T.

ROWE

PRICE

Short

Duration

Income

Fund

February

28,

2023

(Unaudited)

1

Portfolio

of

Investments

‡

Par/Shares

$

Value

(Amounts

in

000s)

‡

ASSET-BACKED

SECURITIES

19.3%

Car

Loan

8.6%

AmeriCredit

Automobile

Receivables

Trust

Series 2020-2,

Class

D

2.13%,

3/18/26 

120‌

112‌

Avis

Budget

Rental

Car

Funding

AESOP

Series 2018-1A,

Class

D

5.25%,

9/20/24 (1)

110‌

109‌

Avis

Budget

Rental

Car

Funding

AESOP

Series 2019-3A,

Class

B

2.65%,

3/20/26 (1)

150‌

139‌

Carmax

Auto

Owner

Trust

Series 2020-1,

Class

D

2.64%,

7/15/26 

115‌

111‌

Carmax

Auto

Owner

Trust

Series 2022-4,

Class

D

8.08%,

4/16/29 

200‌

209‌

CarMax

Auto

Owner

Trust

Series 2020-3,

Class

C

1.69%,

4/15/26 

50‌

47‌

CarMax

Auto

Owner

Trust

Series 2021-2,

Class

C

1.34%,

2/16/27 

250‌

228‌

CarMax

Auto

Owner

Trust

Series 2023-1,

Class

A2A

5.23%,

1/15/26 

185‌

184‌

Drive

Auto

Receivables

Trust

Series 2021-1,

Class

D

1.45%,

1/16/29 

150‌

140‌

Enterprise

Fleet

Financing

Series 2022-2,

Class

A2

4.65%,

5/21/29 (1)

70‌

69‌

Exeter

Automobile

Receivables

Trust

Series 2021-2A,

Class

C

0.98%,

6/15/26 

75‌

73‌

Exeter

Automobile

Receivables

Trust

Series 2022-4A,

Class

D

5.98%,

12/15/28 

45‌

44‌

Exeter

Automobile

Receivables

Trust

Series 2022-6A,

Class

A3

5.70%,

8/17/26 

25‌

25‌

Exeter

Automobile

Receivables

Trust

Series 2023-1A,

Class

A3

5.58%,

4/15/26 

119‌

119‌

Ford

Credit

Auto

Lease

Trust

Series 2022-A,

Class

C

4.18%,

10/15/25 

255‌

248‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

2

Par/Shares

$

Value

(Amounts

in

000s)

‡

Ford

Credit

Auto

Lease

Trust

Series 2023-A,

Class

C

5.54%,

12/15/26 

230‌

227‌

GM

Financial

Automobile

Leasing

Trust

Series 2021-1,

Class

D

1.01%,

7/21/25 

140‌

137‌

GM

Financial

Automobile

Leasing

Trust

Series 2022-3,

Class

C

5.13%,

8/20/26 

245‌

241‌

GM

Financial

Consumer

Automobile

Receivables

Trust

Series 2020-3,

Class

C

1.37%,

1/16/26 

30‌

29‌

GM

Financial

Consumer

Automobile

Receivables

Trust

Series 2020-4,

Class

C

1.05%,

5/18/26 

50‌

46‌

GM

Financial

Consumer

Automobile

Receivables

Trust

Series 2023-1,

Class

B

5.03%,

9/18/28 

35‌

35‌

JPMorgan

Chase

Bank

Series 2021-2,

Class

D

1.138%,

12/26/28 (1)

94‌

90‌

Nissan

Auto

Lease

Trust

Series 2023-A,

Class

A2A

5.10%,

3/17/25 

300‌

299‌

Santander

Bank

-

SBCLN

Series 2021-1A,

Class

C

3.268%,

12/15/31 (1)

270‌

261‌

Santander

Consumer

Auto

Receivables

Trust

Series 2020-BA,

Class

C

1.29%,

4/15/26 (1)

100‌

96‌

Santander

Consumer

Auto

Receivables

Trust

Series 2021-AA,

Class

D

1.57%,

1/15/27 (1)

100‌

91‌

Santander

Consumer

Auto

Receivables

Trust

Series 2021-CA,

Class

C

2.97%,

6/15/28 (1)

265‌

259‌

Santander

Drive

Auto

Receivables

Trust

Series 2023-1,

Class

A2

5.36%,

5/15/26 

300‌

299‌

Santander

Retail

Auto

Lease

Trust

Series 2021-C,

Class

D

1.39%,

8/20/26 (1)

350‌

327‌

Santander

Retail

Auto

Lease

Trust

Series 2022-B,

Class

A3

3.28%,

11/20/25 (1)

71‌

69‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

3

Par/Shares

$

Value

(Amounts

in

000s)

‡

World

Omni

Auto

Receivables

Trust

Series 2020-C,

Class

C

1.39%,

5/17/27 

85‌

79‌

4,442‌

Other

Asset-Backed

Securities

9.8%

Amur

Equipment

Finance

Receivables

XI

Series 2022-2A,

Class

A2

5.30%,

6/21/28 (1)

100‌

99‌

Applebee's

Funding

Series 2019-1A,

Class

A2I

4.194%,

6/5/49 (1)

248‌

240‌

Benefit

Street

Partners

XI

Series 2017-11A,

Class

A2R,

CLO,

FRN

3M

USD

LIBOR

+

1.50%,

6.292%,

4/15/29 (1)

250‌

245‌

Blackbird

Capital

Aircraft

Lease

Securitization

Series 2016-1A,

Class

AA,

STEP

2.487%,

12/16/41 (1)

55‌

51‌

CBAM

Series 2019-9A,

Class

B1,

CLO,

FRN

3M

USD

LIBOR

+

1.90%,

6.692%,

2/12/30 (1)

250‌

247‌

Cedar

Funding

VII

Series 2018-7A,

Class

B,

CLO,

FRN

3M

USD

LIBOR

+

1.40%,

6.208%,

1/20/31 (1)

250‌

242‌

CIFC

Funding

Series 2021-4A,

Class

A,

CLO,

FRN

3M

USD

LIBOR

+

1.05%,

5.842%,

7/15/33 (1)

250‌

247‌

DB

Master

Finance

Series 2019-1A,

Class

A2II

4.021%,

5/20/49 (1)

92‌

86‌

DLLAD

Series 2023-1A,

Class

A2

5.19%,

4/20/26 (1)

115‌

114‌

Elara

HGV

Timeshare

Issuer

Series 2016-A,

Class

A

2.73%,

4/25/28 (1)

10‌

10‌

Elara

HGV

Timeshare

Issuer

Series 2019-A,

Class

A

2.61%,

1/25/34 (1)

74‌

69‌

Hilton

Grand

Vacations

Trust

Series 2017-AA,

Class

B

2.96%,

12/26/28 (1)

60‌

59‌

Hilton

Grand

Vacations

Trust

Series 2019-AA,

Class

B

2.54%,

7/25/33 (1)

96‌

90‌

KKR

Series 29A,

Class

A,

CLO,

FRN

3M

USD

LIBOR

+

1.20%,

5.992%,

1/15/32 (1)

250‌

248‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

4

Par/Shares

$

Value

(Amounts

in

000s)

‡

Madison

Park

Funding

XXIII

Series 2017-23A,

Class

AR,

CLO,

FRN

3M

USD

LIBOR

+

0.97%,

5.785%,

7/27/31 (1)

250‌

248‌

Madison

Park

Funding

XXXV

Series 2019-35A,

Class

A1R,

CLO,

FRN

3M

USD

LIBOR

+

0.99%,

5.798%,

4/20/32 (1)

250‌

247‌

Madison

Park

Funding

XXXVII

Series 2019-37A,

Class

AR,

CLO,

FRN

3M

USD

LIBOR

+

1.07%,

5.862%,

7/15/33 (1)

250‌

246‌

MVW

Series 2021-1WA,

Class

C

1.94%,

1/22/41 (1)

63‌

57‌

MVW

Owner

Trust

Series 2017-1A,

Class

B

2.75%,

12/20/34 (1)

73‌

71‌

OCP

Series 2014-7A,

Class

A1RR,

CLO,

FRN

3M

USD

LIBOR

+

1.12%,

5.928%,

7/20/29 (1)

268‌

266‌

OCP

Series 2017-13A,

Class

A2R,

CLO,

FRN

3M

USD

LIBOR

+

1.55%,

6.342%,

7/15/30 (1)

250‌

246‌

Octagon

Investment

Partners

Series 2016-1A,

Class

AR,

CLO,

FRN

3M

USD

LIBOR

+

1.18%,

5.996%,

1/24/33 (1)

250‌

246‌

Octane

Receivables

Trust

Series 2021-2A,

Class

A

1.21%,

9/20/28 (1)

49‌

47‌

Octane

Receivables

Trust

Series 2022-1A,

Class

B

4.90%,

5/22/28 (1)

150‌

145‌

Octane

Receivables

Trust

Series 2022-2A,

Class

A

5.11%,

2/22/28 (1)

89‌

88‌

Octane

Receivables

Trust

Series 2023-1A,

Class

A

5.87%,

5/21/29 (1)

100‌

100‌

Planet

Fitness

Master

Issuer

Series 2018-1A,

Class

A2II

4.666%,

9/5/48 (1)

196‌

185‌

Progress

Residential

Trust

Series 2020-SFR2,

Class

A

2.078%,

6/17/37 (1)

200‌

185‌

Sierra

Timeshare

Receivables

Funding

Series 2021-1A,

Class

B

1.34%,

11/20/37 (1)

105‌

96‌

Sierra

Timeshare

Receivables

Funding

Series 2021-1A,

Class

C

1.79%,

11/20/37 (1)

35‌

32‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

5

Par/Shares

$

Value

(Amounts

in

000s)

‡

Symphony

Static

I

Series 2021-1A,

Class

C,

CLO,

FRN

3M

USD

LIBOR

+

1.85%,

6.668%,

10/25/29 (1)

250‌

235‌

Symphony

XXIII

Series 2020-23A,

Class

AR,

CLO,

FRN

3M

USD

LIBOR

+

1.02%,

5.812%,

1/15/34 (1)

250‌

247‌

5,034‌

Student

Loan

0.9%

Navient

Private

Education

Loan

Trust

Series 2020-A,

Class

A2A

2.46%,

11/15/68 (1)

73‌

68‌

Navient

Private

Education

Refi

Loan

Trust

Series 2018-A,

Class

A2

3.19%,

2/18/42 (1)

8‌

8‌

Navient

Private

Education

Refi

Loan

Trust

Series 2019-A,

Class

A2A

3.42%,

1/15/43 (1)

45‌

43‌

Navient

Private

Education

Refi

Loan

Trust

Series 2019-D,

Class

A2A

3.01%,

12/15/59 (1)

95‌

88‌

Navient

Private

Education

Refi

Loan

Trust

Series 2019-GA,

Class

A

2.40%,

10/15/68 (1)

66‌

60‌

SMB

Private

Education

Loan

Trust

Series 2016-C,

Class

A2A

2.34%,

9/15/34 (1)

21‌

21‌

SMB

Private

Education

Loan

Trust

Series 2017-B,

Class

B

3.50%,

12/16/41 (1)

150‌

135‌

SMB

Private

Education

Loan

Trust

Series 2020-A,

Class

A2A

2.23%,

9/15/37 (1)

66‌

61‌

484‌

Total

Asset-Backed

Securities

(Cost

$10,297)

9,960‌

BANK

LOANS

1.7%

(2)

Consumer

Non-Cyclical

0.8%

PetVet

Care

Centers,

FRN,

1M

USD

LIBOR

+

3.50%,

8.135%,

2/14/25 

197‌

188‌

Surgery

Center

Holdings,

FRN,

1M

USD

LIBOR

+

3.75%,

8.36%,

8/31/26 

227‌

225‌

413‌

Insurance

0.7%

Asurion,

FRN,

1M

USD

LIBOR

+

3.00%,

7.635%,

11/3/24 

170‌

170‌

HUB

International,

FRN,

3M

USD

LIBOR

+

3.00%,

7.817%,

4/25/25 

188‌

187‌

357‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

6

Par/Shares

$

Value

(Amounts

in

000s)

‡

Technology

0.2%

Applied

Systems,

FRN,

1M

USD

LIBOR

+

3.00%,

7.73%,

9/19/24 

123‌

123‌

123‌

Total

Bank

Loans

(Cost

$903)

893‌

CORPORATE

BONDS

35.9%

Banking

11.7%

Banco

de

Bogota,

6.25%,

5/12/26 

200‌

195‌

Banco

de

Credito

del

Peru

S.A.,

4.25%,

4/1/23 

200‌

200‌

Banco

Santander,

2.746%,

5/28/25 

200‌

187‌

Banco

Santander

Mexico

Institucion

de

Banca

Multiple

Grupo

Financiero

Santand,

5.375%,

4/17/25 

150‌

149‌

Bank

of

America,

VR,

0.976%,

4/22/25 (3)

350‌

330‌

Bank

of

America,

VR,

5.08%,

1/20/27 (3)

150‌

148‌

Bank

of

Ireland

Group,

4.50%,

11/25/23 (1)

200‌

197‌

Bank

of

Montreal,

5.20%,

12/12/24 

200‌

200‌

Bank

of

the

Philippine

Islands,

2.50%,

9/10/24 

200‌

192‌

Banque

Federative

du

Credit

Mutuel,

4.935%,

1/26/26 (1)

200‌

197‌

Barclays,

VR,

5.304%,

8/9/26 (3)

200‌

196‌

Barclays,

VR,

7.325%,

11/2/26 (3)

200‌

207‌

BBVA

Bancomer,

4.375%,

4/10/24 

150‌

148‌

CaixaBank,

VR,

6.208%,

1/18/29 (1)(3)

200‌

199‌

Citigroup,

VR,

0.981%,

5/1/25 (3)

150‌

141‌

Citigroup,

VR,

4.14%,

5/24/25 (3)

105‌

103‌

Danske

Bank,

5.375%,

1/12/24 (1)

200‌

199‌

Goldman

Sachs

Group,

5.70%,

11/1/24 

200‌

201‌

Goldman

Sachs

Group,

VR,

1.757%,

1/24/25 (3)

175‌

168‌

HDFC

Bank,

5.686%,

3/2/26 

200‌

200‌

HSBC

Holdings,

4.25%,

3/14/24 

200‌

197‌

Lloyds

Banking

Group,

4.50%,

11/4/24 

200‌

196‌

Mitsubishi

UFJ

Financial

Group,

VR,

5.063%,

9/12/25 (3)

200‌

198‌

Morgan

Stanley,

VR,

0.731%,

4/5/24 (3)

210‌

209‌

Morgan

Stanley,

VR,

5.05%,

1/28/27 (3)

85‌

84‌

NatWest

Group,

VR,

7.472%,

11/10/26 (3)

200‌

208‌

PNC

Financial

Services

Group,

VR,

4.758%,

1/26/27 (3)

120‌

118‌

PNC

Financial

Services

Group,

VR,

5.671%,

10/28/25 (3)

135‌

135‌

Societe

Generale,

2.625%,

10/16/24 (1)

200‌

190‌

Standard

Chartered,

VR,

6.17%,

1/9/27 (1)(3)

200‌

202‌

UBS

Group,

VR,

4.488%,

5/12/26 (1)(3)

200‌

195‌

Wells

Fargo,

VR,

3.908%,

4/25/26 (3)

200‌

193‌

Wells

Fargo,

VR,

4.54%,

8/15/26 (3)

150‌

146‌

6,028‌

Basic

Industry

2.1%

ArcelorMittal,

3.60%,

7/16/24 

130‌

126‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

7

Par/Shares

$

Value

(Amounts

in

000s)

‡

Celanese

U.S.

Holdings,

6.05%,

3/15/25 

155‌

154‌

Celulosa

Arauco

y

Constitucion,

4.50%,

8/1/24 

200‌

197‌

Cia

de

Minas

Buenaventura,

5.50%,

7/23/26 (1)

200‌

169‌

POSCO,

5.625%,

1/17/26 (1)

200‌

201‌

Suzano

Austria,

5.75%,

7/14/26 

200‌

201‌

Westlake,

0.875%,

8/15/24 

25‌

23‌

1,071‌

Brokerage

Assetmanagers

Exchanges

0.3%

LSEGA

Financing,

1.375%,

4/6/26 (1)

200‌

176‌

176‌

Capital

Goods

0.1%

Regal

Rexnord,

6.05%,

2/15/26 (1)

75‌

74‌

74‌

Communications

3.1%

Axian

Telecom,

7.375%,

2/16/27 

200‌

185‌

Crown

Castle,

5.00%,

1/11/28 

75‌

74‌

CSC

Holdings,

5.25%,

6/1/24 

95‌

92‌

DISH

Network,

11.75%,

11/15/27 (1)

150‌

152‌

iHeartCommunications,

6.375%,

5/1/26 

170‌

160‌

Magallanes,

3.428%,

3/15/24 (1)

150‌

146‌

Sable

International

Finance,

5.75%,

9/7/27 (1)

200‌

184‌

SBA

Tower

Trust,

6.599%,

1/15/28 (1)

115‌

117‌

Tower

Bersama

Infrastructure,

4.25%,

1/21/25 

200‌

192‌

Townsquare

Media,

6.875%,

2/1/26 (1)

165‌

151‌

Warnermedia

Holdings,

3.755%,

3/15/27 (1)

155‌

142‌

1,595‌

Consumer

Cyclical

4.4%

7-Eleven,

0.80%,

2/10/24 (1)

45‌

43‌

CEC

Entertainment,

6.75%,

5/1/26 (1)

75‌

70‌

Daimler

Truck

Finance

North

America,

1.625%,

12/13/24 (1)

170‌

159‌

Daimler

Truck

Finance

North

America,

5.15%,

1/16/26 (1)

150‌

148‌

Ford

Motor

Credit,

5.125%,

6/16/25 

200‌

193‌

General

Motors

Financial,

1.05%,

3/8/24 

150‌

143‌

Hyatt

Hotels,

1.30%,

10/1/23 

60‌

59‌

Hyundai

Capital

America,

0.80%,

1/8/24 (1)

150‌

144‌

Jaguar

Land

Rover

Automotive,

7.75%,

10/15/25 (1)

200‌

197‌

Life

Time,

5.75%,

1/15/26 (1)

4‌

4‌

Lowe's,

4.40%,

9/8/25 

70‌

69‌

Mercedes-Benz

Finance

North

America,

5.375%,

11/26/25 (1)

200‌

201‌

Nissan

Motor,

3.043%,

9/15/23 (1)

200‌

196‌

Nordstrom,

2.30%,

4/8/24 

155‌

146‌

QVC,

4.45%,

2/15/25 

2‌

2‌

QVC,

4.85%,

4/1/24 

150‌

141‌

Stellantis

Finance

U.S.,

1.711%,

1/29/27 (1)

200‌

173‌

Volkswagen

Group

of

America

Finance,

3.95%,

6/6/25 (1)

200‌

193‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

8

Par/Shares

$

Value

(Amounts

in

000s)

‡

2,281‌

Consumer

Non-Cyclical

2.7%

Brunswick,

0.85%,

8/18/24 

115‌

107‌

CHS,

8.00%,

3/15/26 (1)

120‌

117‌

CSL

Finance,

3.85%,

4/27/27 (1)

25‌

24‌

HCA,

5.25%,

4/15/25 

200‌

198‌

Hikma

Finance

USA,

3.25%,

7/9/25 

200‌

188‌

Kimberly-Clark

de

Mexico,

3.80%,

4/8/24 

200‌

195‌

Legacy

LifePoint

Health,

6.75%,

4/15/25 (1)

170‌

162‌

Mondelez

International

Holdings

Netherlands,

4.25%,

9/15/25 (1)

200‌

195‌

Teva

Pharmaceutical

Finance

Netherlands

III,

6.00%,

4/15/24 

200‌

200‌

1,386‌

Electric

2.4%

AES,

3.30%,

7/15/25 (1)

100‌

94‌

Alexander

Funding

Trust,

1.841%,

11/15/23 (1)

200‌

193‌

DTE

Energy,

STEP,

4.22%,

11/1/24 

65‌

64‌

Engie

Energia

Chile,

4.50%,

1/29/25 

200‌

186‌

NRG

Energy,

3.75%,

6/15/24 (1)

150‌

145‌

Pacific

Gas

&

Electric,

3.50%,

6/15/25 

100‌

94‌

Southern,

STEP,

4.475%,

8/1/24 

125‌

123‌

Vistra

Operations,

3.55%,

7/15/24 (1)

200‌

192‌

Vistra

Operations,

5.125%,

5/13/25 (1)

150‌

146‌

1,237‌

Energy

2.8%

Aker

BP,

3.00%,

1/15/25 (1)

150‌

143‌

Continental

Resources,

3.80%,

6/1/24 

50‌

49‌

Continental

Resources,

4.50%,

4/15/23 

100‌

100‌

Energy

Transfer,

2.90%,

5/15/25 

100‌

94‌

Energy

Transfer,

4.90%,

2/1/24 

60‌

60‌

Ferrellgas,

5.375%,

4/1/26 (1)

175‌

157‌

Gray

Oak

Pipeline,

2.00%,

9/15/23 (1)

100‌

98‌

Leviathan

Bond,

6.125%,

6/30/25 (1)

200‌

194‌

Southwestern

Energy,

8.375%,

9/15/28 

175‌

183‌

Targa

Resources

Partners,

6.50%,

7/15/27 

45‌

45‌

Targa

Resources

Partners,

6.875%,

1/15/29 

255‌

258‌

Williams,

5.40%,

3/2/26 

50‌

50‌

1,431‌

Finance

Companies

0.8%

AerCap

Ireland

Capital,

1.65%,

10/29/24 

215‌

199‌

Avolon

Holdings

Funding,

3.95%,

7/1/24 (1)

100‌

97‌

Navient,

6.125%,

3/25/24 

135‌

134‌

430‌

Financial

Other

0.8%

EMG

SUKUK,

4.564%,

6/18/24 

200‌

198‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

9

Par/Shares

$

Value

(Amounts

in

000s)

‡

MAF

Global

Securities,

4.75%,

5/7/24 

200‌

197‌

395‌

Industrial

Other

0.4%

Bidvest

Group

U.K.,

3.625%,

9/23/26 

200‌

179‌

179‌

Insurance

1.6%

Athene

Global

Funding,

1.716%,

1/7/25 (1)

225‌

208‌

Brighthouse

Financial

Global

Funding,

1.00%,

4/12/24 (1)

25‌

24‌

CNO

Global

Funding,

1.65%,

1/6/25 (1)

150‌

139‌

Humana,

1.35%,

2/3/27 (4)

70‌

60‌

Humana,

5.75%,

3/1/28 

25‌

26‌

Jackson

Financial,

1.125%,

11/22/23 

120‌

116‌

Jackson

National

Life

Global

Funding,

5.50%,

1/9/26 (1)

175‌

175‌

UnitedHealth

Group,

5.15%,

10/15/25 

100‌

100‌

848‌

Owned

No

Guarantee

0.7%

Bank

Negara

Indonesia

Persero,

3.75%,

3/30/26 

200‌

185‌

Lamar

Funding,

3.958%,

5/7/25 

200‌

191‌

376‌

Real

Estate

Investment

Trusts

0.6%

Park

Intermediate

Holdings,

7.50%,

6/1/25 (1)

95‌

95‌

Realty

Income,

5.05%,

1/13/26 

55‌

55‌

Service

Properties

Trust,

7.50%,

9/15/25 

175‌

173‌

323‌

Technology

1.1%

Equifax,

5.10%,

12/15/27 

95‌

94‌

Microchip

Technology,

0.972%,

2/15/24 

125‌

120‌

Oracle,

5.80%,

11/10/25 

45‌

45‌

SK

Hynix,

6.25%,

1/17/26 (1)

200‌

201‌

Skyworks

Solutions,

0.90%,

6/1/23 

20‌

20‌

VMware,

0.60%,

8/15/23 

70‌

68‌

548‌

Transportation

0.3%

Sydney

Airport

Finance,

3.90%,

3/22/23 (1)

150‌

150‌

150‌

Total

Corporate

Bonds

(Cost

$19,273)

18,528‌

FOREIGN

GOVERNMENT

OBLIGATIONS

&

MUNICIPALITIES

1.5%

Government

Sponsored

0.4%

MEGlobal

Canada

ULC,

5.00%,

5/18/25 

200‌

197‌

197‌

Owned

No

Guarantee

1.1%

Export-Import

Bank

of

India,

3.875%,

3/12/24 

200‌

197‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

10

Par/Shares

$

Value

(Amounts

in

000s)

‡

Indian

Oil,

4.75%,

1/16/24 

200‌

198‌

Petroleos

Mexicanos,

4.875%,

1/18/24 

200‌

197‌

592‌

Total

Foreign

Government

Obligations

&

Municipalities

(Cost

$824)

789‌

MUNICIPAL

SECURITIES

0.2%

Michigan

0.2%

Detroit,

Social

Bonds,

Series B,

GO,

2.189%,

4/1/24 

125‌

120‌

Total

Municipal

Securities

(Cost

$125)

120‌

NON-U.S.

GOVERNMENT

MORTGAGE-BACKED

SECURITIES

12.3%

Collateralized

Mortgage

Obligations

6.2%

Barclays

Mortgage

Loan

Trust

Series 2021-NQM1,

Class

A3,

CMO,

ARM

2.189%,

9/25/51 (1)

74‌

63‌

Bellemeade

Re

Series 2022-1,

Class

M1B,

CMO,

ARM

SOFR30A

+

2.15%,

6.634%,

1/26/32 (1)

300‌

298‌

CAFL

Issuer

Series 2021-RTL1,

Class

A2,

CMO,

STEP

3.104%,

3/28/29 (1)

220‌

192‌

COLT

Mortgage

Loan

Trust

Series 2020-3,

Class

A1,

CMO,

ARM

1.506%,

4/27/65 (1)

19‌

18‌

Connecticut

Avenue

Securities

Trust

Series 2021-R01,

Class

1M2,

CMO,

ARM

SOFR30A

+

1.55%,

6.034%,

10/25/41 (1)

200‌

195‌

Connecticut

Avenue

Securities

Trust

Series 2022-R03,

Class

1M1,

CMO,

ARM

SOFR30A

+

2.10%,

6.584%,

3/25/42 (1)

113‌

113‌

Connecticut

Avenue

Securities

Trust

Series 2022-R06,

Class

1M1,

CMO,

ARM

SOFR30A

+

2.75%,

7.234%,

5/25/42 (1)

75‌

77‌

Connecticut

Avenue

Securities

Trust

Series 2022-R08,

Class

1M1,

CMO,

ARM

SOFR30A

+

2.55%,

7.034%,

7/25/42 (1)

64‌

64‌

Connecticut

Avenue

Securities

Trust

Series 2023-R01,

Class

1M1,

CMO,

ARM

SOFR30A

+

2.40%,

6.892%,

12/25/42 (1)

69‌

69‌

Deephaven

Residential

Mortgage

Trust

Series 2021-1,

Class

A3,

CMO,

ARM

1.128%,

5/25/65 (1)

30‌

27‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

11

Par/Shares

$

Value

(Amounts

in

000s)

‡

Eagle

Series 2021-2,

Class

M1A,

CMO,

ARM

SOFR30A

+

1.55%,

6.034%,

4/25/34 (1)

127‌

126‌

Finance

of

America

HECM

Buyout

Series 2022-HB2,

Class

A1A,

CMO,

ARM

4.00%,

8/1/32 (1)

132‌

129‌

Flagstar

Mortgage

Trust

Series 2019-1INV,

Class

A11,

CMO,

ARM

1M

USD

LIBOR

+

0.95%,

5.456%,

10/25/49 (1)

18‌

17‌

Flagstar

Mortgage

Trust

Series 2020-1INV,

Class

A11,

CMO,

ARM

1M

USD

LIBOR

+

0.85%,

5.356%,

3/25/50 (1)

30‌

28‌

Freddie

Mac

Whole

Loan

Securities

Trust

Series 2017-SC02,

Class

M1,

CMO,

ARM

3.86%,

5/25/47 (1)

243‌

236‌

Hundred

Acre

Wood

Trust

Series 2021-INV1,

Class

A9,

CMO,

ARM

2.50%,

7/25/51 (1)

126‌

109‌

Hundred

Acre

Wood

Trust

Series 2021-INV2,

Class

A27,

CMO,

ARM

2.50%,

10/25/51 (1)

87‌

68‌

JPMorgan

Mortgage

Trust

Series 2019-INV2,

Class

A3,

CMO,

ARM

3.50%,

2/25/50 (1)

89‌

80‌

MFRA

Trust

Series 2021-NQM2,

Class

A3,

CMO,

ARM

1.472%,

11/25/64 (1)

53‌

43‌

New

Residential

Mortgage

Loan

Trust

Series 2021-NQ1R,

Class

A3,

CMO,

ARM

1.198%,

7/25/55 (1)

62‌

52‌

OBX

Trust

Series 2019-INV1,

Class

A3,

CMO,

ARM

4.50%,

11/25/48 (1)

33‌

31‌

OBX

Trust

Series 2019-INV2,

Class

A25,

CMO,

ARM

4.00%,

5/27/49 (1)

47‌

43‌

OBX

Trust

Series 2021-NQM3,

Class

A2,

CMO,

ARM

1.26%,

7/25/61 (1)

74‌

57‌

Radnor

RE

Series 2021-2,

Class

M1A,

CMO,

ARM

SOFR30A

+

1.85%,

6.334%,

11/25/31 (1)

111‌

111‌

Starwood

Mortgage

Residential

Trust

Series 2020-INV1,

Class

A3,

CMO,

ARM

1.593%,

11/25/55 (1)

28‌

24‌

Starwood

Mortgage

Residential

Trust

Series 2021-2,

Class

A3,

CMO,

ARM

1.431%,

5/25/65 (1)

88‌

81‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

12

Par/Shares

$

Value

(Amounts

in

000s)

‡

Structured

Agency

Credit

Risk

Debt

Notes

Series 2020-DNA2,

Class

M2,

CMO,

ARM

1M

USD

LIBOR

+

1.85%,

6.467%,

2/25/50 (1)

85‌

85‌

Structured

Agency

Credit

Risk

Debt

Notes

Series 2020-DNA5,

Class

M2,

CMO,

ARM

SOFR30A

+

2.80%,

7.284%,

10/25/50 (1)

56‌

57‌

Structured

Agency

Credit

Risk

Debt

Notes

Series 2020-HQA1,

Class

M2,

CMO,

ARM

1M

USD

LIBOR

+

1.90%,

6.517%,

1/25/50 (1)

23‌

23‌

Structured

Agency

Credit

Risk

Debt

Notes

Series 2021-DNA5,

Class

M2,

CMO,

ARM

SOFR30A

+

1.65%,

6.134%,

1/25/34 (1)

80‌

79‌

Structured

Agency

Credit

Risk

Debt

Notes

Series 2022-DNA6,

Class

M1A,

CMO,

ARM

SOFR30A

+

2.15%,

6.634%,

9/25/42 (1)

49‌

50‌

Structured

Agency

Credit

Risk

Debt

Notes

Series 2022-HQA3,

Class

M1A,

CMO,

ARM

SOFR30A

+

2.30%,

6.784%,

8/25/42 (1)

56‌

57‌

Towd

Point

Mortgage

Trust

Series 2016-5,

Class

A1,

CMO,

ARM

2.50%,

10/25/56 (1)

26‌

25‌

UWM

Mortgage

Trust

Series 2021-INV2,

Class

A15,

CMO,

ARM

2.50%,

9/25/51 (1)

196‌

154‌

Verus

Securitization

Trust

Series 2019-4,

Class

A1,

CMO,

STEP

2.642%,

11/25/59 (1)

9‌

9‌

Verus

Securitization

Trust

Series 2019-INV3,

Class

A3,

CMO,

ARM

3.10%,

11/25/59 (1)

121‌

114‌

Verus

Securitization

Trust

Series 2020-1,

Class

A3,

CMO,

STEP

2.724%,

1/25/60 (1)

85‌

80‌

Verus

Securitization

Trust

Series 2021-2,

Class

A3,

CMO,

ARM

1.545%,

2/25/66 (1)

161‌

138‌

3,222‌

Commercial

Mortgage-Backed

Securities

6.1%

BAMLL

Commercial

Mortgage

Securities

Trust

Series 2021-JACX,

Class

E,

ARM

1M

USD

LIBOR

+

3.75%,

8.338%,

9/15/38 (1)

100‌

87‌

BANK

Series 2019-BN23,

Class

A1

1.975%,

12/15/52 

35‌

33‌

BBCMS

Mortgage

Trust

Series 2020-BID,

Class

A,

ARM

1M

USD

LIBOR

+

2.14%,

6.728%,

10/15/37 (1)

250‌

244‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

13

Par/Shares

$

Value

(Amounts

in

000s)

‡

BX

Commercial

Mortgage

Trust

Series 2019-IMC,

Class

A,

ARM

1M

USD

LIBOR

+

1.00%,

5.588%,

4/15/34 (1)

160‌

157‌

BX

Commercial

Mortgage

Trust

Series 2019-IMC,

Class

D,

ARM

1M

USD

LIBOR

+

1.90%,

6.488%,

4/15/34 (1)

202‌

194‌

BX

Trust

Series 2021-ARIA,

Class

C,

ARM

1M

USD

LIBOR

+

1.646%,

6.234%,

10/15/36 (1)

160‌

154‌

CD

Mortgage

Trust

Series 2016-CD1,

Class

B,

ARM

3.077%,

8/10/49 

100‌

86‌

Citigroup

Commercial

Mortgage

Trust

Series 2013-375P,

Class

B,

ARM

3.518%,

5/10/35 (1)

150‌

140‌

Citigroup

Commercial

Mortgage

Trust

Series 2016-C1,

Class

AS

3.514%,

5/10/49 

200‌

185‌

Cold

Storage

Trust

Series 2020-ICE5,

Class

C,

ARM

1M

USD

LIBOR

+

1.65%,

6.238%,

11/15/37 (1)

147‌

146‌

Commercial

Mortgage

Trust

Series 2013-300P,

Class

A1

4.353%,

8/10/30 (1)

146‌

142‌

Commercial

Mortgage

Trust

Series 2014-CR14,

Class

AM,

ARM

4.526%,

2/10/47 

75‌

74‌

Commercial

Mortgage

Trust

Series 2014-UBS2,

Class

B

4.701%,

3/10/47 

105‌

102‌

Commercial

Mortgage

Trust

Series 2017-PANW,

Class

D,

ARM

3.935%,

10/10/29 (1)

109‌

100‌

Eleven

Madison

Mortgage

Trust

Series 2015-11MD,

Class

A,

ARM

3.555%,

9/10/35 (1)

170‌

158‌

Fontainebleau

Miami

Beach

Trust

Series 2019-FBLU,

Class

B

3.447%,

12/10/36 (1)

275‌

258‌

Great

Wolf

Trust

Series 2019-WOLF,

Class

E,

ARM

1M

TSFR

+

2.846%,

7.408%,

12/15/36 (1)

125‌

120‌

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust

Series 2018-WPT,

Class

BFL,

ARM

1M

USD

LIBOR

+

1.50%,

6.08%,

7/5/33 (1)

59‌

51‌

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust

Series 2020-609M,

Class

B,

ARM

1M

USD

LIBOR

+

1.77%,

6.358%,

10/15/33 (1)

100‌

90‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

14

Par/Shares

$

Value

(Amounts

in

000s)

‡

LSTAR

Commercial

Mortgage

Trust

Series 2015-3,

Class

B,

ARM

3.148%,

4/20/48 (1)

147‌

138‌

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

Series 2014-C17,

Class

A5

3.741%,

8/15/47 

39‌

38‌

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

Series 2015-C24,

Class

AS,

ARM

4.036%,

5/15/48 

95‌

90‌

One

Market

Plaza

Trust

Series 2017-1MKT,

Class

A

3.614%,

2/10/32 (1)

130‌

122‌

SLIDE

Series 2018-FUN,

Class

D,

ARM

1M

USD

LIBOR

+

2.10%,

6.688%,

6/15/31 (1)

227‌

225‌

3,134‌

Total

Non-U.S.

Government

Mortgage-Backed

Securities

(Cost

$6,835)

6,356‌

U.S.

GOVERNMENT

&

AGENCY

MORTGAGE-BACKED

SECURITIES

1.8%

U.S

Government

Obligation

1.8%

Government

National

Mortgage

Assn. 

3.50%,

5/20/47

-

11/20/47 

481‌

450‌

4.50%,

6/20/51 

227‌

223‌

6.00%,

2/20/40

-

12/20/40 

222‌

234‌

Total

U.S.

Government

&

Agency

Mortgage-Backed

Securities

(Cost

$894)

907‌

U.S.

GOVERNMENT

AGENCY

OBLIGATIONS

(EXCLUDING

MORTGAGE-BACKED)

19.4%

U.S.

Treasury

Obligations

19.4%

U.S.

Treasury

Notes,

2.50%,

4/30/24 

230‌

223‌

U.S.

Treasury

Notes,

3.00%,

6/30/24 

1,000‌

973‌

U.S.

Treasury

Notes,

3.00%,

7/31/24 

695‌

675‌

U.S.

Treasury

Notes,

3.00%,

7/15/25 

1,985‌

1,911‌

U.S.

Treasury

Notes,

4.25%,

9/30/24 (5)

1,930‌

1,908‌

U.S.

Treasury

Notes,

4.375%,

10/31/24 

760‌

753‌

U.S.

Treasury

Notes,

4.625%,

2/28/25 

3,570‌

3,559‌

Total

U.S.

Government

Agency

Obligations

(Excluding

Mortgage-Backed)

(Cost

$10,153)

10,002‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

15

Par/Shares

$

Value

(Amounts

in

000s)

‡

SHORT-TERM

INVESTMENTS

8.9%

Commercial

Paper

6.4%

4(2)

5.4%(6)

Arrow

Electronics,

5.166%,

3/21/23 

250‌

249‌

Bacardi

Martini,

5.433%,

3/27/23 

250‌

249‌

Canadian

Natural

Resources,

5.277%,

3/22/23 

250‌

249‌

Crown

Castle

International,

5.266%,

3/14/23 

250‌

250‌

Harley

Davidson,

5.305%,

3/7/23 

250‌

250‌

International

Flavors

&

Fragrance,

5.602%,

3/20/23 

300‌

299‌

Ovintiv,

5.471%,

3/24/23 

250‌

249‌

STZ,

5.238%,

3/3/23 

250‌

250‌

Syngenta

Wilmington,

5.422%,

3/21/23 

250‌

249‌

Targa

Resources,

5.469%,

3/22/23 

250‌

249‌

Walgreens

Boots

Alliance,

3/22/23 

250‌

249‌

2,792‌

Non-4(2)

1.0%

Quanta

Services,

3/10/23 

250‌

250‌

Quanta

Services,

5.26%,

3/1/23 

250‌

250‌

500‌

3,292‌

Money

Market

Funds

2.5%

T.

Rowe

Price

Government

Reserve

Fund,

4.60% (7)(8)

1,286‌

1,286‌

1,286‌

Total

Short-Term

Investments

(Cost

$4,579)

4,578‌

SECURITIES

LENDING

COLLATERAL

0.1%

INVESTMENTS

IN

A

POOLED

ACCOUNT

THROUGH

SECURITIES

LENDING

PROGRAM

WITH

STATE

STREET

BANK

AND

TRUST

COMPANY

0.1%

Money

Market

Funds

0.1%

T.

Rowe

Price

Government

Reserve

Fund,

4.60% (7)(8)

55‌

55‌

Total

Investments

in

a

Pooled

Account

through

Securities

Lending

Program

with

State

Street

Bank

and

Trust

Company

55‌

Total

Securities

Lending

Collateral

(Cost

$55)

55‌

Total

Investments

in

Securities

101.1%

(Cost

$53,938)

$

52,188‌

Other

Assets

Less

Liabilities

(1.1)%

(579‌)

Net

Assets

100.0%

$

51,609‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

16

‡

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

$20,144

and

represents

39.0%

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)

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.

(4)

All

or

a

portion

of

this

security

is

on

loan

at

February

28,

2023.

(5)

At

February

28,

2023,

all

or

a

portion

of

this

security

is

pledged

as

collateral

and/

or

margin

deposit

to

cover

future

funding

obligations.

(6)

Commercial

paper

exempt

from

registration

under

Section

4(2)

of

the

Securities

Act

of

1933

and

may

be

resold

in

transactions

exempt

from

registration

only

to

dealers

in

that

program

or

other

"accredited

investors".

Total

value

of

such

securities

at

period-end

amounts

to

$2,792

and

represents

5.4%

of

net

assets.

(7)

Seven-day

yield

(8)

Affiliated

Companies

1M

TSFR

One

month

term

SOFR

(Secured

overnight

financing

rate)

1M

USD

LIBOR

One

month

USD

LIBOR

(London

interbank

offered

rate)

3M

USD

LIBOR

Three

month

USD

LIBOR

(London

interbank

offered

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

GO

General

Obligation

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.

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

17

(Amounts

in

000s)

SWAPS

0.3%

Description

Notional

Amount

$

Value

Upfront

Payments/

$

(Receipts)

Unrealized

$

Gain/(Loss)

BILATERAL

SWAPS

0.3%

Credit

Default

Swaps,

Protection

Bought

0.3%

Goldman

Sachs,

Protection

Bought

(Relevant

Credit:

Markit

CMBX.

NA.BBB-S13,

50

Year

Index),

Pay

3.00%

Monthly,

Receive

upon

credit

default,

12/16/72

585

136

120

16

Total

Bilateral

Credit

Default

Swaps,

Protection

Bought

120

16

Credit

Default

Swaps,

Protection

Sold

0.0%

Barclays

Bank,

Protection

Sold

(Relevant

Credit:

AT&T,

Baa2*),

Receive

1.00%

Quarterly,

Pay

upon

credit

default,

6/20/23

*

250

1

—

1

Total

Bilateral

Credit

Default

Swaps,

Protection

Sold

—

1

Total

Bilateral

Swaps

120

17

Description

Notional

Amount

$

Value

Initial

$

Value

**

Unrealized

$

Gain/(Loss)

CENTRALLY

CLEARED

SWAPS

0.0%

Credit

Default

Swaps,

Protection

Sold

0.0%

Protection

Sold

(Relevant

Credit:

Markit

CDX.NA.IG-S39,

5

Year

Index),

Receive

1.00%

Quarterly,

Pay

upon

credit

default,

12/20/27

1,960

24

22

2

Total

Centrally

Cleared

Credit

Default

Swaps,

Protection

Sold

2

Total

Centrally

Cleared

Swaps

2

Net

payments

(receipts)

of

variation

margin

to

date

(2)

Variation

margin

receivable

(payable)

on

centrally

cleared

swaps

$

—

*

Credit

ratings

as

of

February

28,

2023.

Ratings

shown

are

from

Moody’s

Investors

Service

and

if

Moody’s

does

not

rate

a

security,

then

Standard

&

Poor’s

(S&P)

is

used.

Fitch

is

used

for

securities

that

are

not

rated

by

either

Moody’s

or

S&P.

**

Includes

interest

purchased

or

sold

but

not

yet

collected

of

$2.

T.

ROWE

PRICE

Short

Duration

Income

Fund

18

FUTURES

CONTRACTS

($000s)

Expiration

Date

Notional

Amount

Value

and

Unrealized

Gain

(Loss)

Short,

7

U.S.

Treasury

Notes

five

year

contracts

6/23

(749)

$

1‌

Short,

4

U.S.

Treasury

Notes

ten

year

contracts

6/23

(447)

—‌

Long,

59

U.S.

Treasury

Notes

two

year

contracts

6/23

12,020

(26‌)

Short,

2

Ultra

U.S.

Treasury

Notes

ten

year

contracts

6/23

(234)

1‌

Net

payments

(receipts)

of

variation

margin

to

date

22‌

Variation

margin

receivable

(payable)

on

open

futures

contracts

$

(2‌)

T.

ROWE

PRICE

Short

Duration

Income

Fund

19

The

accompanying

notes

are

an

integral

part

of

this

Portfolio

of

Investments.

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

nine

months

ended

February

28,

2023.

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,

4.60%

$

—‌

$

—‌

$

21‌++

Totals

$

—‌#

$

—‌

$

21‌+

Supplementary

Investment

Schedule

Affiliate

Value

05/31/22

Purchase

Cost

Sales

Cost

Value

02/28/23

T.

Rowe

Price

Government

Reserve

Fund,

4.60%

$

942‌

 ¤

 ¤

$

1,341‌

Total

$

1,341‌^

#

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.

+

Investment

income

comprised

$21

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

$1,341.

T.

ROWE

PRICE

Short

Duration

Income

Fund

Unaudited

Notes

to

Portfolio

of

Investments

20

T.

Rowe

Price

Short

Duration

Income

Fund (the

fund) is

registered

under

the

Investment

Company

Act

of

1940

(the

1940

Act)

as

an

open-end

management

investment

company

and

follows

accounting

and

reporting

guidance

of

the

Financial

Accounting

Standards

Board

Accounting

Standards

Codification

Topic

946.

The

accompanying

Portfolio

of

Investments

was

prepared

in

accordance

with

accounting

principles

generally

accepted

in

the

United

States

of

America

(GAAP).

For

additional

information

on

the

fund’s

significant

accounting

policies

and

investment

related

disclosures,

please

refer

to

the

fund’s most

recent

semiannual

or

annual

shareholder

report

and

its

prospectus. 

VALUATION 

Fair

Value

  The

fund’s

financial

instruments

are

valued

at

the

close

of

the

New

York

Stock

Exchange

(NYSE),

normally

4

p.m.

ET,

each

day

the

NYSE

is

open

for

business,

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)

T.

ROWE

PRICE

Short

Duration

Income

Fund

21

Level

3

–

unobservable

inputs

(including

the Valuation

Designee’s assumptions

in

determining

fair

value)

Observable

inputs

are

developed

using

market

data,

such

as

publicly

available

information

about

actual

events

or

transactions,

and

reflect

the

assumptions

that

market

participants

would

use

to

price

the

financial

instrument.

Unobservable

inputs

are

those

for

which

market

data

are

not

available

and

are

developed

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.

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;

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

T.

ROWE

PRICE

Short

Duration

Income

Fund

22

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

February

28,

2023

(for

further

detail

by

category,

please

refer

to

the

accompanying

Portfolio

of

Investments):

OTHER

MATTERS 

Unpredictable

events

such

as

environmental

or

natural

disasters,

war,

terrorism,

pandemics,

outbreaks

of

infectious

diseases,

and

similar

public

health

threats

may

significantly

affect

the

economy

and

the

markets

and

issuers

in

which

the fund

invests.

Certain

events

may

cause

instability

across

global

markets,

including

reduced

liquidity

($000s)

Level

1

Level

2

Level

3

Total

Value

Assets

Fixed

Income

Securities

1

$

—‌

$

47,555‌

$

—‌

$

47,555‌

Short-Term

Investments

1,286‌

3,292‌

—‌

4,578‌

Securities

Lending

Collateral

55‌

—‌

—‌

55‌

Total

Securities

1,341‌

50,847‌

—‌

52,188‌

Swaps*

—‌

139‌

—‌

139‌

Futures

Contracts*

2‌

—‌

—‌

2‌

Total

$

1,343‌

$

50,986‌

$

—‌

$

52,329‌

Liabilities

Futures

Contracts*

$

26‌

$

—‌

$

—‌

$

26‌

1

Includes

Asset-Backed

Securities,

Bank

Loans,

Corporate

Bonds,

Foreign

Government

Obligations

&

Municipalities,

Municipal

Securities,

Non-U.S.

Government

Mortgage-Backed

Securities,

U.S.

Government

&

Agency

Mortgage-Backed

Securities

and

U.S.

Government

Agency

Obligations

(Excluding

Mortgage-Backed).

*

The

fair

value

presented

includes

cumulative

gain

(loss)

on

open

futures

contracts

and

centrally

cleared

swaps;

however,

the

net

value

reflected

on

the

accompanying

Portfolio

of

Investments

is

only

the

unsettled

variation

margin

receivable

(payable)

at

that

date.

T.

ROWE

PRICE

Short

Duration

Income

Fund

23

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.

Since

2020,

a

novel

strain

of

coronavirus

(COVID-19)

has

resulted

in

disruptions

to

global

business

activity

and

caused

significant

volatility

and

declines

in

global

financial

markets.

In

February

2022,

Russian

forces

entered

Ukraine

and

commenced

an

armed

conflict

leading

to

economic

sanctions

being

imposed

on

Russia

and

certain

of

its

citizens,

creating

impacts

on

Russian-related

stocks

and

debt

and

greater

volatility

in

global

markets.

These

are

recent

examples

of

global

events

which

may

have

a

negative

impact

on

the

values

of

certain

portfolio

holdings

or

the

fund’s

overall

performance.

Management

is

actively

monitoring

the

risks

and

financial

impacts

arising

from

these

events.

SUBSEQUENT

EVENT 

In

March

2023,

the

collapse

of

some

US

regional

and

global

banks

as

well

as

overall

concerns

around

the

soundness

and

stability

of

the

global

banking

sector

has

sparked

concerns

of

a

broader

financial

crisis

impacting

the

overall

global

banking

sector.

In

certain

cases,

government

agencies

have

assumed

control

or

otherwise

intervened

in

the

operations

of

certain

banks

due

to

liquidity

and

solvency

concerns.

The

extent

of

impact

of

these

events

on

the

US

and

global

markets

is

highly

uncertain.

F1305-054Q3

02/23