Edgar Filing: WESTERN ASSET PREMIER BOND FUND

Western Asset Premier Bond Fund

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-10603

Western Asset Premier Bond Fund

(Exact Name of Registrant as Specified In Its Charter)


Address of Principal Executive Offices:		385 East Colorado Boulevard Pasadena, CA 91101

Name and address of agent for service:		Charles A. Ruys de Perez 385 East Colorado Boulevard Pasadena, CA 91101

Registrant’s telephone number, including area code: (410) 539-0000

Date of fiscal year end: December 31, 2007

Date of reporting period: March 31, 2007

Item 1 – Schedule of Investments

PORTFOLIO OF INVESTMENTS

Western Asset Premier Bond Fund

March 31, 2007 (Unaudited)

(Amounts in thousands)


	% OF NET ASSETS		RATE		MATURITY DATE	PAR		VALUE
Long-Term Securities	144.9	%

Corporate Bonds and Notes	78.5	%
*Advertising*	0.3	%
Affinion Group, Inc.			10.125	%	10/15/13	$	180	$	196
Affinion Group, Inc.			11.500	%	10/15/15		210		231
Lamar Media Corporation			6.625	%	8/15/15		120		117

									544

*Aerospace/Defense*	1.3	%
DRS Technologies, Inc.			6.625	%	2/1/16		300		303
Northrop Grumman Corporation			7.750	%	2/15/31		1,000		1,232
The Boeing Company			6.125	%	2/15/33		600		644
TransDigm Inc.			7.750	%	7/15/14		110		114	^A

									2,293

			.
*Apparel*	0.3	%
Levi Strauss & Company			9.750	%	1/15/15		120		132
Levi Strauss & Company			8.875	%	4/1/16		50		53
Oxford Industries, Inc.			8.875	%	6/1/11		270		279

									464

*Auto Parts and Equipment*	0.5	%
Keystone Automotive Operations Inc.			9.750	%	11/1/13		480		467
Visteon Corporation			8.250	%	8/1/10		435		444

									911

*Automotive*	1.6	%
DaimlerChrysler NA Holdings Corp.			7.300	%	1/15/12		1,000		1,079
DaimlerChrysler NA Holdings Corp.			8.500	%	1/18/31		1,000		1,249
Ford Motor Company			4.250	%	12/15/36		150		165	^B
General Motors Corporation			8.375	%	7/15/33		420		377

									2,870

*Banking and Finance*	3.4	%
Boeing Capital Corporation			6.500	%	2/15/12		1,000		1,063
Boeing Capital Corporation			5.800	%	1/15/13		400		413
E*TRADE Financial Corporation			7.375	%	9/15/13		160		167
E*TRADE Financial Corporation			7.875	%	12/1/15		35		38
Ford Motor Credit Company			8.110	%	1/13/12		70		68	^C
Fuji JGB Inv			9.870	%	6/30/08		790		831	^A,C
General Motors Acceptance Corp.			6.875	%	8/28/12		150		149
General Motors Acceptance Corp.			8.000	%	11/1/31		1,530		1,640
HSBC Finance Corporation			4.750	%	7/15/13		1,670		1,613	^D

									5,982

*Banks*	0.3	%
Washington Mutual Bank FA			5.500	%	1/15/13		440		439


*Builders-Residential/Commercial*	0.2	%
Beazer Homes USA, Inc.			8.125	%	6/15/16		45		42
K Hovnanian Enterprises, Inc.			8.625	%	1/15/17		300		290

									332

*Building Materials*	0.3	%
Nortek Inc.			8.500	%	9/1/14		180		175
NTK Holdings Inc.			0.000	%	3/1/14		550		399	^E

									574

PORTFOLIO OF INVESTMENTS

Western Asset Premier Bond Fund

March 31, 2007 (Unaudited)

(Amounts in thousands)


	% OF NET ASSETS		RATE		MATURITY DATE	PAR		VALUE
Corporate Bonds and Notes—Continued

*Cable*	2.6	%
Charter Communication Holdings LLC			9.920	%	4/1/11	$	20	$	20	^E
Charter Communication Holdings LLC			11.750	%	5/15/11		110		111	^E
Charter Communication Holdings LLC			12.125	%	1/15/12		60		61	^E
Charter Communication Holdings LLC			11.750	%	5/15/14		420		402	^E
Charter Communication Holdings LLC			11.000	%	10/1/15		337		350
Charter Communication Holdings II			10.250	%	9/15/10		280		295
Charter Communication Holdings II			10.250	%	10/1/13		46		50
Comcast Cable Communications, Inc.			6.750	%	1/30/11		500		527
Comcast Corporation			5.900	%	3/15/16		400		407
Comcast Corporation			7.050	%	3/15/33		1,000		1,074
CSC Holdings Inc.			8.125	%	7/15/09		30		31	^A
CSC Holdings Inc.			8.125	%	8/15/09		40		41
CSC Holdings Inc.			7.625	%	4/1/11		50		51
CSC Holdings Inc.			6.750	%	4/15/12		250		248
CSC Holdings Inc.			7.875	%	2/15/18		45		46
EchoStar DBS Corp.			7.000	%	10/1/13		600		618
LodgeNet Entertainment Corporation			9.500	%	6/15/13		231		252

									4,584


*Casino Resorts*	1.1	%
Inn of The Mountain Gods			12.000	%	11/15/10		530		576
MGM MIRAGE			8.500	%	9/15/10		10		11
Pinnacle Entertainment, Inc.			8.250	%	3/15/12		250		257
Premier Entertainment Biloxi LLC			10.750	%	2/1/12		707		732
Station Casinos, Inc.			7.750	%	8/15/16		205		210
Station Casinos, Inc.			6.625	%	3/15/18		100		89

									1,875


*Chemicals*	1.8	%
Chemtura Corporation			6.875	%	6/1/16		45		44
Georgia Gulf Corporation			9.500	%	10/15/14		310		298	^A
Huntsman International LLC			7.875	%	11/15/14		95		98	^A
Lyondell Chemical Company			10.500	%	6/1/13		135		148
The Dow Chemical Company			6.000	%	10/1/12		2,500		2,578
Westlake Chemical Corporation			6.625	%	1/15/16		70		68

									3,234


*Coal*	0.1	%
International Coal Group, Inc.			10.250	%	7/15/14		220		221


*Computers Services and Systems*	1.7	%
Activant Solutions, Inc.			9.500	%	5/1/16		165		163
DynCorp Inc.			9.500	%	2/15/13		502		535
Electronic Data Systems Corporation			7.125	%	10/15/09		700		730
Electronic Data Systems Corporation			7.450	%	10/15/29		500		545
International Business Machines Corporation			4.750	%	11/29/12		240		237
Sungard Data Systems Inc.			10.250	%	8/15/15		630		687

									2,897


*Containers and Packaging*	0.3	%
Graham Packaging Company Inc.			9.875	%	10/15/14		298		304
Graphic Packaging International Corp.			9.500	%	8/15/13		210		223

									527


*Construction Machinery*	0.2	%

H&E Equipment Services, Inc.			8.375	%	7/15/16		300		319


*Consumer Products*	0.1	%
American Greetings Corporation			7.375	%	6/1/16		20		21
FTD, Inc.			7.750	%	2/15/14		140		141

									162

PORTFOLIO OF INVESTMENTS

Western Asset Premier Bond Fund

March 31, 2007 (Unaudited)

(Amounts in thousands)


	% OF NET ASSETS		RATE		MATURITY DATE	PAR		VALUE
Corporate Bonds and Notes—Continued

*Diversified Financial Services*	1.8	%
AAC Group Holding Corp.			0.000	%	10/1/12	$	440	$	395	^E
Citigroup Inc.			6.625	%	6/15/32		1,000		1,076
General Electric Capital Corporation			3.750	%	12/15/09		740		717
General Electric Capital Corporation			6.000	%	6/15/12		700		727
General Electric Capital Corporation			5.450	%	1/15/13		250		253

									3,168


*Drug & Grocery Store Chains*	2.1	%
CVS Corporation			5.789	%	1/10/26		920		903	^A
CVS Lease Pass Through			5.880	%	1/10/28		994		986	^A
CVS Lease Pass Through			6.036	%	12/10/28		995		1,006	^A
Delhaize America, Inc.			9.000	%	4/15/31		180		216
Safeway Inc.			5.800	%	8/15/12		500		506

									3,617


*Education*	0.2	%
Education Management LLC			8.750	%	6/1/14		100		105
Education Management LLC			10.250	%	6/1/16		240		260

									365


*Electric*	6.3	%
Dominion Resources, Inc.			5.700	%	9/17/12		770		787
Duke Energy Corporation			6.250	%	1/15/12		250		262
Edison Mission Energy			7.500	%	6/15/13		20		21
Edison Mission Energy			7.750	%	6/15/16		180		188
Exelon Generation Co. LLC			6.950	%	6/15/11		2,000		2,097
FirstEnergy Corp.			6.450	%	11/15/11		610		639
FirstEnergy Corp.			7.375	%	11/15/31		3,040		3,454
IPALCO Enterprises Inc.			8.625	%	11/14/11		130		140
MidAmerican Energy Holdings Company			5.875	%	10/1/12		250		257
Niagara Mohawk Power Corporation			7.750	%	10/1/08		1,500		1,553
Progress Energy, Inc.			7.100	%	3/1/11		117		125
Progress Energy, Inc.			6.850	%	4/15/12		750		804
The AES Corporation			9.000	%	5/15/15		440		470	^A
TXU Electric Delivery Company			7.000	%	9/1/22		250		268

									11,065


*Energy*	1.1	%
Midwest Generation LLC			8.560	%	1/2/16		83		91
Midwest Generation LLC			8.750	%	5/1/34		325		353
Mirant North America LLC			7.375	%	12/31/13		350		359
NRG Energy, Inc.			7.375	%	2/1/16		505		519
NRG Energy, Inc.			7.375	%	1/15/17		225		231
Orion Power Holdings, Inc.			12.000	%	5/1/10		150		173
Petrohawk Energy Corp.			9.125	%	7/15/13		145		154

									1,880


*Entertainment*	0.4	%
AMC Entertainment Inc.			11.000	%	2/1/16		425		484
Warner Music Group			7.375	%	4/15/14		170		162

									646


*Environmental Services*	1.3	%
Waste Management, Inc.			7.375	%	5/15/29		2,000		2,199	^D
Waste Management, Inc.			7.750	%	5/15/32		40		46

									2,245


*Food, Beverage and Tobacco*	2.3	%
Alliance One International, Inc.			11.000	%	5/15/12		130		143
Altria Group, Inc.			7.000	%	11/4/13		250		271
Altria Group, Inc.			7.750	%	1/15/27		1,000		1,195
Dole Foods Co.			7.250	%	6/15/10		285		272
Kraft Foods Inc.			5.250	%	10/1/13		400		394
Nabisco Inc.			7.550	%	6/15/15		1,500		1,687

									3,962

PORTFOLIO OF INVESTMENTS

Western Asset Premier Bond Fund

March 31, 2007 (Unaudited)

(Amounts in thousands)


	% OF NET ASSETS		RATE		MATURITY DATE	PAR		VALUE
Corporate Bonds and Notes—Continued

*Gaming*	0.2	%
Isle of Capri Casinos, Inc.			9.000	%	3/15/12	$	20	$	21
Isle of Capri Casinos, Inc.			7.000	%	3/1/14		60		59
Pokagon Gaming Authority			10.375	%	6/15/14		250		276	^A

									356


*Gas and Pipeline Utilities*	2.1	%
Colorado Interstate Gas Company			6.800	%	11/15/15		150		160
Duke Energy Field Services Corporation			7.875	%	8/16/10		750		810
Kinder Morgan Energy Partners, L.P.			7.125	%	3/15/12		500		536
Panhandle Eastern Pipe Line Company			4.800	%	8/15/08		400		397
Southern Natural Gas Company			8.000	%	3/1/32		20		24
Texas Eastern Transmission			5.250	%	7/15/07		750		749
The Williams Companies, Inc.			7.500	%	1/15/31		902		956
The Williams Companies, Inc.			8.750	%	3/15/32		85		98

									3,730


*Healthcare*	2.2	%
Fresenius Medical Care Capital Trust II			7.875	%	2/1/08		250		253
Tenet Healthcare Corporation			9.250	%	2/1/15		2,810		2,782
Triad Hospitals, Inc.			7.000	%	11/15/13		150		157
Vanguard Health Holding Co. II, LLC			9.000	%	10/1/14		735		744

									3,936


*Insurance*	0.2	%
Crum & Forster Holdings Corporation			10.375	%	6/15/13		360		389


*Investment Banking/Brokerage*	4.1	%
Credit Suisse First Boston, USA			6.500	%	1/15/12		1,125		1,183
J.P. Morgan Chase & Co.			5.750	%	1/2/13		1,750		1,795
J.P. Morgan Chase & Co.			5.125	%	9/15/14		1,300		1,280	^D
Morgan Stanley			6.600	%	4/1/12		1,500		1,588
The Goldman Sachs Group, Inc.			6.600	%	1/15/12		1,200		1,267

									7,113


*Manufacturing (Diversified)*	1.9	%
Eastman Kodak Company			7.250	%	11/15/13		1,800		1,818
Interface, Inc.			10.375	%	2/1/10		400		441
Leiner Health Products L.P.			11.000	%	6/1/12		280		279
Norcraft Companies, L.P.			9.000	%	11/1/11		360		371
Norcraft Companies, L.P.			0.000	%	9/1/12		155		139	^E
Nutro Products Inc.			10.750	%	4/15/14		115		124	^A
Simmons Company			0.000	%	12/15/14		90		74	^E

									3,246


*Media*	3.3	%
AOL Time Warner Inc.			6.150	%	5/1/07		250		250
AOL Time Warner Inc.			6.875	%	5/1/12		1,400		1,492
AOL Time Warner Inc.			7.700	%	5/1/32		1,150		1,304
Clear Channel Communications, Inc.			4.900	%	5/15/15		700		589
CMP Susquehanna			9.875	%	5/15/14		190		195	^A
ION Media Networks, Inc.			11.610	%	1/15/13		55		57	^A,C
Liberty Media Corporation			3.750	%	2/15/30		1,860		1,149	^B
News America Holdings Inc.			6.625	%	1/9/08		300		303
News America Holdings Inc.			8.875	%	4/26/23		400		499

									5,838


*Medical Care Facilities*	0.8	%
DaVita Inc.			6.625	%	3/15/13		100		100	^A
DaVita, Inc.			7.250	%	3/15/15		300		303
HCA, Inc.			6.300	%	10/1/12		85		79
HCA, Inc.			6.500	%	2/15/16		105		89
HCA, Inc.			9.250	%	11/15/16		195		210	^A
HCA, Inc.			9.625	%	11/15/16		175		189	^A
HCA, Inc.			7.690	%	6/15/25		90		78
HCA, Inc.			7.500	%	11/15/95		485		387

									1,435

PORTFOLIO OF INVESTMENTS

Western Asset Premier Bond Fund

March 31, 2007 (Unaudited)

(Amounts in thousands)


	% OF NET ASSETS		RATE		MATURITY DATE	PAR		VALUE
Corporate Bonds and Notes—Continued

*Metals and Mining*	1.5	%
Alcoa Inc.			5.375	%	1/15/13	$	750	$	746	^D
Freeport-McMoRan Copper & Gold, Inc.			8.375	%	4/1/17		960		1,038
Metals USA, Inc.			11.125	%	12/1/15		445		494
Mueller Group Inc.			10.000	%	5/1/12		20		22
Mueller Holdings Inc.			0.000	%	4/15/14		265		241	^E
Tube City IMS Corporation			9.750	%	2/1/15		130		135	^A

									2,676


*Office Equipment*	0.2	%
Xerox Corporation			6.750	%	2/1/17		280		293


*Oil and Gas*	7.7	%
AmeriGas Partners, L.P.			7.250	%	5/20/15		90		91
Belden & Blake Corporation			8.750	%	7/15/12		750		767
Chesapeake Energy Corporation			6.375	%	6/15/15		480		478
Chesapeake Energy Corporation			6.625	%	1/15/16		30		30
Chesapeake Energy Corporation			6.500	%	8/15/17		140		138
Complete Production Services			8.000	%	12/15/16		150		154	^A
ConocoPhillips			4.750	%	10/15/12		1,000		987
Devon Energy Corporation			7.950	%	4/15/32		1,000		1,199
Devon Finance Corp. ULC			6.875	%	9/30/11		2,000		2,128
El Paso Corporation			6.375	%	2/1/09		333		338
El Paso Corporation			7.750	%	6/15/10		1,496		1,593
El Paso Corporation			7.625	%	7/15/11		500		537
El Paso Corporation			7.800	%	8/1/31		190		210
Encore Acquisition			6.000	%	7/15/15		45		40
EXCO Resources, Inc.			7.250	%	1/15/11		275		276
Geokinetics Inc.			11.855	%	12/15/12		50		52	^A,C
Hess Corporation			7.875	%	10/1/29		1,640		1,892
Hess Corporation			7.300	%	8/15/31		60		66
Occidental Petroleum Corporation			6.750	%	1/15/12		500		536
Parker Drilling Company			9.625	%	10/1/13		300		326
Pride International, Inc.			7.375	%	7/15/14		240		246
SemGroup LP			8.750	%	11/15/15		305		310	^A
SESI LLC			6.875	%	6/1/14		10		10
Stone Energy Corporation			8.250	%	12/15/11		145		144
Suburban Propane Partners, LP			6.875	%	12/15/13		580		571
Valero Energy Corporation			7.500	%	4/15/32		400		455

									13,574


*Paper and Forest Products*	2.5	%
Appleton Papers Inc.			9.750	%	6/15/14		305		315
NewPage Corporation			10.000	%	5/1/12		25		27
NewPage Corporation			12.000	%	5/1/13		260		282
Verso Paper Holdings LLC			11.375	%	8/1/16		215		225	^A
Weyerhaeuser Company			6.750	%	3/15/12		2,400		2,521	^D
Weyerhaeuser Company			7.375	%	3/15/32		1,000		1,048	^D

									4,418


*Publishing*	0.1	%
Dex Media East LLC			12.125	%	11/15/12		122		133
PRIMEDIA Inc.			8.875	%	5/15/11		115		118

									251


*Real Estate*	0.3	%
Ashton Woods USA			9.500	%	10/1/15		125		119
Kimball Hill Inc.			10.500	%	12/15/12		100		96
Ventas Realty LP			6.750	%	4/1/17		260		269

									484


*Rental Auto/Equipment*	0.8	%
Ashtead Capital Inc.			9.000	%	8/15/16		129		137	^A
Hertz Corporation			10.500	%	1/1/16		645		735
Penhall International Corp.			12.000	%	8/1/14		240		259	^A
Rental Service Corporation			9.500	%	12/1/14		180		192	^A

									1,323

PORTFOLIO OF INVESTMENTS

Western Asset Premier Bond Fund

March 31, 2007 (Unaudited)

(Amounts in thousands)


	% OF NET ASSETS		RATE	MATURITY DATE	PAR	VALUE
Corporate Bonds and Notes—Continued

*Retail*	0.4	%
Blockbuster Inc.			9.000%	9/1/12	$140	$	141
Eye Care Centers of America, Inc.			10.750%	2/15/15	40		44
Linens ‘n Things, Inc.			10.985%	1/15/14	100		93	^C
Neiman Marcus Group, Inc.			9.000%	10/15/15	260		285
Stater Bros. Holdings Inc.			8.855%	6/15/10	170		173	^C

							736


*Retail (Food Chains)*	0.2%
Denny’s Corporation/Denny’s Holdings			10.000%	10/1/12	90		96
El Pollo Loco, Inc.			11.750%	11/15/13	195		215
Sbarro, Inc.			10.375%	2/1/15	100		104	^A

							415


*Semiconductor Equipment*	0.1%
Freescale Semiconductor, Inc.			8.875%	12/15/14	235		235	^A


*Services*	0.2%
Allied Security LLC			11.375%	7/15/11	60		61
Service Corporation International			7.000%	6/15/17	140		141
Service Corporation International			7.625%	10/1/18	5		5
Service Corporation International			7.500%	4/1/27	60		60	^A

							267


*Special Purpose*	1.5%
Air 2 U.S.			8.027%	10/1/19	540		567	^A
CCM Merger, Inc.			8.000%	8/1/13	140		141	^A
GrafTech Finance Inc.			10.250%	2/15/12	49		51
Idearc Inc.			8.000%	11/15/16	180		185	^A
Milacron Escrow Corp.			11.500%	5/15/11	410		398
Rainbow National Services LLC			8.750%	9/1/12	100		106	^A
Rainbow National Services LLC			10.375%	9/1/14	250		280	^A
River Rock Entertainment			9.750%	11/1/11	380		405
Snoqualmie Entertainment Authority			9.150%	2/1/14	110		112	^A,C
UGS Corp.			10.000%	6/1/12	305		334

							2,579


*Telecommunications*	3.3%
BellSouth Corporation			6.000%	10/15/11	1,000		1,032
Cincinnati Bell Inc.			7.000%	2/15/15	330		328
Cincinnati Bell Inc.			6.300%	12/1/28	25		23
Citizens Communications Company			9.250%	5/15/11	90		100
Citizens Communications Company			7.125%	3/15/19	50		49	^A
Citizens Communications Company			7.875%	1/15/27	95		97	^A
Level 3 Financing Inc.			9.150%	11/1/14	50		50	^A,C
Level 3 Financing Inc.			9.250%	2/15/15	120		123	^A
Qwest Communications International Inc.			7.250%	2/15/11	160		164
Qwest Corporation			7.875%	9/1/11	390		414
Qwest Corporation			8.875%	3/15/12	140		155
Qwest Corporation			7.500%	10/1/14	150		158
SBC Communications Inc.			6.250%	3/15/11	1,000		1,038	^F
Sprint Capital Corp.			8.375%	3/15/12	1,450		1,618
Windstream Corporation			8.625%	8/1/16	300		328
XM Satellite Radio, Inc.			9.750%	5/1/14	190		192

							5,869


*Telecommunications (Cellular/Wireless)*	1.7%
AT&T Wireless Services, Inc.			7.500%	5/1/07	500		501
AT&T Wireless Services, Inc.			8.125%	5/1/12	500		563
Cingular Wireless LLC			6.500%	12/15/11	250		263
Hawaiian Telcom Communications, Inc.			12.500%	5/1/15	465		509
L-3 Communications Corporation			6.375%	10/15/15	430		426
Motorola, Inc.			7.625%	11/15/10	64		69
Rural Cellular Corp.			9.875%	2/1/10	100		106
Rural Cellular Corp.			8.250%	3/15/12	135		141
Telcordia Technologies Inc.			10.000%	3/15/13	485		453	^A

							3,031

PORTFOLIO OF INVESTMENTS

Western Asset Premier Bond Fund

March 31, 2007 (Unaudited)

(Amounts in thousands)


	% OF NET ASSETS		RATE		MATURITY DATE	PAR		VALUE
Corporate Bonds and Notes—Continued

*Transportation*	11.6	%
America West Airlines, Inc.			6.850	%	7/2/09	$	292	$	294
America West Airlines, Inc.			8.057	%	7/2/20		3,135		3,402
Continental Airlines, Inc.			7.160	%	3/24/13		930		955
Continental Airlines, Inc.			6.900	%	1/2/18		1,024		1,082
Continental Airlines, Inc.			6.820	%	5/1/18		1,004		1,047
Continental Airlines, Inc.			6.545	%	2/2/19		1,870		1,945
Continental Airlines, Inc.			8.048	%	11/1/20		731		813
Continental Airlines, Inc.			6.703	%	6/15/21		965		1,003
GulfMark Offshore, Inc.			7.750	%	7/15/14		270		274
H-Lines Finance Holding Corp.			0.000	%	4/1/13		247		235	^E
Horizon Lines, LLC			9.000	%	11/1/12		244		256
Kansas City Southern Railway Co.			7.500	%	6/15/09		150		153
Northwest Airlines Inc.			5.830	%	8/6/13		2,473		2,324
Union Pacific Corporation			6.125	%	1/15/12		2,000		2,059	^D
United Air Lines, Inc.			7.032	%	10/1/10		374		379
United Air Lines, Inc.			7.186	%	4/1/11		78		80
United Air Lines, Inc. Series 01-1			6.602	%	9/1/13		1,388		1,407
US Airways, Inc. Series 98-1			6.850	%	1/30/18		2,674		2,741

									20,449

Total Corporate Bonds and Notes
(Identified Cost—$132,442)									137,819

Asset-Backed Securities	9.2	%
*Fixed Rate Securities*	6.9	%
ACE Securities Corporation 2002-M Trust			0.000	%	10/13/17		312		6	^A,G
BankAmerica Manufactured Housing Contract 1997-2			6.900	%	4/10/28		100		123
Captiva CBO 1997-1			6.860	%	11/30/09		362		362	^A,H
Conseco Finance Securitizations Corp. 2002-1			6.681	%	12/1/33		920		932
Contimortgage Home Equity Loan Trust 1997-4			7.330	%	10/15/28		705		607
FirstFed Corporation Manufactured Housing Contract 1996-1			8.060	%	10/15/22		2,100		3,037	^A
Global Franchise Trust 1998-1			6.659	%	10/10/11		2,323		2,314	^A
Green Tree Financial Corporation 1992-2			9.150	%	1/15/18		489		410
Green Tree Financial Corporation 1993-1			8.450	%	4/15/18		653		595
Green Tree Financial Corporation 1996-D			8.000	%	9/15/27		180		167
Green Tree Financial Corporation 1999-4			6.970	%	5/1/31		186		186
Indymac Manufactured Housing Contract 1997-1			6.970	%	2/25/28		445		434
Mutual Fund Fee 2000-2			9.550	%	4/30/08		561		27	^A,I
Mutual Fund Fee 2000-3			9.070	%	7/1/08		2,891		263	^A
Oakwood Mortgage Investors Inc. 2002-B			6.060	%	3/15/25		427		385
Pegasus Aviation Lease Securitization 2000-1			8.370	%	3/25/30		1,300		852	^A
Saxson Asset Securities Trust 2000-2			8.870	%	7/25/30		789		796
Vanderbilt Mortgage Finance 1997-B			8.155	%	10/7/26		627		642

									12,138


*Floating Rate Securities*^B	2.2	%
ACE Securities Corp. 2005-SD1			5.720	%	11/25/50		393		394
Banagricola DPR Funding			6.370	%	3/15/10		1,258		1,261	^A,H
Bayview Financial Asset Trust 2004-SSRA			5.920	%	12/25/39		828		831	^A
CS First Boston Mortgage Securities Corporation 2004-CF2			5.790	%	5/25/44		336		337	^A
Residential Asset Mortgage Products 2004-RZ1			5.560	%	3/25/34		528		529
Residential Asset Securities Corporation 2001-KS3			5.780	%	9/25/31		579		579

									3,931


*Stripped Securities*	0.1	%
Oakwood Mortgage Investors Inc. 2002-C			6.000	%	8/15/10		734		101	^J1


*Total Asset-Backed Securities*
(Identified Cost—$17,563)									16,170

PORTFOLIO OF INVESTMENTS

Western Asset Premier Bond Fund

March 31, 2007 (Unaudited)

(Amounts in thousands)


	% OF NET ASSETS		RATE		MATURITY DATE	PAR		VALUE
Mortgage-Backed Securities	8.1	%
*Fixed Rate Securities*	3.6	%
Asset Securitization Corporation 1996-D2			6.920	%	2/14/29	$	3	$	3
Bear Stearns Asset Backed Securities, Inc. 2002-AC1			7.000	%	1/25/32		1,485		1,497	^A
Commercial Mortgage Acceptance Corporation 1997-ML1			6.570	%	12/15/30		1,046		1,046
Commercial Mortgage Acceptance Corporation 1997-ML1			6.735	%	12/15/30		1,507		1,510
Enterprise Mortgage Acceptance Company 1999-1			6.420	%	10/15/25		51		22	^A
GMAC Commercial Mortgage Security Inc. 1998-C1			6.700	%	5/15/30		382		385
GMAC Commercial Mortgage Security Inc. 1998-C1			6.974	%	5/15/30		1,000		1,014
Metropolitan Asset Funding, Inc. 1998-B1			8.000	%	11/20/24		1,000		866

									6,343

*Floating Rate Securities*^B	2.4	%
Banc of America Commercial Mortgage Inc. 2005-5 A4			5.115	%	10/10/45		1,050		1,034
BlackRock Capital Finance LP 1997-R2			6.866	%	12/25/35		793		583	^A
Harborview Mortgage Loan Trust 2004-8			5.720	%	11/19/34		425		427
Harborview Mortgage Loan Trust 2005-9			7.070	%	6/20/35		1,500		1,282
Merit Securities Corporation 11PA			7.570	%	9/28/32		850		221	^A
Regal Trust IV 1999-1			5.896	%	9/29/31		239		238
Washington Mutual 2004-AR12			5.765	%	10/25/44		489		491

									4,276

*Stripped Securities*	2.1	%
Bear Stearns Asset Backed Securities, Inc. 2006-SD3			0.000	%	8/25/36		2,101		1,684	^J2
LB-UBS Commercial Mortgage Trust 2001-C3			0.949	%	6/15/36		2,719		93	^A,J1
Prime Mortgage Trust 2005-2			1.743	%	10/25/32		4,129		385	^J1
Prime Mortgage Trust 2005-5			0.876	%	7/25/34		18,080		619	^J1
Prime Mortgage Trust 2005-5			1.573	%	7/25/34		3,310		286	^J1
Residential Asset Mortgage Products, Inc. 2005-SL2			0.000	%	2/25/32		732		595	^J2

									3,662

Total Mortgage-Backed Securities
(Identified Cost—$13,537)									14,281

U.S. Government Securities	7.5	%
*Fixed Rate Securities*	2.3	%
United States Treasury Bond			5.375	%	2/15/31		2,500		2,665	^D
United States Treasury Bond			4.500	%	2/15/36		850		801	^D
United States Treasury Note			4.625	%	2/15/17		610		609

									4,075

*Indexed Securities*	5.2	%
United States Treasury Inflation-Protected Security			3.625	%	1/15/08		2,300		2,925	^K
United States Treasury Inflation-Protected Security			3.000	%	7/15/12		2,550		3,009	^D,K
United States Treasury Inflation-Protected Security			2.000	%	7/15/14		3,000		3,190	^D,K

									9,124

Total U.S. Government Securities
(Identified Cost—$12,866)									13,199

U.S. Government Agency Mortgage-Backed Securities	7.5	%
Fannie Mae			6.000	%	12/25/34		12,000		12,083	^L
Fannie Mae			6.500	%	8/25/44		1,036		1,057

Total U.S. Government Agency Mortgage-Backed									13,140

Securities
(Identified Cost—$13,166)									13,140

Yankee Bonds^H	22.2	%
*Aerospace/Defense*	0.1	%
Systems 2001 Asset Trust			6.664	%	9/15/13		241		254	^A


*Chemicals*	0.1	%
Montell Finance Co. B.V.			8.100	%	3/15/27		200		200	^A


*Commercial Banks*	0.8	%
ATF Capital B.V.			9.250	%	2/21/14		660		644	^A
ICICI Bank Limited			6.375	%	4/30/22		284		281	^A,C
TuranAlem Finance B.V.			8.250	%	1/22/37		440		442	^A

									1,367

*Electric*	1.2	%
Hydro-Quebec			6.300	%	5/11/11		1,700		1,784
MMG Fiduciary (AES El Salvador Trust)			6.750	%	2/1/16		261		261

									2,045

PORTFOLIO OF INVESTMENTS

Western Asset Premier Bond Fund

March 31, 2007 (Unaudited)

(Amounts in thousands)


	% OF NET ASSETS		RATE		MATURITY DATE	PAR		VALUE
Yankee Bonds^H (Continued)

*Foreign Government*	8.5	%
Dominican Republic			9.500	%	9/27/11	$	366	$	392	^A
Federative Republic of Brazil			7.125	%	1/20/37		856		947
Federative Republic of Brazil			11.000	%	8/17/40		199		268
Republic of Argentina			7.000	%	9/12/13		818		790
Republic of Colombia			11.750	%	2/25/20		768		1,129
Republic of Ecuador			10.000	%	8/15/30		605		538	^A^,E
Republic of El Salvador			8.250	%	4/10/32		412		497	^A
Republic of Honduras			5.728	%	10/1/11		167		166	^C
Republic of Panama			9.375	%	4/1/29		1,147		1,528
Republic of Panama			6.700	%	1/26/36		202		210
Republic of Peru			8.750	%	11/21/33		950		1,249
Republic of Peru			6.550	%	3/14/37		147		153
Republic of Venezuela			9.375	%	1/13/34		2		3
Russian Federation			5.000	%	3/31/30		4,025		4,568
United Mexican States			7.500	%	4/8/33		49		58
United Mexican States			6.750	%	9/27/34		2,170		2,366

									14,862


*Insurance*	0.5	%
XL Capital Ltd.			5.250	%	9/15/14		1,000		980


*Manufacturing (Diversified)*	2.4	%
Tyco International Group SA			6.375	%	10/15/11		1,000		1,057
Tyco International Group SA			6.875	%	1/15/29		2,615		3,086

									4,143


*Media*	N.M.
Quebecor Media Inc.			7.750	%	3/15/16		55		57


*Metals and Mining*	0.5	%
Chaparral Steel Co.			10.000	%	7/15/13		20		22
Vale Overseas Ltd.			6.875	%	11/21/36		920		950

									972


*Oil and Gas*	2.1	%
Anadarko Finance Co.			6.750	%	5/1/11		750		788
Anadarko Finance Co.			7.500	%	5/1/31		1,000		1,104
Compagnie Generale de Geophysique SA (CGG)			7.500	%	5/15/15		210		216
Gazprom			6.212	%	11/22/16		540		541	^A
Gazprom			6.510	%	3/7/22		230		233	^A
OPTI Canada Inc.			8.250	%	12/15/14		125		130	^A
Pogo Producing Co.			6.875	%	10/1/17		290		283
Western Oil Sands Inc.			8.375	%	5/1/12		342		382

									3,677

PORTFOLIO OF INVESTMENTS

Western Asset Premier Bond Fund

March 31, 2007 (Unaudited)

(Amounts in thousands)


	% OF NET ASSETS		RATE		MATURITY DATE	PAR/SHARES		VALUE
Yankee Bonds^H (Continued)

*Semiconductor Equipment*	0.1	%
NXP B.V./NXP Funding LLC			7.875	%	10/15/14	$	150	$	155	^A
NXP B.V./NXP Funding LLC			9.500	%	10/15/15		45		46	^A

									201


*Special Purposes*	2.8	%
Burlington Resources Finance			7.400	%	12/1/31		450		533
Deutsche Telekom International Finance BV			5.250	%	7/22/13		600		592
Nell AF S.A.R.L.			8.375	%	8/15/15		150		156	^A
Petrozuata Finance, Inc.			8.220	%	4/1/17		2,880		2,894	^A
Smurfit Kappa Funding PLC			9.625	%	10/1/12		51		54
Smurfit Kappa Funding PLC			7.750	%	4/1/15		230		235
UFJ Finance Aruba AEC			6.750	%	7/15/13		500		539

									5,003


*Telecommunications*	1.5	%
Axtel SA			11.000	%	12/15/13		221		246
France Telecom SA			8.750	%	3/1/31		600		780	^M
Intelsat Bermuda Ltd.			8.872	%	1/15/15		200		204	^A,C
Intelsat Bermuda Ltd.			9.250	%	6/15/16		225		249	^A
Intelsat Bermuda Ltd.			11.250	%	6/15/16		340		386	^A
NTL Cable Plc			9.125	%	8/15/16		140		148
Wind Acquisition Finance SA			10.750	%	12/1/15		500		573	^A

									2,586


*Telecommunications (Cellular/Wireless)*	0.3	%
True Move Co. Ltd.			10.750	%	12/16/13		200		204	^A
Vodaphone Group PLC			7.750	%	2/15/10		250		267

									471


*Transportation*	1.3	%
Canadian Pacific Railroad Co.			6.250	%	10/15/11		1,000		1,038
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (TFM)			9.375	%	5/1/12		170		183
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (TFM)			12.500	%	6/15/12		750		804
OMI Corporation			7.625	%	12/1/13		200		203

									2,228

Total Yankee Bonds
(Identified Cost—$35,537)									39,046

Foreign Government Obligations	4.0	%
Nota Do Tesouro Nacional			6.000	%	5/15/15		3,641		2,727	^N
Nota Do Tesouro Nacional			6.000	%	5/15/45		3,934		2,748	^N
Republic of Argentina			3.938	%	1/3/10		2,267		1,536	^O,P

									7,011


Total Foreign Government Obligations
(Identified Cost—$6,145)									7,011

Foreign Corporate Bonds	0.9	%
Gazprom			6.790	%	10/29/09		31,200		1,205	^Q
Gazprom			7.000	%	10/27/11		10,400		401	^Q

									1,606


Total Foreign Corporate Bonds
(Identified Cost—$1,559)									1,606

Preferred Stocks	3.6	%
Chesapeake Energy Corporation			6.250	%			.339 shrs		88	^R
Fannie Mae			5.375	%			0.015		1,505	^R
Freddie Mac			3.850	%			0.100		5	^S
Freddie Mac			5.000	%			0.200		9
General Motors Corporation			5.250	%			225		4,669	^R

									6,276


Total Preferred Stocks
(Identified Cost—$5,139)									6,276

Trust Preferred Securities	3.4	%
Corporate-Backed Trust Certificates			7.375	%			34		685
Corporate-Backed Trust Certificates			8.000	%			16		293
CORTS Trust for Ford Motor Co.			8.000	%			155		2,897
PreferredPlus TR-CCR1			8.250	%			5		105
SATURNS-F 2003-5			8.125	%			104		1,988

									5,968


Total Trust Preferred Securities
(Identified Cost—$5,033)									5,968

Total Long-Term Securities
(Identified Cost—$242,987)									254,516

PORTFOLIO OF INVESTMENTS

Western Asset Premier Bond Fund

March 31, 2007 (Unaudited)

(Amounts in thousands)


	% OF NET ASSETS		RATE		MATURITY DATE	PAR		VALUE
Short-Term Securities	12.5	%
Repurchase Agreement	11.6	%
Merrill Lynch Government Securities, Inc.
5.25% dated 03/30/07, to be repurchased at $20,360 on 04/02/07 (Collateral: $20,760 Fannie Mae, 5.25% due 3/26/10, value $20,758)						$	20,351	$	20,351


Foreign Government Obligations	0.9	%
Egyptian Treasury Bill			0.000	%	10/30/07		9,375		1,566		^G,T
Egyptian Treasury Bill			0.000	%	11/6/07		450		75		^G,T

									1,641


Total Short-Term Securities
(Identified Cost—$21,975)									21,992

Total Investments	157.4	%
(Identified Cost—$264,962)									276,508
Other Assets Less Liabilities	(16.4	%)							(28,887	)
Liquidation Value of Preferred Shares	(41.0	%)							(72,000	)

Net Assets Applicable to Common Shareholders	100.0	%						$	175,621


					EXPIRATION	ACTUAL CONTRACTS		APPRECIATION/ (DEPRECIATION)
Futures Contracts Written
U.S. Treasury Note Futures					June 2007		104	$	104

								$	104

Rule 144a Security – A security purchased pursuant to Rule 144a under the Securities Act of 1933 which may not be resold subject to that rule except to qualified institutional buyers. These securities, which the Fund’s investment adviser has determined to be liquid, represent 17.5% of net assets applicable to common shareholders.

B	Convertible Bond – Bond may be converted into the issuer’s common stock.

C	Floating Rate Security – The rate of interest on this type of security is tied to the London Interbank Offer Rate (LIBOR). The coupon rate is as of March 31, 2007.

D	Position, or a portion thereof, with an aggregate market value of $21,307 have been collateralized to support reverse repurchase agreements.

E	Stepped-Coupon Security – A security with a predetermined schedule of interest or dividend rate changes at which time it begins to accrue interest or pay dividends in accordance with a pre-determined schedule.

F	Position, or a portion thereof is collateral to cover futures contracts written.

G	Zero-Coupon Bond – A bond with no periodic interest payments which is sold at such a discount as to produce a current yield to maturity.

H	Yankee Bond – A dollar-denominated bond issued in the U.S. by a foreign entity.

I	Bond is in default as of March 31, 2007.

J	Stripped Security – Security with interest-only or principal-only payment streams, denoted by a 1 or 2, respectively. For interest-only securities, the amount shown as principal is the notional balance used to calculate the amount of the interest due.

K	Treasury Inflation Protected Security – Treasury security whose principal value is adjusted daily in accordance with changes to the Consumer Price Index (CPI) for all Urban Consumers. Interest is calculated on the basis of the current adjusted principal value.

L	When-issued security – Security purchased on a delayed basis. Final settlement amount and maturity date have not yet been announced.

M	The coupon shown on the variable rate security is the rate in effect as of March 31, 2007.

N	Denominated in Brazilian Reals.

O	Indexed Security – The rate of interest on this type of security is linked to the Coeficienete de Establizacion de Referencia (CER). The coupon rate is as of March 31, 2007.

P	Denominated in Argentine Pesos.

Q	Denominated in Russian Rubles.

R	Convertible Preferred Stock – Stock may be converted into the issuer’s common stock.

S	Indexed Security – The rate of interest on this type of security is based on the Constant Maturity Treasury (CMT) index. The coupon rate is as of March 31, 2007.

T	Denominated in Egyptian Pounds.

N.M.- Not meaningful.

Notes

Security Valuation

The Fund’s securities are valued on the basis of readily available market quotations or, lacking such quotations, at fair value as determined under policies approved by and under the general oversight of the Board of Trustees. In determining fair value, all relevant qualitative and quantitative factors available are considered. These factors are subject to change over time and are reviewed periodically. The Fund may use fair value pricing instead of market quotations to value one or more securities if the Fund believes that, because of special circumstances, doing so would more accurately reflect the prices the Fund expects to realize on the current sale of those securities. Further, because of the inherent uncertainty of valuation, those estimated values may differ significantly from quoted or published values or from the values that would have been used had a ready market for the investments existed, and the differences could be material.

With respect to the Fund, where a security is traded on more than one market, which may include foreign markets, the securities are generally valued on the market considered by the Fund’s adviser to be the primary market. The Fund will value its foreign securities in U.S. dollars on the basis of the then-prevailing exchange rates.

The following is a summary of open swap contracts outstanding at March 31, 2007.


Agreement With:	Termination Date	The Fund Agrees to Pay	The Fund Will Receive	Contract Notional Amount		Unrealized Appreciation/ (Depreciation)A
Credit Suisse First Boston USA (AAMES Mortgage Investment Trust 2005-1, 1- Month LIBOR^C + 160 bp*, due 6/25/35)	June 25, 2035	1.28%	Specified Amount upon credit event notice^B	$	43	$	2

Credit Suisse First Boston USA (AAMES Mortgage Investment Trust 2005-1, 1- Month LIBOR^C + 250 bp*, due 6/25/35)	June 25, 2035	2.05%	Specified Amount upon credit event notice^B		43		3

Credit Suisse First Boston USA (ACE Securities Corporation, 1- Month LIBOR^C + 138 bp*, due 2/25/35)	February 25, 2035	1.31%	Specified Amount upon credit event notice^B		43		3

Credit Suisse First Boston USA (ACE Securities Corporation 2005-HE1, 1- Month LIBOR^C + 220 bp*, due 2/25/35)	February 25, 2035	2.06%	Specified Amount upon credit event notice^B		43		4

Credit Suisse First Boston USA (Aegis Asset Backed Securities Trust, 1- Month LIBOR^C + 190 bp*), due 10/25/34)	October 25, 2034	1.37%	Specified Amount upon credit event notice^B		58		3

Credit Suisse First Boston USA (Aegis Asset Backed Securities Trust 2005-1, 1- Month LIBOR^C + 130 bp*, due 3/25/35)	March 25, 2035	1.31%	Specified Amount upon credit event notice^B		43		3

Credit Suisse First Boston USA (Aegis Asset Backed Securities Trust 2005-1, 1- Month LIBOR^C + 200 bp*, due 3/25/35)	March 25, 2035	2.18%	Specified Amount upon credit event notice^B		43		6

Credit Suisse First Boston USA (Argent Securities Inc. 2004-W4, 1- Month LIBOR^C + 300 bp*, due 3/25/34)	March 25, 2034	2.20%	Specified Amount upon credit event notice^B		58		3

Credit Suisse First Boston USA (Argent Securities Inc. 2004-W11, 1- Month LIBOR^C + 225 bp*, due 11/25/34)	November 25, 2034	1.33%	Specified Amount upon credit event notice^B		43		3

Credit Suisse First Boston USA (Argent Securities Inc. 2004-W11, 1- Month LIBOR^C+ 350 bp*, due 11/25/34)	November 25, 2034	2.15%	Specified Amount upon credit event notice^B		43		3

Credit Suisse First Boston USA (Finance America Mortgage Loan Trust, 1- Month LIBOR^C + 180 bp*, due 11/25/34)	November 25, 2034	1.31%	Specified Amount upon credit event notice^B		43		2


Credit Suisse First Boston USA (Finance America Mortgage Loan Trust 2004-3, 1- Month LIBOR^C + 315 bp*, due 11/25/34)	November 25, 2034	2.18%	Specified Amount upon credit event notice^B	$	43	$	3

Credit Suisse First Boston USA (Fremont Home Loan Trust 2005-A, 1- Month LIBOR^C + 135 bp*, due 1/25/35)t	January 25, 2035	1.31%	Specified Amount upon credit event notice^B		43		3

Credit Suisse First Boston USA (Fremont Home Loan Trust 2005-A, 1- Month LIBOR^C + 200 bp*, due 1/25/35)	January 25, 2035	2.08%	Specified Amount upon credit event notice^B		43		4

Credit Suisse First Boston USA (IndyMAC Home Equity Loan Asset-Backed Trust 2004-C, 1- Month LIBOR^C + 190 bp*, due 3/25/35)	March 25, 2035	1.28%	Specified Amount upon credit event notice^B		43		3

Credit Suisse First Boston USA (IndyMAC Home Equity Loan Asset-Backed Trust 2004-C, 1- Month LIBOR¹ + 325 bp*, due 3/25/35)	March 25, 2035	2.05%	Specified Amount upon credit event notice^B		43		4

Credit Suisse First Boston USA (Long Beach Mortgage Loan Trust 2004-1, 1- Month LIBOR^C + 350 bp*), due 2/25/34)	February 25, 2034	2.15%	Specified Amount upon credit event notice^B		58		3

Credit Suisse First Boston USA (Long Beach Mortgage Loan Trust 2005-1, 1- Month LIBOR^C + 170 bp*, due 2/25/35)	February 25, 2035	1.31%	Specified Amount upon credit event notice^B		43		3

Credit Suisse First Boston USA (Long Beach Mortgage Loan Trust 2005-1, 1- Month LIBOR^C + 275 bp*, due 2/25/35)	February 25, 2035	2.08%	Specified Amount upon credit event notice^B		43		4

Credit Suisse First Boston USA (MASTR Asset Backed Securities Trust 2005-NC1, 1- Month LIBOR^C + 153 bp*, due 12/25/34)	December 25, 2034	1.31%	Specified Amount upon credit event notice^B		43		2

Credit Suisse First Boston USA (MASTR Asset Backed Securities Trust 2005-NC1, 1- Month LIBOR^C + 240 bp*, due 12/25/34)	December 25, 2034	2.08%	Specified Amount upon credit event notice^B		43		4


Credit Suisse First Boston USA (Merrill Lynch Mortgage Investors, Inc. 2004-WMC1, 1-Month LIBOR^C + 225 bp*, due 9/25/35)	September 25, 2035	2.05%	Specified Amount upon credit event notice^B	$	43	$	2

Credit Suisse First Boston USA (Merrill Lynch Mortgage Investors, Inc. 2004-WMC4, 1- Month LIBOR^C + 375 bp*, due 4/25/35)	April 25, 2035	2.15%	Specified Amount upon credit event notice^B		58		2

Credit Suisse First Boston USA (Merrill Lynch Mortgage Investors, Inc. 2005-NC1, 1- Month LIBOR^C + 130 bp*, due 10/25/35)	October 25, 2035	1.28%	Specified Amount upon credit event notice^B		43		3

Credit Suisse First Boston USA (Merrill Lynch Mortgage Investors, Inc. 2005-NC1, 1- Month LIBOR^C + 205 bp*, due 10/25/35)	October 25, 2035	2.05%	Specified Amount upon credit event notice^B		43		4

Credit Suisse First Boston USA (Merrill Lynch Mortgage Investors, Inc. 2005-WMC1, 1- Month LIBOR^C + 135 bp*, due 9/25/35)	September 25, 2035	1.28%	Specified Amount upon credit event notice^B		43		2

Credit Suisse First Boston USA (Morgan Stanley ABS Capital I 2005-WMC1, 1- Month LIBOR^C + 130 bp*, due 1/25/35)	January 25, 2035	1.31%	Specified Amount upon credit event notice^B		43		2

Credit Suisse First Boston USA (Morgan Stanley ABS Capital I 2005-WMC1, 1- Month LIBOR^C + 215 bp*, due 1/25/35)	January 25, 2035	2.18%	Specified Amount upon credit event notice^B		43		3

Credit Suisse First Boston USA (New Century Home Equity Loan Trust 2004-2, 1- Month LIBOR^C + 325 bp*), due 8/25/34)	August 25, 2034	2.15%	Specified Amount upon credit event notice^B		58		3

Credit Suisse First Boston USA (New Century Home Equity Loan Trust 2005-1, 1- Month LIBOR^C + 140 bp*, due 3/25/35)	March 25, 2035	1.31%	Specified Amount upon credit event notice^B		43		2

Credit Suisse First Boston USA (New Century Home Equity Loan Trust 2005-1, 1- Month LIBOR^C + 205 bp*, due 3/25/35)	March 25, 2035	2.18%	Specified Amount upon credit event notice^B		43		3

Credit Suisse First Boston USA (NovastarHome Equity Loan 2005-1, 1- Month LIBOR^C + 135 bp*, due 6/25/35)	June 25, 2035	1.28%	Specified Amount upon credit event notice^B		43		2



Credit Suisse First Boston USA (Novastar Home Equity Loan 2005-1, 1- Month LIBOR^C + 195 bp*, due 6/25/35)	June 25, 2035	2.05%	Specified Amount upon credit event notice^B	$	43	$	3

Credit Suisse First Boston USA (Park Place Securities, Inc. 2005-WCH1, 1- Month LIBOR^C + 155 bp*, due 1/25/36)	January 25, 2036	1.36%	Specified Amount upon credit event notice^B		43		4

Credit Suisse First Boston USA (Park Place Securities, Inc. 2005-WCH1, 1- Month LIBOR^C + 250 bp*, due 1/25/36)	January 25, 2036	2.18%	Specified Amount upon credit event notice^B		43		5

Credit Suisse First Boston USA (People’s Choice Home Loan Securities Trust 2004-1, 1-Month LIBOR^C + 230 bp*, due 6/25/34)	June 25, 2034	1.37%	Specified Amount upon credit event notice^B		58		2

Credit Suisse First Boston USA (People’s Choice Home Loan Securities Trust 2005-1, 1-Month LIBOR^C + 165 bp*, due 1/25/35)	January 25, 2035	1.28%	Specified Amount upon credit event notice^B		43		3

Credit Suisse First Boston USA (People’s Choice Home Loan Securities Trust 2005-1, 1-Month LIBOR^C + 260 bp*, due 1/25/35)	January 25, 2035	2.05%	Specified Amount upon credit event notice^B		43		5

Merrill Lynch (iBoxx CDX NA IG)	June 20, 2010	Specified Amount upon credit event notice^D	0.40% Quarterly		15,000		272


						$	390

^A	“-” refers to amounts less than $1,000.

^B	Upon Bankruptcy or failure to make a scheduled interest payment, the Fund will receive $1,000 per 1,000 notional.

^C	As of March 31, 2007, the 1 month London Interbank Offered Rate was 5.32%.

^D	Upon Bankruptcy or failure to make a scheduled interest payment, the Fund will pay $1,000 per 1,000 notional.

*	100 basis points = 1%.

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders. This information is available on the Securities and Exchange Commission’s website (www.sec.gov).

Item 2 – Controls and Procedures

(a)

Western Asset Premier Bond Fund (the “Registrant”) principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods in the Securities and Exchange Commission’s rules and forms and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)

There were no changes in the Registrant’s internal control over financial reporting during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.

Item 3 – Exhibits

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 - filed as an exhibit hereto.

SIGNATURES

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

Western Asset Premier Bond

By:

R. Jay Gerken

President

Western Asset Premier Bond

Date: May 29, 2007

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:

R. Jay Gerken

President

Western Asset Premier Bond

Date: May 29, 2007

By:

Marie K. Karpinski

Principal Financial and Accounting Officer

Western Asset Premier Bond

Date: May 23, 2007