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: November 30, 2024
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
Semi-Annual Shareholder Report
November 30, 2024
Short Duration Income Fund
This semi-annual shareholder report contains important information about Short Duration Income Fund (the "fund") for the period of June 1, 2024 to November 30, 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 six months? (based on a hypothetical $10,000 investment)
| | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Short Duration Income Fund - Investor Class | $20 | 0.40% |
|---|
What are some fund statistics?
| Total Net Assets (000s) | $63,223 |
|---|
| Number of Portfolio Holdings | 428 |
|---|
| |
|---|
| Portfolio Turnover Rate | 52.0% |
|---|
What did the fund invest in?
Credit Quality Allocation*(as a % of Net Assets)
| AAA Rated | 17.8% |
| AA Rated | 9.6 |
| A Rated | 19.8 |
| BBB Rated | 22.9 |
| BB Rated and Below | 9.1 |
| Not Rated | 1.2 |
| U.S. Government Agency Securities | 5.7 |
| U.S. Treasury Securities | 13.9 |
| Reserves | - |
*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 Notes | 13.9% |
| Federal National Mortgage Assn. | 3.3 |
| BANK5 | 1.1 |
| Federal Home Loan Mortgage | 1.0 |
| Sierra Timeshare Receivables Funding | 1.0 |
| Octane Receivables Trust | 0.9 |
| SMB Private Education Loan Trust | 0.9 |
| General Motors Financial | 0.9 |
| SBA Tower Trust | 0.8 |
| Santander Bank Auto Credit-Linked Notes | 0.8 |
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.
Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.
Short Duration Income Fund
Investor Class (TSDLX)
T. Rowe Price Investment Services, Inc.
100 East Pratt Street
Baltimore, MD 21202
Semi-Annual Shareholder Report
November 30, 2024
Short Duration Income Fund
This semi-annual shareholder report contains important information about Short Duration Income Fund (the "fund") for the period of June 1, 2024 to November 30, 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 six months? (based on a hypothetical $10,000 investment)
| | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Short Duration Income Fund - I Class | $15 | 0.29% |
|---|
What are some fund statistics?
| Total Net Assets (000s) | $63,223 |
|---|
| Number of Portfolio Holdings | 428 |
|---|
| |
|---|
| Portfolio Turnover Rate | 52.0% |
|---|
What did the fund invest in?
Credit Quality Allocation*(as a % of Net Assets)
| AAA Rated | 17.8% |
| AA Rated | 9.6 |
| A Rated | 19.8 |
| BBB Rated | 22.9 |
| BB Rated and Below | 9.1 |
| Not Rated | 1.2 |
| U.S. Government Agency Securities | 5.7 |
| U.S. Treasury Securities | 13.9 |
| Reserves | - |
*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 Notes | 13.9% |
| Federal National Mortgage Assn. | 3.3 |
| BANK5 | 1.1 |
| Federal Home Loan Mortgage | 1.0 |
| Sierra Timeshare Receivables Funding | 1.0 |
| Octane Receivables Trust | 0.9 |
| SMB Private Education Loan Trust | 0.9 |
| General Motors Financial | 0.9 |
| SBA Tower Trust | 0.8 |
| Santander Bank Auto Credit-Linked Notes | 0.8 |
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.
Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.
Short Duration Income Fund
I Class (TSIDX)
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.
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 is filed as an exhibit to the registrant’s annual Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the registrant’s most recent fiscal half-year.
Item 3. Audit Committee Financial Expert.
Disclosure required in registrant’s annual Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Disclosure required in registrant’s annual Form N-CSR.
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.
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Financial
Statements
and
Other
Information
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
TSDLX
Short
Duration
Income
Fund
TSIDX
Short
Duration
Income
Fund–
.
I Class
T.
ROWE
PRICE
Short
Duration
Income
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
Investor
Class
(1)
6
Months
.
Ended
11/30/24
..
Year
..
..
Ended
.
12/8/20
(1)
Through
5/31/21
5/31/24
5/31/23
5/31/22
NET
ASSET
VALUE
Beginning
of
period
$
9.30
$
9.23
$
9.51
$
10.05
$
10.00
Investment
activities
Net
investment
income
(2)(3)
0.24
0.44
0.31
0.17
0.07
Net
realized
and
unrealized
gain/loss
0.11
0.07
(0.29)
(0.53)
0.05
Total
from
investment
activities
0.35
0.51
0.02
(0.36)
0.12
Distributions
Net
investment
income
(0.24)
(0.44)
(0.30)
(0.17)
(0.07)
Net
realized
gain
—
—
—
(0.01)
—
Total
distributions
(0.24)
(0.44)
(0.30)
(0.18)
(0.07)
NET
ASSET
VALUE
End
of
period
$
9.41
$
9.30
$
9.23
$
9.51
$
10.05
T.
ROWE
PRICE
Short
Duration
Income
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Investor
Class
(1)
6
Months
.
Ended
11/30/24
..
Year
..
..
Ended
.
12/8/20
(1)
Through
5/31/21
5/31/24
5/31/23
5/31/22
Ratios/Supplemental
Data
Total
return
(3)(4)
3.78%
5.66%
0.26%
(3.64)%
1.21%
Ratios
to
average
net
assets:
(3)
Gross
expenses
before
waivers/payments
by
Price
Associates
0.95%
(5)
1.01%
1.05%
0.97%
1.32%
(5)
Net
expenses
after
waivers/
payments
by
Price
Associates
0.40%
(5)
0.41%
0.40%
0.40%
0.40%
(5)
Net
investment
income
5.08%
(5)
4.76%
3.30%
1.72%
1.47%
(5)
Portfolio
turnover
rate
52.0%
88.7%
96.9%
60.1%
24.7%
Net
assets,
end
of
period
(in
thousands)
$36,563
$33,978
$29,420
$31,100
$42,912
0%
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)
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.
(5)
Annualized
T.
ROWE
PRICE
Short
Duration
Income
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
I
Class
(1)
6
Months
.
Ended
11/30/24
..
Year
..
..
Ended
.
12/8/20
(1)
Through
5/31/21
5/31/24
5/31/23
5/31/22
NET
ASSET
VALUE
Beginning
of
period
$
9.30
$
9.22
$
9.51
$
10.05
$
10.00
Investment
activities
Net
investment
income
(2)(3)
0.24
0.45
0.32
0.19
0.07
Net
realized
and
unrealized
gain/loss
0.11
0.08
(0.30)
(0.54)
0.06
Total
from
investment
activities
0.35
0.53
0.02
(0.35)
0.13
Distributions
Net
investment
income
(0.24)
(0.45)
(0.31)
(0.18)
(0.08)
Net
realized
gain
—
—
—
(0.01)
—
Total
distributions
(0.24)
(0.45)
(0.31)
(0.19)
(0.08)
NET
ASSET
VALUE
End
of
period
$
9.41
$
9.30
$
9.22
$
9.51
$
10.05
Ratios/Supplemental
Data
Total
return
(3)(4)
3.84%
5.88%
0.26%
(3.53)%
1.27%
Ratios
to
average
net
assets:
(3)
Gross
expenses
before
waivers/payments
by
Price
Associates
0.87%
(5)
0.94%
0.97%
0.93%
1.49%
(5)
Net
expenses
after
waivers/
payments
by
Price
Associates
0.29%
(5)
0.30%
0.30%
0.29%
0.29%
(5)
Net
investment
income
5.18%
(5)
4.86%
3.41%
1.98%
1.57%
(5)
Portfolio
turnover
rate
52.0%
88.7%
96.9%
60.1%
24.7%
Net
assets,
end
of
period
(in
thousands)
$26,660
$20,964
$18,914
$17,250
$251
0%
0%
0%
0%
0%
(1)
Inception
date
(2)
Per
share
amounts
calculated
using
average
share
s
outstanding
method.
(3)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(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.
Total
return
is
not
annualized
for
periods
less
than
one
year.
(5)
Annualized
T.
ROWE
PRICE
Short
Duration
Income
Fund
November
30,
2024
(Unaudited)
Par/Shares
$
Value
(Amounts
in
000s)
‡
ASSET-BACKED
SECURITIES
29.8%
Car
Loan
8.1%
Ally
Auto
Receivables
Trust
Series 2023-A,
Class
B
6.01%,
1/17/34 (1)
75
75
Ally
Bank
Auto
Credit-Linked
Notes
Series 2024-A,
Class
C
6.022%,
5/17/32 (1)
203
206
Ally
Bank
Auto
Credit-Linked
Notes
Series 2024-B,
Class
C
5.215%,
9/15/32 (1)
250
250
ARI
Fleet
Lease
Trust
Series 2024-B,
Class
A2
5.54%,
4/15/33 (1)
100
101
Avis
Budget
Rental
Car
Funding
AESOP
Series 2019-3A,
Class
B
2.65%,
3/20/26 (1)
100
99
Avis
Budget
Rental
Car
Funding
AESOP
Series 2020-1A,
Class
B
2.68%,
8/20/26 (1)
100
99
Avis
Budget
Rental
Car
Funding
AESOP
Series 2022-5A,
Class
C
6.24%,
4/20/27 (1)
100
100
Avis
Budget
Rental
Car
Funding
AESOP
Series 2023-2A,
Class
C
6.18%,
10/20/27 (1)
100
100
Bayview
Opportunity
Master
Fund
VII
Series 2024-CAR1,
Class
C,
FRN
SOFR30A
+
1.50%,
6.234%,
12/26/31 (1)
185
186
CarMax
Auto
Owner
Trust
Series 2022-4,
Class
D
8.08%,
4/16/29
200
212
CarMax
Auto
Owner
Trust
Series 2023-2,
Class
D
6.55%,
10/15/29
135
138
Carvana
Auto
Receivables
Trust
Series 2021-N3,
Class
B
0.66%,
6/12/28
86
82
Carvana
Auto
Receivables
Trust
Series 2021-N4,
Class
D
2.30%,
9/11/28
45
43
Carvana
Auto
Receivables
Trust
Series 2024-N2,
Class
B
5.67%,
9/10/30 (1)
60
61
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
Carvana
Auto
Receivables
Trust
Series 2024-N2,
Class
C
5.82%,
9/10/30 (1)
80
81
Enterprise
Fleet
Financing
Series 2021-2,
Class
A2
0.48%,
5/20/27 (1)
—
—
Enterprise
Fleet
Financing
Series 2021-3,
Class
A2
0.77%,
8/20/27 (1)
1
1
Enterprise
Fleet
Financing
Series 2022-2,
Class
A2
4.65%,
5/21/29 (1)
17
17
Enterprise
Fleet
Financing
Series 2023-2,
Class
A2
5.56%,
4/22/30 (1)
175
176
Enterprise
Fleet
Financing
Series 2024-3,
Class
A3
4.98%,
8/21/28 (1)
50
50
Exeter
Automobile
Receivables
Trust
Series 2022-1A,
Class
C
2.56%,
6/15/28
62
61
Exeter
Automobile
Receivables
Trust
Series 2022-4A,
Class
D
5.98%,
12/15/28
45
46
Exeter
Automobile
Receivables
Trust
Series 2024-4A,
Class
C
5.48%,
8/15/30
110
111
Ford
Credit
Auto
Lease
Trust
Series 2023-A,
Class
C
5.54%,
12/15/26
230
231
Ford
Credit
Auto
Lease
Trust
Series 2023-B,
Class
B
6.20%,
2/15/27
45
46
Ford
Credit
Floorplan
Master
Owner
Trust
Series 2023-1,
Class
D
6.62%,
5/15/28 (1)
145
147
Ford
Credit
Floorplan
Master
Owner
Trust
Series 2024-1,
Class
B
5.48%,
4/15/29 (1)
100
101
GM
Financial
Automobile
Leasing
Trust
Series 2022-3,
Class
C
5.13%,
8/20/26
245
245
GM
Financial
Automobile
Leasing
Trust
Series 2024-2,
Class
B
5.56%,
5/22/28
125
127
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
GM
Financial
Consumer
Automobile
Receivables
Trust
Series 2023-1,
Class
B
5.03%,
9/18/28
35
35
GM
Financial
Consumer
Automobile
Receivables
Trust
Series 2023-3,
Class
C
5.92%,
2/16/29
45
46
GMF
Floorplan
Owner
Revolving
Trust
Series 2023-1,
Class
B
5.73%,
6/15/28 (1)
230
232
Honda
Auto
Receivables
Owner
Trust
Series 2021-4,
Class
A4
1.14%,
6/21/28
40
39
Huntington
Bank
Auto
Credit-Linked
Notes
Series 2024-1,
Class
B1
6.153%,
5/20/32 (1)
199
201
Huntington
Bank
Auto
Credit-Linked
Notes
Series 2024-2,
Class
B1
5.442%,
10/20/32 (1)
250
250
Navistar
Financial
Dealer
Note
Master
Owner
Trust
Series 2024-1,
Class
C
6.13%,
4/25/29 (1)
35
35
Navistar
Financial
Dealer
Note
Master
Owner
Trust
II
Series 2023-1,
Class
A
6.18%,
8/25/28 (1)
173
175
Santander
Bank
Series 2021-1A,
Class
C
3.268%,
12/15/31 (1)
9
9
Santander
Bank
Auto
Credit-Linked
Notes
Series 2023-B,
Class
D
6.663%,
12/15/33 (1)
222
225
Santander
Bank
Auto
Credit-Linked
Notes
Series 2024-A,
Class
C
5.818%,
6/15/32 (1)
250
252
Santander
Consumer
Auto
Receivables
Trust
Series 2021-AA,
Class
D
1.57%,
1/15/27 (1)
100
97
Santander
Consumer
Auto
Receivables
Trust
Series 2021-CA,
Class
C
2.97%,
6/15/28 (1)
76
75
Santander
Retail
Auto
Lease
Trust
Series 2022-B,
Class
B
3.85%,
3/22/27 (1)
30
30
U.S.
Bank
Series 2023-1,
Class
B
6.789%,
8/25/32 (1)
142
143
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
Wheels
Fleet
Lease
Funding
1
Series 2024-1A,
Class
A1
5.49%,
2/18/39 (1)
100
101
5,137
Other
Asset-Backed
Securities
20.2%
AMSR
Trust
Series 2020-SFR3,
Class
C
2.056%,
9/17/37 (1)
155
151
Amur
Equipment
Finance
Receivables
IX
Series 2021-1A,
Class
D
2.30%,
11/22/27 (1)
260
260
Amur
Equipment
Finance
Receivables
X
Series 2022-1A,
Class
C
2.37%,
4/20/28 (1)
150
147
Amur
Equipment
Finance
Receivables
XI
Series 2022-2A,
Class
A2
5.30%,
6/21/28 (1)
42
42
Amur
Equipment
Finance
Receivables
XIII
Series 2024-1A,
Class
B
5.37%,
1/21/31 (1)
100
101
Apidos
Xxv
Series 2016-25A,
Class
A1R2,
CLO,
FRN
3M
TSFR
+
1.15%,
5.767%,
10/20/31 (1)
172
172
Apidos
XXXII
Series 2019-32A,
Class
DR,
CLO,
FRN
3M
TSFR
+
2.75%,
7.367%,
1/20/33 (1)
250
250
Applebee's
Funding
Series 2019-1A,
Class
A2II
4.723%,
6/5/49 (1)
50
49
Arbys
Funding
Series 2020-1A,
Class
A2
3.237%,
7/30/50 (1)
168
159
Barings
Series 2018-4A,
Class
BR,
CLO,
FRN
3M
TSFR
+
1.80%,
6.456%,
10/15/30 (1)
250
250
Blue
Owl
Asset
Leasing
Trust
Series 2024-1A,
Class
D
8.00%,
12/15/31 (1)
250
251
BlueMountain
Series 2016-3A,
Class
A1R2,
CLO,
FRN
3M
TSFR
+
1.20%,
5.723%,
11/15/30 (1)
184
184
BRE
Grand
Islander
Timeshare
Issuer
Series 2019-A,
Class
A
3.28%,
9/26/33 (1)
20
20
Clarus
Capital
Funding
Series 2024-1A,
Class
B
4.79%,
8/20/32 (1)
100
99
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
Crossroads
Asset
Trust
Series 2024-A,
Class
A2
5.90%,
8/20/30 (1)
100
101
CyrusOne
Data
Centers
Issuer
I
Series 2024-2A,
Class
A2
4.50%,
5/20/49 (1)
110
106
DB
Master
Finance
Series 2019-1A,
Class
A2II
4.021%,
5/20/49 (1)
90
89
Dell
Equipment
Finance
Trust
Series 2024-1,
Class
D
6.12%,
9/23/30 (1)
100
102
Dell
Equipment
Finance
Trust
Series 2024-2,
Class
B
4.82%,
8/22/30 (1)
100
100
Dell
Equipment
Finance
Trust
Series 2024-2,
Class
D
5.29%,
2/24/31 (1)
100
100
DLLAD
Series 2023-1A,
Class
A2
5.19%,
4/20/26 (1)
27
27
DLLAD
Series 2023-1A,
Class
A3
4.79%,
1/20/28 (1)
52
52
Driven
Brands
Funding
Series 2019-2A,
Class
A2
3.981%,
10/20/49 (1)
93
90
Dryden
45
Senior
Loan
Fund
Series 2016-45A,
Class
BRR,
CLO,
FRN
3M
TSFR
+
1.65%,
6.306%,
10/15/30 (1)
250
250
Elara
HGV
Timeshare
Issuer
Series 2019-A,
Class
A
2.61%,
1/25/34 (1)
39
38
Elara
HGV
Timeshare
Issuer
Series 2019-A,
Class
C
3.45%,
1/25/34 (1)
17
17
FirstKey
Homes
Trust
Series 2020-SFR2,
Class
D
1.968%,
10/19/37 (1)
225
218
FOCUS
Brands
Funding
Series 2023-2,
Class
A2
8.241%,
10/30/53 (1)
149
158
Fortress
Credit
Bsl
VII
Series 2019-1A,
Class
BR,
CLO,
FRN
3M
TSFR
+
1.65%,
6.209%,
7/23/32 (1)
250
250
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
Fortress
Credit
BSL
XV
Series 2022-2A,
Class
AR,
CLO,
FRN
3M
TSFR
+
1.40%,
6.032%,
10/18/33 (1)
250
251
Goto
Foods
Funding
Series 2017-1A,
Class
A2II
5.093%,
4/30/47 (1)
93
91
Hardee's
Funding
Series 2020-1A,
Class
A2
3.981%,
12/20/50 (1)
241
226
Hilton
Grand
Vacations
Trust
Series 2018-AA,
Class
C
4.00%,
2/25/32 (1)
57
56
Hilton
Grand
Vacations
Trust
Series 2019-AA,
Class
B
2.54%,
7/25/33 (1)
50
49
Hilton
Grand
Vacations
Trust
Series 2023-1A,
Class
C
6.94%,
1/25/38 (1)
61
63
Home
Partners
of
America
Trust
Series 2022-1,
Class
D
4.73%,
4/17/39 (1)
96
93
HPEFS
Equipment
Trust
Series 2023-2A,
Class
D
6.97%,
7/21/31 (1)
100
102
HPEFS
Equipment
Trust
Series 2024-2A,
Class
D
5.82%,
4/20/32 (1)
100
101
Jack
in
the
Box
Funding
Series 2022-1A,
Class
A2I
3.445%,
2/26/52 (1)
359
341
Jersey
Mike's
Funding
Series 2019-1A,
Class
A2
4.433%,
2/15/50 (1)
50
49
Madison
Park
Funding
XXIV
Series 2016-24A,
Class
CR2,
CLO,
FRN
3M
TSFR
+
2.05%,
6.667%,
10/20/29 (1)
250
250
Madison
Park
Funding
XXIX
Series 2018-29A,
Class
BR,
CLO,
FRN
3M
TSFR
+
1.80%,
6.432%,
10/18/30 (1)
250
250
Marble
Point
XII
Series 2018-1A,
Class
A,
CLO,
FRN
3M
TSFR
+
1.272%,
5.919%,
7/16/31 (1)
124
124
Marble
Point
XIV
Series 2018-2A,
Class
A12R,
CLO,
FRN
3M
TSFR
+
1.20%,
5.817%,
1/20/32 (1)
223
223
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
Marble
Point
XV
Series 2019-1A,
Class
A1R2,
CLO,
FRN
3M
TSFR
+
1.04%,
5.597%,
7/23/32 (1)
250
250
MMAF
Equipment
Finance
Series 2020-A,
Class
A3
0.97%,
4/9/27 (1)
70
68
MVW
Series 2021-1WA,
Class
C
1.94%,
1/22/41 (1)
31
29
MVW
Series 2021-2A,
Class
C
2.23%,
5/20/39 (1)
80
75
MVW
Series 2023-1A,
Class
C
6.54%,
10/20/40 (1)
116
116
Northwoods
Capital
XIV-B
Series 2018-14BA,
Class
AR,
CLO,
FRN
3M
TSFR
+
1.25%,
5.766%,
11/13/31 (1)
220
221
OCP
Series 2014-7A,
Class
A1RR,
CLO,
FRN
3M
TSFR
+
1.382%,
5.999%,
7/20/29 (1)
37
37
Octagon
Investment
Partners
39
Series 2018-3A,
Class
AR,
CLO,
FRN
3M
TSFR
+
1.15%,
5.767%,
10/20/30 (1)
161
161
Octane
Receivables
Trust
Series 2021-2A,
Class
A
1.21%,
9/20/28 (1)
7
7
Octane
Receivables
Trust
Series 2022-1A,
Class
B
4.90%,
5/22/28 (1)
150
150
Octane
Receivables
Trust
Series 2022-2A,
Class
A
5.11%,
2/22/28 (1)
20
20
Octane
Receivables
Trust
Series 2022-2A,
Class
C
6.29%,
7/20/28 (1)
200
202
Octane
Receivables
Trust
Series 2023-1A,
Class
A
5.87%,
5/21/29 (1)
31
31
Octane
Receivables
Trust
Series 2024-1A,
Class
A2
5.68%,
5/20/30 (1)
84
85
Octane
Receivables
Trust
Series 2024-3A,
Class
C
5.51%,
10/20/31 (1)
100
100
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
OZLM
Funding
II
Series 2012-2A,
Class
A1A2,
CLO,
FRN
3M
TSFR
+
1.20%,
5.789%,
7/30/31 (1)
132
132
Post
Road
Equipment
Finance
Series 2024-1A,
Class
C
5.81%,
10/15/30 (1)
100
102
Progress
Residential
Series 2021-SFR3,
Class
A
1.637%,
5/17/26 (1)
148
142
Progress
Residential
Series 2021-SFR3,
Class
E1
2.538%,
5/17/26 (1)
150
144
Progress
Residential
Trust
Series 2021-SFR6,
Class
E1
2.425%,
7/17/38 (1)
200
191
Progress
Residential
Trust
Series 2021-SFR8,
Class
C
1.931%,
10/17/38 (1)
200
190
Regatta
XIII
Funding
Series 2018-2A,
Class
CR,
CLO,
FRN
3M
TSFR
+
2.70%,
7.356%,
7/15/31 (1)
250
251
Romark
II
Series 2018-2A,
Class
A2R,
CLO,
FRN
3M
TSFR
+
1.65%,
6.276%,
7/25/31 (1)
250
250
Sabey
Data
Center
Issuer
Series 2020-1,
Class
A2
3.812%,
4/20/45 (1)
35
35
Sabey
Data
Center
Issuer
Series 2021-1,
Class
A2
1.881%,
6/20/46 (1)
100
94
SCF
Equipment
Leasing
Series 2023-1A,
Class
A3
6.17%,
5/20/32 (1)
235
243
SEB
Funding
Series 2024-1A,
Class
A2
7.386%,
4/30/54 (1)
85
87
Sierra
Timeshare
Receivables
Funding
Series 2020-2A,
Class
B
2.32%,
7/20/37 (1)
50
50
Sierra
Timeshare
Receivables
Funding
Series 2021-1A,
Class
B
1.34%,
11/20/37 (1)
46
44
Sierra
Timeshare
Receivables
Funding
Series 2021-1A,
Class
C
1.79%,
11/20/37 (1)
15
15
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
Sierra
Timeshare
Receivables
Funding
Series 2021-1A,
Class
D
3.17%,
11/20/37 (1)
387
373
Sierra
Timeshare
Receivables
Funding
Series 2021-2A,
Class
A
1.35%,
9/20/38 (1)
151
146
SOUND
POINT
XXII
Series 2019-1A,
Class
BRR,
CLO,
FRN
3M
TSFR
+
1.65%,
1/20/32 (1)
250
250
Symphony
Static
I
Series 2021-1A,
Class
C,
CLO,
FRN
3M
TSFR
+
2.112%,
6.737%,
10/25/29 (1)
250
250
Symphony
XIX
Series 2018-19A,
Class
B,
CLO,
FRN
3M
TSFR
+
1.612%,
6.259%,
4/16/31 (1)
250
250
Symphony
XXIII
Series 2020-23A,
Class
BR,
CLO,
FRN
3M
TSFR
+
1.862%,
6.518%,
1/15/34 (1)
250
251
TCI-Flatiron
Series 2018-1A,
Class
BR,
CLO,
FRN
3M
TSFR
+
1.662%,
6.266%,
1/29/32 (1)
250
250
THL
Credit
Wind
River
Series 2015-1A,
Class
A1R3,
CLO,
FRN
3M
TSFR
+
1.20%,
5.817%,
10/20/30 (1)
113
113
THL
Credit
Wind
River
Series 2019-3A,
Class
CR2,
CLO,
FRN
3M
TSFR
+
2.00%,
4/15/31 (1)
145
145
TIAA
Series 2016-1A,
Class
ARR,
CLO,
FRN
3M
TSFR
+
1.25%,
5.867%,
7/20/31 (1)
168
169
Tricon
Residential
Trust
Series 2024-SFR2,
Class
A
4.75%,
6/17/40 (1)
100
99
Trinitas
IX
Series 2018-9A,
Class
ARRR,
CLO,
FRN
3M
TSFR
+
1.20%,
5.817%,
1/20/32 (1)
178
179
Trinitas
VI
Series 2017-6A,
Class
ARRR,
CLO,
FRN
3M
TSFR
+
1.33%,
5.956%,
1/25/34 (1)
250
251
Verdant
Receivables
Series 2023-1A,
Class
A2
6.24%,
1/13/31 (1)
77
78
Verdant
Receivables
Series 2024-1A,
Class
A2
5.68%,
12/12/31 (1)
100
101
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
Voya
Series 2018-3A,
Class
BR2,
CLO,
FRN
3M
TSFR
+
1.80%,
6.456%,
10/15/31 (1)
250
250
12,779
Student
Loan
1.5%
Navient
Private
Education
Loan
Trust
Series 2020-A,
Class
A2A
2.46%,
11/15/68 (1)
46
43
Navient
Private
Education
Refi
Loan
Trust
Series 2019-A,
Class
A2A
3.42%,
1/15/43 (1)
19
19
Navient
Private
Education
Refi
Loan
Trust
Series 2019-CA,
Class
A2
3.13%,
2/15/68 (1)
183
179
Navient
Private
Education
Refi
Loan
Trust
Series 2019-D,
Class
A2A
3.01%,
12/15/59 (1)
62
59
Navient
Private
Education
Refi
Loan
Trust
Series 2019-GA,
Class
A
2.40%,
10/15/68 (1)
39
38
Navient
Private
Education
Refi
Loan
Trust
Series 2020-DA,
Class
A
1.69%,
5/15/69 (1)
69
65
SMB
Private
Education
Loan
Trust
Series 2016-C,
Class
A2A
2.34%,
9/15/34 (1)
2
2
SMB
Private
Education
Loan
Trust
Series 2017-B,
Class
B
3.50%,
12/16/41 (1)
150
144
SMB
Private
Education
Loan
Trust
Series 2020-A,
Class
A2A
2.23%,
9/15/37 (1)
286
272
SMB
Private
Education
Loan
Trust
Series 2021-A,
Class
A2A1,
FRN
1M
TSFR
+
0.844%,
5.454%,
1/15/53 (1)
129
127
948
Total
Asset-Backed
Securities
(Cost
$18,742)
18,864
BANK
LOANS
1.0%
(2)
Communications
0.4%
Altice
France,
FRN,
1M
TSFR
+
4.00%,
8.682%,
8/14/26
79
67
Clear
Channel
International,
7.50%,
4/1/27 (3)
135
133
CSC
Holdings,
FRN,
1M
TSFR
+
2.50%,
7.174%,
4/15/27
79
73
273
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
Consumer
Non-Cyclical
0.2%
Bausch
+
Lomb,
FRN,
1M
TSFR
+
3.25%,
7.938%,
5/10/27
129
129
129
Insurance
0.4%
Asurion,
FRN,
1M
TSFR
+
3.25%,
7.937%,
12/23/26
111
111
Asurion,
FRN,
1M
TSFR
+
5.25%,
9.937%,
1/31/28
100
98
209
Total
Bank
Loans
(Cost
$620)
611
CORPORATE
BONDS
37.0%
Banking
7.8%
American
Express,
VR,
5.645%,
4/23/27 (4)
200
202
Banco
de
Bogota,
6.25%,
5/12/26
200
200
Banco
Santander,
2.746%,
5/28/25
200
198
Banco
Santander
Mexico
Institucion
de
Banca
Multiple
Grupo
Financiero
Santand,
5.375%,
4/17/25
150
150
Bank
of
America,
VR,
5.08%,
1/20/27 (4)
150
150
Barclays,
VR,
5.304%,
8/9/26 (4)
200
200
Barclays,
VR,
7.325%,
11/2/26 (4)
200
204
Capital
One
Financial,
VR,
5.70%,
2/1/30 (4)(5)
35
36
Capital
One
Financial,
VR,
6.312%,
6/8/29 (4)
225
233
Danske
Bank,
VR,
4.613%,
10/2/30 (1)(4)
200
196
Danske
Bank,
VR,
5.427%,
3/1/28 (1)(4)
200
202
Fifth
Third
Bancorp,
2.375%,
1/28/25
25
25
Fifth
Third
Bancorp,
VR,
4.895%,
9/6/30 (4)
30
30
HDFC
Bank,
5.686%,
3/2/26
200
202
HSBC
Holdings,
VR,
5.13%,
11/19/28 (4)
200
201
HSBC
Holdings,
VR,
5.597%,
5/17/28 (4)
200
203
Ipoteka-Bank
ATIB,
5.50%,
11/19/25
200
197
JPMorgan
Chase,
VR,
4.979%,
7/22/28 (4)
200
201
JPMorgan
Chase,
VR,
5.04%,
1/23/28 (4)
95
96
Lloyds
Banking
Group,
VR,
5.462%,
1/5/28 (4)
200
202
National
Bank
of
Canada,
4.50%,
10/10/29 (5)
250
246
NatWest
Group,
VR,
7.472%,
11/10/26 (4)
200
204
PNC
Financial
Services
Group,
VR,
4.758%,
1/26/27 (4)
120
120
Santander
Holdings
USA,
VR,
6.124%,
5/31/27 (4)(5)
20
20
Standard
Chartered,
VR,
5.688%,
5/14/28 (1)(4)
200
203
Standard
Chartered,
VR,
6.17%,
1/9/27 (1)(4)
200
202
Truist
Financial,
VR,
6.047%,
6/8/27 (4)
200
204
U.S.
Bancorp,
VR,
5.384%,
1/23/30 (4)
30
30
UBS
Group,
VR,
4.488%,
5/12/26 (1)(4)
200
200
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
Wells
Fargo,
VR,
4.54%,
8/15/26 (4)
150
150
4,907
Basic
Industry
1.8%
Celanese
U.S.
Holdings,
6.05%,
3/15/25
42
42
CVR
Partners,
6.125%,
6/15/28 (1)
160
155
FMC,
3.45%,
10/1/29
200
185
LG
Chem,
4.375%,
7/14/25
200
199
Nutrien,
4.90%,
3/27/28
50
51
POSCO,
5.625%,
1/17/26 (1)
200
202
Sasol
Financing
USA,
4.375%,
9/18/26
260
251
Sherwin-Williams,
4.55%,
3/1/28
40
40
1,125
Brokerage
Asset
Managers
Exchanges
1.1%
AG
Issuer,
6.25%,
3/1/28 (1)
160
158
LPL
Holdings,
5.70%,
5/20/27
291
296
LPL
Holdings,
6.75%,
11/17/28
45
48
LSEGA
Financing,
1.375%,
4/6/26 (1)
200
192
694
Capital
Goods
1.3%
AGCO,
5.45%,
3/21/27
250
252
BAE
Systems,
5.00%,
3/26/27 (1)
200
202
Boeing,
2.196%,
2/4/26
80
77
Boeing,
6.259%,
5/1/27 (1)
133
136
Huntington
Ingalls
Industries,
5.353%,
1/15/30
25
25
Owens
Corning,
5.50%,
6/15/27
50
51
Regal
Rexnord,
6.05%,
2/15/26
75
76
Republic
Services,
4.875%,
4/1/29
20
20
839
Communications
3.4%
American
Tower,
3.55%,
7/15/27
200
194
Axian
Telecom,
7.375%,
2/16/27
200
201
Clear
Channel
Outdoor
Holdings,
5.125%,
8/15/27 (1)(5)
30
29
Crown
Castle,
5.00%,
1/11/28
175
176
Crown
Castle,
5.60%,
6/1/29
105
108
KT,
4.125%,
2/2/28 (1)
200
197
PT
Tower
Bersama
Infrastructure,
4.25%,
1/21/25
200
200
SBA
Tower
Trust,
1.631%,
11/15/26 (1)
150
140
SBA
Tower
Trust,
4.831%,
10/15/29 (1)
250
243
SBA
Tower
Trust,
6.599%,
1/15/28 (1)
115
119
Townsquare
Media,
6.875%,
2/1/26 (1)
165
164
Univision
Communications,
6.625%,
6/1/27 (1)
160
159
VEON
Holdings,
4.00%,
4/9/25
200
197
2,127
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
Consumer
Cyclical
5.3%
Advance
Auto
Parts,
5.90%,
3/9/26
140
141
BMW
U.S.
Capital,
4.60%,
8/13/27 (1)
75
75
Carnival,
7.625%,
3/1/26 (1)
145
146
Cencosud,
4.375%,
7/17/27 (1)
200
195
Daimler
Truck
Finance
North
America,
5.00%,
1/15/27 (1)
150
151
Daimler
Truck
Finance
North
America,
5.15%,
1/16/26 (1)
150
150
Darden
Restaurants,
4.35%,
10/15/27
85
84
Dollar
General,
4.125%,
5/1/28
200
195
Ford
Motor
Credit,
6.798%,
11/7/28
200
210
General
Motors
Financial,
5.35%,
7/15/27
250
253
General
Motors
Financial,
5.40%,
4/6/26
155
156
General
Motors
Financial,
5.40%,
5/8/27
80
81
General
Motors
Financial,
5.55%,
7/15/29
45
46
Hyundai
Capital
America,
5.50%,
3/30/26 (1)
80
80
Hyundai
Capital
America,
5.65%,
6/26/26 (1)
200
202
Hyundai
Capital
America,
6.25%,
11/3/25 (1)
50
51
Marriott
International,
4.90%,
4/15/29
21
21
O'Reilly
Automotive,
5.75%,
11/20/26
30
30
Sands
China,
3.80%,
1/8/26
200
196
Starbucks,
3.50%,
3/1/28
150
146
Uber
Technologies,
4.50%,
8/15/29 (1)
138
135
VF,
2.40%,
4/23/25
150
148
VF,
2.80%,
4/23/27
100
94
Volkswagen
Group
of
America
Finance,
4.85%,
8/15/27 (1)
200
199
Volkswagen
Group
of
America
Finance,
6.00%,
11/16/26 (1)
200
203
3,388
Consumer
Non-Cyclical
3.2%
CSL
Finance,
3.85%,
4/27/27 (1)
25
25
CVS
Health,
2.875%,
6/1/26
80
78
CVS
Health,
4.30%,
3/25/28
250
245
HCA,
5.25%,
4/15/25
200
200
HCA,
5.625%,
9/1/28
200
204
Heineken,
3.50%,
1/29/28 (1)
150
145
Hikma
Finance
USA,
3.25%,
7/9/25
200
197
Icon
Investments
Six,
5.809%,
5/8/27
200
204
IQVIA,
6.25%,
2/1/29
65
68
Kroger,
4.60%,
8/15/27
50
50
Kroger,
4.70%,
8/15/26
65
65
LifePoint
Health,
4.375%,
2/15/27 (1)
140
136
Mattel,
5.875%,
12/15/27 (1)
150
151
Solventum,
5.45%,
2/25/27 (1)
105
106
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
Teva
Pharmaceutical
Finance
Netherlands
III,
3.15%,
10/1/26
185
176
2,050
Electric
1.6%
AES,
3.30%,
7/15/25 (1)
100
99
American
Electric
Power,
5.20%,
1/15/29
105
107
American
Electric
Power,
5.699%,
8/15/25
90
90
Constellation
Energy
Generation,
3.25%,
6/1/25
200
198
DTE
Energy,
4.95%,
7/1/27
40
40
Engie
Energia
Chile,
4.50%,
1/29/25
200
200
FirstEnergy
Transmission,
4.55%,
1/15/30 (1)
30
30
Pacific
Gas
&
Electric,
3.50%,
6/15/25
100
99
PacifiCorp,
5.10%,
2/15/29
30
30
Vistra
Operations,
5.05%,
12/30/26 (1)
40
40
Vistra
Operations,
5.125%,
5/13/25 (1)
58
58
991
Energy
3.9%
Columbia
Pipelines
Holding,
6.055%,
8/15/26 (1)
5
5
Crescent
Energy
Finance,
9.25%,
2/15/28 (1)
120
126
Diamondback
Energy,
5.20%,
4/18/27
40
40
Enbridge,
5.90%,
11/15/26
60
61
Enbridge,
6.00%,
11/15/28
50
52
Energy
Transfer,
2.90%,
5/15/25
100
99
Energy
Transfer,
5.25%,
7/1/29
120
122
Expand
Energy,
8.375%,
9/15/28 (5)
175
180
Geopark,
5.50%,
1/17/27
200
193
GS
Caltex,
1.625%,
7/27/25
200
196
Kosmos
Energy,
7.125%,
4/4/26
200
197
NGL
Energy
Operating,
8.125%,
2/15/29 (1)
160
163
Occidental
Petroleum,
3.20%,
8/15/26
150
145
Occidental
Petroleum,
5.00%,
8/1/27
65
65
Occidental
Petroleum,
5.20%,
8/1/29
70
70
ONEOK,
4.25%,
9/24/27
115
114
ONEOK,
5.55%,
11/1/26
60
61
South
Bow
USA
Infrastructure
Holdings,
4.911%,
9/1/27 (1)
80
80
Tengizchevroil
Finance
International,
4.00%,
8/15/26
200
195
TER
Finance
Jersey,
Series 21,
Zero
Coupon,
1/2/25 (1)(3)
100
100
Williams,
5.30%,
8/15/28
200
204
2,468
Finance
Companies
1.1%
AerCap
Ireland
Capital,
6.10%,
1/15/27
150
154
Avolon
Holdings
Funding,
6.375%,
5/4/28 (1)
115
119
GATX,
5.40%,
3/15/27
40
40
Midcap
Financial
Issuer
Trust,
6.50%,
5/1/28 (1)
200
195
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
Navient,
5.00%,
3/15/27
85
84
OneMain
Finance,
3.50%,
1/15/27
85
82
674
Financial
Other
0.3%
Emaar
Sukuk,
3.635%,
9/15/26
200
196
196
Industrial
Other
0.6%
Albion
Financing
1,
6.125%,
10/15/26 (1)
200
199
Bidvest
Group
U.K.,
3.625%,
9/23/26
200
194
393
Insurance
3.1%
Athene
Global
Funding,
1.716%,
1/7/25 (1)
225
224
Athene
Global
Funding,
5.684%,
2/23/26 (1)
230
232
Centene,
4.625%,
12/15/29
250
239
CNO
Global
Funding,
1.65%,
1/6/25 (1)
150
150
CNO
Global
Funding,
1.75%,
10/7/26 (1)
150
141
CNO
Global
Funding,
4.95%,
9/9/29 (1)
45
45
Corebridge
Financial,
3.65%,
4/5/27
200
195
Corebridge
Global
Funding,
5.20%,
1/12/29 (1)
40
40
Health
Care
Service
A
Mutual
Legal
Reserve,
5.20%,
6/15/29 (1)
65
66
Humana,
1.35%,
2/3/27
70
65
Humana,
5.75%,
3/1/28
25
26
Jackson
National
Life
Global
Funding,
5.50%,
1/9/26 (1)
175
176
Jackson
National
Life
Global
Funding,
5.60%,
4/10/26 (1)
250
252
Marsh
&
McLennan,
4.55%,
11/8/27
75
75
Principal
Life
Global
Funding
II,
4.60%,
8/19/27 (1)
55
55
1,981
Natural
Gas
0.4%
Engie,
5.25%,
4/10/29 (1)
200
204
NiSource,
5.25%,
3/30/28
25
25
229
Real
Estate
Investment
Trusts
0.4%
MPT
Operating
Partnership,
5.00%,
10/15/27 (5)
95
80
MPT
Operating
Partnership,
5.25%,
8/1/26 (5)
115
104
Service
Properties
Trust,
4.75%,
10/1/26
69
66
250
Technology
1.1%
Atlassian,
5.25%,
5/15/29
40
40
Cadence
Design
Systems,
4.20%,
9/10/27
50
50
CDW,
5.10%,
3/1/30
30
30
Foundry
JV
Holdco,
5.90%,
1/25/30 (1)
200
203
Micron
Technology,
5.375%,
4/15/28
150
153
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
SK
Hynix,
6.25%,
1/17/26 (1)
200
202
678
Transportation
0.6%
Avis
Budget
Car
Rental,
4.75%,
4/1/28 (1)(5)
165
156
Avis
Budget
Car
Rental,
5.75%,
7/15/27 (1)
90
89
Penske
Truck
Leasing,
5.35%,
1/12/27 (1)
40
40
Penske
Truck
Leasing,
5.75%,
5/24/26 (1)
105
106
391
Total
Corporate
Bonds
(Cost
$23,241)
23,381
FOREIGN
GOVERNMENT
OBLIGATIONS
&
MUNICIPALITIES
2.2%
Government
Sponsored
0.3%
MEGlobal
Canada,
5.00%,
5/18/25
200
200
200
Owned
No
Guarantee
1.9%
Axiata,
4.357%,
3/24/26
200
199
Bank
Mandiri
Persero,
5.50%,
4/4/26
200
201
Bank
Negara
Indonesia
Persero,
3.75%,
3/30/26
200
195
Pertamina
Persero,
1.40%,
2/9/26
200
191
QNB
Finance,
1.375%,
1/26/26
200
192
State
Bank
of
India,
1.80%,
7/13/26
200
190
1,168
Total
Foreign
Government
Obligations
&
Municipalities
(Cost
$1,373)
1,368
NON-U.S.
GOVERNMENT
MORTGAGE-BACKED
SECURITIES
9.5%
Collateralized
Mortgage
Obligations
4.8%
Angel
Oak
Mortgage
Trust
Series 2024-9,
Class
A2,
CMO,
STEP
5.341%,
9/25/69 (1)
167
166
Barclays
Mortgage
Loan
Trust
Series 2021-NQM1,
Class
A3,
CMO,
ARM
2.189%,
9/25/51 (1)
57
51
Bellemeade
Re
Series 2022-1,
Class
M1B,
CMO,
ARM
SOFR30A
+
2.15%,
6.884%,
1/26/32 (1)
252
253
COLT
Mortgage
Loan
Trust
Series 2020-3,
Class
A1,
CMO,
ARM
1.506%,
4/27/65 (1)
9
9
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
COLT
Mortgage
Loan
Trust
Series 2024-6,
Class
A2,
CMO,
STEP
5.644%,
11/25/69 (1)
199
199
COLT
Mortgage
Loan
Trust
Series 2024-INV4,
Class
A3,
CMO,
STEP
6.111%,
5/25/69 (1)
100
100
Connecticut
Avenue
Securities
Trust
Series 2021-R01,
Class
1M2,
CMO,
ARM
SOFR30A
+
1.55%,
6.284%,
10/25/41 (1)
163
163
Cross
Mortgage
Trust
Series 2024-H6,
Class
A2,
CMO,
STEP
5.383%,
9/25/69 (1)
208
206
Deephaven
Residential
Mortgage
Trust
Series 2021-1,
Class
A3,
CMO,
ARM
1.128%,
5/25/65 (1)
18
17
EFMT
Series 2024-INV2,
Class
A1,
CMO,
ARM
5.035%,
10/25/69 (1)
99
98
EFMT
Series 2024-INV2,
Class
A2,
CMO,
ARM
5.289%,
10/25/69 (1)
99
98
EFMT
Series 2024-NQM1,
Class
A1B,
CMO,
STEP
5.81%,
11/25/69 (1)
187
187
Flagstar
Mortgage
Trust
Series 2019-1INV,
Class
A11,
CMO,
ARM
1M
TSFR
+
1.064%,
5.50%,
10/25/49 (1)
15
14
Flagstar
Mortgage
Trust
Series 2020-1INV,
Class
A11,
CMO,
ARM
1M
TSFR
+
0.964%,
5.552%,
3/25/50 (1)
68
64
Freddie
Mac
Whole
Loan
Securities
Trust
Series 2017-SC02,
Class
M1,
CMO,
ARM
3.859%,
5/25/47 (1)
97
95
JPMorgan
Mortgage
Trust
Series 2019-INV2,
Class
A3,
CMO,
ARM
3.50%,
2/25/50 (1)
71
64
MFA
Trust
Series 2021-INV1,
Class
A1,
CMO,
ARM
0.852%,
1/25/56 (1)
49
47
New
Residential
Mortgage
Loan
Trust
Series 2021-NQ1R,
Class
A3,
CMO,
ARM
1.198%,
7/25/55 (1)
45
40
OBX
Trust
Series 2019-EXP3,
Class
1A9,
CMO,
ARM
3.50%,
10/25/59 (1)
104
93
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
OBX
Trust
Series 2019-EXP3,
Class
2A1,
CMO,
ARM
1M
TSFR
+
1.014%,
5.602%,
10/25/59 (1)
41
42
OBX
Trust
Series 2019-INV1,
Class
A3,
CMO,
ARM
4.50%,
11/25/48 (1)
24
23
OBX
Trust
Series 2019-INV2,
Class
A25,
CMO,
ARM
4.00%,
5/27/49 (1)
39
36
OBX
Trust
Series 2020-EXP1,
Class
2A1B,
CMO,
ARM
1M
TSFR
+
0.864%,
5.452%,
2/25/60 (1)
58
56
OBX
Trust
Series 2024-NQM17,
Class
A3,
CMO,
STEP
6.015%,
11/25/64 (1)
100
100
RCKT
Mortgage
Trust
Series 2024-CES8,
Class
A1A,
CMO,
STEP
5.49%,
11/25/44 (1)
104
104
Starwood
Mortgage
Residential
Trust
Series 2020-INV1,
Class
A3,
CMO,
ARM
1.593%,
11/25/55 (1)
16
15
Structured
Agency
Credit
Risk
Debt
Notes
Series 2021-DNA5,
Class
M2,
CMO,
ARM
SOFR30A
+
1.65%,
6.384%,
1/25/34 (1)
45
45
Structured
Agency
Credit
Risk
Debt
Notes
Series 2023-HQA3,
Class
A1,
CMO,
ARM
SOFR30A
+
1.85%,
6.584%,
11/25/43 (1)
94
96
Structured
Agency
Credit
Risk
Debt
Notes
Series 2024-HQA1,
Class
A1,
CMO,
ARM
SOFR30A
+
1.25%,
5.984%,
3/25/44 (1)
142
143
Verus
Securitization
Trust
Series 2019-INV3,
Class
A3,
CMO,
ARM
4.10%,
11/25/59 (1)
57
56
Verus
Securitization
Trust
Series 2020-1,
Class
A3,
CMO,
STEP
3.724%,
1/25/60 (1)
51
50
Verus
Securitization
Trust
Series 2021-2,
Class
A3,
CMO,
ARM
1.545%,
2/25/66 (1)
111
99
Verus
Securitization
Trust
Series 2021-R2,
Class
A3,
CMO,
ARM
1.227%,
2/25/64 (1)
44
40
Verus
Securitization
Trust
Series 2023-8,
Class
A2,
CMO,
STEP
6.664%,
12/25/68 (1)
91
92
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
Verus
Securitization
Trust
Series 2023-INV3,
Class
A2,
CMO,
ARM
7.33%,
11/25/68 (1)
99
101
3,062
Commercial
Mortgage-Backed
Securities
4.5%
Alen
Mortgage
Trust
Series 2021-ACEN,
Class
A,
ARM
1M
TSFR
+
1.264%,
5.874%,
4/15/34 (1)
100
91
BANK
Series 2024-BNK47,
Class
A1
5.523%,
6/15/57
33
33
BANK5
Series 2024-5YR10,
Class
AS
5.637%,
10/15/57
55
56
BANK5
Series 2024-5YR11,
Class
AS
6.139%,
11/15/57
55
57
BANK5
Series 2024-5YR12,
Class
AS,
ARM
6.122%,
12/15/57
250
260
BANK5
Series 2024-5YR8,
Class
AS,
ARM
6.378%,
8/15/57
95
99
BANK5
Series 2024-5YR9,
Class
A1
4.889%,
8/15/57
191
191
BBCMS
Mortgage
Trust
Series 2024-5C27,
Class
A1
5.502%,
7/15/57
94
95
Benchmark
Mortgage
Trust
Series 2024-V11,
Class
AM
6.201%,
11/15/57
55
57
Benchmark
Mortgage
Trust
Series 2024-V6,
Class
A1
5.568%,
3/15/57
88
89
Benchmark
Mortgage
Trust
Series 2024-V8,
Class
A1
5.514%,
7/15/57
28
28
Benchmark
Mortgage
Trust
Series 2024-V9,
Class
AS,
ARM
6.064%,
8/15/57
75
77
BMO
Mortgage
Trust
Series 2024-5C5,
Class
AS,
ARM
6.364%,
2/15/57
75
78
BX
Commercial
Mortgage
Trust
Series 2024-MDHS,
Class
B,
ARM
1M
TSFR
+
1.841%,
6.45%,
5/15/41 (1)
176
176
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
CAMB
Commercial
Mortgage
Trust
Series 2019-LIFE,
Class
A,
ARM
1M
TSFR
+
1.367%,
5.977%,
12/15/37 (1)
200
200
CD
Mortgage
Trust
Series 2016-CD1,
Class
B,
ARM
3.077%,
8/10/49
100
79
Citigroup
Commercial
Mortgage
Trust
Series 2013-375P,
Class
B,
ARM
3.635%,
5/10/35 (1)
150
146
Citigroup
Commercial
Mortgage
Trust
Series 2016-C1,
Class
AS
3.514%,
5/10/49
200
194
HILT
Commercial
Mortgage
Trust
Series 2024-ORL,
Class
C,
ARM
1M
TSFR
+
2.44%,
7.049%,
5/15/37 (1)
105
105
HYT
Commercial
Mortgage
Trust
Series 2024-RGCY,
Class
A,
ARM
1M
TSFR
+
1.841%,
6.451%,
9/15/41 (1)
120
120
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
Series 2018-WPT,
Class
BFL,
ARM
1M
TSFR
+
1.489%,
6.141%,
7/5/33 (1)
59
53
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
Series 2020-609M,
Class
B,
ARM
1M
TSFR
+
2.134%,
6.744%,
10/15/33 (1)
100
96
MED
Commercial
Mortgage
Trust
Series 2024-MOB,
Class
A,
ARM
1M
TSFR
+
1.592%,
6.201%,
5/15/41 (1)
100
100
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
Series 2015-C24,
Class
AS,
ARM
4.036%,
5/15/48
190
182
SDR
Commercial
Mortgage
Trust
Series 2024-DSNY,
Class
B,
ARM
1M
TSFR
+
1.741%,
6.35%,
5/15/39 (1)
100
99
TX
Trust
Series 2024-HOU,
Class
B,
ARM
1M
TSFR
+
2.091%,
6.70%,
6/15/39 (1)
100
100
2,861
Residential
Mortgage
0.2%
Finance
of
America
HECM
Buyout
Series 2024-HB1,
Class
A1A,
ARM
4.00%,
10/1/34 (1)
96
94
94
Total
Non-U.S.
Government
Mortgage-Backed
Securities
(Cost
$6,118)
6,017
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
U.S.
GOVERNMENT
&
AGENCY
MORTGAGE-BACKED
SECURITIES
5.7%
U.S.
Government
Agency
Obligations
5.4%
Federal
Home
Loan
Mortgage,
UMBS
4.50%,
9/1/52
-
10/1/52
671
645
Federal
Home
Loan
Mortgage
Multifamily
Structured
PTC,
2.958%,
7/25/26
54
53
Federal
Home
Loan
Mortgage
Multifamily
Structured
PTC,
ARM
3.78%,
10/25/28
250
244
4.06%,
10/25/28
106
104
Federal
National
Mortgage
Assn.,
UMBS
4.50%,
10/1/37
206
203
5.00%,
5/1/53
-
10/1/53
999
983
5.50%,
8/1/53
-
10/1/54
624
626
6.00%,
6/1/54
269
274
UMBS,
TBA,
5.00%,
12/1/54 (6)
285
280
3,412
U.S.
Government
Obligations
0.3%
Government
National
Mortgage
Assn.
6.00%,
2/20/40
-
12/20/40
182
190
190
Total
U.S.
Government
&
Agency
Mortgage-Backed
Securities
(Cost
$3,625)
3,602
U.S.
GOVERNMENT
AGENCY
OBLIGATIONS
(EXCLUDING
MORTGAGE-BACKED)
13.9%
U.S.
Treasury
Obligations
13.9%
U.S.
Treasury
Notes,
3.50%,
9/30/26 (7)
2,820
2,785
U.S.
Treasury
Notes,
3.75%,
8/31/26
900
893
U.S.
Treasury
Notes,
4.125%,
10/31/26 (5)
1,125
1,123
U.S.
Treasury
Notes,
4.125%,
11/15/27
1,115
1,115
U.S.
Treasury
Notes,
4.375%,
7/31/26
1,115
1,118
U.S.
Treasury
Notes,
4.625%,
6/30/26
555
558
U.S.
Treasury
Notes,
4.875%,
5/31/26
690
696
U.S.
Treasury
Notes,
5.00%,
10/31/25
500
503
Total
U.S.
Government
Agency
Obligations
(Excluding
Mortgage-Backed)
(Cost
$8,799)
8,791
T.
ROWE
PRICE
Short
Duration
Income
Fund
Par/Shares
$
Value
(Amounts
in
000s)
‡
SHORT-TERM
INVESTMENTS
1.8%
Commercial
Paper
0.9%
4(2)
0.9%(8)
Crown
Castle
International,
5.22%,
12/3/24
300
300
FMC,
5.275%,
12/23/24
250
249
549
Money
Market
Funds
0.9%
T.
Rowe
Price
Government
Reserve
Fund,
4.67% (9)(10)
562
562
562
Total
Short-Term
Investments
(Cost
$1,111)
1,111
SECURITIES
LENDING
COLLATERAL
3.0%
INVESTMENTS
IN
A
POOLED
ACCOUNT
THROUGH
SECURITIES
LENDING
PROGRAM
WITH
STATE
STREET
BANK
AND
TRUST
COMPANY 3.0%
Money
Market
Funds 3.0%
T.
Rowe
Price
Government
Reserve
Fund,
4.67% (9)(10)
1,924
1,924
Total
Investments
in
a
Pooled
Account
through
Securities
Lending
Program
with
State
Street
Bank
and
Trust
Company
1,924
Total
Securities
Lending
Collateral
(Cost
$1,924)
1,924
Total
Investments
in
Securities
103.9%
of
Net
Assets
(Cost
$65,553)
$
65,669
‡
Par/Shares
and
Notional
Amount
are
denominated
in
U.S.
dollars
unless
otherwise
noted.
(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
$30,688
and
represents
48.5%
of
net
assets.
(2)
Bank
loan
positions
may
involve
multiple
underlying
tranches.
In
those
instances,
the
position
presented
reflects
the
aggregate
of
those
respective
underlying
tranches
and
the
rate
presented
reflects
the
weighted
average
rate
of
the
settled
positions.
(3)
See
Note
2.
Level
3
in
fair
value
hierarchy.
T.
ROWE
PRICE
Short
Duration
Income
Fund
.
.
.
.
.
.
.
.
.
.
(4)
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.
(5)
See
Note
4
.
All
or
a
portion
of
this
security
is
on
loan
at
November
30,
2024.
(6)
See
Note
4.
To-Be-Announced
purchase
commitment.
Total
value
of
such
securities
at
period-end
amounts
to
$280
and
represents
0.4%
of
net
assets.
(7)
At
November
30,
2024,
all
or
a
portion
of
this
security
is
pledged
as
collateral
and/or
margin
deposit
to
cover
future
funding
obligations.
(8)
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
$549
and
represents
0.9%
of
net
assets.
(9)
Seven-day
yield
(10)
Affiliated
Companies
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
CMO
Collateralized
Mortgage
Obligation
FRN
Floating
Rate
Note
PTC
Pass-Through
Certificate
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.
TBA
To-Be-Announced
UMBS
Uniform
Mortgage-Backed
Securities
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
Short
Duration
Income
Fund
(Amounts
in
000s)
SWAPS
0.1%
Description
Notional
Amount
$
Value
Initial
$
Value
**
Unrealized
$
Gain/(Loss)
CENTRALLY
CLEARED
SWAPS
0.1%
Credit
Default
Swaps,
Protection
Sold
0.1%
Protection
Sold
(Relevant
Credit:
Markit
CDX.NA.IG-S43,
5
Year
Index),
Receive
1.00%
Quarterly,
Pay
upon
credit
default,
12/20/29
1,925
50
44
6
Total
Centrally
Cleared
Credit
Default
Swaps,
Protection
Sold
6
Total
Centrally
Cleared
Swaps
6
Net
payments
(receipts)
of
variation
margin
to
date
(5)
Variation
margin
receivable
(payable)
on
centrally
cleared
swaps
$
1
**
Includes
interest
purchased
or
sold
but
not
yet
collected
of
less
than
$1.
T.
ROWE
PRICE
Short
Duration
Income
Fund
FUTURES
CONTRACTS
($000s)
Expiration
Date
Notional
Amount
Value
and
Unrealized
Gain
(Loss)
Short,
35
U.S.
Treasury
Notes
five
year
contracts
3/25
(3,766)
$
(30)
Short,
14
U.S.
Treasury
Notes
ten
year
contracts
3/25
(1,557)
(8)
Long,
91
U.S.
Treasury
Notes
two
year
contracts
3/25
18,756
57
Short,
2
Ultra
U.S.
Treasury
Bonds
contracts
3/25
(254)
(4)
Short,
6
Ultra
U.S.
Treasury
Notes
ten
year
contracts
3/25
(689)
(12)
Net
payments
(receipts)
of
variation
margin
to
date
(4)
Variation
margin
receivable
(payable)
on
open
futures
contracts
$
(1)
T.
ROWE
PRICE
Short
Duration
Income
Fund
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
six
months
ended
November
30,
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,
4.67%
$
—
$
—
$
25++
Totals
$
—#
$
—
$
25+
Supplementary
Investment
Schedule
Affiliate
Value
05/31/24
Purchase
Cost
Sales
Cost
Value
11/30/24
T.
Rowe
Price
Government
Reserve
Fund,
4.67%
$
1,047
¤
¤
$
2,486
Total
$
2,486^
#
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
$25
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
$2,486.
T.
ROWE
PRICE
Short
Duration
Income
Fund
November
30,
2024
(Unaudited)
Statement
of
Assets
and
Liabilities
($000s,
except
shares
and
per
share
amounts)
Assets
Investments
in
securities,
at
value
(cost
$65,553)
$
65,669
Receivable
for
investment
securities
sold
547
Interest
receivable
469
Cash
199
Receivable
for
shares
sold
132
Due
from
affiliates
13
Variation
margin
receivable
on
centrally
cleared
swaps
1
Other
assets
44
Total
assets
67,074
Liabilities
Obligation
to
return
securities
lending
collateral
1,924
Payable
for
investment
securities
purchased
1,712
Payable
for
shares
redeemed
85
Investment
management
fees
payable
15
Variation
margin
payable
on
futures
contracts
1
Other
liabilities
114
Total
liabilities
3,851
Commitments
and
Contingent
Liabilities
(note
6
)
NET
ASSETS
$
63,223
T.
ROWE
PRICE
Short
Duration
Income
Fund
November
30,
2024
(Unaudited)
Statement
of
Assets
and
Liabilities
($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)
$
(3,165)
Paid-in
capital
applicable
to
6,719,181
shares
of
$0.01
par
value
capital
stock
outstanding;
6,000,000,000
shares
authorized
66,388
NET
ASSETS
$
63,223
NET
ASSET
VALUE
PER
SHARE
Investor
Class
(Net
assets:
$36,563;
Shares
outstanding:
3,885,555)
$
9.41
I
Class
(Net
assets:
$26,660;
Shares
outstanding:
2,833,626)
$
9.41
T.
ROWE
PRICE
Short
Duration
Income
Fund
(Unaudited)
6
Months
Ended
11/30/24
Investment
Income
(Loss)
Income
.
Interest
$
1,580
Dividend
25
Securities
lending
4
Total
income
1,609
Expenses
Investment
management
83
Shareholder
servicing
Investor
Class
$
18
I
Class
4
22
Prospectus
and
shareholder
reports
Investor
Class
3
I
Class
1
4
Custody
and
accounting
109
Registration
26
Legal
and
audit
19
Miscellaneous
8
Waived
/
paid
by
Price
Associates
(166)
Total
expenses
105
Net
investment
income
1,504
T.
ROWE
PRICE
Short
Duration
Income
Fund
(Unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
11/30/24
Realized
and
Unrealized
Gain
/
Loss
–
Net
realized
gain
(loss)
Securities
117
Futures
57
Swaps
8
Net
realized
gain
182
Change
in
net
unrealized
gain
/
loss
Securities
439
Futures
(4)
Swaps
2
Change
in
net
unrealized
gain
/
loss
437
Net
realized
and
unrealized
gain
/
loss
619
INCREASE
IN
NET
ASSETS
FROM
OPERATIONS
$
2,123
T.
ROWE
PRICE
Short
Duration
Income
Fund
(Unaudited)
Statement
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
11/30/24
Year
Ended
5/31/24
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
$
1,504
$
2,414
Net
realized
gain
(loss)
182
(834)
Change
in
net
unrealized
gain
/
loss
437
1,219
Increase
in
net
assets
from
operations
2,123
2,799
Distributions
to
shareholders
Net
earnings
Investor
Class
(895)
(1,485)
I
Class
(616)
(921)
Decrease
in
net
assets
from
distributions
(1,511)
(2,406)
Capital
share
transactions
*
Shares
sold
Investor
Class
8,417
11,735
I
Class
9,104
9,290
Distributions
reinvested
Investor
Class
408
604
I
Class
548
803
Shares
redeemed
Investor
Class
(6,625)
(8,036)
I
Class
(4,183)
(8,181)
Increase
in
net
assets
from
capital
share
transactions
7,669
6,215
Net
Assets
Increase
during
period
8,281
6,608
Beginning
of
period
54,942
48,334
End
of
period
$
63,223
$
54,942
*Share
information
(000s)
Shares
sold
Investor
Class
894
1,269
I
Class
967
1,001
Distributions
reinvested
Investor
Class
44
65
I
Class
58
87
Shares
redeemed
Investor
Class
(705)
(869)
I
Class
(445)
(885)
Increase
in
shares
outstanding
813
668
T.
ROWE
PRICE
Short
Duration
Income
Fund
Unaudited
NOTES
TO
FINANCIAL
STATEMENTS
T.
Rowe
Price
Short-Term
Bond
Fund,
Inc. (the
corporation) is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act).
The
Short
Duration
Income
Fund
(the
fund)
is a
diversified, open-end
management
investment
company
established
by
the
corporation. The
fund
seeks to
provide
income
consistent
with
limited
fluctuation
in
principal
value
and
liquidity.
The
fund
has two classes
of
shares:
the
Short
Duration
Income
Fund
(Investor
Class)
and
the
Short
Duration
Income
Fund–I
Class
(I
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. Each
class
has
exclusive
voting
rights
on
matters
related
solely
to
that
class;
separate
voting
rights
on
matters
that
relate
to
both
classes;
and,
in
all
other
respects,
the
same
rights
and
obligations
as
the
other
class.
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. Inflation
adjustments
to
the
principal
amount
of
inflation-indexed
bonds
are
reflected
as
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
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
T.
ROWE
PRICE
Short
Duration
Income
Fund
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. 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.
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.
Eastern
time,
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.
New
Accounting
Guidance
In
November
2023,
the
FASB
issued
Accounting
Standards
Update
(ASU),
ASU
2023-07,
Segment
Reporting
(Topic
280)
–
Improvements
to
Reportable
Segment
Disclosures,
which
improves
reportable
segment
disclosure
requirements,
primarily
through
enhanced
disclosures
about
segment
expenses.
In
addition,
the
ASU
clarifies
that
a
public
entity
with
a
single
reportable
segment
provide
all
disclosures
required
by
the
ASU
and
all
existing
segment
disclosures
in
Topic
280.
The
amendments
under
this
ASU
are
effective
for
fiscal
years
beginning
after
December
15,
2023.
Management
expects
that
adoption
of
the
guidance
will
not
have
a
material
impact
on
the
fund’s
financial
statements.
In December
2023,
the
FASB
issued
Accounting
Standards
Update
(ASU),
ASU
2023-09,
Income
Taxes
(Topic
740)
–
Improvements
to
Income
Taxes
Disclosures,
which
enhances
the
transparency
of
income
tax
disclosures.
The
ASU
requires
public
entities,
on
an
annual
basis,
to
provide
disclosure
of
specific
categories
in
the
rate
reconciliation,
as
well
as
disclosure
of
income
taxes
paid
disaggregated
by
jurisdiction.
The
amendments
under
this
ASU
are
T.
ROWE
PRICE
Short
Duration
Income
Fund
required
to
be
applied
prospectively
and
are
effective
for
fiscal
years
beginning
after
December
15,
2024.
Management
expects
that
adoption
of
the
guidance
will
not
have
a
material
impact
on
the
fund’s
financial
statements.
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)
T.
ROWE
PRICE
Short
Duration
Income
Fund
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
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.
Futures
contracts
are
valued
at
closing
settlement
prices.
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;
T.
ROWE
PRICE
Short
Duration
Income
Fund
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
November
30,
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
$
—
$
38,643
$
—
$
38,643
Bank
Loans
—
478
133
611
Corporate
Bonds
—
23,280
100
23,380
Short-Term
Investments
562
549
—
1,111
Securities
Lending
Collateral
1,924
—
—
1,924
Total
Securities
2,486
62,950
233
65,669
Swaps*
—
6
—
6
Futures
Contracts*
57
—
—
57
Total
$
2,543
$
62,956
$
233
$
65,732
Liabilities
Futures
Contracts*
$
54
$
—
$
—
$
54
1
Includes
Asset-Backed
Securities,
Foreign
Government
Obligations
&
Municipalities,
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.
T.
ROWE
PRICE
Short
Duration
Income
Fund
NOTE
3
-
DERIVATIVE
INSTRUMENTS
During
the
six
months ended
November
30,
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
or
delivery
of
cash
or
other
assets.
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
November
30,
2024,
and
the
related
location
on
the
accompanying
Statement
of
Assets
and
Liabilities,
presented
by
primary
underlying
risk
exposure:
T.
ROWE
PRICE
Short
Duration
Income
Fund
($000s)
Location
on
Statement
of
Assets
and
Liabilities
Fair
Value*
Assets
Interest
rate
derivatives
Futures
$
57
Credit
derivatives
Centrally
Cleared
Swaps
6
*
Total
$
63
*
Liabilities
Interest
rate
derivatives
Futures
$
54
Total
$
54
*
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.
T.
ROWE
PRICE
Short
Duration
Income
Fund
Additionally,
the
amount
of
gains
and
losses
on
derivative
instruments
recognized
in
fund
earnings
during
the
six
months ended
November
30,
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
exchange-traded
and/or
centrally
cleared
derivative
contracts,
such
as
futures,
exchange-traded
options,
and
centrally
cleared
swaps.
Counterparty
risk
on
such
derivatives
is
minimal
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.
Collateral may
be
in
the
form
of
cash
or
debt
securities
issued
by
the
U.S.
government
or
related
agencies.
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.
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
($000s)
Location
of
Gain
(Loss)
on
Statement
of
Operations
Securities^
Futures
Swaps
Total
Realized
Gain
(Loss)
Interest
rate
derivatives
$
19
$
57
$
—
$
76
Credit
derivatives
—
—
8
8
Total
$
19
$
57
$
8
$
84
Change
in
Unrealized
Gain
(Loss)
Interest
rate
derivatives
$
6
$
(4)
$
—
$
2
Credit
derivatives
—
—
2
2
Total
$
6
$
(4)
$
2
$
4
^
Options
purchased
are
reported
as
securities.
T.
ROWE
PRICE
Short
Duration
Income
Fund
the
exchange
or
clearinghouse
where
the
contracts
were
cleared.
This
ability
is
subject
to
the
liquidity
of
underlying
positions. As
of
November
30,
2024,
securities
valued
at $179,000
had
been
posted
by
the
fund
for
exchange-traded
and/or
centrally
cleared
derivatives.
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,
and
mortgage
prepayments;
as
an
efficient
means
of
adjusting
exposure
to
all
or
part
of
a
target
market;
as
a
cash
management
tool;
or
to
adjust
portfolio
duration. 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
six
months ended
November
30,
2024,
the
volume
of
the
fund’s
activity
in
futures,
based
on
underlying
notional
amounts,
was
generally
between
27%
and
38%
of
net
assets.
Options
The
fund
is
subject
to interest
rate
risk in
the
normal
course
of
pursuing
its
investment
objectives
and
uses
options
to
help
manage
such
risk.
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,
T.
ROWE
PRICE
Short
Duration
Income
Fund
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
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. 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
and
interest
rates;
and,
for
options
written,
the
potential
for
losses
to
exceed
any
premium
received
by
the
fund.
During
the
six
months ended
November
30,
2024,
the
volume
of
the
fund’s
activity
in
options,
based
on
underlying
notional
amounts,
was
generally
between
0%
and
44%
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
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
T.
ROWE
PRICE
Short
Duration
Income
Fund
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
November
30,
2024,
the
notional
amount
of
protection
sold
by
the
fund
totaled $1,925,000
(3.0%
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
six
months ended
November
30,
2024,
the
volume
of
the
fund’s
activity
in
swaps,
based
on
underlying
notional
amounts,
was
generally
between
0%
and
3%
of
net
assets.
T.
ROWE
PRICE
Short
Duration
Income
Fund
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.
Emerging
and
Frontier
Markets
The fund
invests,
either
directly
or
through
investments
in
other
T.
Rowe
Price
funds,
in
securities
of
companies
located
in,
issued
by
governments
of,
or
denominated
in
or
linked
to
the
currencies
of
emerging
and
frontier
market
countries.
Emerging
markets,
and
to
a
greater
extent
frontier
markets, tend
to
have
economic
structures
that
are
less
diverse
and
mature,
less
developed
legal
and
regulatory
regimes,
and
political
systems
that
are
less
stable,
than
those
of
developed
countries.
These
markets
may
be
subject
to
greater
political,
economic,
and
social
uncertainty
and
differing
accounting
standards
and
regulatory
environments
that
may
potentially
impact
the
fund’s
ability
to
buy
or
sell
certain
securities
or
repatriate
proceeds
to
U.S.
dollars.
Emerging
markets
securities
exchanges
are
more
likely
to
experience
delays
with
the
clearing
and
settling
of
trades,
as
well
as
the
custody
of
holdings
by
local
banks,
agents,
and
depositories.
Such
securities
are
often
subject
to
greater
price
volatility,
less
liquidity,
and
higher
rates
of
inflation
than
U.S.
securities.
Investing
in
frontier
markets
is
typically
significantly
riskier
than
investing
in
other
countries,
including
emerging
markets.
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.
T.
ROWE
PRICE
Short
Duration
Income
Fund
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.
TBA
Purchase,
Sale
Commitments
and
Forward
Settling
Mortgage
Obligations
The
fund
enters
into
to-be-announced
(TBA)
purchase
or
sale
commitments
(collectively,
TBA
transactions),
pursuant
to
which
it
agrees
to
purchase
or
sell,
respectively,
mortgage-backed
securities
for
a
fixed
unit
price,
with
payment
and
delivery
at
a
scheduled
future
date
beyond
the
customary
settlement
period
for
such
securities.
With
TBA
transactions,
the
particular
securities
to
be
received
or
delivered
by
the
fund
are
not
identified
at
the
trade
date;
however,
the
securities
must
meet
specified
terms,
including
rate
and
mortgage
term,
and
be
within
industry-accepted
“good
delivery”
standards.
The
fund
may
enter
into
TBA
transactions
with
the
intention
of
taking
possession
of
or
relinquishing
the
underlying
securities,
may
elect
to
extend
the
settlement
by
“rolling”
the
transaction,
and/or
may
use
TBA
transactions
to
gain
or
reduce
interim
exposure
to
underlying
securities.
To
mitigate
counterparty
risk,
the
fund
has
entered
into
Master
Securities
Forward
Transaction
Agreements
(MSFTA)
with
counterparties
that
provide
for
collateral
and
the
right
to
offset
amounts
due
to
or
from
those
counterparties
under
specified
conditions.
Subject
to
minimum
transfer
amounts,
collateral
requirements
are
determined
and
transfers
made
based
on
the
net
aggregate
unrealized
gain
or
loss
on
all
TBA
commitments
and
other
forward
settling
mortgage
obligations
with
a
particular
counterparty
(collectively,
MSFTA
Transactions).
At
any
time,
the
fund’s
risk
of
loss
from
a
particular
counterparty
related
to
its
MSFTA
Transactions
is
the
aggregate
unrealized
gain
on
appreciated
MSFTA
Transactions
in
excess
of
unrealized
loss
on
depreciated
MSFTA
Transactions
and
collateral
received,
if
any,
from
such
counterparty. As
of
November
30,
2024,
no
collateral
was
pledged
by
the
fund
or
counterparties
for
MSFTA
Transactions.
T.
ROWE
PRICE
Short
Duration
Income
Fund
Bank
Loans
The
fund
invests
in
bank
loans,
which
represent
an
interest
in
amounts
owed
by
a
borrower
to
a
syndicate
of
lenders.
Bank
loans
are
generally
noninvestment
grade
and
often
involve
borrowers
whose
financial
condition
is
highly
leveraged.
The
fund
may
invest
in
fixed
and
floating
rate
loans,
which
may
include
senior
floating
rate
loans;
secured
and
unsecured
loans,
second
lien
or
more
junior
loans;
and
bridge
loans
or
bridge
facilities.
Certain
bank
loans
may
be
revolvers
which
are
a
form
of
senior
bank
debt,
where
the
borrower
can
draw
down
the
credit
of
the
revolver
when
it
needs
cash
and
repays
the
credit
when
the
borrower
has
excess
cash.
Certain
loans
may
be
“covenant-lite”
loans,
which
means
the
loans
contain
fewer
maintenance
covenants
than
other
loans
(in
some
cases,
none)
and
do
not
include
terms
which
allow
the
lender
to
monitor
the
performance
of
the
borrower
and
declare
a
default
if
certain
criteria
are
breached.
As
a
result
of
these
risks,
the
fund’s
exposure
to
losses
may
be
increased.
Bank
loans
may
be
in
the
form
of
either
assignments
or
participations.
A
loan
assignment
transfers
all
legal,
beneficial,
and
economic
rights
to
the
buyer,
and
transfer
typically
requires
consent
of
both
the
borrower
and
agent.
In
contrast,
a
loan
participation
generally
entitles
the
buyer
to
receive
the
cash
flows
from
principal,
interest,
and
any
fee
payments
on
a
portion
of
a
loan;
however,
the
seller
continues
to
hold
legal
title
to
that
portion
of
the
loan.
As
a
result,
the
buyer
of
a
loan
participation
generally
has
no
direct
recourse
against
the
borrower
and
is
exposed
to
credit
risk
of
both
the
borrower
and
seller
of
the
participation.
Bank
loans
often
have
extended
settlement
periods,
generally
may
be
repaid
at
any
time
at
the
option
of
the
borrower,
and
may
require
additional
principal
to
be
funded
at
the
borrowers’
discretion
at
a
later
date
(e.g.
unfunded
commitments
and
revolving
debt
instruments).
Until
settlement,
the
fund
maintains
liquid
assets
sufficient
to
settle
its
unfunded
loan
commitments.
The
fund
reflects
both
the
funded
portion
of
a
bank
loan
as
well
as
its
unfunded
commitment
in
the
Portfolio
of
Investments.
However,
if
a
credit
agreement
provides
no
initial
funding
of
a
tranche,
and
funding
of
the
full
commitment
at
a
future
date(s)
is
at
the
borrower’s
discretion
and
considered
uncertain,
a
loan
is
reflected
in
the
Portfolio
of
Investments
only
if,
and
only
to
the
extent
that,
the
fund
has
actually
settled
a
funding
commitment.
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
T.
ROWE
PRICE
Short
Duration
Income
Fund
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
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
November
30,
2024,
the
value
of
loaned
securities
was
$1,872,000;
the
value
of
cash
collateral
and
related
investments
was
$1,924,000.
Other
Purchases
and
sales
of
portfolio
securities
other
than
in-kind
transactions,
if
any, short-term
and
U.S.
government securities
aggregated $19,267,000 and
$11,402,000,
respectively,
for
the
six
months ended
November
30,
2024. Purchases
and
sales
of
U.S.
government
securities
aggregated $19,359,000 and
$18,310,000,
respectively,
for
the
six
months ended
November
30,
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.
Financial
reporting
records
are
adjusted
for
permanent
book/tax
differences
to
reflect
tax
character
but
are
not
adjusted
for
temporary
differences.
The
amount
and
character
of
tax-basis
distributions
and
composition
of
net
assets
are
finalized
at
fiscal
year-end;
accordingly,
tax-basis
balances
have
not
been
determined
as
of
the
date
of
this
report.
T.
ROWE
PRICE
Short
Duration
Income
Fund
The
fund
intends
to
retain
realized
gains
to
the
extent
of
available
capital
loss
carryforwards.
Net
realized
capital
losses
may
be
carried
forward
indefinitely
to
offset
future
realized
capital
gains.
As
of
May
31,
2024,
the
fund
had
$3,447,000
of
available
capital
loss
carryforwards.
At
November
30,
2024,
the
cost
of
investments
(including
derivatives,
if
any)
for
federal
income
tax
purposes
was
$65,597,000.
Net
unrealized
gain
aggregated
$125,000
at
period-end,
of
which
$523,000
related
to
appreciated
investments
and
$398,000
related
to
depreciated
investments.
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,
which
is
computed
daily
and
paid
monthly.
The
fee
is
determined
by
applying
a
group
fee
rate
to
the
fund’s
average
daily
net
assets.
The
group
fee
rate
is
calculated
based
on
the
combined
net
assets
of
certain
mutual
funds
sponsored
by
Price
Associates
(the
group)
applied
to
a
graduated
fee
schedule,
with
rates
ranging
from
0.48%
for
the
first
$1
billion
of
assets
to
0.260%
for
assets
in
excess
of
$845
billion. At
November
30,
2024,
the
effective
annual
group
fee
rate
was
0.28%.
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)
T.
ROWE
PRICE
Short
Duration
Income
Fund
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
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.
Pursuant
to
these
agreements,
expenses
were
waived/paid
by
and/or
repaid
to
Price
Associates
during
the
six
months ended November
30,
2024
as
indicated
in
the
table
below
and
remain
subject
to
repayment
by
the
fund.
Including these
amounts,
expenses
previously
waived/paid
by
Price
Associates
in
the
amount
of $916,000 remain
subject
to
repayment
by
the
fund
at
November
30,
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
a
wholly
owned
subsidiary
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.
For
the
six
months
ended
November
30,
2024,
Investor
Class
I
Class
Expense
limitation/I
Class
Limit
0.40%
0.01%
Expense
limitation
date
09/30/25
09/30/25
(Waived)/repaid
during
the
period
($000s)
$(97)
$(69)
T.
ROWE
PRICE
Short
Duration
Income
Fund
expenses
incurred
pursuant
to
these
service
agreements
were
$64,000
for
Price
Associates
and
$12,000
for
T.
Rowe
Price
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
November
30,
2024,
T.
Rowe
Price
Group,
Inc.,
or
its
wholly
owned
subsidiaries,
owned
1,975,000
shares
of
the
Investor
Class,
representing
51%
of
the
Investor
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
six
months
ended
November
30,
2024,
the
fund
had
no
purchases
or
sales
cross
trades
with
other
funds
or
accounts
advised
by
Price
Associates.
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
T.
ROWE
PRICE
Short
Duration
Income
Fund
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.
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.
F1305-051
1/25
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.
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 Short-Term Bond Fund, Inc. |
| | |
| By | | /s/ David Oestreicher | | |
| | David Oestreicher | | |
| | Principal Executive Officer | | |
| | |
| Date | | January 17, 2025 | | |
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 | | January 17, 2025 | | |
| | | | |
| By | | /s/ Alan S. Dupski | | |
| | Alan S. Dupski | | |
| | Principal Financial Officer | | |
| | |
| Date | | January 17, 2025 | | |
