YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Money Market Instruments,
Inc. for the 12-month period ended December 31, 1998 shown in the following
table:
<TABLE>
YIELD EFFECTIVE YIELD*
______________ _____________
<S> <C> <C>
Money Market Series . . . . . . . . . . . . . . . . . 4.65% 4.76%
Government Securities Series . . . . . . . . . . . . . 4.73% 4.83%
</TABLE>
ECONOMIC REVIEW
During 1998, the main regions of the world had very different economic
fundamentals. The U.S. entered the year with a strong economy near full
employment, with unemployment only slightly above 4%. The tight labor market led
the Federal Reserve Board to contemplate a rise in interest rates early in the
year, but world economic weakness generated powerful enough disinflationary
forces that the Fed acted instead to ease credit beginning in September. After
many years of subpar economic growth, continental Europe moved into a sustained
economic expansion. The overall European economy benefited as interest rates in
peripheral countries such as Spain and Italy fell, approaching the lower levels
established by Germany, on the eve of currency unification. Unlike the U.S.,
Europe has substantial excess capacity of productive plant and labor. In Asia,
weak economies were pervasive as a result of a financial crisis. The Latin
American economies weakened in turn as the financial stresses spread throughout
that region. On balance, there was a substantial weakening of the world economy
over the course of 1998 moderated mainly by the American consumer's role as
"spender of last resort."
A main influence on the U.S. economy during the year was the foreign financial
crisis and consequent cooling of the world economy. The positive effects hit
first. Actual inflation and expected inflation dropped, causing a decline in
long-term Treasury bond yields and mortgage rates. This caused a boom in
housing. The fall in inflation left more of the growth in consumer income with
which to buy goods and services. Thus, consumers benefited from a combination of
good growth in income after inflation, a strong labor market, and increases in
the prices of assets they owned, including bonds, stocks and real estate. In a
sense, 1998 was a year of disinflationary boom in the U.S., as above-trend
economic growth coincided with negligible inflation.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports.
Evidence of a weaker world economy accumulated during 1998 as the financial
stresses continued. A worsened financial crisis occurred between the Russian
default in mid-August and the fallout from the Long Term Capital Management
hedge fund crisis through early October. However, energetic steps were taken to
stabilize the Japanese banks, design a support package for Brazil, ease monetary
policy, and help overinvested financial institutions rebuild their cash
reserves. Indications of a calming of financial fears were evident in the final
months of the year. In any case, there appears to have been a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
The global economy survived a triple financial crisis in 1998 from Japan,
emerging market countries and overextended financial institutions. Excess
capacity persists in many worldwide industries after years of high capital
spending followed by the onset of a worldwide weakening in demand. Fortunately,
the U.S. has led the world in making the transition away from the old
manufacturing industries to the new growth industries, such as biotechnology,
software, computer hardware and the Internet. This contributed to the favorable
combination of low unemployment and low inflation in the U.S., and may yet lead
toward more efficient allocation of capital elsewhere in the world.
As 1998 ended, interest rates set by central banks remained in a downtrend in
most parts of the world including Europe and the U.S. A similar trend had even
begun in many emerging countries, as the stresses of financial crisis relaxed.
MARKET ENVIRONMENT/PORTFOLIO FOCUS
The economic forces described above drove down interest rates in late summer
and early fall. Later in the year there was a modest increase in rates. One of
its effects was to change the yield curve from one that had been negative to a
positive, sloping structure. In this normal configuration, longer-term yields
exceeded those of the shorter-term instruments.
A flight to safety by global investors was the force that drove down
longer-term U.S. yields last fall. In recent weeks, investors appear to have
become more confident about the economic outlook. One factor has been the rise
in interest rates in Japan, which brought about some repatriation of investment
funds to that country. In addition, the introduction of the Euro currency at the
start of the new year, which was well received, put some downward pressure on
the U.S. dollar.
Investor fears of worldwide financial turmoil seemed to have receded recently.
Currently, prices and rates in the money market appear to be reacting more to
underlying economic forces than to such market psychology factors. This, of
course, can be constructive for investors in short-term money market
instruments.
The fact that the Federal Reserve Open Market Committee lowered interest rates
three times between late September and year-end has been a strong
confidence-building factor in the markets. Currently, we expect the Fed to
remain in a "wait and see" mode for a while.
During the reporting period, we lengthened the average portfolio maturity, as
we deemed appropriate, in order to take advantage of possible declining interest
rates. We will continue to monitor the market, including interest rates, in
seeking investment opportunities for the Fund.
Sincerely,
[Patricia A. Larkin signature]
Patricia A. Larkin
Senior Portfolio Manager
January 13, 1999
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested monthly
<TABLE>
DREYFUS MONEY MARKET INSTRUMENTS, INC., MONEY MARKET SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998
Principal
Negotiable Bank Certificates of Deposit--17.6% Amount Value
- ------------------------------------------------------- _____________ _____________
<S> <C> <C>
Bayerische Landesbank Girozentrale (Yankee)
5.16%, 7/23/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000 $ 5,011,843
Branch Bank and Trust Co.
5.04%, 1/10/00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500,000 4,498,671
Societe Generale N.A. Inc.
4.88%, 2/23/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,999,716
Union Bank of California
5.01%, 6/7/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000
_____________
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $19,510,230) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,510,230
_____________
Commercial Paper--48.4%
- -------------------------------------------------------
Amsterdam Funding Corp.
5.53%, 1/11/99 (b,c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000 $ 4,992,361
Bear Stearns Companies Inc.
5.67%, 1/14/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,990,069
Finova Capital Corp.
5.27%, 3/19/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,944,924
Fleet Funding Corp.
5.47%, 1/8/99 (b,c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 3,995,761
General Electric Capital Corp.
5.49%, 1/28/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,979,825
General Electric Capital Services
5.01%-5.24%, 2/24/99-6/9/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,933,720
Goldman Sachs Group L.P.
5.14%, 4/20/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,924,306
Merrill Lynch & Co. Inc.
5.06%, 1/14/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,990,972
Paine Webber Group Inc.
5.71%, 1/7/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,995,333
Spintab AB
5.08%, 6/22/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,881,631
SwedBank Inc.
5.08%, 4/14/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,929,188
_____________
TOTAL COMMERCIAL PAPER
(cost $53,558,090) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 53,558,090
_____________
</TABLE>
<TABLE>
DREYFUS MONEY MARKET INSTRUMENTS, INC., MONEY MARKET SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998
Principal
Corporate Notes--9.0% Amount Value
- ------------------------------------------------------- _____________ _____________
<S> <C> <C>
CIT Group Holdings Inc.
4.87%, 9/21/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000 $ 4,998,945
Heller Financial Inc.
5.05%, 4/13/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000
_____________
TOTAL CORPORATE NOTES
(cost $9,998,945) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,998,945
_____________
Short-Term Bank Notes--17.3%
- -------------------------------------------------------
Bank of America FSB
5.03%, 6/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,000,000 $ 4,077,995
Bankers Trust N.Y. Corp.
4.90%, 3/19/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,999,587
Key Bank N.A.
4.87%, 2/24/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,999,497
Lasalle National Bank
5.67%, 4/13/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000
_____________
TOTAL SHORT-TERM BANK NOTES
(cost $19,077,079) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,077,079
_____________
Time Deposits--6.5%
- -------------------------------------------------------
Berliner Handels-und Frankforter Bank (Grand Cayman)
5.19%, 1/4/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,193,000 $ 4,193,000
Westdeutsche Landesbank Girozentrale (Grand Cayman)
5.25%, 1/4/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,000,000
_____________
TOTAL TIME DEPOSITS
(cost $7,193,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,193,000
_____________
TOTAL INVESTMENTS
(cost $109,337,344) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98.8% $109,337,344
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2% $ 1,298,050
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $110,635,394
_______ _____________
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Variable interest rate--subject periodic change.
(b) These notes were acquired for investment, and not with intent to distribute
or sell.
(c) Securities restricted as to public resale. These securities were acquired
on 12/10.98 at a cost of 99.53. At December 31, 1998, the aggregate value
of these securities was $8,988,122 representing approximately 8.1% of net
assets.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS MONEY MARKET INSTRUMENTS, INC., GOVERNMENT SECURITIES SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998
Annualized
Yield on
Date of Principal
U.S. Treasury Bills--22.2% Purchase Amount Value
- --------------------------------------------------------------------------- ___________ _____________ _____________
<S> <C> <C>
1/21/99
(cost $94,766,194) . . . . . . . . . . . . . . . . . . . . . . . . 4.44% $ 95,000,000 $ 94,766,194
_____________
U.S. Treasury Notes--34.3%
- ----------------------------------------------
5%, 2/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.57% $ 21,000,000 $ 20,986,221
6.375%, 7/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.25 50,000,000 50,213,921
5.875%, 8/31/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.81 30,000,000 30,196,270
5.625%, 11/30/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.45 30,000,000 30,263,952
5.625%, 12/31/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.58 15,000,000 15,128,202
_____________
TOTAL U.S. TREASURY NOTES
(cost $146,788,566) . . . . . . . . . . . . . . . . . . . . . . . . . . $146,788,566
_____________
Repurchase Agreements--43.2%
- ----------------------------------------------
Bear Stearns & Co.
dated 12/31/98, due 1/4/99 in the amount of $44,022,733
(fully collateralized by $45,195,000 U.S. Treasury
Bills, due 4/29/99, value $44,534,676) . . . . . . . . . . . . . . . . 4.65% $ 44,000,000 $ 44,000,000
CIBC Oppenheimer Corp.
dated 12/31/98, due 1/4/99 in the amount of $50,026,389
(fully collateralized by $48,969,000 U.S. Treasury
Notes, 7.75%, due 11/30/99, value $50,633,980) . . . . . . . . . . . . 4.75 50,000,000 50,000,000
Donaldson, Lufkin & Jenrette Securities, Inc.
dated 12/31/98, due 1/4/99 in the amount of $45,024,250
(fully collateralized by $45,386,000 U.S. Treasury
Notes, 5.625%, due 12/31/99, value $45,811,494) . . . . . . . . . . . . 4.85 45,000,000 45,000,000
Morgan Stanley Dean Witter & Co.
dated 12/31/98, due 1/4/99 in the amount of $27,013,860
(fully collateralized by $26,470,000 U.S. Treasury
Notes, due 10/31/99, value $27,397,318) . . . . . . . . . . . . . . . . 4.62 27,000,000 27,000,000
SBC Warburg Dillon Read Inc.
dated 12/31/98, due 1/4/99 in the amount of $18,820,316
(fully collateralized by $19,532,000 U.S. Treasury
Bills, due 5/20/99, value $19,195,507) . . . . . . . . . . . . . . . . 3.50 18,813,000 18,813,000
_____________
TOTAL REPURCHASE AGREEMENTS
(cost $184,813,000) . . . . . . . . . . . . . . . . . . . . . . . . . . $184,813,000
_____________
_____________
TOTAL INVESTMENTS
(cost $426,367,760) . . . . . . . . . . . . . . . . . . . . 99.7% $426,367,760
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . .3% $ 1,290,972
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $427,658,732
_______ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS MONEY MARKET INSTRUMENTS, INC.
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998
Money Government
Market Securities
Series Series
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities, See Statement of Investments
(including repurchase agreements of $184,813,000
for the Government Securities Series)--Note 2(b) . . . . $109,337,344 $426,367,760
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 966,756 11,849,449
Interest receivable . . . . . . . . . . . . . . . . . . . 534,614 2,602,897
_____________ _____________
110,838,714 440,820,106
_____________ _____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 65,859 251,753
Payable for shares of Common Stock redeemed . . . . . . . -- 12,799,762
Accrued expenses and other liabilities . . . . . . . . . 137,461 109,859
_____________ _____________
203,320 13,161,374
_____________ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $110,635,394 $427,658,732
_____________ _____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $110,664,209 $427,658,979
Accumulated net realized gain (loss) on investments . . . (28,815) (247)
_____________ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $110,635,394 $427,658,732
_____________ _____________
NET ASSET VALUE PER SHARE
_____________________________
Money Government
Market Securities
Series Series
_____________ _____________
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $110,635,394 $427,658,732
Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,647,709 427,658,979
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.00 $1.00
______ ______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS MONEY MARKET INSTRUMENTS, INC.
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1998
Money Government
Market Securities
Series Series
_____________ _____________
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $ 6,391,168 $23,035,979
____________ ____________
EXPENSES--Note 2(c): Management fee--Note 3(a) . . . . . . . . . . . . . . . . $ 570,963 $ 2,133,415
Shareholder servicing costs--Note 3(b) . . . . . . . . . 291,130 575,171
Registration fees . . . . . . . . . . . . . . . . . . . . 33,850 34,038
Professional fees . . . . . . . . . . . . . . . . . . . . 28,651 23,246
Custodian fees . . . . . . . . . . . . . . . . . . . . . 25,974 83,583
Prospectus and shareholders' reports . . . . . . . . . . 24,751 22,560
Directors' fees and expenses--Note 3(c) . . . . . . . . . 16,707 56,529
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 82,938 ---
____________ ____________
Total Expenses . . . . . . . . . . . . . . . . . . . . 1,074,964 2,928,542
____________ ____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,316,204 20,107,437
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 2(b) . . . . . . . . . . . . . . . . . . . . (6,557) 36,250
____________ ____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $ 5,309,647 $20,143,687
____________ ____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS MONEY MARKET INSTRUMENTS, INC.
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Money Market Series Government Securities Series
________________________________ ________________________________
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
1998 1997 1998 1997
________________ _______________ ________________ _______________
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . $ 5,316,204 $ 6,057,427 $ 20,107,437 $ 19,697,451
Net realized gain (loss) on investments . . . . . . (6,557) (3,878) 36,250 7,009
________________ _______________ ________________ _______________
_______________
Net Increase (Decrease) in Net Assets
Resulting from Operations . . . . . . . . . . . 5,309,647 6,053,549 20,143,687 19,704,460
________________ _______________ ________________ _______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . (5,316,204) (6,057,427) (20,107,437) (19,697,451)
Net realized gain on investments . . . . . . . . . . ----- ---- (36,250) -----
________________ _______________ ________________ _______________
Total Dividends . . . . . . . . . . . . . . . . . (5,316,204) (6,057,427) (20,143,687) (19,697,451)
________________ _______________ ________________ _______________
CAPITAL STOCK TRANSACTIONS:
($1.00 per share):
Net proceeds from shares sold . . . . . . . . . . . 270,802,602 301,641,056 1,295,087,820 1,411,479,603
Dividends reinvested . . . . . . . . . . . . . . . . 3,521,681 4,474,950 11,359,817 12,621,559
Cost of shares redeemed . . . . . . . . . . . . . . (282,449,373) (316,689,108) (1,259,780,722) (1,484,884,885)
________________ _______________ ________________ _______________
Increase (Decrease) in Net Assets from
Capital Stock Transactions . . . . . . . . . . (8,125,090) (10,573,102) 46,666,915 (60,783,723)
________________ _______________ ________________ _______________
Total Increase (Decrease) in Net Assets . . . . . (8,131,647) (10,576,980) 46,666,915 (60,776,714)
________________ _______________ ________________ _______________
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . 118,767,041 129,344,021 380,991,817 441,768,531
________________ _______________ ________________ _______________
End of Period . . . . . . . . . . . . . . . . . . . $ 110,635,394 $ 118,767,041 $ 427,658,732 $ 380,991,817
________________ _______________ ________________ _______________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS MONEY MARKET INSTRUMENTS, INC., MONEY MARKET SERIES
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.
Year Ended December 31,
______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .047 .047 .046 .053 .034
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.047) (.047) (.046) (.053) (.034)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . 4.76% 4.76% 4.73% 5.46% 3.42%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . .94% 1.00% .93% .84% .88%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 4.66% 4.66% 4.63% 5.33% 3.35%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . . -- .01% -- -- --
Net Assets, end of period (000's Omitted) . . . . . . . . $110,635 $118,767 $129,344 $144,172 $170,548
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS MONEY MARKET INSTRUMENTS, INC., GOVERNMENT SECURITIES SERIES
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.
Year Ended December 31,
______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
Net asset value, beginning of period . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .047 .046 .045 .051 .033
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.047) (.046) (.045) (.051) (.033)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . 4.83% 4.72% 4.60% 5.18% 3.31%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . .69% .87% .90% .83% .88%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 4.71% 4.62% 4.50% 5.07% 3.24%
Net Assets, end of period (000's Omitted) . . . . . . . . $427,659 $380,992 $441,769 $431,444 $465,956
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS MONEY MARKET INSTRUMENTS, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--GENERAL:
Dreyfus Money Market Instruments, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified
open-end management investment company and operates as a series company issuing
two classes of Common Stock: the Money Market Series and the Government
Securities Series. The Fund accounts separately for the assets, liabilities and
operations of each series. The Fund' s investment objective is to provide
investors with as high a level of current income as is consistent with the
preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation (the "Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. is the distributor of the Fund's shares,
which are sold to the public without a sales charge. The Fund is authorized to
issue 5 billion shares of $.01 par value Common Stock for the Money Market
Series and 10 billion shares of $.01 par value Common Stock for the Government
Securities Series.
It is the Fund's policy to maintain a continuous net asset value per share of
$1.00 for each series; the Fund has adopted certain investment, portfolio
valuation and dividend and distribution policies to enable it to do so. There is
no assurance, however, that the Fund will be able to maintain a stable net asset
value per share of $1.00 for each series.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION: Investments in securities are valued at amortized
cost, which has been determined by the Fund's Board of Directors to represent
the fair value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income is
recognized on the accrual basis. Cost of investments represents amortized cost.
Under the terms of the custody agreements, the Fund receives net earnings
credits based on available cash balances left on deposit. During the period
ended December 31, 1998, the Money Market Series received net earning credits of
$637. Income earned under this arrangement is included in interest income.
The Fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the Fund' s Manager, subject to the seller's
agreement to repurchase and the Fund's agreement to resell such securities at a
mutually agreed upon price. Securities purchased subject to repurchase
agreements are deposited with the Fund's custodian and, pursuant to the terms of
the repurchase agreement, must have an aggregate market value greater than or
equal to the repurchase price plus accrued interest at all times. If the value
of the underlying securities falls below the value of the repurchase price plus
accrued interest, the Fund will require the seller to deposit additional
collateral by the next business day. If the request for additional collateral is
not met, or the seller defaults on its repurchase obligation, the Fund maintains
the right to sell the underlying securities at market value and may claim any
resulting loss against the seller.
(C) EXPENSES: Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to both series are
allocated between them.
(D) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund, with respect to
both series, to declare dividends from investment income-net on each business
day; such dividends are paid monthly. Dividends from net realized capital gain,
with respect to both series, are normally declared and paid annually, but each
series may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). However, to the extent that a net realized capital gain of either
series can be reduced by a capital loss carryover of that series, such gain will
not be distributed.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(E) FEDERAL INCOME TAXES: It is the policy of each series to continue to
qualify as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the Code, and to make distributions of taxable income sufficient to relieve it
from substantially all Federal income and excise taxes.
The Money Market Series has an unused capital loss carryover of approximately
$29,000 available for Federal income tax purposes to be applied against future
net securities profits, if any, realized subsequent to December 31, 1998. If not
applied, $18,000 of the carryover expires in fiscal 2004, $4,000 expires in
fiscal 2005 and $7,000 expires in fiscal 2006.
At December 31, 1998, the cost of investments of each series for Federal
income tax purposes was substantially the same as the cost for financial
reporting purposes (see the Statements of Investments).
NOTE 3--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee for each series is computed at the annual rate of .50 of 1% of
the value of the average daily net assets of each series and is payable monthly.
The Agreement provides that if in any full fiscal year the aggregate expenses of
either series, exclusive of taxes, brokerage commissions, interest on borrowings
and extraordinary expenses, exceed 1% of the value of such series' average daily
net assets, the Fund may deduct from payments to be made to the Manager, or the
Manager will bear the amount of such excess. No expense reimbursement was
required for either series for the period ended December 31, 1998 pursuant to
the Agreement.
(B) Under the Shareholder Services Plan, each series reimburses Dreyfus
Service Corporation, a wholly-owned subsidiary of the Manager, an amount not to
exceed an annual rate of .25 of 1% of the value of each series' average daily
net assets for certain allocated expenses of providing personal services and/or
maintaining shareholder accounts. The services provided may include personal
services relating to shareholder accounts, such as answering shareholder
inquiries regarding the Fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. During the period
ended December 31, 1998, the Money Market Series and the Government Securities
Series were charged $157,683 and $278,912, respectively, pursuant to the
Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the period
ended December 31, 1998, the Money Market Series and the Government Securities
Series, were charged $102,802 and $247,458, respectively, pursuant to the
transfer agency agreement.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $4,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
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REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS MONEY MARKET INSTRUMENTS, INC.
We have audited the accompanying statement of assets and liabilities,
including the statements of investments, of Dreyfus Money Market Instruments,
Inc. (comprising, respectively, the Money Market Series and the Government
Securities Series) as of December 31, 1998, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years in the period then ended, and financial highlights for
each of the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1998 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective series constituting Dreyfus Money Market Instruments, Inc. at
December 31, 1998, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended,
and the financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
New York, New York
February 3, 1999
DREYFUS MONEY MARKET INSTRUMENTS, INC., GOVERNMENT SECURITIES SERIES
- -----------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
For State individual income tax purposes, the Government Securities Series
hereby designates 33.28% of the ordinary income dividends paid during its fiscal
year ended December 31, 1998 as attributable to interest income from direct
obligations of the United States. Such dividends are currently exempt from
taxation for individual income tax purposes in most states, including New York,
California and the District of Columbia.
[reg.tm logo]
(reg.tm)
DREYFUS MONEY MARKET
INSTRUMENTS, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 008/060AR9812
Money Market
Instruments, Inc.
Annual Report
December 31, 1998
