T. Rowe Price US Bond Enhanced Index Fund Inc.
12/23/2025 | Press release | Distributed by Public on 12/23/2025 08:33
Annual Report by Investment Company (Form N-CSR)
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: 811-10093
T. Rowe Price QM U.S. Bond Index Fund, Inc.
(Exact name of registrant as specified in charter)
1307 Point Street, Baltimore, MD 21231
(Address of principal executive offices)
David Oestreicher
1307 Point Street, Baltimore, MD 21231
(Name and address of agent for service)
Registrant's telephone number, including area code: (410) 345-2000
Date of fiscal year end: October 31
Date of reporting period: October 31, 2025
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
Annual Shareholder Report
October 31, 2025
QM U.S. Bond Index Fund
Investor Class (PBDIX)
This annual shareholder report contains important information about QM U.S. Bond Index Fund (the "fund") for the period of November 1, 2024 to October 31, 2025. 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 [email protected]or contacting your intermediary. This report describes changes to the fund that occurred during the reporting period.
What were the fund costs for the last year? (based on a hypothetical $10,000 investment)
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
|
QM U.S. Bond Index Fund - Investor Class
|
$26
|
0.25%
|
What drove fund performance during the past 12 months?
-
The U.S. investment-grade (IG) fixed income market advanced for the 12-month reporting period and posted positive total returns. The U.S. Treasury yield curve steepened as rate cuts from the Federal Reserve pushed shorter-term yields lower, while concerns about an increasing fiscal deficit contributed to moderately higher longer-term yields.
-
The fund's overweight exposure to securitized credit sectors on a risk-adjusted basis, such as asset-backed and commercial mortgage-backed securities, aided the fund's results relative to the Bloomberg U.S. Aggregate Bond Index as credit spreads in these shorter-duration sectors tightened relative to Treasuries. Security selection within the corporate bond sector also added value with contributions from a variety of corporate subsectors, including cable operators and banking. The fund also generated more yield, or carry, relative to its benchmark, which was beneficial.
-
Duration management weighed on the fund relative to the benchmark. Positioning the fund, at times, to benefit from higher U.S. Treasury yields dragged on performance. The fund's holdings in agency mortgage-backed securities also detracted over the reporting period.
-
The fund seeks to provide a total return that matches or incrementally exceeds the performance of the U.S. IG bond market. Over the period, the fund reduced its overall risk profile relative to the benchmark amid stretched valuations in credit markets and pivoted to a neutral stance in agency mortgage-backed securities. We added in areas that we believed looked more attractive, such as high-quality non-agency mortgage-backed securities and collateralized loan obligations. The fund maintained a mostly short-to-neutral duration position versus the benchmark.
How has the fund performed?
Cumulative Returns of a Hypothetical $10,000 Investment as of October 31, 2025
|
Investor Class
|
Regulatory/Strategy Benchmark
|
|
|
2015
|
10,000
|
10,000
|
|
2016
|
10,063
|
10,078
|
|
2016
|
10,273
|
10,282
|
|
2016
|
10,555
|
10,536
|
|
2016
|
10,447
|
10,437
|
|
2017
|
10,231
|
10,225
|
|
2017
|
10,377
|
10,367
|
|
2017
|
10,506
|
10,481
|
|
2017
|
10,550
|
10,531
|
|
2018
|
10,468
|
10,444
|
|
2018
|
10,356
|
10,334
|
|
2018
|
10,421
|
10,398
|
|
2018
|
10,344
|
10,315
|
|
2019
|
10,695
|
10,679
|
|
2019
|
10,898
|
10,881
|
|
2019
|
11,262
|
11,238
|
|
2019
|
11,524
|
11,502
|
|
2020
|
11,744
|
11,709
|
|
2020
|
12,005
|
12,061
|
|
2020
|
12,419
|
12,375
|
|
2020
|
12,273
|
12,214
|
|
2021
|
12,361
|
12,262
|
|
2021
|
12,143
|
12,028
|
|
2021
|
12,390
|
12,288
|
|
2021
|
12,263
|
12,155
|
|
2022
|
12,007
|
11,898
|
|
2022
|
11,092
|
11,005
|
|
2022
|
11,217
|
11,168
|
|
2022
|
10,277
|
10,249
|
|
2023
|
10,927
|
10,904
|
|
2023
|
10,973
|
10,957
|
|
2023
|
10,799
|
10,792
|
|
2023
|
10,298
|
10,286
|
|
2024
|
11,143
|
11,132
|
|
2024
|
10,811
|
10,797
|
|
2024
|
11,370
|
11,343
|
|
2024
|
11,393
|
11,370
|
|
2025
|
11,397
|
11,363
|
|
2025
|
11,682
|
11,663
|
|
2025
|
11,745
|
11,726
|
|
2025
|
12,083
|
12,071
|
202501-4140694, 202512-4880987
F134-052 12/25
Average Annual Total Returns
|
1 Year
|
5 Years
|
10 Years
|
|
|
QM U.S. Bond Index Fund (Investor Class)
|
6.06%
|
-0.31%
|
1.91%
|
|
Bloomberg U.S. Aggregate Bond Index (Regulatory/Strategy Benchmark)
|
6.16
|
-0.24
|
1.90
|
The preceding line graph shows the value of a hypothetical $10,000 investment in the fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The fund's performance information included in the line graph and table above is compared with a regulatory required index that represents an overall securities market (Regulatory Benchmark). In addition, the line graph and table may also include one or more indexes that more closely aligns to the fund's investment strategy (Strategy Benchmark(s)). The fund's total return figures reflect the reinvestment of dividends and capital gains, if any.Neither the fund's returns nor the index returns reflect the deduction of taxes that a shareholder would pay on fund distributions or redemptions of fund shares.The fund's past performance is not a good predictor of the fund's future performance.Updated performance information can be found at www.troweprice.com.
What are some fund statistics?
Fund Statistics
- Total Net Assets (000s)$2,012,267
- Number of Portfolio Holdings1,371
- Investment Advisory Fees Paid (000s)$655
- Portfolio Turnover Rate67.0%
What did the fund invest in?
Security Allocation (as a % of Net Assets)
|
U.S. Government Agency Obligations (Excluding Mortgage-Backed)
|
35.1%
|
|
U.S. Government & Agency Mortgage-Backed Securities
|
25.5
|
|
Corporate Bonds
|
24.1
|
|
Non-U.S. Government Mortgage-Backed Securities
|
5.3
|
|
Asset-Backed Securities
|
5.2
|
|
Foreign Government Obligations & Municipalities
|
1.7
|
|
Municipal Securities
|
1.5
|
|
Securities Lending Collateral
|
0.4
|
|
Short-Term and Other
|
1.2
|
Top Ten Holdings(as a % of Net Assets)
|
U.S. Treasury Notes
|
23.7%
|
|
Federal National Mortgage Assn.
|
12.1
|
|
U.S. Treasury Bonds
|
11.3
|
|
Federal Home Loan Mortgage
|
5.7
|
|
Government National Mortgage Assn.
|
5.3
|
|
UMBS
|
1.3
|
|
Federal Home Loan Mortgage Multifamily Structured PTC
|
1.2
|
|
JPMorgan Chase
|
0.6
|
|
Wells Fargo
|
0.5
|
|
Bank of America
|
0.4
|
How has the fund changed?
This is a summary of certain material changes to QM U.S. Bond Index Fund. Effective January 1, 2026, the fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in U.S. bonds and in securities that are represented in the fund's benchmark index. The fund's January 1, 2026 prospectus contains more information.
If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.
Bloomberg does not accept any liability for any errors or omissions in the indexes or data, and hereby expressly disclaim all warranties of originality, accuracy, completeness, timeliness, merchantability and fitness for a particular purpose. No party may rely on any indexes or data contained in this communication. Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.
QM U.S. Bond Index Fund
Investor Class (PBDIX)
T. Rowe Price Investment Services, Inc.
1307 Point Street
Baltimore, Maryland 21231
Annual Shareholder Report
October 31, 2025
QM U.S. Bond Index Fund
I Class (TSBLX)
This annual shareholder report contains important information about QM U.S. Bond Index Fund (the "fund") for the period of November 1, 2024 to October 31, 2025. 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 [email protected]or contacting your intermediary. This report describes changes to the fund that occurred during the reporting period.
What were the fund costs for the last year? (based on a hypothetical $10,000 investment)
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
|
QM U.S. Bond Index Fund - I Class
|
$12
|
0.12%
|
What drove fund performance during the past 12 months?
-
The U.S. investment-grade (IG) fixed income market advanced for the 12-month reporting period and posted positive total returns. The U.S. Treasury yield curve steepened as rate cuts from the Federal Reserve pushed shorter-term yields lower, while concerns about an increasing fiscal deficit contributed to moderately higher longer-term yields.
-
The fund's overweight exposure to securitized credit sectors on a risk-adjusted basis, such as asset-backed and commercial mortgage-backed securities, aided the fund's results relative to the Bloomberg U.S. Aggregate Bond Index as credit spreads in these shorter-duration sectors tightened relative to Treasuries. Security selection within the corporate bond sector also added value with contributions from a variety of corporate subsectors, including cable operators and banking. The fund also generated more yield, or carry, relative to its benchmark, which was beneficial.
-
Duration management weighed on the fund relative to the benchmark. Positioning the fund, at times, to benefit from higher U.S. Treasury yields dragged on performance. The fund's holdings in agency mortgage-backed securities also detracted over the reporting period.
-
The fund seeks to provide a total return that matches or incrementally exceeds the performance of the U.S. IG bond market. Over the period, the fund reduced its overall risk profile relative to the benchmark amid stretched valuations in credit markets and pivoted to a neutral stance in agency mortgage-backed securities. We added in areas that we believed looked more attractive, such as high-quality non-agency mortgage-backed securities and collateralized loan obligations. The fund maintained a mostly short-to-neutral duration position versus the benchmark.
How has the fund performed?
Cumulative Returns of a Hypothetical $500,000 Investment as of October 31, 2025
|
I Class
|
Regulatory/Strategy Benchmark
|
|
|
10/5/20
|
500,000
|
500,000
|
|
10/31/20
|
499,510
|
499,336
|
|
1/31/21
|
503,685
|
501,310
|
|
4/30/21
|
494,517
|
491,756
|
|
7/31/21
|
505,133
|
502,384
|
|
10/31/21
|
500,091
|
496,949
|
|
1/31/22
|
489,815
|
486,434
|
|
4/30/22
|
452,684
|
449,898
|
|
7/31/22
|
457,906
|
456,585
|
|
10/31/22
|
419,259
|
419,015
|
|
1/31/23
|
446,375
|
445,770
|
|
4/30/23
|
448,396
|
447,974
|
|
7/31/23
|
441,016
|
441,208
|
|
10/31/23
|
420,694
|
420,507
|
|
1/31/24
|
455,821
|
455,122
|
|
4/30/24
|
442,395
|
441,397
|
|
7/31/24
|
465,384
|
463,714
|
|
10/31/24
|
466,491
|
464,854
|
|
1/31/25
|
466,316
|
464,533
|
|
4/30/25
|
478,627
|
476,798
|
|
7/31/25
|
480,856
|
479,396
|
|
10/31/25
|
495,375
|
493,485
|
202501-4140694, 202512-4880987
F1364-052 12/25
Average Annual Total Returns
|
1 Year
|
5 Years
|
Since Inception 10/5/20
|
|
|
QM U.S. Bond Index Fund (I Class)
|
6.19%
|
-0.17%
|
-0.18%
|
|
Bloomberg U.S. Aggregate Bond Index (Regulatory/Strategy Benchmark)
|
6.16
|
-0.24
|
-0.26
|
The preceding line graph shows the value of a hypothetical $500,000 investment in the fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The fund's performance information included in the line graph and table above is compared with a regulatory required index that represents an overall securities market (Regulatory Benchmark). In addition, the line graph and table may also include one or more indexes that more closely aligns to the fund's investment strategy (Strategy Benchmark(s)). The fund's total return figures reflect the reinvestment of dividends and capital gains, if any.Neither the fund's returns nor the index returns reflect the deduction of taxes that a shareholder would pay on fund distributions or redemptions of fund shares.The fund's past performance is not a good predictor of the fund's future performance.Updated performance information can be found at www.troweprice.com.
What are some fund statistics?
Fund Statistics
- Total Net Assets (000s)$2,012,267
- Number of Portfolio Holdings1,371
- Investment Advisory Fees Paid (000s)$655
- Portfolio Turnover Rate67.0%
What did the fund invest in?
Security Allocation (as a % of Net Assets)
|
U.S. Government Agency Obligations (Excluding Mortgage-Backed)
|
35.1%
|
|
U.S. Government & Agency Mortgage-Backed Securities
|
25.5
|
|
Corporate Bonds
|
24.1
|
|
Non-U.S. Government Mortgage-Backed Securities
|
5.3
|
|
Asset-Backed Securities
|
5.2
|
|
Foreign Government Obligations & Municipalities
|
1.7
|
|
Municipal Securities
|
1.5
|
|
Securities Lending Collateral
|
0.4
|
|
Short-Term and Other
|
1.2
|
Top Ten Holdings(as a % of Net Assets)
|
U.S. Treasury Notes
|
23.7%
|
|
Federal National Mortgage Assn.
|
12.1
|
|
U.S. Treasury Bonds
|
11.3
|
|
Federal Home Loan Mortgage
|
5.7
|
|
Government National Mortgage Assn.
|
5.3
|
|
UMBS
|
1.3
|
|
Federal Home Loan Mortgage Multifamily Structured PTC
|
1.2
|
|
JPMorgan Chase
|
0.6
|
|
Wells Fargo
|
0.5
|
|
Bank of America
|
0.4
|
How has the fund changed?
This is a summary of certain material changes to QM U.S. Bond Index Fund. Effective January 1, 2026, the fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in U.S. bonds and in securities that are represented in the fund's benchmark index. The fund's January 1, 2026 prospectus contains more information.
If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.
Bloomberg does not accept any liability for any errors or omissions in the indexes or data, and hereby expressly disclaim all warranties of originality, accuracy, completeness, timeliness, merchantability and fitness for a particular purpose. No party may rely on any indexes or data contained in this communication. Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.
QM U.S. Bond Index Fund
I Class (TSBLX)
T. Rowe Price Investment Services, Inc.
1307 Point Street
Baltimore, Maryland 21231
Annual Shareholder Report
October 31, 2025
QM U.S. Bond Index Fund
Z Class (TSBZX)
This annual shareholder report contains important information about QM U.S. Bond Index Fund (the "fund") for the period of November 1, 2024 to October 31, 2025. 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 [email protected]or contacting your intermediary. This report describes changes to the fund that occurred during the reporting period.
What were the fund costs for the last year? (based on a hypothetical $10,000 investment)
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
|
QM U.S. Bond Index Fund - Z Class
|
$0
|
0.00%
|
What drove fund performance during the past 12 months?
-
The U.S. investment-grade (IG) fixed income market advanced for the 12-month reporting period and posted positive total returns. The U.S. Treasury yield curve steepened as rate cuts from the Federal Reserve pushed shorter-term yields lower, while concerns about an increasing fiscal deficit contributed to moderately higher longer-term yields.
-
The fund's overweight exposure to securitized credit sectors on a risk-adjusted basis, such as asset-backed and commercial mortgage-backed securities, aided the fund's results relative to the Bloomberg U.S. Aggregate Bond Index as credit spreads in these shorter-duration sectors tightened relative to Treasuries. Security selection within the corporate bond sector also added value with contributions from a variety of corporate subsectors, including cable operators and banking. The fund also generated more yield, or carry, relative to its benchmark, which was beneficial.
-
Duration management weighed on the fund relative to the benchmark. Positioning the fund, at times, to benefit from higher U.S. Treasury yields dragged on performance. The fund's holdings in agency mortgage-backed securities also detracted over the reporting period.
-
The fund seeks to provide a total return that matches or incrementally exceeds the performance of the U.S. IG bond market. Over the period, the fund reduced its overall risk profile relative to the benchmark amid stretched valuations in credit markets and pivoted to a neutral stance in agency mortgage-backed securities. We added in areas that we believed looked more attractive, such as high-quality non-agency mortgage-backed securities and collateralized loan obligations. The fund maintained a mostly short-to-neutral duration position versus the benchmark.
How has the fund performed?
Cumulative Returns of a Hypothetical $10,000 Investment as of October 31, 2025
|
Z Class
|
Regulatory/Strategy Benchmark
|
|
|
10/5/20
|
10,000
|
10,000
|
|
10/31/20
|
9,991
|
9,987
|
|
1/31/21
|
10,069
|
10,026
|
|
4/30/21
|
9,897
|
9,835
|
|
7/31/21
|
10,104
|
10,048
|
|
10/31/21
|
10,006
|
9,939
|
|
1/31/22
|
9,803
|
9,729
|
|
4/30/22
|
9,062
|
8,998
|
|
7/31/22
|
9,169
|
9,132
|
|
10/31/22
|
8,406
|
8,380
|
|
1/31/23
|
8,943
|
8,915
|
|
4/30/23
|
8,987
|
8,959
|
|
7/31/23
|
8,850
|
8,824
|
|
10/31/23
|
8,445
|
8,410
|
|
1/31/24
|
9,143
|
9,102
|
|
4/30/24
|
8,876
|
8,828
|
|
7/31/24
|
9,341
|
9,274
|
|
10/31/24
|
9,366
|
9,297
|
|
1/31/25
|
9,365
|
9,291
|
|
4/30/25
|
9,615
|
9,536
|
|
7/31/25
|
9,673
|
9,588
|
|
10/31/25
|
9,958
|
9,870
|
202501-4140694, 202512-4880987
F1365-052 12/25
Average Annual Total Returns
|
1 Year
|
5 Years
|
Since Inception 10/5/20
|
|
|
QM U.S. Bond Index Fund (Z Class)
|
6.32%
|
-0.07%
|
-0.08%
|
|
Bloomberg U.S. Aggregate Bond Index (Regulatory/Strategy Benchmark)
|
6.16
|
-0.24
|
-0.26
|
The preceding line graph shows the value of a hypothetical $10,000 investment in the fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The fund's performance information included in the line graph and table above is compared with a regulatory required index that represents an overall securities market (Regulatory Benchmark). In addition, the line graph and table may also include one or more indexes that more closely aligns to the fund's investment strategy (Strategy Benchmark(s)). The fund's total return figures reflect the reinvestment of dividends and capital gains, if any.Neither the fund's returns nor the index returns reflect the deduction of taxes that a shareholder would pay on fund distributions or redemptions of fund shares.The fund's past performance is not a good predictor of the fund's future performance.Updated performance information can be found at www.troweprice.com.
What are some fund statistics?
Fund Statistics
- Total Net Assets (000s)$2,012,267
- Number of Portfolio Holdings1,371
- Investment Advisory Fees Paid (000s)$655
- Portfolio Turnover Rate67.0%
What did the fund invest in?
Security Allocation (as a % of Net Assets)
|
U.S. Government Agency Obligations (Excluding Mortgage-Backed)
|
35.1%
|
|
U.S. Government & Agency Mortgage-Backed Securities
|
25.5
|
|
Corporate Bonds
|
24.1
|
|
Non-U.S. Government Mortgage-Backed Securities
|
5.3
|
|
Asset-Backed Securities
|
5.2
|
|
Foreign Government Obligations & Municipalities
|
1.7
|
|
Municipal Securities
|
1.5
|
|
Securities Lending Collateral
|
0.4
|
|
Short-Term and Other
|
1.2
|
Top Ten Holdings(as a % of Net Assets)
|
U.S. Treasury Notes
|
23.7%
|
|
Federal National Mortgage Assn.
|
12.1
|
|
U.S. Treasury Bonds
|
11.3
|
|
Federal Home Loan Mortgage
|
5.7
|
|
Government National Mortgage Assn.
|
5.3
|
|
UMBS
|
1.3
|
|
Federal Home Loan Mortgage Multifamily Structured PTC
|
1.2
|
|
JPMorgan Chase
|
0.6
|
|
Wells Fargo
|
0.5
|
|
Bank of America
|
0.4
|
How has the fund changed?
This is a summary of certain material changes to QM U.S. Bond Index Fund. Effective January 1, 2026, the fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in U.S. bonds and in securities that are represented in the fund's benchmark index. The fund's January 1, 2026 prospectus contains more information.
If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.
Bloomberg does not accept any liability for any errors or omissions in the indexes or data, and hereby expressly disclaim all warranties of originality, accuracy, completeness, timeliness, merchantability and fitness for a particular purpose. No party may rely on any indexes or data contained in this communication. Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.
QM U.S. Bond Index Fund
Z Class (TSBZX)
T. Rowe Price Investment Services, Inc.
1307 Point Street
Baltimore, Maryland 21231
Item 1. (b) Notice pursuant to Rule 30e-3.
Not applicable.
Item 2. Code of Ethics.
The registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR,applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A copy of this code of ethics is filed as an exhibit to this Form N-CSR.No substantive amendments were approved or waivers were granted to this code of ethics during the period covered by this report.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Directors has determined that Mr. Paul F. McBride qualifies as an audit committee financial expert, as defined in Item 3 of Form N-CSR.Mr. McBride is considered independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) - (d) Aggregate fees billed for the last two fiscal years for professional services rendered to, or on behalf of, the registrant by the registrant's principal accountant were as follows:
| 2025 | 2024 | |||||||||
|
Audit Fees |
$ | 34,043 | $ | 33,841 | ||||||
|
Audit-Related Fees |
- | - | ||||||||
|
Tax Fees |
- | - | ||||||||
|
All Other Fees |
- | - | ||||||||
Audit fees include amounts related to the audit of the registrant's annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant's financial statements and specifically include the issuance of a report on internal controls and, if applicable, agreed-upon procedures related to fund acquisitions. Tax fees include amounts related to services for tax compliance, tax planning, and tax advice. The nature of these services specifically includes the review of distribution calculations and the preparation of Federal, state, and excise tax returns. All other fees include the registrant's pro-ratashare of amounts for agreed-upon procedures in conjunction with service contract approvals by the registrant's Board of Directors/Trustees.
(e)(1) The registrant's audit committee has adopted a policy whereby audit and non-auditservices performed by the registrant's principal accountant for the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant require pre-approvalin advance at regularly scheduled audit committee meetings. If such a service is required between regularly scheduled audit committee meetings, pre-approvalmay be authorized by one audit committee member with ratification at the next scheduled audit committee meeting. Waiver of pre-approvalfor audit or non-auditservices requiring fees of a de minimis amount is not permitted.
(2) No services included in (b) - (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01of Regulation S-X.
(f) Less than 50 percent of the hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant's principal accountant for non-auditservices rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $1,541,000 and $846,000, respectively.
(h) All non-auditservices rendered in (g) above were pre-approvedby the registrant's audit committee. Accordingly, these services were considered by the registrant's audit committee in maintaining the principal accountant's independence.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable. The complete schedule of investments is included in Item 7 of this Form N-CSR.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-EndManagement Investment Companies.
(a - b) Report pursuant to Regulation S-X.
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
October
31,
2025
Financial
Statements
and
Other
Information
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
PBDIX
QM
U.S.
Bond
Index
Fund
TSBLX
QM
U.S.
Bond
Index
Fund-
.
I Class
TSBZX
QM
U.S.
Bond
Index
Fund-
.
Z Class
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
Financial
Highlights
2
For
a
share
outstanding
throughout
each
period
Investor
Class
..
Year
..
..
Ended
.
10/31/25
10/31/24
10/31/23
10/31/22
10/31/21
NET
ASSET
VALUE
Beginning
of
period
$
9.60
$
9.03
$
9.33
$
11.40
$
11.77
Investment
activities
Net
investment
income
(1)(2)
0.40
0.38
0.33
0.24
0.21
Net
realized
and
unrealized
gain/loss
0.17
0.57
(0.30)
(2.07)
(0.22)
Total
from
investment
activities
0.57
0.95
0.03
(1.83)
(0.01)
Distributions
Net
investment
income
(0.41)
(0.38)
(0.33)
(0.24)
(0.21)
Net
realized
gain
-
-
-
-
(0.15)
Total
distributions
(0.41)
(0.38)
(0.33)
(0.24)
(0.36)
NET
ASSET
VALUE
End
of
period
$
9.76
$
9.60
$
9.03
$
9.33
$
11.40
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
Financial
Highlights
3
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Investor
Class
..
Year
..
..
Ended
.
10/31/25
10/31/24
10/31/23
10/31/22
10/31/21
Ratios/Supplemental
Data
Total
return
(2)(3)
6.06%
10.63%
0.21%
(16.20)%
(0.08)%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/payments
by
Price
Associates
0.29%
0.29%
0.27%
0.27%
0.23%
Net
expenses
after
waivers/payments
by
Price
Associates
0.25%
0.25%
0.25%
0.25%
0.23%
Net
investment
income
4.18%
3.96%
3.48%
2.23%
1.82%
Portfolio
turnover
rate
(4)
67.0%
78.1%
73.9%
203.5%
225.2%
Portfolio
turnover
rate,
excluding
mortgage
dollar
roll
transactions
41.2%
44.8%
39.3%
64.9%
63.7%
Net
assets,
end
of
period
(in
millions)
$594
$597
$574
$551
$1,310
0%
0%
0%
0%
0%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(3)
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.
(4)
The
portfolio
turnover
rate
calculation
includes
purchases
and
sales
from
the
mortgage
dollar
roll
transactions.
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
Financial
Highlights
4
For
a
share
outstanding
throughout
each
period
I
Class
..
Year
..
..
Ended
.
10/31/25
10/31/24
10/31/23
10/31/22
10/31/21
NET
ASSET
VALUE
Beginning
of
period
$
9.61
$
9.03
$
9.33
$
11.41
$
11.77
Investment
activities
Net
investment
income
(1)(2)
0.41
0.39
0.35
0.27
0.22
Net
realized
and
unrealized
gain/loss
0.17
0.58
(0.30)
(2.09)
(0.20)
Total
from
investment
activities
0.58
0.97
0.05
(1.82)
0.02
Distributions
Net
investment
income
(0.42)
(0.39)
(0.35)
(0.26)
(0.23)
Net
realized
gain
-
-
-
-
(0.15)
Total
distributions
(0.42)
(0.39)
(0.35)
(0.26)
(0.38)
NET
ASSET
VALUE
End
of
period
$
9.77
$
9.61
$
9.03
$
9.33
$
11.41
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
Financial
Highlights
5
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
I
Class
..
Year
..
..
Ended
.
10/31/25
10/31/24
10/31/23
10/31/22
10/31/21
Ratios/Supplemental
Data
Total
return
(2)(3)
6.19%
10.89%
0.34%
(16.16)%
0.12%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/payments
by
Price
Associates
0.13%
0.13%
0.13%
0.13%
0.13%
Net
expenses
after
waivers/payments
by
Price
Associates
0.12%
0.12%
0.12%
0.12%
0.12%
Net
investment
income
4.31%
4.10%
3.61%
2.58%
1.94%
Portfolio
turnover
rate
(4)
67.0%
78.1%
73.9%
203.5%
225.2%
Portfolio
turnover
rate,
excluding
mortgage
dollar
roll
transactions
41.2%
44.8%
39.3%
64.9%
63.7%
Net
assets,
end
of
period
(in
millions)
$914
$787
$515
$510
$275
0%
0%
0%
0%
0%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(3)
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.
(4)
The
portfolio
turnover
rate
calculation
includes
purchases
and
sales
from
the
mortgage
dollar
roll
transactions.
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
Financial
Highlights
6
For
a
share
outstanding
throughout
each
period
Z
Class
..
Year
..
..
Ended
.
10/31/25
10/31/24
10/31/23
10/31/22
10/31/21
NET
ASSET
VALUE
Beginning
of
period
$
9.60
$
9.03
$
9.33
$
11.40
$
11.77
Investment
activities
Net
investment
income
(1)(2)
0.43
0.41
0.36
0.29
0.24
Net
realized
and
unrealized
gain/loss
0.16
0.57
(0.30)
(2.09)
(0.22)
Total
from
investment
activities
0.59
0.98
0.06
(1.80)
0.02
Distributions
Net
investment
income
(0.43)
(0.41)
(0.36)
(0.27)
(0.24)
Net
realized
gain
-
-
-
-
(0.15)
Total
distributions
(0.43)
(0.41)
(0.36)
(0.27)
(0.39)
NET
ASSET
VALUE
End
of
period
$
9.76
$
9.60
$
9.03
$
9.33
$
11.40
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
Financial
Highlights
7
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Z
Class
..
Year
..
..
Ended
.
10/31/25
10/31/24
10/31/23
10/31/22
10/31/21
Ratios/Supplemental
Data
Total
return
(2)(3)
6.32%
10.90%
0.46%
(15.99)%
0.15%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/payments
by
Price
Associates
0.10%
0.10%
0.10%
0.10%
0.12%
Net
expenses
after
waivers/payments
by
Price
Associates
0.00%
0.00%
0.00%
0.00%
0.00%
Net
investment
income
4.43%
4.24%
3.80%
2.82%
2.07%
Portfolio
turnover
rate
(4)
67.0%
78.1%
73.9%
203.5%
225.2%
Portfolio
turnover
rate,
excluding
mortgage
dollar
roll
transactions
41.2%
44.8%
39.3%
64.9%
63.7%
Net
assets,
end
of
period
(in
thousands)
$504,700
$205,530
$79,290
$24,909
$1,879
0%
0%
0%
0%
0%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(3)
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.
(4)
The
portfolio
turnover
rate
calculation
includes
purchases
and
sales
from
the
mortgage
dollar
roll
transactions.
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
October
31,
2025
8
Portfolio
of
Investments
‡
Par/Shares
$
Value
(Amounts
in
000s)
‡
ASSET-BACKED
SECURITIES
5.2%
Car
Loan
1.7%
Ally
Bank
Auto
Credit-Linked
Notes
Series
2024-B,
Class
B
5.117%,
9/15/32 (1)
240
241
Ally
Bank
Auto
Credit-Linked
Notes
Series
2025-A,
Class
A2
4.452%,
6/15/33 (1)
1,643
1,647
Ally
Bank
Auto
Credit-Linked
Notes
Series
2025-B,
Class
A2
4.305%,
9/15/33 (1)
1,885
1,885
Avis
Budget
Rental
Car
Funding
AESOP
Series
2025-3A,
Class
A
4.17%,
2/20/30 (1)
510
509
Bayview
Opportunity
Master
Fund
VII
Series
2024-CAR1,
Class
A,
FRN
SOFR30A
+
1.10%,
5.283%,
12/26/31 (1)
145
145
CarMax
Auto
Owner
Trust
Series
2023-3,
Class
B
5.47%,
2/15/29
215
219
CarMax
Auto
Owner
Trust
Series
2025-4,
Class
A3
3.97%,
12/16/30
760
758
CarMax
Auto
Owner
Trust
Series
2025-4,
Class
A4
4.08%,
6/16/31
760
758
Carvana
Auto
Receivables
Trust
Series
2021-P4,
Class
C
2.33%,
2/10/28
1,860
1,801
Carvana
Auto
Receivables
Trust
Series
2024-N1,
Class
B
5.63%,
5/10/30 (1)
635
641
Carvana
Auto
Receivables
Trust
Series
2024-P4,
Class
A3
4.64%,
1/10/30
365
367
Carvana
Auto
Receivables
Trust
Series
2024-P4,
Class
A4
4.74%,
12/10/30
620
629
Carvana
Auto
Receivables
Trust
Series
2025-P2,
Class
A4
4.75%,
6/10/31
1,465
1,489
Chase
Auto
Owner
Trust
Series
2025-1A,
Class
A3
4.29%,
6/25/30 (1)
900
906
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
9
Par/Shares
$
Value
(Amounts
in
000s)
Enterprise
Fleet
Financing
Series
2024-3,
Class
A3
4.98%,
8/21/28 (1)
165
167
Enterprise
Fleet
Financing
Series
2024-3,
Class
A4
5.06%,
3/20/31 (1)
115
117
Enterprise
Fleet
Financing
Series
2024-4,
Class
A2
4.69%,
7/20/27 (1)
442
443
Enterprise
Fleet
Financing
Series
2024-4,
Class
A4
4.70%,
6/20/31 (1)
790
802
Enterprise
Fleet
Financing
Series
2025-3,
Class
A3
4.46%,
9/20/29 (1)
1,775
1,792
Exeter
Automobile
Receivables
Trust
Series
2025-4A,
Class
B
4.40%,
5/15/30
1,335
1,336
Exeter
Select
Automobile
Receivables
Trust
Series
2025-2,
Class
A3
4.43%,
8/15/30
1,155
1,160
Ford
Credit
Floorplan
Master
Owner
Trust
Series
2025-2,
Class
A1
4.06%,
9/15/30
1,330
1,330
Ford
Credit
Floorplan
Master
Owner
Trust
Series
2025-2,
Class
B
4.33%,
9/15/30
260
260
Huntington
Bank
Auto
Credit-Linked
Notes
Series
2024-1,
Class
B1
6.153%,
5/20/32 (1)
121
123
Huntington
Bank
Auto
Credit-Linked
Notes
Series
2025-1,
Class
B
4.957%,
3/21/33 (1)
1,116
1,122
Navistar
Financial
Dealer
Note
Master
Owner
Trust
Series
2024-1,
Class
A
5.59%,
4/25/29 (1)
640
644
Navistar
Financial
Dealer
Note
Master
Owner
Trust
II
Series
2025-1,
Class
A
4.18%,
9/25/30 (1)
1,730
1,729
Santander
Drive
Auto
Receivables
Trust
Series
2021-1,
Class
E
2.51%,
12/15/28
2,106
2,100
SFS
Auto
Receivables
Securitization
Trust
Series
2024-2A,
Class
A3
5.33%,
11/20/29 (1)
850
859
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
10
Par/Shares
$
Value
(Amounts
in
000s)
SFS
Auto
Receivables
Securitization
Trust
Series
2024-2A,
Class
B
5.41%,
8/20/30 (1)
165
169
Stellantis
Financial
Underwritten
Enhanced
Lease
Trust
Series
2025-BA,
Class
A4
4.29%,
6/20/29 (1)
1,115
1,118
Stellantis
Financial
Underwritten
Enhanced
Lease
Trust
Series
2025-BA,
Class
B
4.47%,
7/20/29 (1)
585
586
Toyota
Lease
Owner
Trust
Series
2025-A,
Class
A4
4.81%,
6/20/29 (1)
1,225
1,239
Wheels
Fleet
Lease
Funding
1
Series
2025-2A,
Class
A1
4.41%,
5/18/40 (1)
4,330
4,352
33,443
Other
Asset-Backed
Securities
3.3%
Affirm
Master
Trust
Series
2025-2A,
Class
A
4.67%,
7/15/33 (1)
3,215
3,225
AGL
Series
2021-13A,
Class
A1R,
CLO,
FRN
3M
TSFR
+
1.10%,
4.984%,
10/20/34 (1)
4,600
4,599
ARES
LI
Series
2019-51A,
Class
A1R2,
CLO,
FRN
3M
TSFR
+
1.36%,
5.265%,
10/15/37 (1)
1,420
1,423
Ares
Loan
Funding
IX
Series
2025-ALF9A,
Class
A1,
CLO,
FRN
3M
TSFR
+
1.18%,
5.085%,
3/31/38 (1)
1,225
1,223
Auxilior
Term
Funding
Series
2024-1A,
Class
A2
5.84%,
3/15/27 (1)
79
79
Barings
Series
2021-3A,
Class
B1R,
CLO,
FRN
3M
TSFR
+
1.63%,
5.514%,
1/18/35 (1)
2,275
2,278
Chenango
Park
Series
2018-1A,
Class
A2R,
CLO,
FRN
3M
TSFR
+
1.45%,
5.355%,
4/15/30 (1)
965
965
CIFC
Funding
Series
2018-1A,
Class
A1R,
CLO,
FRN
3M
TSFR
+
1.32%,
5.204%,
1/18/38 (1)
935
939
CyrusOne
Data
Centers
Issuer
I
Series
2024-2A,
Class
A2
4.50%,
5/20/49 (1)
2,490
2,451
Dell
Equipment
Finance
Trust
Series
2024-1,
Class
C
5.73%,
3/22/30 (1)
100
102
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
11
Par/Shares
$
Value
(Amounts
in
000s)
Dell
Equipment
Finance
Trust
Series
2024-2,
Class
A3
4.59%,
8/22/30 (1)
625
629
Driven
Brands
Funding
Series
2020-1A,
Class
A2
3.786%,
7/20/50 (1)
740
726
Driven
Brands
Funding
Series
2021-1A,
Class
A2
2.791%,
10/20/51 (1)
1,597
1,505
Elara
HGV
Timeshare
Issuer
Series
2023-A,
Class
A
6.16%,
2/25/38 (1)
318
329
Elara
HGV
Timeshare
Issuer
Series
2023-A,
Class
B
6.53%,
2/25/38 (1)
255
263
Elmwood
Series
2022-7A,
Class
AR,
CLO,
FRN
3M
TSFR
+
1.50%,
5.382%,
1/17/37 (1)
1,160
1,164
Fortress
Credit
BSL
XIX
Series
2023-2A,
Class
A1R,
CLO,
FRN
3M
TSFR
+
1.35%,
5.215%,
7/24/36 (1)
5,035
5,044
Halseypoint
6
Series
2022-6A,
Class
A1R,
CLO,
FRN
3M
TSFR
+
1.35%,
5.234%,
1/20/38 (1)
1,710
1,715
Hardee's
Funding
Series
2024-1A,
Class
A2
7.253%,
3/20/54 (1)
954
986
Highbridge
Loan
Management
Series
5A-2015,
Class
A1R3,
CLO,
FRN
3M
TSFR
+
1.06%,
4.965%,
10/15/30 (1)
122
122
Hilton
Grand
Vacations
Trust
Series
2025-2A,
Class
A
4.54%,
5/25/44 (1)
699
701
Invesco
U.S.
Series
2023-1A,
Class
AR,
CLO,
FRN
3M
TSFR
+
1.57%,
5.427%,
4/22/37 (1)
730
733
Jamestown
XV
Series
2020-15A,
Class
A1R,
CLO,
FRN
3M
TSFR
+
1.37%,
5.275%,
7/15/35 (1)
1,315
1,316
Jersey
Mike's
Funding
Series
2021-1A,
Class
A2I
2.891%,
2/15/52 (1)
49
48
KKR
Series
2022-43A,
Class
A1R,
CLO,
FRN
3M
TSFR
+
1.75%,
5.655%,
1/15/36 (1)
1,080
1,083
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
12
Par/Shares
$
Value
(Amounts
in
000s)
Madison
Park
Funding
XXXIII
Series
2019-33A,
Class
AR,
CLO,
FRN
3M
TSFR
+
1.29%,
5.195%,
10/15/32 (1)
1,233
1,233
MVW
Series
2019-2A,
Class
A
2.22%,
10/20/38 (1)
327
325
MVW
Series
2020-1A,
Class
A
1.74%,
10/20/37 (1)
100
98
Neuberger
Berman
Loan
Advisers
Series
2022-48A,
Class
A1R,
CLO,
FRN
3M
TSFR
+
1.09%,
4.948%,
4/25/36 (1)
4,685
4,682
NMEF
Funding
Series
2025-A,
Class
A2
4.72%,
7/15/32 (1)
1,087
1,088
OCP
Series
2017-13A,
Class
AR2,
CLO,
FRN
3M
TSFR
+
1.34%,
5.21%,
11/26/37 (1)
2,370
2,376
Octane
Receivables
Trust
Series
2023-1A,
Class
A
5.87%,
5/21/29 (1)
8
8
Octane
Receivables
Trust
Series
2024-1A,
Class
A2
5.68%,
5/20/30 (1)
234
236
Octane
Receivables
Trust
Series
2024-RVM1,
Class
A
5.01%,
1/22/46 (1)
744
754
PEAC
Solutions
Receivables
Series
2025-1A,
Class
A2
4.94%,
10/20/28 (1)
2,435
2,449
Post
Road
Equipment
Finance
Series
2024-1A,
Class
A2
5.59%,
11/15/29 (1)
118
118
Post
Road
Equipment
Finance
Series
2025-1A,
Class
A2
4.90%,
5/15/31 (1)
1,665
1,675
Progress
Residential
Trust
Series
2021-SFR5,
Class
A
1.427%,
7/17/38 (1)
336
331
Progress
Residential
Trust
Series
2024-SFR5,
Class
A
3.00%,
8/9/29 (1)
745
706
Progress
Residential
Trust
Series
2025-SFR5,
Class
A
3.85%,
10/17/42 (1)
655
634
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
13
Par/Shares
$
Value
(Amounts
in
000s)
Rockford
Tower
Series
2022-1A,
Class
A1R,
CLO,
FRN
3M
TSFR
+
1.20%,
5.084%,
7/20/35 (1)
4,690
4,690
SCF
Equipment
Leasing
Series
2024-1A,
Class
C
5.82%,
9/20/32 (1)
840
869
SCF
Equipment
Trust
Series
2025-1A,
Class
A2
4.82%,
7/22/30 (1)
820
822
SCF
Equipment
Trust
Series
2025-1A,
Class
A3
5.11%,
11/21/33 (1)
1,250
1,278
SEB
Funding
Series
2024-1A,
Class
A2
7.386%,
4/30/54 (1)
688
705
Sierra
Timeshare
Receivables
Funding
Series
2025-2A,
Class
A
4.72%,
4/20/44 (1)
876
879
Sierra
Timeshare
Receivables
Funding
Series
2025-3A,
Class
A
4.44%,
8/22/44 (1)
380
377
Signal
Peak
Series
2018-5A,
Class
A1R,
CLO,
FRN
3M
TSFR
+
1.55%,
5.408%,
4/25/37 (1)
2,310
2,320
THL
Credit
Wind
River
Series
2019-3A,
Class
AR3,
CLO,
FRN
3M
TSFR
+
1.20%,
1/15/38 (1)(2)(3)
890
890
TPIC
SPV
I
Series
2024-1A,
Class
A
7.131%,
11/30/44,
Acquisition
Date:
12/10/24,
Cost $1,979 (4)(5)
1,979
1,979
Tricon
Residential
Trust
Series
2024-SFR3,
Class
A
4.50%,
8/17/41 (1)
1,059
1,053
Verdant
Receivables
Series
2024-1A,
Class
A2
5.68%,
12/12/31 (1)
133
135
Verdant
Receivables
Series
2025-1A,
Class
B
5.37%,
5/12/33 (1)
100
102
Wingspire
Equipment
Finance
Series
2025-1A,
Class
A2
4.33%,
9/20/33 (1)
295
295
66,755
Student
Loan
0.2%
Bayview
Opportunity
Master
Fund
VII
Series
2025-EDU1,
Class
A,
FRN
SOFR30A
+
1.30%,
5.483%,
7/27/48 (1)
1,713
1,707
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
14
Par/Shares
$
Value
(Amounts
in
000s)
Navient
Private
Education
Refi
Loan
Trust
Series
2019-CA,
Class
A2
3.13%,
2/15/68 (1)
219
216
Navient
Private
Education
Refi
Loan
Trust
Series
2020-A,
Class
A2A
2.46%,
11/15/68 (1)
467
452
Navient
Private
Education
Refi
Loan
Trust
Series
2020-GA,
Class
A
1.17%,
9/16/69 (1)
146
137
Navient
Private
Education
Refi
Loan
Trust
Series
2020-HA,
Class
A
1.31%,
1/15/69 (1)
121
114
SMB
Private
Education
Loan
Trust
Series
2018-B,
Class
A2A
3.60%,
1/15/37 (1)
135
134
SMB
Private
Education
Loan
Trust
Series
2020-A,
Class
A2A
2.23%,
9/15/37 (1)
221
214
SMB
Private
Education
Loan
Trust
Series
2020-B,
Class
A1A
1.29%,
7/15/53 (1)
640
609
SMB
Private
Education
Loan
Trust
Series
2021-A,
Class
APT1
1.07%,
1/15/53 (1)
1,445
1,322
4,905
Total
Asset-Backed
Securities
(Cost
$104,830)
105,103
CORPORATE
BONDS
24.1%
FINANCIAL
INSTITUTIONS
9.6%
Banking
5.4%
Ally
Financial,
2.20%,
11/2/28
1,505
1,404
American
Express,
4.90%,
2/13/26
3,385
3,390
American
Express,
VR,
4.918%,
7/20/33 (6)
550
559
Banco
Santander,
3.49%,
5/28/30
600
577
Bank
of
America,
3.50%,
4/19/26
600
599
Bank
of
America,
6.00%,
10/15/36
300
325
Bank
of
America,
7.75%,
5/14/38
150
183
Bank
of
America,
VR,
2.592%,
4/29/31 (6)
1,875
1,739
Bank
of
America,
VR,
2.676%,
6/19/41 (6)
1,575
1,169
Bank
of
America,
VR,
3.824%,
1/20/28 (6)
2,280
2,272
Bank
of
America,
VR,
4.244%,
4/24/38 (6)
45
42
Bank
of
America,
VR,
5.425%,
8/15/35 (6)
2,000
2,040
Bank
of
New
York
Mellon,
VR,
6.474%,
10/25/34 (6)
1,440
1,604
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
15
Par/Shares
$
Value
(Amounts
in
000s)
Banque
Federative
du
Credit
Mutuel,
4.935%,
1/26/26 (1)
3,570
3,575
Barclays,
VR,
5.674%,
3/12/28 (6)
1,045
1,065
Barclays,
VR,
5.69%,
3/12/30 (6)
2,840
2,950
BBVA
Mexico
Institucion
De
Banca
Multiple
Grupo
Financiero,
5.25%,
9/10/29
1,865
1,925
BNP
Paribas,
VR,
5.497%,
5/20/30 (1)(6)
2,750
2,840
Capital
One,
2.70%,
2/6/30
2,000
1,873
Capital
One
Financial,
3.65%,
5/11/27
1,430
1,420
Capital
One
Financial,
VR,
2.359%,
7/29/32 (6)
3,700
3,214
Capital
One
Financial,
VR,
6.051%,
2/1/35 (6)
365
386
Citigroup,
5.875%,
1/30/42
450
476
Citigroup,
VR,
3.887%,
1/10/28 (6)
2,050
2,043
Citigroup,
VR,
4.075%,
4/23/29 (6)
1,920
1,915
Danske
Bank,
VR,
5.705%,
3/1/30 (1)(6)
470
488
Fifth
Third
Bancorp,
VR,
6.339%,
7/27/29 (6)
460
483
Goldman
Sachs
Group,
3.80%,
3/15/30 (7)
1,270
1,250
Goldman
Sachs
Group,
6.75%,
10/1/37
455
510
Goldman
Sachs
Group,
VR,
5.734%,
1/28/56 (6)
2,645
2,737
HSBC
Bank
USA,
5.875%,
11/1/34
550
590
HSBC
Holdings,
VR,
2.013%,
9/22/28 (6)
3,345
3,211
HSBC
Holdings,
VR,
6.332%,
3/9/44 (6)
1,725
1,904
ING
Groep,
VR,
5.55%,
3/19/35 (6)
1,655
1,723
ING
Groep,
VR,
6.114%,
9/11/34 (6)
740
798
JPMorgan
Chase,
2.95%,
10/1/26 (7)
980
971
JPMorgan
Chase,
VR,
2.956%,
5/13/31 (6)
1,230
1,156
JPMorgan
Chase,
VR,
3.782%,
2/1/28 (6)
990
986
JPMorgan
Chase,
VR,
3.882%,
7/24/38 (6)
4,905
4,417
JPMorgan
Chase,
VR,
5.299%,
7/24/29 (6)
3,170
3,261
JPMorgan
Chase,
VR,
5.576%,
7/23/36 (6)
1,315
1,362
Manufacturers
&
Traders
Trust,
VR,
4.762%,
7/6/28 (6)
1,455
1,467
Morgan
Stanley,
3.125%,
7/27/26
2,000
1,988
Morgan
Stanley,
6.25%,
8/9/26
175
178
Morgan
Stanley,
VR,
3.217%,
4/22/42 (6)
830
651
Morgan
Stanley,
VR,
5.656%,
4/18/30 (6)
2,975
3,098
Morgan
Stanley
Private
Bank,
VR,
4.734%,
7/18/31 (6)
3,785
3,847
PNC
Financial
Services
Group,
VR,
4.758%,
1/26/27 (6)
1,920
1,920
PNC
Financial
Services
Group,
VR,
5.373%,
7/21/36 (6)
495
506
Santander
Holdings
USA,
VR,
6.342%,
5/31/35 (6)(7)
1,925
2,043
Santander
Holdings
USA,
VR,
6.499%,
3/9/29 (6)
885
922
Santander
U.K.
Group
Holdings,
VR,
4.32%,
9/22/29 (6)
1,190
1,187
Skandinaviska
Enskilda
Banken,
5.125%,
3/5/27 (1)
2,930
2,971
Societe
Generale,
5.25%,
2/19/27 (1)
1,230
1,242
Societe
Generale,
VR,
6.066%,
1/19/35 (1)(6)(7)
1,305
1,374
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
16
Par/Shares
$
Value
(Amounts
in
000s)
Sumitomo
Mitsui
Financial
Group,
5.464%,
1/13/26
1,755
1,759
Toronto-Dominion
Bank,
4.994%,
4/5/29
2,200
2,253
Truist
Financial,
1.95%,
6/5/30
1,470
1,325
U.S.
Bancorp,
VR,
5.384%,
1/23/30 (6)
665
686
UBS
Group,
VR,
1.364%,
1/30/27 (1)(6)
1,700
1,688
Wells
Fargo,
VR,
2.393%,
6/2/28 (6)
2,415
2,352
Wells
Fargo,
VR,
2.879%,
10/30/30 (6)
2,925
2,775
Wells
Fargo,
VR,
5.574%,
7/25/29 (6)
1,250
1,293
Wells
Fargo,
VR,
5.707%,
4/22/28 (6)
1,895
1,935
Wells
Fargo,
VR,
6.303%,
10/23/29 (6)
1,380
1,459
Westpac
New
Zealand,
5.195%,
2/28/29 (1)
1,935
1,993
108,344
Brokerage
Asset
Managers
Exchanges
0.3%
Intercontinental
Exchange,
1.85%,
9/15/32
1,735
1,473
Intercontinental
Exchange,
5.25%,
6/15/31
1,585
1,654
LPL
Holdings,
5.65%,
3/15/35
3,700
3,770
6,897
Finance
Companies
0.2%
Avolon
Holdings
Funding,
6.375%,
5/4/28 (1)
1,560
1,630
GATX,
6.05%,
3/15/34
1,785
1,905
3,535
Insurance
2.5%
Allstate,
6.125%,
12/15/32
150
163
American
International
Group,
3.875%,
1/15/35
425
396
Aon,
3.875%,
12/15/25
405
404
Aon
Corp.,
5.00%,
9/12/32
3,075
3,158
Arthur
J
Gallagher,
4.85%,
12/15/29
445
454
Athene
Global
Funding,
4.86%,
8/27/26 (1)
3,330
3,343
Athene
Global
Funding,
5.033%,
7/17/30 (1)
990
1,001
Centene,
3.375%,
2/15/30
3,095
2,828
CNO
Global
Funding,
4.95%,
9/9/29 (1)
515
524
Corebridge
Global
Funding,
4.25%,
8/21/28 (1)
885
886
Corebridge
Global
Funding,
4.65%,
8/20/27 (1)
1,075
1,085
Elevance
Health,
4.55%,
3/1/48
1,135
969
Elevance
Health,
4.65%,
1/15/43
485
435
Enact
Holdings,
6.25%,
5/28/29
505
529
Equitable
America
Global
Funding,
4.65%,
6/9/28 (1)
1,915
1,936
Equitable
America
Global
Funding,
4.70%,
9/15/32 (1)
400
399
Fidelity
National
Financial,
4.50%,
8/15/28
1,615
1,617
Fortitude
Group
Holdings,
6.25%,
4/1/30 (1)
2,500
2,593
Health
Care
Service,
5.45%,
6/15/34 (1)
1,095
1,122
Humana,
5.375%,
4/15/31
785
808
Humana,
5.95%,
3/15/34
835
880
Jackson
National
Life
Global
Funding,
4.70%,
6/5/28 (1)
2,970
2,996
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
17
Par/Shares
$
Value
(Amounts
in
000s)
Jackson
National
Life
Global
Funding,
4.90%,
1/13/27 (1)
3,620
3,647
Liberty
Mutual
Group,
4.85%,
8/1/44 (1)
1,370
1,229
MassMutual
Global
Funding
II,
5.10%,
4/9/27 (1)
2,940
2,983
New
York
Life
Insurance,
3.75%,
5/15/50 (1)
1,415
1,073
Principal
Financial
Group,
2.125%,
6/15/30
1,900
1,726
Principal
Financial
Group,
3.70%,
5/15/29
10
10
Principal
Financial
Group,
4.111%,
2/15/28 (1)
1,100
1,095
RGA
Global
Funding,
4.35%,
8/25/28 (1)
1,150
1,153
RGA
Global
Funding,
5.448%,
5/24/29 (1)
1,730
1,791
Teachers
Insurance
&
Annuity
Association
of
America,
4.27%,
5/15/47 (1)
1,400
1,169
Travelers,
6.25%,
6/15/37
225
251
UnitedHealth
Group,
2.00%,
5/15/30
10
9
UnitedHealth
Group,
3.50%,
8/15/39
1,960
1,633
UnitedHealth
Group,
4.40%,
6/15/28
330
333
UnitedHealth
Group,
4.75%,
7/15/45
900
818
UnitedHealth
Group,
5.75%,
7/15/64
1,790
1,794
Willis
North
America,
4.50%,
9/15/28
1,110
1,118
50,358
Real
Estate
Investment
Trusts
1.2%
Alexandria
Real
Estate
Equities,
3.95%,
1/15/27
10
10
Alexandria
Real
Estate
Equities,
4.00%,
2/1/50
1,975
1,481
Brixmor
Operating
Partnership,
3.90%,
3/15/27
495
493
Brixmor
Operating
Partnership,
4.05%,
7/1/30
760
748
Brixmor
Operating
Partnership,
4.85%,
2/15/33
440
439
Essex
Portfolio,
2.65%,
3/15/32
660
589
Essex
Portfolio,
4.50%,
3/15/48
1,455
1,266
Extra
Space
Storage,
4.00%,
6/15/29
15
15
Extra
Space
Storage,
4.95%,
1/15/33
755
760
Healthcare
Realty
Holdings,
3.625%,
1/15/28
605
594
Healthpeak
OP,
2.125%,
12/1/28
710
668
Healthpeak
OP,
2.875%,
1/15/31
420
387
Prologis,
4.00%,
9/15/28
2,110
2,113
Public
Storage
Operating,
1.95%,
11/9/28
1,285
1,212
Realty
Income,
2.20%,
6/15/28
685
654
Realty
Income,
3.95%,
8/15/27
835
834
Realty
Income,
4.625%,
11/1/25
1,775
1,775
Regency
Centers,
3.60%,
2/1/27
350
348
Regency
Centers,
4.125%,
3/15/28
520
520
Regency
Centers,
4.40%,
2/1/47
2,000
1,733
Regency
Centers,
5.25%,
1/15/34
1,340
1,377
Simon
Property
Group,
3.80%,
7/15/50
2,830
2,169
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
18
Par/Shares
$
Value
(Amounts
in
000s)
Welltower
OP,
5.125%,
7/1/35
3,390
3,444
23,629
Total
Financial
Institutions
192,763
INDUSTRIAL
12.3%
Basic
Industry
0.2%
Celulosa
Arauco
y
Constitucion,
3.875%,
11/2/27
570
565
Freeport-McMoRan,
5.45%,
3/15/43
274
266
Nutrien,
4.00%,
12/15/26
525
527
Sherwin-Williams,
4.80%,
9/1/31
2,400
2,451
3,809
Capital
Goods
1.1%
Amphenol,
4.75%,
3/30/26
310
311
Amphenol,
5.05%,
4/5/29
925
953
Boeing,
3.60%,
5/1/34
2,000
1,814
Boeing,
6.528%,
5/1/34
1,715
1,902
Caterpillar
Financial
Services,
5.00%,
5/14/27
4,225
4,297
CRH
America
Finance,
3.95%,
4/4/28 (1)
1,700
1,692
Ingersoll
Rand,
5.176%,
6/15/29
3,131
3,232
John
Deere
Capital,
4.40%,
9/8/31
2,530
2,546
John
Deere
Capital,
4.50%,
1/8/27
1,840
1,852
L3Harris
Technologies,
5.05%,
6/1/29
1,300
1,335
Lockheed
Martin,
4.07%,
12/15/42
184
160
Owens
Corning,
5.70%,
6/15/34
1,235
1,295
Regal
Rexnord,
6.40%,
4/15/33
1,640
1,755
23,144
Communications
1.9%
America
Movil,
6.375%,
3/1/35
300
333
AT&T,
2.75%,
6/1/31
3,300
3,011
AT&T,
4.35%,
3/1/29
1,020
1,021
AT&T,
4.55%,
11/1/32
1,285
1,272
AT&T,
5.40%,
2/15/34
2,415
2,491
Charter
Communications
Operating,
2.80%,
4/1/31
2,365
2,121
Charter
Communications
Operating,
3.70%,
4/1/51
1,795
1,173
Charter
Communications
Operating,
6.10%,
6/1/29
690
720
Comcast,
2.65%,
2/1/30
10
9
Comcast,
3.20%,
7/15/36
80
68
Comcast,
5.50%,
5/15/64
2,490
2,295
Crown
Castle,
2.10%,
4/1/31
2,300
2,017
Crown
Castle,
2.25%,
1/15/31
1,665
1,479
Crown
Castle,
3.70%,
6/15/26
700
697
Meta
Platforms,
5.60%,
5/15/53
1,825
1,810
NTT
Finance,
4.876%,
7/16/30 (1)
1,160
1,181
Omnicom
Group,
3.60%,
4/15/26
695
692
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
19
Par/Shares
$
Value
(Amounts
in
000s)
Rogers
Communications,
3.625%,
12/15/25
335
335
Rogers
Communications,
5.00%,
2/15/29
1,615
1,677
Rogers
Communications,
5.30%,
2/15/34
1,885
1,902
T-Mobile
USA,
3.75%,
4/15/27
3,565
3,541
T-Mobile
USA,
4.95%,
11/15/35
2,880
2,846
Time
Warner
Cable,
6.55%,
5/1/37
235
241
Time
Warner
Cable,
6.75%,
6/15/39
2,580
2,648
Verizon
Communications,
1.68%,
10/30/30
625
550
Verizon
Communications,
4.00%,
3/22/50
1,500
1,179
37,309
Consumer
Cyclical
2.3%
Alibaba
Group
Holding,
4.00%,
12/6/37
2,300
2,155
American
Honda
Finance,
4.55%,
7/9/27
1,645
1,658
American
Honda
Finance,
4.90%,
3/12/27
2,790
2,821
AutoZone,
1.65%,
1/15/31
2,000
1,738
AutoZone,
3.125%,
4/21/26
445
443
AutoZone,
3.75%,
6/1/27
20
20
AutoZone,
5.05%,
7/15/26
1,390
1,398
CBRE
Services,
5.50%,
4/1/29
580
601
Daimler
Truck
Finance
North
America,
5.375%,
1/18/34 (1)
560
572
Ford
Motor
Credit,
5.125%,
11/5/26
1,435
1,438
Ford
Motor
Credit,
7.122%,
11/7/33
635
681
General
Motors
Financial,
5.55%,
7/15/29
600
622
Home
Depot,
5.875%,
12/16/36
3,000
3,247
Hyundai
Capital
America,
1.30%,
1/8/26 (1)
1,510
1,502
Hyundai
Capital
America,
4.90%,
6/23/28 (1)
1,950
1,976
Hyundai
Capital
America,
5.35%,
3/19/29 (1)
500
513
Hyundai
Capital
America,
5.50%,
3/30/26 (1)
820
824
Lowe's,
4.25%,
3/15/31
2,370
2,355
Lowe's,
4.45%,
4/1/62
1,890
1,511
Mercedes-Benz
Finance
North
America,
4.80%,
3/30/26 (1)
1,930
1,935
O'Reilly
Automotive,
3.60%,
9/1/27
20
20
O'Reilly
Automotive,
3.90%,
6/1/29
2,470
2,444
O'Reilly
Automotive,
5.75%,
11/20/26
390
396
PACCAR
Financial,
5.00%,
5/13/27
3,070
3,123
PACCAR
Financial,
5.20%,
11/9/26
2,895
2,935
Ross
Stores,
1.875%,
4/15/31
300
262
TJX,
1.60%,
5/15/31
1,425
1,248
Toyota
Motor
Credit,
4.05%,
9/5/28
2,680
2,685
Toyota
Motor
Credit,
4.80%,
1/5/26
2,945
2,948
Uber
Technologies,
4.30%,
1/15/30
2,710
2,720
Volkswagen
Group
of
America
Finance,
4.95%,
8/15/29 (1)
495
501
47,292
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
20
Par/Shares
$
Value
(Amounts
in
000s)
Consumer
Non-Cyclical
2.5%
AbbVie,
3.20%,
5/14/26
225
224
AbbVie,
4.50%,
5/14/35
1,235
1,211
AbbVie,
4.80%,
3/15/29
1,315
1,345
Amgen,
2.60%,
8/19/26
1,275
1,261
Amgen,
2.77%,
9/1/53
1,239
749
Amgen,
5.15%,
3/2/28
1,615
1,651
Anheuser-Busch
InBev
Worldwide,
5.45%,
1/23/39
30
31
Astrazeneca
Finance,
4.875%,
3/3/28
2,300
2,350
Banner
Health,
1.897%,
1/1/31
850
758
BAT
Capital,
4.39%,
8/15/37
3,395
3,106
BAT
Capital,
5.834%,
2/20/31
845
892
Becton
Dickinson
&
Company,
5.081%,
6/7/29
1,505
1,546
Centra
Health,
4.70%,
1/1/48
25
21
Cigna
Group,
4.50%,
9/15/30
380
382
Cigna
Group,
4.90%,
12/15/48
2,100
1,870
CommonSpirit
Health,
2.782%,
10/1/30
980
910
CommonSpirit
Health,
3.91%,
10/1/50
40
30
Conopco,
6.625%,
4/15/28
5
5
CVS
Health,
1.875%,
2/28/31
1,135
987
CVS
Health,
5.00%,
9/15/32 (7)
420
427
CVS
Health,
5.125%,
7/20/45
925
837
CVS
Health,
5.40%,
6/1/29
1,360
1,407
CVS
Health,
6.00%,
6/1/63
2,705
2,690
Hackensack
Meridian
Health,
4.211%,
7/1/48
1,680
1,417
HCA,
4.125%,
6/15/29
1,695
1,683
HCA,
5.45%,
9/15/34
890
912
Icon
Investments
Six,
5.849%,
5/8/29
300
313
Indiana
University
Health
Obligated
Group,
3.97%,
11/1/48
1,030
842
IQVIA,
6.25%,
2/1/29
735
772
JDE
Peet's,
1.375%,
1/15/27 (1)
1,245
1,200
Keurig
Dr
Pepper,
2.55%,
9/15/26
450
444
Mars,
4.60%,
3/1/28 (1)
2,120
2,145
MedStar
Health,
Series
20A,
3.626%,
8/15/49
920
679
Memorial
Sloan-Kettering
Cancer
Center,
Series
2015,
4.20%,
7/1/55
600
506
Mondelez
International,
4.75%,
2/20/29
3,800
3,874
Nestle
Holdings,
4.85%,
3/14/33 (1)
2,700
2,767
Northwell
Healthcare,
3.979%,
11/1/46
1,275
1,013
Revvity,
1.90%,
9/15/28
1,575
1,473
Solventum,
5.40%,
3/1/29
673
694
Stanford
Health
Care,
Series
2018,
3.795%,
11/15/48
440
347
West
Virginia
United
Health
System
Obligated
Group,
Series
2018,
4.924%,
6/1/48
1,620
1,412
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
21
Par/Shares
$
Value
(Amounts
in
000s)
Zoetis,
4.15%,
8/17/28
3,805
3,821
51,004
Energy
2.1%
Boardwalk
Pipelines,
3.40%,
2/15/31
2,130
1,996
BP
Capital
Markets
America,
3.41%,
2/11/26
1,280
1,277
Cameron
LNG,
2.902%,
7/15/31 (1)
520
477
Cameron
LNG,
3.701%,
1/15/39 (1)
430
370
Canadian
Natural
Resources,
2.95%,
7/15/30 (7)
1,520
1,422
Cheniere
Energy
Partners,
5.75%,
8/15/34
1,865
1,933
Chevron
USA,
4.30%,
10/15/30 (7)
2,275
2,290
Diamondback
Energy,
5.15%,
1/30/30
550
564
Enbridge,
4.25%,
12/1/26
355
355
Enbridge,
4.60%,
6/20/28
340
342
Enbridge,
5.50%,
12/1/46
555
551
Enbridge,
5.625%,
4/5/34
795
829
Enbridge,
6.70%,
11/15/53
610
680
Enbridge
Energy
Partners,
5.50%,
9/15/40
170
168
Energy
Transfer,
5.60%,
9/1/34
1,505
1,546
Eni,
5.50%,
5/15/34 (1)
845
869
Eni,
5.95%,
5/15/54 (1)
930
924
Enterprise
Products
Operating,
4.30%,
6/20/28
1,145
1,152
Enterprise
Products
Operating,
4.60%,
1/11/27
2,845
2,864
EOG
Resources,
4.40%,
7/15/28
1,295
1,307
HF
Sinclair,
5.75%,
1/15/31
814
841
Kinder
Morgan,
5.20%,
6/1/33
1,800
1,846
Marathon
Petroleum,
5.15%,
3/1/30
1,955
2,009
MPLX,
4.80%,
2/15/31
2,150
2,169
MPLX,
5.65%,
3/1/53
1,600
1,507
Occidental
Petroleum,
5.375%,
1/1/32
1,430
1,455
ONEOK,
4.75%,
10/15/31
1,340
1,342
Pioneer
Natural
Resources,
1.125%,
1/15/26
695
690
Sabine
Pass
Liquefaction,
4.20%,
3/15/28
815
815
Sabine
Pass
Liquefaction,
4.50%,
5/15/30
655
656
Spectra
Energy
Partners,
3.375%,
10/15/26
460
457
Transcontinental
Gas
Pipe
Line,
4.60%,
3/15/48
790
685
Williams,
4.625%,
6/30/30
1,480
1,491
Williams,
4.85%,
3/1/48
190
169
Williams,
4.90%,
3/15/29
1,415
1,441
Woodside
Finance,
3.70%,
9/15/26 (1)
330
328
Woodside
Finance,
3.70%,
3/15/28 (1)
435
429
Woodside
Finance,
4.50%,
3/4/29 (1)
1,435
1,434
41,680
Industrial
Other
0.1%
Georgetown
University,
Series
B,
4.315%,
4/1/49 (7)
1,475
1,259
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
22
Par/Shares
$
Value
(Amounts
in
000s)
President
&
Fellows
of
Harvard
College,
3.619%,
10/1/37
385
344
1,603
Technology
1.3%
Atlassian,
5.25%,
5/15/29
760
781
Broadcom,
4.60%,
7/15/30
1,115
1,129
Broadcom,
4.80%,
4/15/28 (7)
3,290
3,349
Cadence
Design
Systems,
4.30%,
9/10/29
1,090
1,095
Fiserv,
3.20%,
7/1/26
10
10
Fiserv,
5.45%,
3/15/34
2,125
2,151
Foundry
JV
Holdco,
5.90%,
1/25/33 (1)
765
805
Foundry
JV
Holdco,
6.15%,
1/25/32 (1)
885
944
Motorola
Solutions,
5.00%,
4/15/29
835
855
NXP,
3.15%,
5/1/27
395
389
NXP,
4.30%,
8/19/28
590
591
Oracle,
5.375%,
7/15/40
2,925
2,792
Oracle,
6.90%,
11/9/52
1,375
1,468
Qorvo,
4.375%,
10/15/29
559
550
RELX
Capital,
3.00%,
5/22/30
1,120
1,062
Roper
Technologies,
2.00%,
6/30/30
575
518
Roper
Technologies,
3.80%,
12/15/26
660
658
ServiceNow,
1.40%,
9/1/30
3,710
3,248
TR
Finance,
3.35%,
5/15/26
225
223
Verisk
Analytics,
4.50%,
8/15/30
905
909
VMware,
1.40%,
8/15/26
3,475
3,404
26,931
Transportation
0.8%
American
Airlines
PTT,
Series
2019-1,
Class
AA,
3.15%,
2/15/32
25
23
Burlington
Northern
Santa
Fe,
6.15%,
5/1/37
100
111
Canadian
National
Railway,
5.85%,
11/1/33
920
1,002
Canadian
National
Railway,
6.25%,
8/1/34
95
106
Canadian
Pacific
Railway,
1.75%,
12/2/26
845
826
Canadian
Pacific
Railway,
2.875%,
11/15/29
1,140
1,086
Canadian
Pacific
Railway,
3.50%,
5/1/50
1,155
851
Canadian
Pacific
Railway,
4.70%,
5/1/48
720
646
ERAC
USA
Finance,
4.50%,
2/15/45 (1)
260
231
ERAC
USA
Finance,
4.90%,
5/1/33 (1)
1,595
1,616
FedEx,
4.40%,
1/15/47
6,500
5,353
Transurban
Finance,
2.45%,
3/16/31 (1)
1,820
1,650
Transurban
Finance,
3.375%,
3/22/27 (1)
235
233
Transurban
Finance,
4.125%,
2/2/26 (1)
185
185
United
Airlines
PTT,
Series
2016-2,
Class
A,
3.10%,
10/7/28
551
522
United
Airlines
PTT,
Series
2018-1,
Class
A,
3.70%,
3/1/30
803
759
15,200
Total
Industrial
247,972
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
23
Par/Shares
$
Value
(Amounts
in
000s)
UTILITY
2.2%
Electric
1.8%
AES,
5.80%,
3/15/32
2,300
2,351
Ameren,
5.70%,
12/1/26
1,820
1,846
American
Electric
Power,
5.20%,
1/15/29
2,595
2,675
Berkshire
Hathaway
Energy,
6.125%,
4/1/36
170
185
CenterPoint
Energy
Houston
Electric,
Series
K2,
6.95%,
3/15/33
100
114
CMS
Energy,
4.875%,
3/1/44
635
578
DTE
Energy,
5.10%,
3/1/29
2,645
2,711
DTE
Energy,
5.85%,
6/1/34
390
413
Duke
Energy,
2.65%,
9/1/26
355
351
Duke
Energy,
4.95%,
9/15/35
1,045
1,034
Duke
Energy
Florida,
6.35%,
9/15/37
170
190
Duke
Energy
Progress,
6.30%,
4/1/38
100
112
Enel
Finance
International,
4.375%,
9/30/30 (1)
1,815
1,803
Exelon,
3.40%,
4/15/26
1,815
1,808
FirstEnergy
Pennsylvania
Electric,
4.30%,
1/15/29 (1)
2,320
2,316
FirstEnergy
Transmission,
5.00%,
1/15/35
610
611
Florida
Power
&
Light,
5.30%,
6/15/34
3,040
3,170
Georgia
Power,
4.95%,
5/17/33
895
915
Mid-Atlantic
Interstate
Transmission,
4.10%,
5/15/28 (1)
1,765
1,764
Nevada
Power,
Series
N,
6.65%,
4/1/36
400
450
New
York
State
Electric
&
Gas,
5.30%,
8/15/34 (1)
1,195
1,222
Niagara
Mohawk
Power,
4.647%,
10/3/30 (1)
1,165
1,173
Pacific
Gas
&
Electric,
2.10%,
8/1/27
1,985
1,909
PECO
Energy,
5.95%,
10/1/36
150
163
Public
Service
Electric
&
Gas,
5.70%,
12/1/36
180
192
San
Diego
Gas
&
Electric,
Series
FFF,
6.125%,
9/15/37
170
183
San
Diego
Gas
&
Electric,
Series
TTT,
4.10%,
6/15/49
1,790
1,440
Southern,
4.40%,
7/1/46
1,935
1,660
Southern,
5.70%,
3/15/34
725
763
Southern
California
Edison,
5.15%,
6/1/29
2,105
2,145
Southwestern
Public
Service,
6.00%,
6/1/54
365
381
Tampa
Electric,
6.15%,
5/15/37
700
743
37,371
Natural
Gas
0.4%
APA
Infrastructure,
5.125%,
9/16/34 (1)
475
483
Engie,
5.625%,
4/10/34 (1)(7)
660
690
NiSource,
1.70%,
2/15/31
1,280
1,114
NiSource,
3.49%,
5/15/27
710
704
NiSource,
3.95%,
3/30/48
1,000
796
NiSource,
5.35%,
4/1/34
1,850
1,897
Southern
California
Gas,
Series
KK,
5.75%,
11/15/35
140
148
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
24
Par/Shares
$
Value
(Amounts
in
000s)
Southern
Gas
Capital,
4.95%,
9/15/34
1,735
1,743
7,575
Total
Utility
44,946
Total
Corporate
Bonds
(Cost
$492,964)
485,681
FOREIGN
GOVERNMENT
OBLIGATIONS
&
MUNICIPALITIES
1.7%
Local
Authorities
0.7%
Province
of
Alberta,
3.30%,
3/15/28
1,605
1,588
Province
of
Alberta
Canada,
4.50%,
1/24/34
1,405
1,430
Province
of
British
Columbia,
4.20%,
7/6/33
2,644
2,636
Province
of
Manitoba
Canada,
4.30%,
7/27/33
2,045
2,041
Province
of
New
Brunswick,
3.625%,
2/24/28
2,545
2,535
Province
of
Ontario,
3.70%,
9/17/29
4,360
4,343
Province
of
Quebec,
Series
PD,
7.50%,
9/15/29
104
118
14,691
Owned
No
Guarantee
0.1%
Autoridad
del
Canal
de
Panama,
4.95%,
7/29/35 (1)
295
285
Corp
Nacional
del
Cobre
de
Chile,
3.75%,
1/15/31 (1)
570
547
832
Sovereign
0.9%
Eagle
Funding
Luxco,
5.50%,
8/17/30 (1)
2,720
2,767
Government
of
Qatar,
3.75%,
4/16/30 (1)
730
727
Kingdom
of
Saudi
Arabia,
5.375%,
1/13/31 (1)
2,010
2,117
Republic
of
Chile,
5.65%,
1/13/37
3,740
3,969
Republic
of
Peru,
5.375%,
2/8/35
740
761
Republic
of
Poland,
Series
10Y,
3.25%,
4/6/26
890
888
Republic
of
Poland,
Series
30Y,
5.50%,
3/18/54
2,365
2,340
United
Mexican
States,
2.659%,
5/24/31
5,154
4,619
18,188
Total
Foreign
Government
Obligations
&
Municipalities
(Cost
$33,550)
33,711
MUNICIPAL
SECURITIES
1.5%
California
0.3%
Bay
Area
Toll
Auth.,
Series S-1,
Build
America,
6.918%,
4/1/40
350
403
Bay
Area
Toll
Auth.,
Toll
Bridge
Revenue
Bonds,
Series S-10,
3.176%,
4/1/41
1,275
1,043
California,
Build
America,
GO,
7.625%,
3/1/40
1,350
1,644
Los
Angeles
Airport,
Series C,
Build
America,
7.053%,
5/15/40
700
818
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
25
Par/Shares
$
Value
(Amounts
in
000s)
Regents
of
the
Univ.
of
California
Medical
Center
Ed
Revenue
Bonds,
Series N,
3.256%,
5/15/60
700
460
San
Diego
County
Water
Auth.,
Series B,
Build
America,
6.138%,
5/1/49
275
288
San
Jose
Redev.
Agency,
Senior
Tax
Allocation,
Series A-T,
3.375%,
8/1/34
610
571
5,227
Florida
0.0%
Florida
Dev.
Finance,
Nova
Southeastern
Univ.,
Series B,
4.109%,
4/1/50
1,425
1,177
1,177
Georgia
0.2%
Fulton
County,
Series 2010-B,
Build
America,
GO,
5.148%,
7/1/39
2,660
2,717
Municipal
Electric
Auth.
of
Georgia,
Build
America,
Vogtle
Units,
6.655%,
4/1/57
1,692
1,863
4,580
Illinois
0.1%
Chicago
O'Hare
Int'l
Airport,
Series B,
Build
America,
6.395%,
1/1/40
1,350
1,515
Illinois
Toll
Highway
Auth.,
Series A,
Build
America,
6.184%,
1/1/34
315
338
Metropolitan
Water
Reclamation
Dist.
of
Greater
Chicago,
Build
America,
GO,
5.72%,
12/1/38
480
505
2,358
Maryland
0.1%
Maryland
Economic
Development,
Seagirt
Marine
Terminal,
Series B,
4.75%,
6/1/42
2,045
1,753
1,753
Michigan
0.1%
Detroit
City
School
Dist.,
Qualified
School
Construction
Bonds,
GO,
6.645%,
5/1/29
1,255
1,341
1,341
Minnesota
0.1%
Western
Minnesota
Municipal
Power
Agency,
Series A,
3.156%,
1/1/39
2,350
2,030
2,030
New
Jersey
0.1%
New
Jersey
Turnpike
Auth.,
Series F,
Build
America,
7.414%,
1/1/40
1,000
1,209
1,209
New
York
0.0%
Dormitory
Auth.
of
the
State
of
New
York,
New
York
Univ.,
Series B,
3.879%,
7/1/46
950
796
Metropolitan
Transportation
Auth.,
Dedicated
Tax
Fund,
Build
America,
7.336%,
11/15/39
125
149
945
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
26
Par/Shares
$
Value
(Amounts
in
000s)
Ohio
0.1%
American
Municipal
Power,
Series B,
Build
America,
6.449%,
2/15/44
2,005
2,157
2,157
Texas
0.3%
Central
Texas
Turnpike
System,
Series C,
3.029%,
8/15/41
40
31
Dallas/Fort
Worth
Int'l
Airport,
Series A,
2.994%,
11/1/38
15
13
Dallas/Fort
Worth
Int'l
Airport,
Series C,
3.089%,
11/1/40
3,945
3,260
Grand
Parkway
Transportation,
Series B,
3.236%,
10/1/52
15
11
Texas
Natural
Gas
Securitization
Fin.,
Series 2023-1,
Class
A2,
5.169%,
4/1/41
705
724
Texas
Private
Activity
Bond
Surface
Transportation,
North
Tarrant
Express,
Series B,
3.922%,
12/31/49
2,400
1,954
5,993
Virginia
0.0%
Virginia
Public
Building
Auth.,
Series B-2,
Build
America,
5.90%,
8/1/30
540
559
559
Wisconsin
0.1%
Public
Finance
Auth.,
Bayhealth
Medical
Center,
Series B,
3.405%,
7/1/51
2,520
1,806
1,806
Total
Municipal
Securities
(Cost
$34,777)
31,135
NON-U.S.
GOVERNMENT
MORTGAGE-BACKED
SECURITIES
5.3%
Collateralized
Mortgage
Obligations
2.7%
Angel
Oak
Mortgage
Trust
Series
2020-6,
Class
A2,
CMO,
ARM,
1.518%,
5/25/65 (1)
252
233
Angel
Oak
Mortgage
Trust
Series
2021-1,
Class
A1,
CMO,
ARM,
0.909%,
1/25/66 (1)
844
738
Arroyo
Mortgage
Trust
Series
2019-2,
Class
A2,
CMO,
ARM,
3.498%,
4/25/49 (1)
181
176
Barclays
Mortgage
Loan
Trust
Series
2021-NQM1,
Class
A3,
CMO,
ARM,
2.189%,
9/25/51 (1)
727
657
Bayview
Financing
Trust
Series
2024-2F,
Class
A,
CMO,
ARM,
7.105%,
9/25/29,
Acquisition
Date:
8/29/24,
Cost $1,661 (4)(5)
1,661
1,669
Citigroup
Mortgage
Loan
Trust
Series
2020-EXP2,
Class
A3,
CMO,
ARM,
2.50%,
8/25/50 (1)
912
789
COLT
Mortgage
Loan
Trust
Series
2020-3,
Class
A1,
CMO,
ARM,
1.506%,
4/27/65 (1)
56
55
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
27
Par/Shares
$
Value
(Amounts
in
000s)
COLT
Mortgage
Loan
Trust
Series
2025-8,
Class
A1,
CMO,
STEP,
5.48%,
8/25/70 (1)
1,995
2,013
Connecticut
Avenue
Securities
Trust
Series
2023-R04,
Class
1M1,
CMO,
ARM,
SOFR30A
+
2.30%,
6.483%,
5/25/43 (1)
1,554
1,588
EFMT
Series
2025-INV1,
Class
A1,
CMO,
STEP,
5.626%,
3/25/70 (1)
458
461
EFMT
Series
2025-NQM5,
Class
A1,
CMO,
ARM,
5.033%,
11/25/70 (1)
400
400
Ellington
Financial
Mortgage
Trust
Series
2019-2,
Class
A3,
CMO,
ARM,
3.046%,
11/25/59 (1)
80
78
Ellington
Financial
Mortgage
Trust
Series
2020-2,
Class
A1,
CMO,
ARM,
1.178%,
10/25/65 (1)
462
437
Galton
Funding
Mortgage
Trust
Series
2018-1,
Class
A23,
CMO,
ARM,
3.50%,
11/25/57 (1)
32
29
GCAT
Trust
Series
2025-NQM4,
Class
A1,
CMO,
STEP,
5.529%,
6/25/70 (1)
2,707
2,730
GS
Mortgage-Backed
Securities
Trust
Series
2020-INV1,
Class
A14,
CMO,
ARM,
2.907%,
10/25/50 (1)
924
806
GS
Mortgage-Backed
Securities
Trust
Series
2025-NQM3,
Class
A1,
CMO,
STEP,
5.137%,
11/25/65 (1)
1,597
1,597
HOMES
Trust
Series
2025-NQM4,
Class
A1,
CMO,
STEP,
5.22%,
8/25/70 (1)
2,843
2,851
JPMorgan
Mortgage
Trust
Series
2019-HYB1,
Class
B4,
CMO,
ARM,
4.991%,
10/25/49 (1)
1,091
1,095
JPMorgan
Mortgage
Trust
Series
2023-DSC2,
Class
A1,
CMO,
ARM,
5.25%,
11/25/63 (1)
498
502
JPMorgan
Mortgage
Trust
Series
2025-DSC2,
Class
A1,
CMO,
ARM,
5.195%,
10/25/65 (1)
1,476
1,481
JPMorgan
Mortgage
Trust
Series
2025-NQM3,
Class
A1,
CMO,
ARM,
5.495%,
11/25/65 (1)
4,341
4,369
MetLife
Securitization
Trust
Series
2018-1A,
Class
A,
CMO,
ARM,
3.75%,
3/25/57 (1)
575
562
Morgan
Stanley
Residential
Mortgage
Loan
Trust
Series
2025-DSC2,
Class
A1,
CMO,
STEP,
5.443%,
7/25/70 (1)
374
376
Morgan
Stanley
Residential
Mortgage
Loan
Trust
Series
2025-NQM5,
Class
A1,
CMO,
ARM,
5.439%,
7/25/70 (1)
351
353
New
Residential
Mortgage
Loan
Trust
Series
2025-NQM3,
Class
A1,
CMO,
ARM,
5.53%,
5/25/65 (1)
1,227
1,239
New
Residential
Mortgage
Loan
Trust
Series
2025-NQM4,
Class
A1,
CMO,
ARM,
5.35%,
7/25/65 (1)
3,276
3,294
NYMT
Loan
Trust
Series
2025-INV1,
Class
A1,
CMO,
STEP,
5.402%,
4/25/60 (1)
1,073
1,078
OBX
Trust
Series
2019-EXP3,
Class
1A9,
CMO,
ARM,
3.50%,
10/25/59 (1)
97
91
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
28
Par/Shares
$
Value
(Amounts
in
000s)
OBX
Trust
Series
2019-EXP3,
Class
2A2,
CMO,
ARM,
1M
TSFR
+
1.214%,
5.206%,
10/25/59 (1)
16
16
OBX
Trust
Series
2025-NQM15,
Class
A1,
CMO,
STEP,
5.143%,
7/27/65 (1)
1,567
1,572
OBX
Trust
Series
2025-NQM15,
Class
A1F,
CMO,
ARM,
SOFR30A
+
1.15%,
5.333%,
7/27/65 (1)
825
825
PENN
Commercial
Mortgage
Trust
Series
2025-P11,
Class
A,
CMO,
ARM,
5.344%,
8/10/42 (1)
2,820
2,867
RCKT
Mortgage
Trust
Series
2024-CES9,
Class
A1A,
CMO,STEP,
5.582%,
12/25/44 (1)
298
301
Sequoia
Mortgage
Trust
Series
2018-CH2,
Class
A3,
CMO,
ARM,
4.00%,
6/25/48 (1)
76
72
Sequoia
Mortgage
Trust
Series
2024-HYB1,
Class
A1A,
CMO,
ARM,
4.427%,
11/25/63 (1)
1,300
1,309
Starwood
Mortgage
Residential
Trust
Series
2019-INV1,
Class
A3,
CMO,
ARM,
2.916%,
9/27/49 (1)
136
135
Starwood
Mortgage
Residential
Trust
Series
2020-INV1,
Class
A1,
CMO,
ARM,
1.027%,
11/25/55 (1)
189
180
Structured
Agency
Credit
Risk
Debt
Notes
Series
2021-DNA7,
Class
M1,
CMO,
ARM,
SOFR30A
+
0.85%,
5.033%,
11/25/41 (1)
357
357
Structured
Agency
Credit
Risk
Debt
Notes
Series
2024-HQA2,
Class
A1,
CMO,
ARM,
SOFR30A
+
1.25%,
5.433%,
8/25/44 (1)
1,248
1,255
Structured
Agency
Credit
Risk
Debt
Notes
Series
2025-DNA3,
Class
M1,
CMO,
ARM,
SOFR30A
+
1.10%,
5.283%,
9/25/45 (1)
2,288
2,290
Structured
Agency
Credit
Risk
Debt
Notes
Series
2025-HQA1,
Class
A1,
CMO,
ARM,
SOFR30A
+
0.95%,
5.133%,
2/25/45 (1)
732
733
Towd
Point
Mortgage
Trust
Series
2019-HY3,
Class
M1,
CMO,
ARM,
1M
TSFR
+
1.614%,
5.606%,
10/25/59 (1)
510
523
Towd
Point
Mortgage
Trust
Series
2024-2,
Class
A1B,
CMO,
ARM,
4.86%,
12/25/64 (1)
5,010
5,037
Verus
Securitization
Trust
Series
2021-1,
Class
A1,
CMO,
ARM,
0.815%,
1/25/66 (1)
371
334
Verus
Securitization
Trust
Series
2023-INV1,
Class
A1,
CMO,
STEP,
5.999%,
2/25/68 (1)
1,132
1,131
Verus
Securitization
Trust
Series
2024-INV1,
Class
A2,
CMO,
STEP,
6.318%,
3/25/69 (1)
1,212
1,224
Verus
Securitization
Trust
Series
2025-7,
Class
A1F,
CMO,
ARM,
SOFR30A
+
1.20%,
5.383%,
8/25/70 (1)
2,129
2,131
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
29
Par/Shares
$
Value
(Amounts
in
000s)
54,039
Commercial
Mortgage-Backed
Securities
2.6%
BANK
Series
2024-BNK47,
Class
A5,
5.716%,
6/15/57
1,475
1,572
BANK5
Series
2024-5YR12,
Class
A3,
ARM,
5.902%,
12/15/57
2,490
2,622
BANK5
Series
2024-5YR8,
Class
AS,
ARM,
6.378%,
8/15/57
1,045
1,097
BANK5
Series
2025-5YR14,
Class
A3,
5.646%,
4/15/58
3,310
3,465
BBCMS
Mortgage
Trust
Series
2019-BWAY,
Class
D,
ARM,
1M
TSFR
+
2.274%,
6.306%,
11/15/34 (1)
545
7
BBCMS
Mortgage
Trust
Series
2024-5C27,
Class
A3,
6.014%,
7/15/57
410
431
BBCMS
Mortgage
Trust
Series
2025-C35,
Class
A5,
ARM,
5.586%,
7/15/58
3,025
3,194
Benchmark
Mortgage
Trust
Series
2023-B39,
Class
A5,
5.754%,
7/15/56
1,220
1,296
Benchmark
Mortgage
Trust
Series
2024-V8,
Class
AM,
ARM,
6.628%,
7/15/57
3,465
3,674
Benchmark
Mortgage
Trust
Series
2025-B41,
Class
A5,
5.407%,
7/15/68
720
753
BMO
Mortgage
Trust
Series
2025-C12,
Class
A5,
ARM,
5.871%,
6/15/58
1,270
1,365
BMO
Mortgage
Trust
Series
2025-C13,
Class
A5,
5.353%,
10/15/58
1,955
2,024
BX
Commercial
Mortgage
Trust
Series
2024-SLCT,
Class
A,
ARM,
1M
TSFR
+
1.323%,
5.356%,
1/15/42 (1)
3,185
3,183
BX
Trust
Series
2025-ROIC,
Class
A,
ARM,
1M
TSFR
+
1.144%,
5.176%,
3/15/30 (1)
4,089
4,080
CENT
Series
2025-CITY,
Class
A,
ARM,
4.92%,
7/10/40 (1)
3,715
3,762
CONE
Trust
Series
2024-DFW1,
Class
A,
ARM,
1M
TSFR
+
1.642%,
5.674%,
8/15/41 (1)
685
684
DBC
Mortgage
Trust
Series
2025-DBC,
Class
A,
ARM,
1M
TSFR
+
1.35%,
5.40%,
6/15/38 (1)
725
726
Extended
Stay
America
Trust
Series
2025-ESH,
Class
A,
ARM,
1M
TSFR
+
1.30%,
5.45%,
10/15/42 (1)
935
937
Hudson
Yards
Mortgage
Trust
Series
2025-SPRL,
Class
A,
ARM,
5.467%,
1/13/40 (1)
2,555
2,645
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
30
Par/Shares
$
Value
(Amounts
in
000s)
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
Series
2016-NINE,
Class
A,
ARM,
2.854%,
9/6/38 (1)
1,215
1,196
MAD
Commercial
Mortgage
Trust
Series
2025-11MD,
Class
A,
ARM,
4.754%,
10/15/42 (1)
1,960
1,957
MHC
Commercial
Mortgage
Trust
Series
2021-MHC,
Class
B,
ARM,
1M
TSFR
+
1.215%,
5.247%,
4/15/38 (1)
3,180
3,179
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
Series
2015-C27,
Class
AS,
4.068%,
12/15/47
1,143
1,133
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
Series
2025-C35,
Class
A5,
5.633%,
8/15/58
1,600
1,701
NYC
Commercial
Mortgage
Trust
Series
2025-28L,
Class
A,
ARM,
4.668%,
11/5/38 (1)
140
140
TX
Trust
Series
2024-HOU,
Class
A,
ARM,
1M
TSFR
+
1.591%,
5.624%,
6/15/39 (1)
660
658
WB
Commercial
Mortgage
Trust
Series
2024-HQ,
Class
A,
ARM,
5.937%,
3/15/40 (1)
490
491
Wells
Fargo
Commercial
Mortgage
Trust
Series
2019-C54,
Class
A4,
3.146%,
12/15/52
750
713
Wells
Fargo
Commercial
Mortgage
Trust
Series
2025-5C6,
Class
A3,
5.186%,
10/15/58
3,915
4,029
52,714
Residential
Mortgage
0.0%
Towd
Point
Mortgage
Trust
Series
2018-1,
Class
A1,
CMO,
ARM,
3.00%,
1/25/58 (1)
19
19
19
Total
Non-U.S.
Government
Mortgage-Backed
Securities
(Cost
$107,141)
106,772
U.S.
GOVERNMENT
&
AGENCY
MORTGAGE-BACKED
SECURITIES
25.5%
U.S.
Government
Agency
Obligations
20.2%
Federal
Home
Loan
Mortgage
2.50%,
4/1/30
-
6/1/30
279
271
3.00%,
12/1/42
-
4/1/47
2,376
2,179
3.50%,
3/1/42
-
3/1/46
1,777
1,691
4.00%,
9/1/40
-
8/1/45
638
623
4.50%,
8/1/39
-
10/1/41
310
313
5.00%,
11/1/33
-
8/1/40
238
244
5.50%,
1/1/35
-
12/1/39
65
68
6.00%,
10/1/32
-
8/1/38
54
56
6.50%,
12/1/28
-
1/1/36
25
27
7.00%,
11/1/30
-
6/1/32
2
3
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
31
Par/Shares
$
Value
(Amounts
in
000s)
Federal
Home
Loan
Mortgage,
ARM
RFUCCT1Y
+
1.625%,
6.625%,
4/1/37
14
15
RFUCCT1Y
+
1.726%,
6.355%,
7/1/35
4
4
RFUCCT1Y
+
1.75%,
6.75%,
2/1/35
3
3
RFUCCT1Y
+
1.911%,
6.538%,
12/1/36
8
8
RFUCCT1Y
+
1.934%,
6.933%,
2/1/37
3
3
RFUCCT1Y
+
2.032%,
6.796%,
11/1/36
10
10
Federal
Home
Loan
Mortgage,
UMBS
2.00%,
8/1/36
-
5/1/52
30,366
24,977
2.50%,
3/1/42
-
5/1/52
26,235
22,463
3.00%,
3/1/35
-
9/1/52
10,311
9,321
3.50%,
5/1/31
-
11/1/54
6,735
6,270
4.00%,
6/1/37
-
1/1/54
3,111
2,993
4.50%,
9/1/37
-
10/1/53
3,444
3,371
5.00%,
12/1/41
-
6/1/55
7,504
7,505
5.50%,
8/1/53
-
2/1/55
14,589
14,844
6.00%,
4/1/54
-
6/1/55
11,721
12,015
6.50%,
5/1/54
-
10/1/54
4,346
4,513
Federal
Home
Loan
Mortgage
Multifamily
Structured
PTC
2.952%,
2/25/27
152
151
4.40%,
10/25/30
6,065
6,152
Federal
Home
Loan
Mortgage
Multifamily
Structured
PTC,
ARM
2.347%,
11/25/31
10,520
9,512
3.71%,
9/25/32
4,545
4,404
4.43%,
2/25/33
3,725
3,761
Federal
National
Mortgage
Assn.
3.50%,
6/1/43
5
5
4.00%,
11/1/40
289
286
4.50%,
7/1/40
3
3
Federal
National
Mortgage
Assn.,
ARM
RFUCCT1Y
+
1.523%,
6.317%,
7/1/35
3
3
RFUCCT1Y
+
1.588%,
6.385%,
7/1/36
7
7
RFUCCT1Y
+
1.655%,
6.28%,
8/1/37
2
2
Federal
National
Mortgage
Assn.,
UMBS
1.50%,
4/1/37
-
1/1/42
6,710
5,919
2.00%,
8/1/28
-
5/1/52
81,449
68,396
2.50%,
5/1/30
-
1/1/54
44,859
38,847
3.00%,
10/1/32
-
9/1/52
23,062
21,196
3.50%,
11/1/25
-
1/1/52
17,384
16,418
4.00%,
6/1/37
-
9/1/52
13,533
13,041
4.50%,
9/1/35
-
2/1/54
13,001
12,835
5.00%,
11/1/33
-
7/1/53
7,187
7,215
5.50%,
12/1/34
-
10/1/55
23,483
23,860
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
32
Par/Shares
$
Value
(Amounts
in
000s)
6.00%,
2/1/33
-
10/1/55
25,385
26,105
6.50%,
1/1/32
-
7/1/55
8,520
8,846
7.00%,
2/1/30
-
11/1/36
7
7
7.50%,
12/1/30
-
-
UMBS,
TBA (8)
4.00%,
11/1/55
2,720
2,581
4.50%,
11/1/55
4,880
4,756
5.00%,
11/1/55
16,365
16,281
5.50%,
11/1/54
1,390
1,404
405,783
U.S.
Government
Obligations
5.3%
Government
National
Mortgage
Assn.
1.50%,
12/20/36
-
5/20/37
650
587
2.00%,
1/20/51
-
5/20/52
19,515
16,238
2.50%,
8/20/50
-
1/20/52
21,502
18,621
3.00%,
9/15/42
-
6/20/52
14,863
13,413
3.50%,
9/15/41
-
7/20/52
11,376
10,592
4.00%,
2/15/41
-
10/20/52
9,556
9,153
4.50%,
9/15/34
-
6/20/53
10,186
10,044
5.00%,
1/20/33
-
2/20/53
6,360
6,418
5.50%,
10/20/32
-
9/20/54
1,662
1,695
6.00%,
8/15/33
-
11/20/52
1,603
1,646
6.50%,
1/15/29
-
8/15/29
1
1
7.50%,
6/15/26
-
3/15/32
23
23
8.50%,
7/20/26
-
-
Government
National
Mortgage
Assn.,
CMO
3.00%,
11/20/47
-
12/20/47
67
62
3.50%,
10/20/50
1,015
867
Government
National
Mortgage
Assn.,
TBA (8)
4.00%,
11/20/55
2,285
2,161
4.50%,
11/20/55
1,015
990
5.00%,
11/20/55
5,485
5,468
5.50%,
11/20/55
7,900
7,965
6.00%,
11/20/55
780
794
106,738
Total
U.S.
Government
&
Agency
Mortgage-Backed
Securities
(Cost
$527,056)
512,521
U.S.
GOVERNMENT
AGENCY
OBLIGATIONS
(EXCLUDING
MORTGAGE-BACKED)
35.1%
U.S.
Government
Agency
Obligations
0.1%
Federal
National
Mortgage
Assn.,
6.25%,
5/15/29 (7)
342
371
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
33
Par/Shares
$
Value
(Amounts
in
000s)
Federal
National
Mortgage
Assn.,
6.625%,
11/15/30 (7)
500
566
937
U.S.
Treasury
Obligations
35.0%
U.S.
Treasury
Bonds,
1.75%,
8/15/41
6,900
4,724
U.S.
Treasury
Bonds,
1.875%,
2/15/51
2,740
1,584
U.S.
Treasury
Bonds,
2.00%,
2/15/50
34,340
20,766
U.S.
Treasury
Bonds,
2.00%,
8/15/51
5,550
3,290
U.S.
Treasury
Bonds,
2.25%,
8/15/49
50
32
U.S.
Treasury
Bonds,
2.25%,
2/15/52
7,275
4,563
U.S.
Treasury
Bonds,
2.375%,
5/15/51
1,420
924
U.S.
Treasury
Bonds,
2.50%,
2/15/45
3,570
2,585
U.S.
Treasury
Bonds,
2.50%,
5/15/46
4,840
3,440
U.S.
Treasury
Bonds,
2.75%,
8/15/47
1,710
1,253
U.S.
Treasury
Bonds,
3.00%,
11/15/45
2,845
2,225
U.S.
Treasury
Bonds,
3.00%,
2/15/47
3,450
2,663
U.S.
Treasury
Bonds,
3.00%,
5/15/47
3,150
2,425
U.S.
Treasury
Bonds,
3.00%,
2/15/48
15,835
12,085
U.S.
Treasury
Bonds,
3.00%,
8/15/48
60
46
U.S.
Treasury
Bonds,
3.00%,
8/15/52
4,200
3,105
U.S.
Treasury
Bonds,
3.125%,
11/15/41
17,585
14,755
U.S.
Treasury
Bonds,
3.375%,
8/15/42
2,550
2,191
U.S.
Treasury
Bonds,
3.625%,
5/15/53 (9)
13,045
10,881
U.S.
Treasury
Bonds,
3.875%,
8/15/40
2,005
1,880
U.S.
Treasury
Bonds,
3.875%,
5/15/43
8,430
7,700
U.S.
Treasury
Bonds,
4.00%,
11/15/52
2,540
2,270
U.S.
Treasury
Bonds,
4.125%,
8/15/44
13,885
12,996
U.S.
Treasury
Bonds,
4.25%,
2/15/54
7,145
6,659
U.S.
Treasury
Bonds,
4.25%,
8/15/54
11,335
10,569
U.S.
Treasury
Bonds,
4.375%,
5/15/41
20
20
U.S.
Treasury
Bonds,
4.625%,
5/15/44
14,350
14,358
U.S.
Treasury
Bonds,
4.625%,
11/15/44
12,435
12,419
U.S.
Treasury
Bonds,
4.625%,
5/15/54
6,515
6,462
U.S.
Treasury
Bonds,
4.625%,
2/15/55
13,300
13,202
U.S.
Treasury
Bonds,
4.75%,
2/15/41
35
36
U.S.
Treasury
Bonds,
4.75%,
11/15/43
1,250
1,273
U.S.
Treasury
Bonds,
4.75%,
2/15/45
2,900
2,941
U.S.
Treasury
Bonds,
4.75%,
11/15/53
10,870
10,996
U.S.
Treasury
Bonds,
4.75%,
5/15/55
12,900
13,068
U.S.
Treasury
Bonds,
5.00%,
5/15/45
15,995
16,740
U.S.
Treasury
Notes,
0.50%,
8/31/27
50
47
U.S.
Treasury
Notes,
2.25%,
8/15/27
9,805
9,575
U.S.
Treasury
Notes,
2.75%,
7/31/27
7,945
7,828
U.S.
Treasury
Notes,
2.75%,
8/15/32
14,000
13,063
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
34
Par/Shares
$
Value
(Amounts
in
000s)
U.S.
Treasury
Notes,
3.375%,
5/15/33
885
853
U.S.
Treasury
Notes,
3.625%,
5/31/28
12,100
12,108
U.S.
Treasury
Notes,
3.625%,
8/31/30
8,400
8,371
U.S.
Treasury
Notes,
3.75%,
12/31/28
14,550
14,608
U.S.
Treasury
Notes,
3.875%,
4/30/30
63,545
64,041
U.S.
Treasury
Notes,
3.875%,
6/30/30
7,990
8,051
U.S.
Treasury
Notes,
4.00%,
2/29/28
10,285
10,376
U.S.
Treasury
Notes,
4.00%,
2/28/30
10,890
11,029
U.S.
Treasury
Notes,
4.00%,
3/31/30
15,200
15,394
U.S.
Treasury
Notes,
4.00%,
5/31/30
12,200
12,360
U.S.
Treasury
Notes,
4.125%,
9/30/27
6,210
6,268
U.S.
Treasury
Notes,
4.125%,
10/31/27
26,275
26,536
U.S.
Treasury
Notes,
4.125%,
10/31/29
11,500
11,695
U.S.
Treasury
Notes,
4.125%,
11/30/29
29,340
29,842
U.S.
Treasury
Notes,
4.25%,
2/28/29
6,895
7,029
U.S.
Treasury
Notes,
4.25%,
6/30/29
9,980
10,186
U.S.
Treasury
Notes,
4.25%,
1/31/30
12,380
12,656
U.S.
Treasury
Notes,
4.25%,
11/15/34
23,105
23,457
U.S.
Treasury
Notes,
4.25%,
5/15/35
22,800
23,109
U.S.
Treasury
Notes,
4.375%,
11/30/28
835
853
U.S.
Treasury
Notes,
4.375%,
12/31/29
27,220
27,951
U.S.
Treasury
Notes,
4.375%,
5/15/34 (9)
18,400
18,888
U.S.
Treasury
Notes,
4.50%,
5/31/29
52,695
54,202
U.S.
Treasury
Notes,
4.50%,
11/15/33
7,900
8,190
U.S.
Treasury
Notes,
4.625%,
2/15/35
27,730
28,928
704,620
Total
U.S.
Government
Agency
Obligations
(Excluding
Mortgage-Backed)
(Cost
$730,436)
705,557
SHORT-TERM
INVESTMENTS
3.1%
Money
Market
Funds
3.1%
T.
Rowe
Price
Government
Reserve
Fund,
4.12% (10)(11)
62,766
62,766
Total
Short-Term
Investments
(Cost
$62,766)
62,766
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
35
Par/Shares
$
Value
(Amounts
in
000s)
SECURITIES
LENDING
COLLATERAL
0.4%
INVESTMENTS
IN
A
POOLED
ACCOUNT
THROUGH
SECURITIES
LENDING
PROGRAM
WITH
STATE
STREET
BANK
AND
TRUST
COMPANY 0.4%
Money
Market
Funds 0.4%
T.
Rowe
Price
Government
Reserve
Fund,
4.12% (10)(11)
8,127
8,127
Total
Investments
in
a
Pooled
Account
through
Securities
Lending
Program
with
State
Street
Bank
and
Trust
Company
8,127
Total
Securities
Lending
Collateral
(Cost
$8,127)
8,127
Total
Investments
in
Securities
101.9%
of
Net
Assets
(Cost
$2,101,647)
$
2,051,373
‡
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
$257,974
and
represents
12.8%
of
net
assets.
(2)
When-issued
security
(3)
All
or
a
portion
of
this
loan
is
unsettled
as
of
October
31,
2025.
The
interest
rate
for
unsettled
loans
will
be
determined
upon
settlement
after
period
end.
(4)
See
Note
2.
Level
3
in
fair
value
hierarchy.
(5)
Security
cannot
be
offered
for
public
resale
without
first
being
registered
under
the
Securities
Act
of
1933
and
related
rules
("restricted
security").
Acquisition
date
represents
the
day
on
which
an
enforceable
right
to
acquire
such
security
is
obtained
and
is
presented
along
with
related
cost
in
the
security
description.
The
fund
may
have
registration
rights
for
certain
restricted
securities.
Any
costs
related
to
such
registration
are
generally
borne
by
the
issuer.
The
aggregate
value
of
restricted
securities
(excluding
144A
holdings)
at
period
end
amounts
to
$3,648
and
represents
0.2%
of
net
assets.
(6)
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.
(7)
See
Note
4
.
All
or
a
portion
of
this
security
is
on
loan
at
October
31,
2025.
(8)
See
Note
4
.
To-Be-Announced
purchase
commitment.
Total
value
of
such
securities
at
period-end
amounts
to
$42,400
and
represents
2.1%
of
net
assets.
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
36
.
.
.
.
.
.
.
.
.
.
(9)
At
October
31,
2025,
all
or
a
portion
of
this
security
is
pledged
as
collateral
and/or
margin
deposit
to
cover
future
funding
obligations.
(10)
Seven-day
yield
(11)
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
GO
General
Obligation
PTC
Pass-Through
Certificate
PTT
Pass-Through
Trust
RFUCCT1Y
Twelve
month
FTSE
USD
IBOR
Consumer
Cash
Fallback
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
QM
U.S.
Bond
Index
Fund
37
(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-S44,
5
Year
Index),
Receive
1.00%
Quarterly,
Pay
upon
credit
default,
6/20/30
12,400
286
221
65
Protection
Sold
(Relevant
Credit:
Markit
CDX.NA.IG-S45,
5
Year
Index),
Receive
1.00%
Quarterly,
Pay
upon
credit
default,
12/20/30
43,000
997
969
28
Total
Centrally
Cleared
Credit
Default
Swaps,
Protection
Sold
93
Total
Centrally
Cleared
Swaps
93
Net
payments
(receipts)
of
variation
margin
to
date
(111)
Variation
margin
receivable
(payable)
on
centrally
cleared
swaps
$
(18)
**
Includes
interest
purchased
or
sold
but
not
yet
collected
of
$12.
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
38
FUTURES
CONTRACTS
($000s)
Expiration
Date
Notional
Amount
Value
and
Unrealized
Gain
(Loss)
Long,
475
U.S.
Treasury
Notes
five
year
contracts
12/25
51,875
$
(104)
Long,
217
U.S.
Treasury
Notes
two
year
contracts
12/25
45,188
(9)
Short,
42
Ultra
U.S.
Treasury
Notes
ten
year
contracts
12/25
(4,850)
(64)
Net
payments
(receipts)
of
variation
margin
to
date
180
Variation
margin
receivable
(payable)
on
open
futures
contracts
$
3
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
39
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
AFFILIATED
COMPANIES
($000s)
The
fund
may
invest
in
certain
securities
that
are
considered
affiliated
companies.
As
defined
by
the
1940
Act,
an
affiliated
company
is
one
in
which
the
fund
owns
5%
or
more
of
the
outstanding
voting
securities,
or
a
company
that
is
under
common
ownership
or
control.
The
following
securities
were
considered
affiliated
companies
for
all
or
some
portion
of
the
year
ended
October
31,
2025.
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,
4.12%
$
-
$
-
$
2,387++
Totals
$
-#
$
-
$
2,387+
Supplementary
Investment
Schedule
Affiliate
Value
10/31/24
Purchase
Cost
Sales
Cost
Value
10/31/25
T.
Rowe
Price
Government
Reserve
Fund,
4.12%
$
76,864
¤
¤
$
70,893
Total
$
70,893^
#
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
$2,387
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
$70,893.
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
October
31,
2025
Statement
of
Assets
and
Liabilities
40
($000s,
except
shares
and
per
share
amounts)
Assets
Investments
in
securities,
at
value
(cost
$2,101,647)
$
2,051,373
Interest
receivable
17,066
Receivable
for
investment
securities
sold
9,208
Receivable
for
shares
sold
2,614
Cash
15
Variation
margin
receivable
on
futures
contracts
3
Foreign
currency
(cost
$1)
1
Other
assets
44
Total
assets
2,080,324
Liabilities
Payable
for
investment
securities
purchased
58,512
Obligation
to
return
securities
lending
collateral
8,127
Payable
for
shares
redeemed
877
Investment
management
fees
payable
118
Due
to
affiliates
19
Variation
margin
payable
on
centrally
cleared
swaps
18
Other
liabilities
386
Total
liabilities
68,057
Commitments
and
Contingent
Liabilities
(note
6
)
NET
ASSETS
$
2,012,267
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
October
31,
2025
Statement
of
Assets
and
Liabilities
41
($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)
$
(155,398)
Paid-in
capital
applicable
to
206,139,764
shares
of
$0.0001
par
value
capital
stock
outstanding;
1,000,000,000
shares
authorized
2,167,665
NET
ASSETS
$
2,012,267
NET
ASSET
VALUE
PER
SHARE
Investor
Class
(Net
assets:
$593,798;
Shares
outstanding:
60,844,383)
$
9.76
I
Class
(Net
assets:
$913,769;
Shares
outstanding:
93,572,068)
$
9.77
Z
Class
(Net
assets:
$504,700;
Shares
outstanding:
51,723,313)
$
9.76
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
Statement
of
Operations
42
($000s)
Year
Ended
10/31/25
Investment
Income
(Loss)
Income
.
Interest
$
76,272
Dividend
2,387
Securities
lending
38
Other
10
Total
income
78,707
Expenses
Investment
management
1,243
Shareholder
servicing
Investor
Class
$
1,054
I
Class
240
1,294
Prospectus
and
shareholder
reports
Investor
Class
39
I
Class
6
Z
Class
2
47
Custody
and
accounting
268
Registration
141
Legal
and
audit
40
Directors
6
Miscellaneous
18
Waived
/
paid
by
Price
Associates
(588)
Total
expenses
2,469
Net
investment
income
76,238
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
Statement
of
Operations
43
($000s)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Year
Ended
10/31/25
Realized
and
Unrealized
Gain
/
Loss
-
Net
realized
gain
(loss)
Securities
(9,630)
Futures
(1,332)
Swaps
473
Net
realized
loss
(10,489)
Change
in
net
unrealized
gain
/
loss
Securities
42,165
Futures
1,428
Swaps
58
Change
in
net
unrealized
gain
/
loss
43,651
Net
realized
and
unrealized
gain
/
loss
33,162
INCREASE
IN
NET
ASSETS
FROM
OPERATIONS
$
109,400
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
Statement
of
Changes
in
Net
Assets
44
($000s)
Year
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Ended
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10/31/25
10/31/24
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
$
76,238
$
55,851
Net
realized
loss
(10,489)
(12,671)
Change
in
net
unrealized
gain
/
loss
43,651
86,871
Increase
in
net
assets
from
operations
109,400
130,051
Distributions
to
shareholders
Net
earnings
Investor
Class
(24,374)
(23,773)
I
Class
(37,008)
(26,636)
Z
Class
(15,608)
(5,834)
Decrease
in
net
assets
from
distributions
(76,990)
(56,243)
Capital
share
transactions
*
Shares
sold
Investor
Class
178,723
172,392
I
Class
228,533
341,331
Z
Class
313,725
132,492
Distributions
reinvested
Investor
Class
23,669
22,969
I
Class
31,668
23,570
Z
Class
15,731
5,834
Shares
redeemed
Investor
Class
(215,376)
(207,123)
I
Class
(148,671)
(125,411)
Z
Class
(38,590)
(17,176)
Increase
in
net
assets
from
capital
share
transactions
389,412
348,878
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
Statement
of
Changes
in
Net
Assets
45
($000s)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Year
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Ended
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10/31/25
10/31/24
Net
Assets
Increase
during
period
421,822
422,686
Beginning
of
period
1,590,445
1,167,759
End
of
period
$
2,012,267
$
1,590,445
*Share
information
(000s)
Shares
sold
Investor
Class
18,617
17,992
I
Class
23,755
35,611
Z
Class
32,697
13,809
Distributions
reinvested
Investor
Class
2,458
2,396
I
Class
3,288
2,454
Z
Class
1,632
608
Shares
redeemed
Investor
Class
(22,463)
(21,695)
I
Class
(15,437)
(13,085)
Z
Class
(4,017)
(1,789)
Increase
in
shares
outstanding
40,530
36,301
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
NOTES
TO
FINANCIAL
STATEMENTS
46
T.
Rowe
Price
QM
U.S.
Bond
Index
Fund,
Inc. (the
corporation)
is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act).
The
QM
U.S.
Bond
Index
Fund
(the
fund)
is a
diversified, open-end
management
investment
company
established
by
the
corporation. The
fund
seeks to
provide
a
total
return
that
matches
or
incrementally
exceeds
the
performance
of
the
U.S.
investment-grade
bond
market.
The
fund
has three classes
of
shares:
the
QM
U.S.
Bond
Index
Fund
(Investor
Class),
the
QM
U.S.
Bond
Index
Fund-I
Class
(I
Class)
and
the
QM
U.S.
Bond
Index
Fund-Z
Class
(Z
Class).
I
Class
shares
require
a
$500,000
initial
investment
minimum,
although
the
minimum
generally
is
waived
or
reduced
for
financial
intermediaries,
eligible
retirement
plans,
and
certain
other
accounts.
The
Z
Class
is
only
available
to
funds
advised
by
T.
Rowe
Price
Associates,
Inc.
and
its
affiliates
and
other
clients
that
are
subject
to
a
contractual
fee
for
investment
management
services. Each
class
has
exclusive
voting
rights
on
matters
related
solely
to
that
class;
separate
voting
rights
on
matters
that
relate
to
all
classes;
and,
in
all
other
respects,
the
same
rights
and
obligations
as
the
other
classes.
NOTE
1
-
SIGNIFICANT
ACCOUNTING
POLICIES
Basis
of
Preparation
The fund
is
an
investment
company
and
follows
accounting
and
reporting
guidance
in
the
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946
(ASC
946).
The
accompanying
financial
statements
were
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(GAAP),
including,
but
not
limited
to,
ASC
946.
GAAP
requires
the
use
of
estimates
made
by
management.
Management
believes
that
estimates
and
valuations
are
appropriate;
however,
actual
results
may
differ
from
those
estimates,
and
the
valuations
reflected
in
the
accompanying
financial
statements
may
differ
from
the
value
ultimately
realized
upon
sale
or
maturity.
Investment
Transactions,
Investment
Income,
and
Distributions
Investment
transactions
are
accounted
for
on
the
trade
date
basis.
Income
and
expenses
are
recorded
on
the
accrual
basis.
Realized
gains
and
losses
are
reported
on
the
identified
cost
basis. Premiums
and
discounts
on
debt
securities
are
amortized
for
financial
reporting
purposes. Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income. Income
tax-related
interest
and
penalties,
if
incurred,
are
recorded
as
income
tax
expense. Dividends
received
from other
investment
companies are
reflected
as
dividend income;
capital
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
47
gain
distributions
are
reflected
as
realized
gain/loss. Dividend
income and
capital
gain
distributions
are
recorded
on
the
ex-dividend
date. Earnings
on
investments
recognized
as
partnerships
for
federal
income
tax
purposes
reflect
the
tax
character
of
such
earnings. Non-cash
dividends,
if
any,
are
recorded
at
the
fair
market
value
of
the
asset
received. Proceeds
from
litigation
payments,
if
any,
are
included
in
either
net
realized
gain
(loss)
or
change
in
net
unrealized
gain/loss
from
securities. Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date. Income
distributions,
if
any, are
declared
by
each
class daily
and
paid
monthly. A
capital
gain
distribution,
if
any, may
also
be
declared
and
paid
by
the
fund
annually.
Currency
Translation
Assets,
including
investments,
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollar
values
each
day
at
the
prevailing
exchange
rate,
using
the
mean
of
the
bid
and
asked
prices
of
such
currencies
against
U.S.
dollars
as
provided
by
an
outside
pricing
service.
Purchases
and
sales
of
securities,
income,
and
expenses
are
translated
into
U.S.
dollars
at
the
prevailing
exchange
rate
on
the
respective
date
of
such
transaction.
The
effect
of
changes
in
foreign
currency
exchange
rates
on
realized
and
unrealized
security
gains
and
losses
is
not
bifurcated
from
the
portion
attributable
to
changes
in
market
prices.
Class
Accounting
Shareholder
servicing,
prospectus,
and
shareholder
report
expenses
incurred
by
each
class
are
charged
directly
to
the
class
to
which
they
relate.
Expenses
common
to
all
classes
and
investment
income
are
allocated
to
the
classes
based
upon
the
relative
daily
net
assets
of
each
class's
settled
shares;
realized
and
unrealized
gains
and
losses
are
allocated
based
upon
the
relative
daily
net
assets
of
each
class's
outstanding
shares.
Capital
Transactions
Each
investor's
interest
in
the
net
assets
of
the
fund
is
represented
by
fund
shares.
The
fund's
net
asset
value
(NAV)
per
share
is
computed
at
the
close
of
the
New
York
Stock
Exchange
(NYSE),
normally
4
p.m.
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 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,
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
48
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
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)
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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
are
generally 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
the
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
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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
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
October
31,
2025
(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
$
-
$
1,768,605
$
-
$
1,768,605
Asset-Backed
Securities
-
103,124
1,979
105,103
Non-U.S.
Government
Mortgage-Backed
Securities
-
105,103
1,669
106,772
Short-Term
Investments
62,766
-
-
62,766
Securities
Lending
Collateral
8,127
-
-
8,127
Total
Securities
70,893
1,976,832
3,648
2,051,373
Swaps*
-
93
-
93
Total
$
70,893
$
1,976,925
$
3,648
$
2,051,466
Liabilities
Futures
Contracts*
$
177
$
-
$
-
$
177
1
Includes
Corporate
Bonds,
Foreign
Government
Obligations
&
Municipalities,
Municipal
Securities,
U.S.
Government
&
Agency
Mortgage-Backed
Securities
and
U.S.
Government
Agency
Obligations
(Excluding
Mortgage-Backed).
*
The
fair
value
presented
includes
cumulative
gain
(loss)
on
open
futures
contracts
and
centrally
cleared
swaps;
however,
the
net
value
reflected
on
the
accompanying
Portfolio
of
Investments
is
only
the
unsettled
variation
margin
receivable
(payable)
at
that
date.
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NOTE
3
-
DERIVATIVE
INSTRUMENTS
During
the
year ended
October
31,
2025,
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
October
31,
2025,
and
the
related
location
on
the
accompanying
Statement
of
Assets
and
Liabilities,
presented
by
primary
underlying
risk
exposure:
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Additionally,
the
amount
of
gains
and
losses
on
derivative
instruments
recognized
in
fund
earnings
during
the
year ended
October
31,
2025,
and
the
related
location
on
the
accompanying
Statement
of
Operations
is
summarized
in
the
following
table
by
primary
underlying
risk
exposure:
($000s)
Location
on
Statement
of
Assets
and
Liabilities
Fair
Value*
Assets
Credit
derivatives
Centrally
Cleared
Swaps
$
93
*
Total
$
93
*
Liabilities
Interest
rate
derivatives
Futures
$
177
Total
$
177
*
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.
($000s)
Location
of
Gain
(Loss)
on
Statement
of
Operations
Futures
Swaps
Total
Realized
Gain
(Loss)
Interest
rate
derivatives
$
(1,332)
$
-
$
(1,332)
Credit
derivatives
-
473
473
Total
$
(1,332)
$
473
$
(859)
Change
in
Unrealized
Gain
(Loss)
Interest
rate
derivatives
$
1,428
$
-
$
1,428
Credit
derivatives
-
58
58
Total
$
1,428
$
58
$
1,486
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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
the
exchange
or
clearinghouse
where
the
contracts
were
cleared.
This
ability
is
subject
to
the
liquidity
of
underlying
positions. As
of
October
31,
2025,
securities
valued
at $2,173,000
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,
credit
quality,
and
mortgage
prepayments;
as
an
efficient
means
of
adjusting
exposure
to
all
or
part
of
a
target
market;
to
enhance
income;
as
a
cash
management
tool;
or
to
adjust
portfolio
duration
and
credit
exposure. A
futures
contract
provides
for
the
future
sale
by
one
party
and
purchase
by
another
of
a
specified
amount
of
a
specific
underlying
financial
instrument
at
an
agreed-upon
price,
date,
time,
and
place.
The
fund
currently
invests
only
in
exchange-traded
futures,
which
generally
are
standardized
as
to
maturity
date,
underlying
financial
instrument,
and
other
contract
terms.
Payments
are
made
or
received
by
the
fund
each
day
to
settle
daily
fluctuations
in
the
value
of
the
contract
(variation
margin),
which
reflect
changes
in
the
value
of
the
underlying
financial
instrument.
Variation
margin
is
recorded
as
unrealized
gain
or
loss
until
the
contract
is
closed.
The
value
of
a
futures
contract
included
in
net
assets
is
the
amount
of
unsettled
variation
margin;
net
variation
margin
receivable
is
reflected
as
an
asset
and
net
variation
margin
payable
is
reflected
as
a
liability
on
the
accompanying
Statement
of
Assets
and
Liabilities.
When
a
contract
is
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closed,
a
realized
gain
or
loss
is
recorded
on
the
accompanying
Statement
of
Operations.
Risks
related
to
the
use
of
futures
contracts
include
possible
illiquidity
of
the
futures
markets,
contract
prices
that
can
be
highly
volatile
and
imperfectly
correlated
to
movements
in
hedged
security
values
and/or
interest
rates,
and
potential
losses
in
excess
of
the
fund's
initial
investment.
During
the
year ended
October
31,
2025,
the
volume
of
the
fund's
activity
in
futures,
based
on
underlying
notional
amounts,
was
generally
between
2%
and
11%
of
net
assets.
Swaps
The
fund
is
subject
to
credit
risk in
the
normal
course
of
pursuing
its
investment
objectives
and
uses
swap
contracts
to
help
manage
such
risk.
The
fund
may
use
swaps
in
an
effort
to
manage
both
long
and
short
exposure
to
changes
in
interest
rates,
inflation
rates,
and
credit
quality;
to
adjust
overall
exposure
to
certain
markets;
to
enhance
total
return
or
protect
the
value
of
portfolio
securities;
to
serve
as
a
cash
management
tool;
or
to
adjust
portfolio
duration
and
credit
exposure.
Swap
agreements
can
be
settled
either
directly
with
the
counterparty
(bilateral
swap)
or
through
a
central
clearinghouse
(centrally
cleared
swap).
Fluctuations
in
the
fair
value
of
a
contract
are
reflected
in
unrealized
gain
or
loss
and
are
reclassified
to
realized
gain
or
loss
on
the
accompanying
Statement
of
Operations upon
contract
termination
or
cash
settlement.
Net
periodic
receipts
or
payments
required
by
a
contract
increase
or
decrease,
respectively,
the
value
of
the
contract
until
the
contractual
payment
date,
at
which
time
such
amounts
are
reclassified
from
unrealized
to
realized
gain
or
loss
on
the
accompanying
Statement
of
Operations.
For
bilateral
swaps,
cash
payments
are
made
or
received
by
the
fund
on
a
periodic
basis
in
accordance
with
contract
terms;
unrealized
gain
on
contracts
and
premiums
paid
are
reflected
as
assets
and
unrealized
loss
on
contracts
and
premiums
received
are
reflected
as
liabilities
on
the
accompanying
Statement
of
Assets
and
Liabilities.
For
bilateral
swaps,
premiums
paid
or
received
are
amortized
over
the
life
of
the
swap
and
are
recognized
as
realized
gain
or
loss
on
the
accompanying
Statement
of
Operations.
For
centrally
cleared
swaps,
payments
are
made
or
received
by
the
fund
each
day
to
settle
the
daily
fluctuation
in
the
value
of
the
contract
(variation
margin).
Accordingly,
the
value
of
a
centrally
cleared
swap
included
in
net
assets
is
the
unsettled
variation
margin;
net
variation
margin
receivable
is
reflected
as
an
asset
and
net
variation
margin
payable
is
reflected
as
a
liability
on
the
accompanying
Statement
of
Assets
and
Liabilities.
Credit
default
swaps
are
agreements
where
one
party
(the
protection
buyer)
agrees
to
make
periodic
payments
to
another
party
(the
protection
seller)
in
exchange
for
protection
against
specified
credit
events,
such
as
certain
defaults
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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
October
31,
2025,
the
notional
amount
of
protection
sold
by
the
fund
totaled $55,400,000
(2.8%
of
net
assets),
which
reflects
the
maximum
potential
amount
the
fund
could
be
required
to
pay
under
such
contracts.
Risks
related
to
the
use
of
credit
default
swaps
include
the
possible
inability
of
the
fund
to
accurately
assess
the
current
and
future
creditworthiness
of
underlying
issuers,
the
possible
failure
of
a
counterparty
to
perform
in
accordance
with
the
terms
of
the
swap
agreements,
potential
government
regulation
that
could
adversely
affect
the
fund's
swap
investments,
and
potential
losses
in
excess
of
the
fund's
initial
investment.
During
the
year ended
October
31,
2025,
the
volume
of
the
fund's
activity
in
swaps,
based
on
underlying
notional
amounts,
was
generally
between
3%
and
7%
of
net
assets.
NOTE
4
-
OTHER
INVESTMENT
TRANSACTIONS
Consistent
with
its
investment
objective, the
fund
engages
in
the
following
practices
to
manage
exposure
to
certain
risks
and/or
to
enhance
performance.
The
investment
objective,
policies,
program,
and
risk
factors
of the
fund
are
described
more
fully
in the
fund's prospectus
and
Statement
of
Additional
Information.
Restricted
Securities
The
fund
invests
in
securities
that
are
subject
to
legal
or
contractual
restrictions
on
resale.
Prompt
sale
of
such
securities
at
an
acceptable
price
may
be
difficult
and
may
involve
substantial
delays
and
additional
costs.
T.
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PRICE
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Collateralized
Loan
Obligations
The
fund
invests
in
collateralized
loan
obligations
(CLOs)
which
are
entities
backed
by
a
diversified
pool
of
syndicated
bank
loans.
The
cash
flows
of
the
CLO
can
be
split
into
multiple
segments,
called
"tranches"
or
"classes",
which
will
vary
in
risk
profile
and
yield.
The
riskiest
segments,
which
are
the
subordinate
or
"equity"
tranches,
bear
the
greatest
risk
of
loss
from
defaults
in
the
underlying
assets
of
the
CLO
and
serve
to
protect
the
other,
more
senior,
tranches.
Senior
tranches
will
typically
have
higher
credit
ratings
and
lower
yields
than
the
securities
underlying
the
CLO.
Despite
the
protection
from
the
more
junior
tranches,
senior
tranches
can
experience
substantial
losses.
Mortgage-Backed
Securities
The
fund
invests
in
mortgage-backed
securities
(MBS
or
pass-through
certificates)
that
represent
an
interest
in
a
pool
of
specific
underlying
mortgage
loans
and
entitle
the
fund
to
the
periodic
payments
of
principal
and
interest
from
those
mortgages.
MBS
may
be
issued
by
government
agencies
or
corporations,
or
private
issuers.
Most
MBS
issued
by
government
agencies
are
guaranteed;
however,
the
degree
of
protection
differs
based
on
the
issuer.
MBS are
sensitive
to
changes
in
economic
conditions
that
affect
the
rate
of
prepayments
and
defaults
on
the
underlying
mortgages;
accordingly,
the
value,
income,
and
related
cash
flows
from
MBS
may
be
more
volatile
than
other
debt
instruments.
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
T.
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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
October
31,
2025,
no
collateral
had
been
posted
by
the
fund
to
counterparties
for
MSFTA
Transactions. Collateral
pledged
by
counterparties
to
the
fund
for
MSFTA
Transactions
consisted
of $104,000
cash
as
of
October
31,
2025.
Dollar
Rolls
The
fund
enters
into
dollar
roll
transactions,
pursuant
to
which
it
sells
a
mortgage-backed
TBA
or
security
and
simultaneously
agrees
to
purchase
a
similar,
but
not
identical,
TBA
with
the
same
issuer,
rate,
and
terms
on
a
later
date
at
a
set
price
from
the
same
counterparty.
The
fund
may
execute
a
"roll"
to
obtain
better
underlying
mortgage
securities
or
to
enhance
returns.
While
the
fund
may
enter
into
dollar
roll
transactions
with
the
intention
of
taking
possession
of
the
underlying
mortgage
securities,
it
may
also
close
a
contract
prior
to
settlement
or
"roll"
settlement
to
a
later
date
if
deemed
to
be
in
the
best
interest
of
shareholders.
Actual
mortgages
received
by
the
fund
may
be
less
favorable
than
those
anticipated.
The
fund
accounts
for
dollar
roll
transactions
as
purchases
and
sales,
which
has
the
effect
of
increasing
its
portfolio
turnover
rate.
When-Issued
Securities
The fund
enters
into
when-issued
purchase
or
sale
commitments,
pursuant
to
which
it
agrees
to
purchase
or
sell,
respectively,
an
authorized
but
not
yet
issued
security
for
a
fixed
unit
price,
with
payment
and
delivery
not
due
until
issuance
of
the
security
on
a
scheduled
future
date.
When-issued
securities
may
be
new
securities
or
securities
issued
through
a
corporate
action,
such
as
a
reorganization
or
restructuring.
Until
settlement,
the
fund
maintains
liquid
assets
sufficient
to
settle
its
commitment
to
purchase
a
when-issued
security.
Amounts
realized
on
when-issued
transactions
are
included
in
realized
gain/loss
on
securities
in
the
accompanying
financial
statements.
Securities
Lending
The fund
may
lend
its
securities
to
approved
borrowers
to
earn
additional
income.
Its
securities
lending
activities
are
administered
by
a
lending
agent
in
accordance
with
a
securities
lending
agreement.
Security
loans
generally
do
not
have
stated
maturity
dates,
and
the
fund
may
recall
a
security
at
any
time.
The
fund
receives
collateral
in
the
form
of
cash
or
U.S.
government
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
the
value
of
loaned
securities;
any
additional
collateral
required
due
to
T.
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Fund
58
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
October
31,
2025,
the
value
of
loaned
securities
was
$7,834,000;
the
value
of
cash
collateral
and
related
investments
was
$8,127,000.
Other
Purchases
and
sales
of
portfolio
securities
other
than
in-kind
transactions,
if
any, short-term
and
U.S.
government securities
aggregated $329,469,000 and
$225,397,000,
respectively,
for
the
year ended
October
31,
2025. Purchases
and
sales
of
U.S.
government
securities
aggregated $1,230,954,000 and
$954,274,000,
respectively,
for
the
year ended
October
31,
2025.
NOTE
5
-
FEDERAL
INCOME
TAXES
Generally,
no
provision
for
federal
income
taxes
is
required
since
the
fund
intends
to continue
to
qualify
as
a
regulated
investment
company
under
Subchapter
M
of
the
Internal
Revenue
Code
and
distribute
to
shareholders
all
of
its taxable
income
and
gains.
Distributions
determined
in
accordance
with
federal
income
tax
regulations
may
differ
in
amount
or
character
from
net
investment
income
and
realized
gains
for
financial
reporting
purposes.
The
fund
files
U.S.
federal,
state,
and
local
tax
returns
as
required.
The
fund's
tax
returns
are
subject
to
examination
by
the
relevant
tax
authorities
until
expiration
of
the
applicable
statute
of
limitations,
which
is
generally
three
years
after
the
filing
of
the
tax
return
but
which
can
be
extended
to
six
years
in
certain
circumstances.
Tax
returns
for
open
years
have
incorporated
no
uncertain
tax
positions
that
require
a
provision
for
income
taxes.
T.
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Fund
59
Capital
accounts
within
the
financial
reporting
records
are
adjusted
for
permanent
book/tax
differences
to
reflect
tax
character
but
are
not
adjusted
for
temporary
differences.
The
permanent
book/tax
adjustments,
if
any,
have
no
impact
on
results
of
operations
or
net
assets.
The
tax
character
of
distributions
paid
for
the
periods
presented
was
as
follows:
At
October
31,
2025,
the
tax-basis
cost
of
investments
(including
derivatives,
if
any)
and
gross
unrealized
appreciation
and
depreciation
were as
follows:
At
October
31,
2025,
the
tax-basis
components
of
accumulated
net
earnings
(loss)
were
as
follows:
Temporary
differences
between
book-basis
and
tax-basis
components
of
total
distributable
earnings
(loss)
arise
when
certain
items
of
income,
gain,
or
loss
are
recognized
in
different
periods
for
financial
statement
purposes
versus
for
tax
purposes;
these
differences
will
reverse
in
a
subsequent
reporting
period.
The
temporary
differences
relate
primarily
to
the
deferral
of
losses
from
wash
sales.
The
loss
carryforwards
and
deferrals
primarily
relate
to
capital
loss
carryforwards
and
straddle
deferrals.
Capital
loss
carryforwards
are
available
indefinitely
to
offset
future
realized
capital
gains.
($000s)
October
31,
2025
October
31,
2024
Ordinary
income
(including
short-term
capital
gains,
if
any)
$
76,990
$
56,243
($000s)
Cost
of
investments
$
2,105,115
Unrealized
appreciation
$
22,022
Unrealized
depreciation
(74,574)
Net
unrealized
appreciation
(depreciation)
$
(52,552)
($000s)
Overdistributed
ordinary
income
$
(417)
Net
unrealized
appreciation
(depreciation)
(52,552)
Loss
carryforwards
and
deferrals
(102,429)
Total
distributable
earnings
(loss)
$
(155,398)
T.
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PRICE
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Fund
60
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). The
investment
management
agreement
between
the
fund
and
Price
Associates
provides
for
an
annual
investment
management
fee
equal
to 0.07%
of
the
fund's
average
daily
net
assets.
The
fee
is
computed
daily
and
paid
monthly.
The
Investor
Class
is
subject
to
a
contractual
expense
limitation
through
the
expense
limitation
date
indicated
in
the
table
below.
This
agreement
will
continue
through
the
expense
limitation
date
indicated
in
the
table
below,
and
may
be
renewed,
revised,
or
revoked
only
with
approval
of
the
fund's
Board.
During
the
limitation
period,
Price
Associates
is required
to
waive
or
pay
any
expenses
(excluding
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage;
non-recurring,
extraordinary
expenses;
and
acquired
fund
fees
and
expenses)
that
would
otherwise
cause
the class's ratio
of
annualized
total
expenses
to
average
net
assets
(net
expense
ratio)
to
exceed
its
expense
limitation.
The
class
is
required
to
repay
Price
Associates
for
expenses
previously
waived/paid
to
the
extent
the
class's net
assets
grow
or
expenses
decline
sufficiently
to
allow
repayment
without
causing
the class's net
expense
ratio
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
expense
limitation
in
place
at
the
time
such
amounts
were
waived;
or
(2)
the class's
current
expense
limitation.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver.
The
I
Class
is
also
subject
to
an
operating
expense
limitation
(I
Class
Limit)
pursuant
to
which
Price
Associates
is
contractually
required
to
pay
all
operating
expenses
of
the
I
Class,
excluding
management
fees;
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage; non-recurring,
extraordinary expenses; and
acquired
fund
fees
and
expenses, to
the
extent
such
operating
expenses,
on
an
annualized
basis,
exceed
the
I
Class
Limit. This
agreement
will
continue
through
the
expense
limitation
date
indicated
in
the
table
below,
and
may
be
renewed,
revised,
or
revoked
only
with
approval
of
the
fund's
Board.
The
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.
T.
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PRICE
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The
Z
Class
is
also
subject
to
a
contractual
expense
limitation
agreement
whereby
Price
Associates
has
agreed
to
waive
and/or
bear
all
of
the
Z
Class'
expenses
(excluding
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage;
non-recurring,
extraordinary
expenses;
and
acquired
fund
fees
and
expenses)
in
their
entirety.
This
fee
waiver
and/or
expense
reimbursement
arrangement
is
expected
to
remain
in
place
indefinitely,
and
the
agreement
may
only
be
amended
or
terminated
with
approval
by
the
fund's
Board.
Expenses
of
the
fund
waived/paid
by
the
manager
are
not
subject
to
later
repayment
by
the
fund.
In
addition,
the
fund
is
subject
to
a
permanent
contractual
expense
limitation,
pursuant
to
which
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
0.30%.
The
agreement
may
only
be
terminated
with
approval
by
the
fund's
shareholders.
Each
class is
required
to
repay
Price
Associates
for
expenses
previously
waived/paid
to
the
extent
the class's
net
assets
grow
or
expenses
decline
sufficiently
to
allow
repayment
without
causing
the class's
net
expense
ratio
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
expense
limitation
in
place
at
the
time
such
amounts
were
waived;
or
(2)
the class's
current
expense
limitation.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver. No
management
fees
were
waived
or
any
expenses
paid
under
this
arrangement
during the
year ended
October
31,
2025.
Pursuant
to
these
agreements,
expenses
were waived/paid
by
and/or
repaid
to
Price
Associates
during
the year
ended October
31,
2025 as
indicated
in
the
table
below.
Including
these
amounts,
expenses
previously
waived/paid
by
Price
Associates
in
the
amount
of $676,000 remain
subject
to
repayment
by
the
fund
at
October
31,
2025. 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.
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
62
In
addition,
the
fund
has
entered
into
service
agreements
with
Price
Associates
and
two
wholly
owned
subsidiaries
of
Price
Associates,
each
an
affiliate
of
the
fund
(collectively,
Price).
Price
Associates
provides
certain
accounting
and
administrative
services
to
the
fund.
T.
Rowe
Price
Services,
Inc.
provides
shareholder
and
administrative
services
in
its
capacity
as
the
fund's
transfer
and
dividend-disbursing
agent.
T.
Rowe
Price
Retirement
Plan
Services,
Inc.
provides
subaccounting
and
recordkeeping
services
for
certain
retirement
accounts
invested
in
the
Investor
Class.
For
the
year
ended
October
31,
2025,
expenses
incurred
pursuant
to
these
service
agreements
were
$124,000
for
Price
Associates;
$602,000
for
T.
Rowe
Price
Services,
Inc.;
and
$69,000
for
T.
Rowe
Price
Retirement
Plan
Services,
Inc.
All
amounts
due
to
and
due
from
Price,
exclusive
of
investment
management
fees
payable,
are
presented
net
on
the
accompanying
Statement
of
Assets
and
Liabilities.
T.
Rowe
Price
Investment
Services,
Inc.
(Investment
Services)
serves
as
distributor
to
the
fund.
Pursuant
to
an
underwriting
agreement,
no
compensation
for
any
distribution
services
provided
is
paid
to
Investment
Services
by
the
fund
(except
for
12b-1
fees
under
a
Board-approved
Rule
12b-1
plan).
Additionally,
the
fund
is
one
of
several
mutual
funds
in
which
certain
college
savings
plans
managed
by
Price
Associates invests.
As
approved
by
the
fund's
Board
of
Directors,
shareholder
servicing
costs
associated
with
each
college
savings
plan
are
borne
by
the
fund
in
proportion
to
the
average
daily
value
of
its
shares
owned
by
the
college
savings
plan.
Price
has
agreed
to waive/reimburse
shareholder
servicing
costs in
excess
of
0.05%
of
the
fund's
average
daily
value
of
its
shares
owned
by
the
college
savings
plan.
Any
amounts
waived/
paid
by
Price
under
this
voluntary
agreement
are
not
subject
to
repayment
by
the
fund.
Price
may
amend
or
terminate
this
voluntary
arrangement
at
any
time
without
prior
notice.
For
the
year ended
October
31,
2025,
the
fund
was
charged $80,000 for
shareholder
servicing
costs
related
to
the
college
savings
plans, which
is
net
of
a
reimbursement
by
Price
of
$10,000.
All
amounts
due
to
and
due
from
Price,
exclusive
of
investment
management
fees
payable,
are
Investor
Class
I
Class
Z
Class
Expense
limitation/I
Class
Limit
0.25%
0.05%
0.00%
Expense
limitation
date
12/31/26
12/31/26
N/A
(Waived)/repaid
during
the
period
($000s)
$(206)
$(45)
$(337)
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
63
presented
net
on
the
accompanying
Statement
of
Assets
and
Liabilities. At
October
31,
2025,
approximately
17%
of
the
outstanding
shares
of
the
I
Class
were
held
by
college
savings
plans.
Mutual
funds,
trusts,
and
other
accounts
managed
by
Price
Associates
or
its
affiliates
(collectively,
Price
Funds
and
accounts)
may
invest
in
the
fund.
No
Price
fund
or
account
may
invest
for
the
purpose
of
exercising
management
or
control
over
the
fund.
At
October
31,
2025, 100%
of
the
Z
Class's
outstanding
shares
were
held
by
Price
Funds
and
accounts.
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.
The fund may
participate
in
securities
purchase
and
sale
transactions
with
other
funds
or
accounts
advised
by
Price
Associates
(cross
trades),
in
accordance
with
procedures
adopted
by the
fund's
Board
and
Securities
and
Exchange
Commission
rules,
which
require,
among
other
things,
that
such
purchase
and
sale
cross
trades
be
effected
at
the
independent
current
market
price
of
the
security.
During
the
year
ended
October
31,
2025,
the
fund
had
no
purchases
or
sales
cross
trades
with
other
funds
or
accounts
advised
by
Price
Associates.
NOTE
7
-
SEGMENT
REPORTING
Operating segments
are
defined
as
components
of
a
company
that
engage
in
business
activities
and
for
which
discrete
financial
information
is
available
and
regularly
reviewed
by
the
chief
operating
decision
maker
(CODM)
in
deciding
how
to
allocate
resources
and
assess
performance.
The
Management
Committee
of
Price
Associates
acts
as
the
fund's
CODM.
The
fund
makes
investments
in
accordance
with
its
investment
objective
as
outlined
in
the
Prospectus
and
is
considered
one
reportable
segment
because
the
CODM
allocates
resources
and
assesses
the
operating
results
of
the
fund
on
the
whole.
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
64
The
fund's
revenue
is
derived
from
investments
in
a
portfolio
of
securities.
The
CODM
allocates
resources
and
assesses
performance
based
on
the
operating
results
of
the
fund,
which
is
consistent
with
the
results
presented
in
the
statement
of
operations,
statement
of
changes
in
net
assets
and
financial
highlights.
The
CODM
compares
the
fund's
performance
to
its
benchmark
index
and
evaluates
the
positioning
of
the
fund
in
relation
to
its
investment
objective.
The
measure
of
segment
assets
is
net
assets
of
the
fund
which
is
disclosed
in
the
statement
of
assets
and
liabilities.
The accounting
policies
of
the
segment
are
the
same
as
those
described
in
the
summary
of
significant
accounting
policies.
The
financial
statements
include
all
details
of
the
segment
assets,
segment
revenue
and
expenses;
and
reflect
the
financial
results
of
the
segment.
NOTE
8
-
OTHER
MATTERS
Unpredictable environmental,
political,
social
and
economic
events,
including
but
not
limited
to,
environmental
or
natural
disasters,
war
and
conflict,
terrorism,
geopolitical
and
regulatory
developments
(including
trading
and
tariff
arrangements),
and
public
health
epidemics
or
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.
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
65
REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM
To
the
Board
of
Directors
and
Shareholders
of
T.
Rowe
Price
QM
U.S.
Bond
Index
Fund,
Inc.
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
portfolio
of
investments,
of
T.
Rowe
Price
QM
U.S.
Bond
Index
Fund,
Inc.
(the
"Fund")
as
of
October
31,
2025,
the
related
statement
of
operations
for
the
year
ended
October
31,
2025,
the
statement
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
October
31,
2025,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
October
31,
2025
(collectively
referred
to
as
the
"financial
statements").
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
October
31,
2025,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
ended
October
31,
2025
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
October
31,
2025,
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund's
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund's
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
66
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
October
31,
2025
by
correspondence
with
the
custodians,
transfer
agent
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
/s/
PricewaterhouseCoopers
LLP
Baltimore,
Maryland
December
18,
2025
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
T.
Rowe
Price
group
of
investment
companies
since
1973.
REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM
(continued)
T.
ROWE
PRICE
QM
U.S.
Bond
Index
Fund
67
TAX
INFORMATION
(UNAUDITED)
FOR
THE
TAX
YEAR
ENDED 10/31/25
We
are
providing
this
information
as
required
by
the
Internal
Revenue
Code.
The
amounts
shown
may
differ
from
those
elsewhere
in
this
report
because
of
differences
between
tax
and
financial
reporting
requirements.
For
shareholders
subject
to
interest
expense
deduction
limitation
under
Section
163(j),
$76,160,000
of
the
fund's
income
qualifies
as
a
Section
163(j)
interest
dividend
and
can
be
treated
as
interest
income
for
purposes
of
Section
163(j),
subject
to
holding
period
requirements
and
other
limitations.
1307
Point
Street
Baltimore,
Maryland
21231
T.
Rowe
Price
Investment
Services,
Inc.
Call
1-800-638-5660
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.
F134-050
12/25
Item 8. Changes in and Disagreements with Accountants for Open-EndManagement Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-EndManagement Investment Companies.
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-EndManagement 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-EndManagement Investment Companies.
Not applicable.
Item 13. Portfolio Managers of Closed-EndManagement Investment Companies.
Not applicable.
Item 14. Purchases of Equity Securities by Closed-EndManagement 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-CSRwas 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-EndManagement Investment Companies.
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 19. Exhibits.
| (a)(1) |
N-CSR |
|
| (2) |
Listing standards relating to recovery of erroneously awarded compensation: not applicable. |
|
| (3) |
30a-2(a) |
|
| (b) |
30a-2(b) |
|
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 QM U.S. Bond Index Fund, Inc. | ||||
| By |
/s/ David Oestreicher |
|||
| David Oestreicher | ||||
| Principal Executive Officer | ||||
| Date | December 18, 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 | December 18, 2025 | |||
| By |
/s/ Alan S. Dupski |
|||
| Alan S. Dupski | ||||
| Principal Financial Officer | ||||
| Date | December 18, 2025 | |||
T. Rowe Price US Bond Enhanced Index Fund Inc. published this content on December 23, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on December 23, 2025 at 14:34 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]