UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-04254

Legg Mason Partners Income Trust

(Exact name of registrant as specified in charter)

55 Water Street, New York, NY 10041

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code:

Funds Investor Services 1-800-822-5544

or

Institutional Shareholder Services 1-888-425-6432

Date of fiscal year end: October 31

Date of reporting period: January 31, 2010

ITEM 1. SCHEDULE OF INVESTMENTS

LEGG MASON PARTNERS INCOME TRUST

LEGG MASON WESTERN ASSET

GLOBAL INFLATION MANAGEMENT FUND

FORM N-Q

JANUARY 31, 2010

Legg Mason Western Asset Global Inflation Management Fund

Schedule of Investments (unaudited) January 31, 2010

Face Amount†		Security		Value
SOVEREIGN BONDS - 52.0%
Australia - 0.4%
160,000	AUD	Australia Government Bond, 3.000% due 9/20/25	$	149,905
Canada - 2.9%
455,673	CAD	Canadian Government Bond, 2.000% due 12/1/41		482,121
		Government of Canada, Bonds:
367,212	CAD	4.250% due 12/1/26		486,144
100,652	CAD	3.000% due 12/1/36		125,706
		Total Canada		1,093,971
France - 14.5%
860,000	EUR	France Government Bond OAT, 4.000% due 10/25/38		1,174,029
		France Government Bond OAT Principal STRIPS:
150,000	EUR	Zero coupon bond to yield 4.171% due 4/25/35		73,282
790,000	EUR	Zero coupon bond to yield 4.217% due 10/25/38		331,803
		Government of France, Bonds:
650,859	EUR	1.600% due 7/25/11		930,684
430,850	EUR	3.000% due 7/25/12		645,065
201,746	EUR	2.500% due 7/25/13		303,271
342,311	EUR	1.600% due 7/25/15		494,395
478,859	EUR	1.000% due 7/25/17		663,493
394,405	EUR	2.250% due 7/25/20		586,159
144,423	EUR	2.100% due 7/25/23		210,238
		Total France		5,412,419
Germany - 6.4%
454,102	EUR	Bundesobligation, Inflation Linked, 2.250% due 4/15/13		667,486
		Bundesrepublik Deutschland:
10,733	EUR	1.500% due 4/15/16		15,398
		Bonds:
620,000	EUR	3.750% due 1/4/19		902,889
540,000	EUR	4.250% due 7/4/39		792,033
		Total Germany		2,377,806
Greece - 0.3%
126,515	EUR	Hellenic Republic, 2.300% due 7/25/30		118,993
Italy - 3.9%
		Italy Buoni Poliennali Del Tesoro:
126,518	EUR	2.600% due 9/15/23		181,097
		Bonds:
94,889	EUR	1.850% due 9/15/12		135,813
81,782	EUR	2.350% due 9/15/19		116,108
		Senior Notes:
439,542	EUR	2.150% due 9/15/14		637,737
275,990	EUR	2.350% due 9/15/35		386,114
		Total Italy		1,456,869
Japan - 5.3%
		Government of Japan, Bonds:
3,000,000	JPY	1.200% due 3/10/14		33,089
7,035,000	JPY	1.100% due 6/10/14		77,423
10,400,000	JPY	0.500% due 12/10/14		110,902
15,120,000	JPY	0.500% due 6/10/15		160,050
12,851,200	JPY	0.800% due 9/10/15		138,881
11,811,800	JPY	0.800% due 12/10/15		127,113
20,060,000	JPY	1.000% due 6/10/16		215,771

See Notes to Schedule of Investments.

Page 1

Legg Mason Western Asset Global Inflation Management Fund

Schedule of Investments (unaudited) (continued) January 31, 2010

Face Amount†		Security	Value
Japan - 5.3% (continued)
39,840,000	JPY	1.100% due 12/10/16	$	431,979
19,940,000	JPY	1.200% due 12/10/17		214,869
13,180,300	JPY	1.400% due 3/10/18		143,707
29,760,000	JPY	1.400% due 6/10/18		322,539
		Total Japan		1,976,323
Sweden - 2.7%
4,670,000	SEK	Government of Sweden, Bonds, 3.500% due 12/1/28		991,126
United Kingdom - 15.6%
156,363	GBP	United Kingdom Gilt, 0.750% due 11/22/47		272,523
		United Kingdom Treasury Gilt:
180,000	GBP	2.500% due 8/16/13		762,001
77,753	GBP	1.250% due 11/22/55		164,946
		Bonds:
110,000	GBP	2.500% due 7/26/16		520,389
134,158	GBP	1.250% due 11/22/17		225,495
115,000	GBP	2.500% due 4/16/20		547,432
263,278	GBP	1.875% due 11/22/22		465,620
165,000	GBP	2.500% due 7/17/24		690,393
200,882	GBP	1.250% due 11/22/27		334,694
132,000	GBP	4.125% due 7/22/30		531,442
189,517	GBP	1.250% due 11/22/32		327,993
106,000	GBP	2.000% due 1/26/35		267,480
269,864	GBP	1.125% due 11/22/37		478,677
40,775	GBP	0.625% due 11/22/42		66,112
106,565	GBP	0.500% due 3/22/50		171,083
		Total United Kingdom		5,826,280
		TOTAL SOVEREIGN BONDS (Cost - $18,256,136)		19,403,692
CORPORATE BONDS & NOTES - 6.6%
CONSUMER DISCRETIONARY - 0.2%
Hotels, Restaurants & Leisure - 0.1%
		MGM MIRAGE Inc., Senior Secured Notes:
5,000		10.375% due 5/15/14 (a)		5,512
15,000		11.125% due 11/15/17 (a)		16,950
		Total Hotels, Restaurants & Leisure		22,462
Media - 0.1%
10,000		CSC Holdings Inc., Senior Notes, 8.625% due 2/15/19 (a)		10,950
50,000		DISH DBS Corp., Senior Notes, 6.625% due 10/1/14		49,750
		Total Media		60,700
		TOTAL CONSUMER DISCRETIONARY		83,162
ENERGY - 0.5%
Oil, Gas & Consumable Fuels - 0.5%
70,000		Chesapeake Energy Corp., Senior Notes, 7.250% due 12/15/18		70,000
85,000		El Paso Corp., Senior Notes, 8.250% due 2/15/16		92,012
		SandRidge Energy Inc., Senior Notes:
25,000		9.875% due 5/15/16 (a)		26,688
10,000		8.750% due 1/15/20 (a)		10,350
		TOTAL ENERGY		199,050
FINANCIALS - 4.4%
Capital Markets - 0.4%
110,000	EUR	Goldman Sachs Group Inc., Senior Notes, 5.375% due 2/15/13		163,269

See Notes to Schedule of Investments.

Page 2

Legg Mason Western Asset Global Inflation Management Fund

Schedule of Investments (unaudited) (continued) January 31, 2010

Face Amount†		Security	Value
Capital Markets - 0.4% (continued)
150,000		Kaupthing Bank HF, Subordinated Notes, 7.125% due 5/19/16 (a)(b)(c)	$	390
		Total Capital Markets		163,659
Commercial Banks - 1.4%
50,000	EUR	Commerzbank Capital Funding Trust I, 5.012% due 4/12/16 (d)(e)		34,879
100,000		Glitnir Banki HF, Subordinated Notes, 6.693% due 6/15/16 (a)(b)(c)(d)		260
33,000	EUR	HT1 Funding GmbH, Subordinated Bonds, 5.351% due 6/30/17 (d)(e)		28,173
100,000	EUR	Royal Bank of Scotland Group PLC, Junior Subordinated Debentures, 7.092% due 9/29/17 (d)(e)		77,739
190,000	EUR	Royal Bank of Scotland PLC, Senior Notes, 6.934% due 4/9/18		261,288
100,000	EUR	Unicredito Italiano Capital Trust III, 4.028% due 10/27/15 (d)(e)		102,727
		Total Commercial Banks		505,066
Diversified Financial Services - 1.8%
150,000	EUR	Citigroup Inc., Senior Notes, 7.375% due 9/4/19		234,451
100,000	EUR	Fortis Hybrid Financing, 5.125% due 6/20/16 (d)(e)		96,480
100,000	EUR	GE Capital European Funding, Senior Notes, 4.875% due 3/6/13		147,718
100,000	EUR	MUFG Capital Finance 4 Ltd., Junior Subordinated, 5.271% due 1/25/17 (d)(e)		120,773
50,000	GBP	Network Rail Infrastructure Finance PLC, Medium-Term Notes, 1.375% due 11/22/37		87,495
		Total Diversified Financial Services		686,917
Insurance - 0.5%
150,000	EUR	ELM BV, 5.252% due 5/25/16 (d)(e)		184,284
Thrifts & Mortgage Finance - 0.3%
		Countrywide Financial Corp.:
20,000		Medium-Term Notes, 5.800% due 6/7/12		21,459
70,000		Subordinated Notes, 6.250% due 5/15/16		72,286
		Total Thrifts & Mortgage Finance		93,745
		TOTAL FINANCIALS		1,633,671
HEALTH CARE - 0.4%
Health Care Providers & Services - 0.4%
		DaVita Inc.:
25,000		Senior Notes, 6.625% due 3/15/13		25,188
5,000		Senior Subordinated Notes, 7.250% due 3/15/15		5,031
80,000		HCA Inc., Senior Secured Notes, 9.875% due 2/15/17 (a)		87,400
		Tenet Healthcare Corp., Senior Notes:
35,000		7.375% due 2/1/13		34,912
5,000		10.000% due 5/1/18 (a)		5,575
		TOTAL HEALTH CARE		158,106
INDUSTRIALS - 0.1%
Road & Rail - 0.1%
25,000		Kansas City Southern de Mexico, Senior Notes, 12.500% due 4/1/16		29,344
MATERIALS - 0.2%
Chemicals - 0.1%
30,000		Terra Capital Inc., Senior Notes, 7.750% due 11/1/19 (a)		31,350
Metals & Mining - 0.1%
20,000		Ryerson Inc., Senior Secured Notes, 12.000% due 11/1/15		20,850
		Teck Resources Ltd., Senior Secured Notes:
5,000		9.750% due 5/15/14		5,738
5,000		10.250% due 5/15/16		5,738
5,000		10.750% due 5/15/19		5,912
		Total Metals & Mining		38,238
		TOTAL MATERIALS		69,588

See Notes to Schedule of Investments.

Page 3

Legg Mason Western Asset Global Inflation Management Fund

Schedule of Investments (unaudited) (continued) January 31, 2010

Face Amount†		Security	Value
TELECOMMUNICATION SERVICES - 0.5%
Diversified Telecommunication Services - 0.3%
50,000		Intelsat Intermediate Holding Co., Ltd., Senior Discount Notes, step bond to yield 11.966% due 2/1/15	$	51,813
40,000		Windstream Corp., Senior Notes, 8.625% due 8/1/16		41,250
		Total Diversified Telecommunication Services		93,063
Wireless Telecommunication Services - 0.2%
25,000		Cricket Communications Inc., Senior Secured Notes, 7.750% due 5/15/16		25,281
50,000		Sprint Capital Corp., Senior Notes, 8.375% due 3/15/12		51,125
		Total Wireless Telecommunication Services		76,406
		TOTAL TELECOMMUNICATION SERVICES		169,469
UTILITIES - 0.3%
Independent Power Producers & Energy Traders - 0.3%
50,000		AES Corp., Secured Notes, 8.750% due 5/15/13 (a)		51,250
30,000		Calpine Construction Finance Co. LP and CCFC Finance Corp., Senior Secured Notes, 8.000% due 6/1/16 (a)		30,750
60,000		Edison Mission Energy, Senior Notes, 7.625% due 5/15/27		44,400
		TOTAL UTILITIES		126,400
		TOTAL CORPORATE BONDS & NOTES (Cost - $2,758,054)		2,468,790
NON-U.S. TREASURY INFLATION PROTECTED SECURITIES - 4.2%
Australia - 4.1%
1,085,000	AUD	Australia Government, Bonds, 4.000% due 8/20/20		1,531,065
Canada - 0.1%
27,729	CAD	Government of Canada, Bonds, 4.250% due 12/1/21		34,390
		TOTAL NON-U.S. TREASURY INFLATION PROTECTED SECURITIES (Cost - $1,446,117)		1,565,455
U.S. GOVERNMENT & AGENCY OBLIGATION - 2.5%
U.S. Government Obligation - 2.5%
930,000		U.S. Treasury Notes, 2.000% due 11/30/13 (Cost - $929,990)		937,484
U.S. TREASURY INFLATION PROTECTED SECURITIES - 30.5%
		U.S. Treasury Bonds, Inflation Indexed:
111,863		3.500% due 1/15/11		116,661
170,561		3.375% due 1/15/12		183,579
709,853		3.000% due 7/15/12		769,580
212,009		1.875% due 7/15/13		225,923
763,174		2.375% due 1/15/25 (f)		822,737
708,448		2.000% due 1/15/26		725,716
536,350		2.375% due 1/15/27		575,571
609,234		1.750% due 1/15/28		595,907
575,121		3.625% due 4/15/28		723,035
1,183,895		2.500% due 1/15/29		1,294,145
657,950		3.875% due 4/15/29		861,297
280,308		3.375% due 4/15/32 (f)		353,407
		U.S. Treasury Notes, Inflation Indexed:
599,429		2.375% due 4/15/11		622,094
415,760		2.000% due 4/15/12		437,587

See Notes to Schedule of Investments.

Page 4

Legg Mason Western Asset Global Inflation Management Fund

Schedule of Investments (unaudited) (continued) January 31, 2010

Face Amount†		Security	Value
	U.S. TREASURY INFLATION PROTECTED SECURITIES - 30.5% (continued)
	368,446	0.625% due 4/15/13	$	378,261
	251,711	2.000% due 1/15/14		269,134
	114,763	2.000% due 7/15/14		123,074
	498,485	1.625% due 1/15/15		524,539
	444,864	1.875% due 7/15/15		474,684
	446,867	2.000% due 1/15/16		478,846
	514,162	2.500% due 7/15/16		568,269
	96,543	2.375% due 1/15/17		105,842
	150,477	1.375% due 7/15/18		153,651
		TOTAL U.S. TREASURY INFLATION PROTECTED SECURITIES (Cost - $10,550,700)		11,383,539
	Contracts
	PURCHASED OPTIONS - 0.0%
	49	Eurodollar Futures, Call @ $99.75, expires 12/13/10		1,225
	44	U.S. Treasury 2-Year Notes Futures, Call @ $109.50, expires 2/19/10		687
	18	U.S. Treasury 5-Year Notes Futures, Put @ $112.00, expires 2/19/10		141
	12	U.S. Treasury Bonds Futures, Put @ $108.00, expires 2/19/10		188
		TOTAL PURCHASED OPTIONS (Cost - $3,469)		2,241
		TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT (Cost - $33,944,466)		35,761,201
	Face Amount
	SHORT-TERM INVESTMENT - 4.2%
	Repurchase Agreement - 4.2%
$	1,583,000	Morgan Stanley tri-party repurchase agreement dated 1/29/10, 0.100% due 2/1/10; Proceeds at maturity - $1,583,013; (Fully collateralized by U.S. government agency obligation, 3.000% due 9/22/14; Market value - $1,640,798) (Cost - $1,583,000)		1,583,000
		TOTAL INVESTMENTS - 100.0% (Cost - $35,527,466#)		37,344,201
		Liabilities in Excess of Other Assets - 0.0%		(15,903	)
		TOTAL NET ASSETS - 100.0%	$	37,328,298

† Face amount denominated in U.S. dollars, unless otherwise noted.

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Trustees, unless otherwise noted.

(b) The coupon payment on these securities is currently in default as of January 31, 2010.

(c) Illiquid security.

(d) Variable rate security. Interest rate disclosed is that which is in effect at January 31, 2010.

(e) Security has no maturity date. The date shown represents the next call date.

(f) All or a portion of this security is held at the broker as collateral for open futures contracts.

# Aggregate cost for federal income tax purposes is substantially the same.

Abbreviations used in this schedule:
AUD	— Australian Dollar
CAD	— Canadian Dollar
EUR	— Euro
GBP	— British Pound
JPY	— Japanese Yen
SEK	— Swedish Krona
STRIPS	— Separate Trading of Registered Interest and Principal Securities

See Notes to Schedule of Investments.

Page 5

Notes to Schedule of Investments (unaudited)

1. Organization and Significant Accounting Policies

Legg Mason Western Asset Global Inflation Management Fund (the “Fund”) is a separate non-diversified investment series of Legg Mason Partners Income Trust (the “Trust”). The Trust, a Maryland business trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Investment Valuation. Debt securities are valued at the mean between the last quoted bid and asked prices provided by an independent pricing service, which are based on transactions in debt obligations, quotations from bond dealers, market transactions in comparable securities and various other relationships between securities. Publicly traded foreign government debt securities are typically traded internationally in the over-the-counter market, and are valued at the mean between the last quoted bid and asked prices as of the close of business of that market. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When prices are not readily available, or are determined not to reflect fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities at fair value as determined in accordance with procedures approved by the Fund’s Board of Trustees. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates fair value.

The Fund has adopted Financial Accounting Standards Board Codification Topic 820 (“ASC Topic 820”). ASC Topic 820 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund’s investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below.

• Level 1 – quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of the security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to convert future amounts to a single present amount.

The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:

DESCRIPTION	QUOTED PRICES (LEVEL 1)			OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)			SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)	TOTAL
Long-term investments†:
Sovereign bonds		—		$	19,403,692		—	$	19,403,692
Corporate bonds & notes		—			2,468,790		—		2,468,790
Non-U.S. treasury inflation protected securities		—			1,565,455		—		1,565,455
U.S. government & agency obligation		—			937,484		—		937,484
U.S. treasury inflation protected securities		—			11,383,539		—		11,383,539
Purchased options	$	2,241			—		—		2,241
Total long-term investments	$	2,241		$	35,758,960		—	$	35,761,201
Short-term investment†		—			1,583,000		—		1,583,000
Total investments	$	2,241		$	37,341,960		—	$	37,344,201
Other financial instruments:
Futures contracts	$	(201,843	)		—		—	$	(201,843	)
Options on futures		(6,555	)		—		—		(6,555	)
Forward foreign currency contracts		—		$	(29,555	)	—		(29,555	)
Total other financial instruments	$	(208,398	)	$	(29,555	)	—	$	(237,953	)
Total	$	(206,157	)	$	37,312,405		—	$	37,106,248

† See Schedule of Investments for additional detailed categorizations.

Page 6

Notes to Schedule of Investments (unaudited) (continued)

(b) Repurchase Agreements. The Fund may enter into repurchase agreements with institutions that its investment adviser has determined are creditworthy. Each repurchase agreement is recorded at cost. Under the terms of a typical repurchase agreement, a fund takes possession of an underlying debt obligation subject to an obligation of the seller to repurchase, and of the fund to resell, the obligation at an agreed-upon price and time, thereby determining the yield during a fund’s holding period. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian, acting on the Fund’s behalf, take possession of the underlying collateral securities, the market value of which, at all times, at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction maturity exceeds one business day, the value of the collateral is marked to market and measured against the value of the agreement to ensure the adequacy of the collateral. If the counterparty defaults, the Fund generally has the right to use the collateral to satisfy the terms of the repurchase transaction. However, if the market value of the collateral declines during the period in which the Fund seeks to assert its rights or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

(c) Futures Contracts. The Fund may use futures contracts to gain exposure to, or hedge against, changes in the value of interest rates or foreign currencies. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

Upon entering into a futures contract, the Fund is required to deposit cash or cash equivalents with a broker in an amount equal to a certain percentage of the contract amount. This is known as the “initial margin” and subsequent payments (“variation margin”) are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract. For certain futures, including foreign denominated futures, variation margin is not settled daily, but is recorded as a net variation margin payable or receivable. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded.

Futures contracts involve, to varying degrees, risk of loss. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

(d) Written Options. When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability, the value of which is marked to market daily to reflect the current market value of the option written. If the option expires, the premium received is recorded as a realized gain. When a written call option is exercised, the difference between the premium received plus the option exercise price and the Fund’s basis in the underlying security (in the case of a covered written call option), or the cost to purchase the underlying security (in the case of an uncovered written call option), including brokerage commission, is recognized as a realized gain or loss. When a written put option is exercised, the amount of the premium received is subtracted from the cost of the security purchased by the Fund from the exercise of the written put option to form the Fund’s basis in the underlying security purchased. The writer or buyer of an option traded on an exchange can liquidate the position before the exercise of the option by entering into a closing transaction. The cost of a closing transaction is deducted from the original premium received resulting in a realized gain or loss to the Fund.

The risk in writing a covered call option is that the Fund may forego the opportunity of profit if the market price of the underlying security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the underlying security decreases and the option is exercised. The risk in writing a call option is that the Fund is exposed to the risk of loss if the market price of the underlying security increases. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

Page 7

Notes to Schedule of Investments (unaudited) (continued)

(e) Forward Foreign Currency Contracts. The Fund may enter into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated portfolio transaction. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked to market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.

When entering into a forward foreign currency contract, the Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

(f) Foreign Currency Translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

(g) Foreign risk. The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.

(h) Stripped Securities. The Fund may invest in “Stripped Securities,” a term used collectively for components, or strips, fixed income securities. Stripped securities can be principal only securities (“PO”), which are debt obligations that have been stripped of unmatured interest coupons or, interest only securities (“IO”), which are unmatured interest coupons that have been stripped from debt obligations. The market value of Stripped Securities will fluctuate in response to changes in economic conditions, rates of pre-payment, interest rates and the market’s perception of the securities. However, fluctuations in response to interest rates may be greater in Stripped Securities than for debt obligations of comparable maturities that pay interest currently. The amount of fluctuation may increase with a longer period of maturity.

The yield to maturity on IO’s is sensitive to the rate of principal repayments (including prepayments) on the related underlying debt obligation and principal payments may have a material effect on yield to maturity. If the underlying debt obligation experiences greater than anticipated prepayments of principal, the Fund may not fully recoup its initial investment in IO’s.

(i) Inflation-Indexed Bonds. Inflation-indexed bonds are fixed-income securities whose principal value or interest rate is periodically adjusted according to the rate of inflation. As the index measuring inflation changes, the principal value or interest rate of inflation-indexed bonds will be adjusted accordingly. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

(j) Security Transactions. Security transactions are accounted for on a trade date basis.

2. Investments

At January 31, 2010, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation	$	2,427,990
Gross unrealized depreciation		(611,255	)
Net unrealized appreciation	$	1,816,735

Page 8

Notes to Schedule of Investments (unaudited) (continued)

At January 31, 2010, the Fund had the following open futures contracts:

	Number of Contracts	Expiration Date	Basis Value		Market Value		Unrealized Gain (Loss)
Contracts to Buy:
U.S. Treasury 5-Year Notes	18	3/10	$	2,092,535	$	2,096,297	$	3,762
U.S. Treasury 30-Year Bonds	12	3/10		1,439,789		1,425,750		(14,039	)
								(10,277	)
Contracts to Sell:
90-Day Eurodollar	44	12/10		10,803,307		10,891,100		(87,793	)
German Euro Schatz	53	3/10		7,944,630		7,985,423		(40,793	)
LIBOR	33	12/10		6,471,650		6,505,674		(34,024	)
U.S. Treasury 2-Year Notes	44	3/10		9,560,982		9,589,938		(28,956	)
								(191,566	)
Net Unrealized Loss on Open Futures Contracts							$	(201,843	)

Options on futures which trade on the EUREX and LIFFE exchanges are marked-to-market daily. Variation margin payments are received or made by the Fund periodically based on the fluctuation in value. The contract price is not paid at the time of purchase, but upon exercising the options. If exercised, the buyer is required to pay the original contract price to the seller net of the variation margin payments.

At January 31, 2010, the Fund had the following purchased and written options on futures:

	Number of Contracts	Strike Price		Expiration Date	Basis Value		Market Value		Unrealized Gain (Loss)
Contracts to Buy:
3 Months Euribor, Put	31	$	98.63	3/15/10	$	15,212		—	$	(15,212	)
German Euro Schatz, Call	60		109.10	2/26/10		970	$	833		(137	)
LIBOR, Call	51		99.75	12/15/10		710		510		(200	)
										(15,549	)
Contracts to Sell:
3 Months Euribor, Put	31	$	98.38	3/15/10	$	8,994		—		8,994
Net Unrealized Loss on Purchased and Written Options on Futures									$	(6,555	)

At January 31, 2010, the Fund had the following open forward foreign currency contracts:

Foreign Currency	Local Currency	Market Value		Settlement Date	Unrealized Gain (Loss)
Contracts to Buy:
Australian Dollar	80,000	$	70,881	2/17/10	$	650
Australian Dollar	139,238		123,367	2/17/10		(1,809	)
Australian Dollar	80,000		70,881	2/17/10		(1,911	)
Australian Dollar	80,000		70,881	2/17/10		292
Australian Dollar	430,000		380,984	2/17/10		(15,149	)
British Pound	110,000		176,106	2/17/10		(3,793	)
British Pound	56,843		91,005	2/17/10		(1,599	)
British Pound	110,438		176,808	2/17/10		(5,525	)
British Pound	1,274,632		2,040,645	2/17/10		(62,128	)
British Pound	48,723		78,005	2/17/10		(3,835	)

Page 9

Notes to Schedule of Investments (unaudited) (continued)

Foreign Currency	Local Currency	Market Value		Settlement Date	Unrealized Gain (Loss)
British Pound	160,000	$	256,155	2/17/10	$	(1,567	)
British Pound	100,000		160,097	2/17/10		(265	)
British Pound	100,000		160,097	2/17/10		(63	)
British Pound	176,481		282,540	2/17/10		109
Canadian Dollar	72,756		68,109	2/17/10		(204	)
Canadian Dollar	347,756		325,544	2/17/10		(1,278	)
Canadian Dollar	140,000		131,058	2/17/10		(2,720	)
Canadian Dollar	470,000		439,981	2/17/10		(14,545	)
Canadian Dollar	350,000		327,645	2/17/10		(10,750	)
Euro	3,905,510		5,421,422	2/17/10		(381,619	)
Euro	70,000		97,170	2/17/10		(8,080	)
Euro	260,000		360,918	2/17/10		(31,968	)
Euro	450,000		624,666	2/17/10		(42,954	)
Euro	40,000		55,526	2/17/10		(3,408	)
Euro	500,000		694,074	2/17/10		(30,286	)
Hong Kong Dollar	1,300,000		167,448	2/17/10		(413	)
Japanese Yen	190,061,891		2,103,141	2/17/10		(5,144	)
Swedish Krona	1,146,918		155,536	2/17/10		(7,178	)
Swedish Krona	4,216,470		571,804	2/17/10		(26,532	)
Swedish Krona	2,676,395		362,951	2/17/10		(8,835	)
						(672,507	)
Contracts to Sell:
Australian Dollar	100,000		88,601	2/17/10		1,319
Australian Dollar	2,192,779		1,942,824	2/17/10		25,962
British Pound	51,143		81,878	2/17/10		2,652
British Pound	381,879		611,376	2/17/10		19,629
British Pound	266,092		426,005	2/17/10		14,178
British Pound	230,000		368,223	2/17/10		3,563
British Pound	140,000		224,136	2/17/10		1,369
Canadian Dollar	665,459		622,956	2/17/10		3,453
Euro	147,658		204,970	2/17/10		13,077
Euro	71,469		99,210	2/17/10		5,334
Euro	55,965		77,687	2/17/10		4,865
Euro	3,306,429		4,589,809	2/17/10		308,004
Euro	1,307,811		1,815,434	2/17/10		124,691
Euro	40,000		55,526	2/17/10		4,800
Euro	560,000		777,362	2/17/10		30,914
Euro	196,243		272,414	2/17/10		10,018
Euro	90,000		124,933	2/17/10		1,969
Euro	500,000		694,074	2/17/10		9,092
Japanese Yen	16,140,850		178,608	2/17/10		1,292
Japanese Yen	105,951,994		1,172,418	2/17/10		3,520
Japanese Yen	54,162,185		599,335	2/17/10		1,033
Japanese Yen	18,180,000		201,172	2/17/10		396
Japanese Yen	34,216,780		378,628	2/17/10		14,258
Japanese Yen	11,161,489		123,508	2/17/10		(3,923	)
Swedish Krona	1,276,932		173,167	2/17/10		7,942
Swedish Krona	5,505,225		746,574	2/17/10		33,545
						642,952
Net Unrealized Loss on Open Forward Foreign Currency Contracts					$	(29,555	)

Page 10

Notes to Schedule of Investments (unaudited) (continued)

3. Derivative Instruments and Hedging Activities

Financial Accounting Standards Board Codification Topic 815 (“ASC Topic 815”) requires enhanced disclosure about an entity’s derivative and hedging activities.

The following is a summary of the Fund’s derivative instruments categorized by risk exposure at January 31, 2010.

	Purchased Options, at value		Futures Contracts					Options on Futures Contracts					Forward Foreign Currency Contracts					Total
Primary Underlying Risk Disclosure			Unrealized Appreciation		Unrealized Depreciation			Unrealized Appreciation		Unrealized Depreciation			Unrealized Appreciation		Unrealized Depreciation
Interest Rate Contracts	$	2,241	$	3,762	$	(205,605	)	$	8,994	$	(15,549	)		—		—		$	(206,157	)
Foreign Exchange Contracts		—		—		—			—		—		$	647,926	$	(677,481	)		(29,555	)
Total	$	2,241	$	3,762	$	(205,605	)	$	8,994	$	(15,549	)	$	647,926	$	(677,481	)	$	(235,712	)

During the period ended January 31, 2010, the Fund had average market values of $5,227, $8,194,513, $38,064,049, $14,906,101 and $16,142,427 in purchased options, futures contracts (to buy), futures contracts (to sell), forward foreign currency contracts (to buy) and forward foreign currency contracts (to sell), respectively.

Page 11

ITEM 2. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

ITEM 3. EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.

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.

Legg Mason Partners Income Trust
By	/s/    R. JAY GERKEN
	R. Jay Gerken
	Chief Executive Officer
Date: March 23, 2010

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/    R. JAY GERKEN
	R. Jay Gerken
	Chief Executive Officer
Date: March 23, 2010
By	/s/    FRANCES M. GUGGINO
	Frances M. Guggino
	Chief Financial Officer
Date: March 23, 2010