

2023

Ordinary

income

(including

short-term

capital

gains,

if

any)

$

105,808‌

$

80,097‌

Long-term

capital

gain

—‌

8,740‌

Total

distributions

$

105,808‌

$

88,837‌

($000s)

Cost

of

investments

$

2,278,233‌

Unrealized

appreciation

$

4,787‌

Unrealized

depreciation

(19,484‌)

Net

unrealized

appreciation

(depreciation)

$

(14,697‌)

($000s)

Overdistributed

ordinary

income

$

(6,040‌)

Net

unrealized

appreciation

(depreciation)

(14,697‌)

Loss

carryforwards

and

deferrals

(39,452‌)

Total

distributable

earnings

(loss)

$

(60,189‌)

T.

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Fund

59

sales.

The

loss

carryforwards

and

deferrals

primarily

relate

to

capital

loss

carryforwards

and

straddle

deferrals.

Capital

loss

carryforwards

are

available

indefinitely

to

offset

future

realized

capital

gains.

NOTE

6

-

RELATED

PARTY

TRANSACTIONS

The

fund

is

managed

by

T.

Rowe

Price

Associates,

Inc.

(Price

Associates),

a

wholly

owned

subsidiary

of

T.

Rowe

Price

Group,

Inc.

(Price

Group). Price

Associates

has

entered

into

a

sub-advisory

agreement(s)

with

one

or

more

of

its

wholly

owned

subsidiaries,

to

provide

investment

advisory

services

to

the

fund. The

investment

management

agreement

between

the

fund

and

Price

Associates

provides

for

an

annual

investment

management

fee

equal

to 0.16%

of

the

fund’s

average

daily

net

assets.

The

fee

is

computed

daily

and

paid

monthly.

The Investor

Class is

subject

to

a

contractual

expense

limitation

through

the

expense

limitation

date

indicated

in

the

table

below.

This

agreement

will

continue

through

the

expense

limitation

date

indicated

in

the

table

below,

and

may

be

renewed,

revised,

or

revoked

only

with

approval

of

the

fund’s

Board.

During

the

limitation

period,

Price

Associates

is required

to

waive

or

pay

any

expenses

(excluding

interest;

expenses

related

to

borrowings,

taxes,

and

brokerage;

non-recurring,

extraordinary

expenses;

and

acquired

fund

fees

and

expenses)

that

would

otherwise

cause

the

class’s

ratio

of

annualized

total

expenses

to

average

net

assets

(net

expense

ratio)

to

exceed

its

expense

limitation.

The

class

is

required

to

repay

Price

Associates

for

expenses

previously

waived/paid

to

the

extent

the

class’s

net

assets

grow

or

expenses

decline

sufficiently

to

allow

repayment

without

causing

the

class’s

net

expense

ratio

(after

the

repayment

is

taken

into

account)

to

exceed

the

lesser

of:

(1)

the

expense

limitation

in

place

at

the

time

such

amounts

were

waived;

or

(2)

the

class’s

current

expense

limitation.

However,

no

repayment

will

be

made

more

than

three

years

after

the

date

of

a

payment

or

waiver.

The

I

Class

is

also

subject

to

an

operating

expense

limitation

(I

Class

Limit)

pursuant

to

which

Price

Associates

is

contractually

required

to

pay

all

operating

expenses

of

the

I

Class,

excluding

management

fees;

interest;

expenses

related

to

borrowings,

taxes,

and

brokerage; non-recurring,

extraordinary expenses; and

acquired

fund

fees

and

expenses, to

the

extent

such

operating

expenses,

on

an

annualized

basis,

exceed

the

I

Class

Limit. This

agreement

will

continue

through

the

expense

limitation

date

indicated

in

the

table

below,

and

may

be

renewed,

revised,

or

revoked

only

with

approval

of

the

fund’s

Board.

The

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

60

I

Class

is

required

to

repay

Price

Associates

for

expenses

previously

paid

to

the

extent

the

class’s

net

assets

grow

or

expenses

decline

sufficiently

to

allow

repayment

without

causing

the

class’s

operating

expenses

(after

the

repayment

is

taken

into

account)

to

exceed

the

lesser

of:

(1)

the

I

Class

Limit

in

place

at

the

time

such

amounts

were

paid;

or

(2)

the

current

I

Class

Limit.

However,

no

repayment

will

be

made

more

than

three

years

after

the

date

of

a

payment

or

waiver.

The

Z

Class

is

also

subject

to

a

contractual

expense

limitation

agreement

whereby

Price

Associates

has

agreed

to

waive

and/or

bear

all

of

the

Z

Class’

expenses

(excluding

interest;

expenses

related

to

borrowings,

taxes,

and

brokerage;

non-recurring,

extraordinary

expenses;

and

acquired

fund

fees

and

expenses)

in

their

entirety.

This

fee

waiver

and/or

expense

reimbursement

arrangement

is

expected

to

remain

in

place

indefinitely,

and

the

agreement

may

only

be

amended

or

terminated

with

approval

by

the

fund’s

Board.

Expenses

of

the

fund

waived/paid

by

the

manager

are

not

subject

to

later

repayment

by

the

fund.

Pursuant

to

these

agreements,

expenses

were

waived/paid

by

and/or

repaid

to

Price

Associates

during

the

year ended May

31,

2024

as

indicated

in

the

table

below.

Including

this

amount,

expenses

previously

waived/paid

by

Price

Associates

in

the

amount

of $879,000 remain

subject

to

repayment

by

the

fund

at

May

31,

2024.

Any

repayment

of

expenses

previously

waived/paid

by

Price

Associates

during

the

period

would

be

included

in

the

net

investment

income

and

expense

ratios

presented

on

the

accompanying

Financial

Highlights.

In

addition,

the

fund

has

entered

into

service

agreements

with

Price

Associates

and

two

wholly

owned

subsidiaries

of

Price

Associates,

each

an

affiliate

of

the

fund

(collectively,

Price).

Price

Associates

provides

certain

accounting

and

administrative

services

to

the

fund.

T.

Rowe

Price

Services,

Inc.

provides

shareholder

and

administrative

services

in

its

capacity

as

the

fund’s

transfer

and

dividend-disbursing

agent.

T.

Rowe

Price

Retirement

Plan

Services,

Inc.

provides

subaccounting

and

recordkeeping

services

for

certain

retirement

Investor

Class

I

Class

Z

Class

Expense

limitation/I

Class

Limit

0.31%

0.05%

0.00%

Expense

limitation

date

09/30/25

09/30/25

N/A

(Waived)/repaid

during

the

period

($000s)

$(296)

$—

$—

(1)

(1)

Amount

rounds

to

less

than

$1,000

T.

ROWE

PRICE

Ultra

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Bond

Fund

61

accounts

invested

in

the

Investor

Class.

For

the

year

ended

May

31,

2024,

expenses

incurred

pursuant

to

these

service

agreements

were

$109,000

for

Price

Associates;

$354,000

for

T.

Rowe

Price

Services,

Inc.;

and

$5,000

for

T.

Rowe

Price

Retirement

Plan

Services,

Inc.

All

amounts

due

to

and

due

from

Price,

exclusive

of

investment

management

fees

payable,

are

presented

net

on

the

accompanying

Statement

of

Assets

and

Liabilities.

T.

Rowe

Price

Investment

Services,

Inc.

(Investment

Services)

serves

as

distributor

to

the

fund.

Pursuant

to

an

underwriting

agreement,

no

compensation

for

any

distribution

services

provided

is

paid

to

Investment

Services

by

the

fund

(except

for

12b-1

fees

under

a

Board-approved

Rule

12b-1

plan).

The fund

may

invest

its

cash

reserves

in

certain

open-end

management

investment

companies

managed

by

Price

Associates

and

considered

affiliates

of

the

fund:

the

T.

Rowe

Price

Government

Reserve

Fund

or

the

T.

Rowe

Price

Treasury

Reserve

Fund,

organized

as

money

market

funds

(together,

the

Price

Reserve

Funds).

The

Price

Reserve

Funds

are

offered

as

short-term

investment

options

to

mutual

funds,

trusts,

and

other

accounts

managed

by

Price

Associates

or

its

affiliates

and

are

not

available

for

direct

purchase

by

members

of

the

public.

Cash

collateral

from

securities

lending,

if

any,

is

invested

in

the

T.

Rowe

Price

Government

Reserve Fund. The

Price

Reserve

Funds

pay

no

investment

management

fees.

As

of

May

31,

2024,

T.

Rowe

Price

Group,

Inc.,

or

its

wholly

owned

subsidiaries,

owned

891,069

shares

of

the

Investor

Class,

representing

less

than

1%

of

the

Investor

Class's

net

assets,

and

19,608

shares

of

the

Z

Class,

representing

100%

of

the

Z

Class's

net

assets. 

The fund may

participate

in

securities

purchase

and

sale

transactions

with

other

funds

or

accounts

advised

by

Price

Associates

(cross

trades),

in

accordance

with

procedures

adopted

by the

fund’s

Board

and

Securities

and

Exchange

Commission

rules,

which

require,

among

other

things,

that

such

purchase

and

sale

cross

trades

be

effected

at

the

independent

current

market

price

of

the

security.

During

the

year

ended

May

31,

2024,

the

fund

had

no

purchases

or

sales

cross

trades

with

other

funds

or

accounts

advised

by

Price

Associates.

T.

ROWE

PRICE

Ultra

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Fund

62

NOTE

7

-

OTHER

MATTERS

Unpredictable environmental,

political,

social

and

economic

events,

including

but

not

limited

to,

environmental

or

natural

disasters,

war

and

conflict

(including

Russia’s

military

invasion

of

Ukraine

and

the

conflict

in

Israel,

Gaza

and

surrounding

areas),

terrorism,

geopolitical

developments

(including

trading

and

tariff

arrangements,

sanctions

and

cybersecurity

attacks),

and

public

health

epidemics

(including

the

global

outbreak

of

COVID-19)

and

similar

public

health

threats,

may

significantly

affect

the

economy

and

the

markets

and

issuers

in

which

a

fund

invests.

The

extent

and

duration

of

such

events

and

resulting

market

disruptions

cannot

be

predicted.

These

and

other

similar

events

may

cause

instability

across

global

markets,

including

reduced

liquidity

and

disruptions

in

trading

markets,

while

some

events

may

affect

certain

geographic

regions,

countries,

sectors,

and

industries

more

significantly

than

others,

and

exacerbate

other

pre-existing

political,

social,

and

economic

risks.

The

fund’s

performance

could

be

negatively

impacted

if

the

value

of

a

portfolio

holding

were

harmed

by

these

or

such

events.

Management

actively

monitors

the

risks

and

financial

impacts

arising

from

such

events.

T.

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PRICE

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Fund

63

REPORT

OF

INDEPENDENT

REGISTERED

PUBLIC

ACCOUNTING

FIRM

To

the

Board

of

Directors

of

T.

Rowe

Price

Short-Term

Bond

Fund,

Inc.

and

Shareholders

of

T.

Rowe

Price

Ultra

Short-Term

Bond

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

portfolio

of

investments,

of

T.

Rowe

Price

Ultra

Short-Term

Bond

Fund

(one

of

the

funds

constituting

T.

Rowe

Price

Short-Term

Bond

Fund,

Inc.,

referred

to

hereafter

as

the

"Fund")

as

of

May

31,

2024,

the

related

statement

of

operations

for

the

year

ended

May

31,

2024,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

May

31,

2024,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

May

31,

2024,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

May

31,

2024

and

the

financial

highlights

for

each

of

the

periods

indicated

therein,

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

64

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

May

31,

2024

by

correspondence

with

the

custodians,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.   

/s/

PricewaterhouseCoopers

LLP

Baltimore,

Maryland

July

18,

2024

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

T.

Rowe

Price

group

of

investment

companies

since

1973.

REPORT

OF

INDEPENDENT

REGISTERED

PUBLIC

ACCOUNTING

FIRM

(continued)

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

65

TAX

INFORMATION

(UNAUDITED)

FOR

THE

TAX

YEAR

ENDED 5/31/24

We

are

providing

this

information

as

required

by

the

Internal

Revenue

Code.

The

amounts

shown

may

differ

from

those

elsewhere

in

this

report

because

of

differences

between

tax

and

financial

reporting

requirements.

For

shareholders

subject

to

interest

expense

deduction

limitation

under

Section

163(j),

$105,046,000

of

the

fund’s

income

qualifies

as

a

Section

163(j)

interest

dividend

and

can

be

treated

as

interest

income

for

purposes

of

Section

163(j),

subject

to

holding

period

requirements

and

other

limitations.

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

66

Approval

of

Investment

Management

Agreement

and

Subadvisory

Agreements

Each

year,

the

fund’s

Board

of

Directors

(Board)

considers

the

continuation

of

the

investment

management

agreement

(Advisory

Contract)

between

the

fund

and

its

investment

adviser,

T.

Rowe

Price

Associates,

Inc.

(Adviser),

as

well

as

the

investment

subadvisory

agreements

(Subadvisory

Contracts)

that

the

Adviser

has

entered

into

with

T.

Rowe

Price

International

Ltd

and

T.

Rowe

Price

Hong

Kong

Limited

(Subadvisers)

on

behalf

of

the

fund.

In

that

regard,

at

a

meeting

held

on

March

11–12,

2024

(Meeting),

the

Board,

including

all

of

the

fund’s

independent

directors

present

in

person

at

the

Meeting,

approved

the

continuation

of

the

fund’s

Advisory

Contract

and

Subadvisory

Contracts.

At

the

Meeting,

the

Board

considered

the

factors

and

reached

the

conclusions

described

below

relating

to

the

selection

of

the

Adviser

and

Subadvisers

and

the

approval

of

the

Advisory

Contract

and

Subadvisory

Contracts.

The

independent

directors

were

assisted

in

their

evaluation

of

the

Advisory

Contract

and

Subadvisory

Contracts

by

independent

legal

counsel

from

whom

they

received

separate

legal

advice

and

with

whom

they

met

separately.

In

providing

information

to

the

Board,

the

Adviser

was

guided

by

a

detailed

set

of

requests

for

information

submitted

by

independent

legal

counsel

on

behalf

of

the

independent

directors.

In

considering

and

approving

the

continuation

of

the

Advisory

Contract

and

Subadvisory

Contracts,

the

Board

considered

the

information

it

believed

was

relevant,

including,

but

not

limited

to,

the

information

discussed

below.

The

Board

considered

not

only

the

specific

information

presented

in

connection

with

the

Meeting,

but

also

the

knowledge

gained

over

time

through

interaction

with

the

Adviser

and

Subadvisers

about

various

topics.

The

Board

meets

regularly

and,

at

each

of

its

meetings,

covers

an

extensive

agenda

of

topics

and

materials

and

considers

factors

that

are

relevant

to

its

annual

consideration

of

the

renewal

of

the

T.

Rowe

Price

funds’

advisory

contracts,

including

performance

and

the

services

and

support

provided

to

the

funds

and

their

shareholders.

Services

Provided

by

the

Adviser

and

Subadvisers

The

Board

considered

the

nature,

quality,

and

extent

of

the

services

provided

to

the

fund

by

the

Adviser

and

Subadvisers.

These

services

included,

but

were

not

limited

to,

directing

the

fund’s

investments

in

accordance

with

its

investment

program

and

the

overall

management

of

the

fund’s

portfolio,

as

well

as

a

variety

of

related

activities

such

as

financial,

investment

operations,

and

administrative

services;

compliance;

maintaining

the

fund’s

records

and

registrations;

and

shareholder

communications.

The

Board

also

reviewed

the

background

and

experience

of

the

Adviser’s

and

Subadvisers’

senior

management

teams

and

investment

personnel

T.

ROWE

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Ultra

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Fund

67

involved

in

the

management

of

the

fund,

as

well

as

the

Adviser’s

compliance

record.

The

Board

concluded

that

the

information

it

considered

with

respect

to

the

nature,

quality,

and

extent

of

the

services

provided

by

the

Adviser

and

Subadvisers,

as

well

as

the

other

factors

considered

at

the

Meeting,

supported

the

Board’s

approval

of

the

continuation

of

the

Advisory

Contract

and

Subadvisory

Contracts.

Investment

Performance

of

the

Fund

The

Board

took

into

account

discussions

with

the

Adviser

and

detailed

reports

that

it

regularly

receives

throughout

the

year

on

relative

and

absolute

performance

for

the

T.

Rowe

Price

funds.

In

connection

with

the

Meeting,

the

Board

reviewed

information

provided

by

the

Adviser

that

compared

the

fund’s

total

returns,

as

well

as

a

wide

variety

of

other

previously

agreed-upon

performance

measures

and

market

data,

against

relevant

benchmark

indexes

and

peer

groups

of

funds

with

similar

investment

programs

for

various

periods

through

December

31,

2023.

Additionally,

the

Board

reviewed

the

fund’s

relative

performance

information

as

of

September

30,

2023,

which

ranked

the

returns

of

the

fund’s

Investor

Class

for

various

periods

against

a

universe

of

funds

with

similar

investment

programs

selected

by

Broadridge,

an

independent

provider

of

mutual

fund

data.

In

the

course

of

its

deliberations,

the

Board

considered

performance

information

provided

throughout

the

year

and

in

connection

with

the

Advisory

Contract

review

at

the

Meeting,

as

well

as

information

provided

during

investment

review

meetings

conducted

with

portfolio

managers

and

senior

investment

personnel

during

the

course

of

the

year

regarding

the

fund’s

performance.

The

Board

also

considered

relevant

factors,

such

as

overall

market

conditions

and

trends

that

could

adversely

impact

the

fund’s

performance,

the

length

of

the

fund’s

performance

track

record,

and

how

closely

the

fund’s

strategies

align

with

its

benchmarks

and

peer

groups.

The

Board

concluded

that

the

information

it

considered

with

respect

to

the

fund’s

performance,

as

well

as

the

other

factors

considered

at

the

Meeting,

supported

the

Board’s

approval

of

the

continuation

of

the

Advisory

Contract

and

Subadvisory

Contracts.

Costs,

Benefits,

Profits,

and

Economies

of

Scale

The

Board

reviewed

detailed

information

regarding

the

revenues

received

by

the

Adviser

under

the

Advisory

Contract

and

other

direct

and

indirect

benefits

that

the

Adviser

(and

its

affiliates,

including

the

Subadvisers)

may

have

realized

from

its

relationship

with

the

fund.

In

considering

soft-dollar

arrangements

pursuant

to

which

research

may

be

received

from

broker-dealers

that

execute

the

fund’s

portfolio

transactions,

the

Board

noted

that

during

2023

the

Adviser

paid

the

costs

of

research

services

for

all

client

accounts

that

it

advises,

including

the

T.

Rowe

Price

funds.

However,

effective

January

1,

2024,

the

Adviser

will

begin

using

brokerage

Approval

of

Investment

Management

Agreement

and

Subadvisory

Agreements

(continued)

T.

ROWE

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Ultra

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Bond

Fund

68

commissions

in

connection

with

certain

T.

Rowe

Price

funds’

securities

transactions

to

pay

for

research

when

permissible.

The

Board

received

information

on

the

estimated

costs

incurred

and

profits

realized

by

the

Adviser

from

managing

the

T.

Rowe

Price

funds.

The

Board

also

reviewed

estimates

of

the

profits

realized

from

managing

the

fund

in

particular,

and

the

Board

concluded

that

the

Adviser’s

profits

were

reasonable

in

light

of

the

services

provided

to

the

fund.

The

Board

also

considered

whether

the

fund

benefits

under

the

fee

levels

set

forth

in

the

Advisory

Contract

or

otherwise

from

any

economies

of

scale

realized

by

the

Adviser.

Under

the

Advisory

Contract,

the

fund

pays

a

fee

to

the

Adviser

for

investment

management

services

based

on

the

fund’s

average

daily

net

assets

and

the

fund

pays

its

own

expenses

of

operations.

Under

each

Subadvisory

Contract,

the

Adviser

may

pay

the

Subadviser

up

to

60%

of

the

advisory

fees

that

the

Adviser

receives

from

the

fund.

Assets

of

the

fund

are

included

in

the

calculation

of

the

group

fee

rate,

which

serves

as

a

component

of

the

management

fee

for

many

other

T.

Rowe

Price

funds

and

declines

at

certain

asset

levels

based

on

the

combined

average

net

assets

of

most

of

the

T.

Rowe

Price

funds

(including

the

fund).

Although

the

fund

does

not

have

a

group

fee

component

to

its

management

fee,

its

assets

are

included

in

the

calculation

because

certain

resources

utilized

to

operate

the

fund

are

shared

with

other

T.

Rowe

Price

funds.

The

fund’s

shareholders

have

benefitted

from

reductions

to

the

fund’s

management

fee

and

also

benefit

from

potential

future

economies

of

scale

through

a

decline

in

certain

operating

expenses

as

the

fund

grows

in

size.

However,

the

fund

is

also

subject

to

contractual

expense

limitations

that

require

the

Adviser

to

waive

its

fees

and/or

bear

any

expenses

that

would

otherwise

cause

the

expenses

of

a

share

class

of

the

fund

to

exceed

a

certain

percentage

based

on

the

class’s

net

assets.

The

expense

limitations

mitigate

the

potential

for

an

increase

in

operating

expenses

above

a

certain

level

that

could

impact

shareholders.

The

fund

also

offers

a

Z

Class,

which

serves

as

an

underlying

investment

within

certain

T.

Rowe

Price

fund

of

funds

arrangements.

The

Adviser

waives

its

advisory

fee

on

the

Z

Class

and

waives

or

bears

the

Z

Class’s

other

operating

expenses,

with

certain

exceptions.

The

Board

considered

whether

the

advisory

fee

and

operating

expense

waivers

on

the

Z

Class

may

present

a

means

for

cross-

subsidization

of

the

Z

Class

by

other

share

classes

of

the

fund.

In

that

regard,

the

Board

noted

that

the

Z

Class

operating

expenses

are

largely

covered

by

the

all-inclusive

fees

charged

by

the

investing

T.

Rowe

Price

fund

of

funds

and

that

any

Z

Class

operating

expenses

not

covered

by

the

investing

T.

Rowe

Price

fund

of

funds’

fees

are

paid

by

the

Adviser

and

not

by

shareholders

of

any

other

share

class

of

the

fund.

Approval

of

Investment

Management

Agreement

and

Subadvisory

Agreements

(continued)

T.

ROWE

PRICE

Ultra

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Bond

Fund

69

In

addition,

the

Board

noted

that

the

fund

potentially

shares

in

indirect

economies

of

scale

through

the

Adviser’s

and

Subadvisers’

ongoing

investments

in

their

business

in

support

of

the

T.

Rowe

Price

funds,

including

investments

in

trading

systems,

technology,

and

regulatory

support

enhancements,

and

the

ability

to

possibly

negotiate

lower

fee

arrangements

with

third-party

service

providers.

The

Board

concluded

that

the

advisory

fee

structure

for

the

fund

provides

for

a

reasonable

sharing

of

benefits

from

any

economies

of

scale

with

the

fund’s

investors.

Fees

and

Expenses

The

Board

was

provided

with

information

regarding

industry

trends

in

management

fees

and

expenses.

Among

other

things,

the

Board

reviewed

data

for

peer

groups

that

were

compiled

by

Broadridge,

which

compared:

(i)

contractual

management

fees,

actual

management

fees,

nonmanagement

expenses,

and

total

expenses

of

the

Investor

Class

of

the

fund

with

a

group

of

competitor

funds

selected

by

Broadridge

(Expense

Group)

and

(ii)

actual

management

fees,

nonmanagement

expenses,

and

total

expenses

of

the

Investor

Class

of

the

fund

with

a

broader

set

of

funds

within

the

Lipper

investment

classification

(Expense

Universe).

The

Board

considered

the

fund’s

contractual

management

fee

rate,

actual

management

fee

rate

(which

reflects

the

management

fees

actually

received

from

the

fund

by

the

Adviser

after

any

applicable

waivers,

reductions,

or

reimbursements),

operating

expenses,

and

total

expenses

(which

reflect

the

net

total

expense

ratio

of

the

fund

after

any

waivers,

reductions,

or

reimbursements)

in

comparison

with

the

information

for

the

Broadridge

peer

groups.

Broadridge

generally

constructed

the

peer

groups

by

seeking

the

most

comparable

funds

based

on

similar

investment

classifications

and

objectives,

expense

structure,

asset

size,

and

operating

components

and

attributes

and

ranked

funds

into

quintiles,

with

the

first

quintile

representing

the

funds

with

the

lowest

relative

expenses

and

the

fifth

quintile

representing

the

funds

with

the

highest

relative

expenses.

The

information

provided

to

the

Board

indicated

that

the

fund’s

contractual

management

fee

ranked

in

the

first

quintile

(Expense

Group),

the

fund’s

actual

management

fee

rate

ranked

in

the

first

quintile

(Expense

Group

and

Expense

Universe),

and

the

fund’s

total

expenses

ranked

in

the

fourth

quintile

(Expense

Group

and

Expense

Universe).

The

Board

also

reviewed

the

fee

schedules

for

other

investment

portfolios

with

similar

mandates

that

are

advised

or

subadvised

by

the

Adviser

and

its

affiliates,

including

separately

managed

accounts

for

institutional

and

individual

investors;

subadvised

funds;

and

other

sponsored

investment

portfolios,

including

collective

investment

trusts

and

pooled

vehicles

organized

and

offered

to

investors

outside

the

United

States.

Management

provided

the

Board

with

information

about

the

Adviser’s

responsibilities

and

services

provided

to

subadvisory

and

other

institutional

account

clients,

including

information

about

how

the

requirements

and

Approval

of

Investment

Management

Agreement

and

Subadvisory

Agreements

(continued)

T.

ROWE

PRICE

Ultra

Short-Term

Bond

Fund

70

economics

of

the

institutional

business

are

fundamentally

different

from

those

of

the

proprietary

mutual

fund

business.

The

Board

considered

information

showing

that

the

Adviser’s

mutual

fund

business

is

generally

more

complex

from

a

business

and

compliance

perspective

than

its

institutional

account

business

and

considered

various

relevant

factors,

such

as

the

broader

scope

of

operations

and

oversight,

more

extensive

shareholder

communication

infrastructure,

greater

asset

flows,

heightened

business

risks,

and

differences

in

applicable

laws

and

regulations

associated

with

the

Adviser’s

proprietary

mutual

fund

business.

In

assessing

the

reasonableness

of

the

fund’s

management

fee

rate,

the

Board

considered

the

differences

in

the

nature

of

the

services

required

for

the

Adviser

to

manage

its

mutual

fund

business

versus

managing

a

discrete

pool

of

assets

as

a

subadviser

to

another

institution’s

mutual

fund

or

for

an

institutional

account

and

that

the

Adviser

generally

performs

significant

additional

services

and

assumes

greater

risk

in

managing

the

fund

and

other

T.

Rowe

Price

funds

than

it

does

for

institutional

account

clients,

including

subadvised

funds.

On

the

basis

of

the

information

provided

and

the

factors

considered,

the

Board

concluded

that

the

fees

paid

by

the

fund

under

the

Advisory

Contract

are

reasonable.

Approval

of

the

Advisory

Contract

and

Subadvisory

Contracts

As

noted,

the

Board

approved

the

continuation

of

the

Advisory

Contract

and

Subadvisory

Contracts.

No

single

factor

was

considered

in

isolation

or

to

be

determinative

to

the

decision.

Rather,

the

Board

concluded,

in

light

of

a

weighting

and

balancing

of

all

factors

considered,

that

it

was

in

the

best

interests

of

the

fund

and

its

shareholders

for

the

Board

to

approve

the

continuation

of

the

Advisory

Contract

and

Subadvisory

Contracts

(including

the

fees

to

be

charged

for

services

thereunder).

Approval

of

Investment

Management

Agreement

and

Subadvisory

Agreements

(continued)

100

East

Pratt

Street

Baltimore,

MD

21202

T.

Rowe

Price

Investment

Services,

Inc.

Call

1-800-225-5132

to

request

a

prospectus

or

summary

prospectus;

each

includes

investment

objectives,

risks,

fees,

expenses,

and

other

information

that

you

should

read

and

consider

carefully

before

investing.

F188-050

7/24

Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

Not applicable.

Item 9. Proxy Disclosures for Open-End Management Investment Companies.

Not applicable.

Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.

Remuneration paid to Directors is included in Item 7 of this Form N-CSR.

Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

If applicable, see Item 7.

Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 13. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 15. Submission of Matters to a Vote of Security Holders.

There has been no change to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.

Item 16. Controls and Procedures.

(a) The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.

(b) The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 18. Recovery of Erroneously Awarded Compensation.

Not applicable.

Item 19. Exhibits.

(a)(1)	The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is attached.
(2)	Listing standards relating to recovery of erroneously awarded compensation: not applicable.
(3)	Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
(b)	A certification by the registrant’s principal executive officer and principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940, is attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

T. Rowe Price Ultra Short-Term Bond Fund
By	/s/ David Oestreicher
	David Oestreicher
	Principal Executive Officer
Date	July 18, 2024

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By	/s/ David Oestreicher
	David Oestreicher
	Principal Executive Officer
Date	July 18, 2024
By	/s/ Alan S. Dupski
	Alan S. Dupski
	Principal Financial Officer
Date	July 18, 2024