GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the General New York
Municipal Bond Fund, Inc. for the six-month period ended April 30, 1998.
During this period, your Fund produced a total return, including share price
changes and dividend income generated, of 2.97%* and an annualized tax-free
distribution rate per share of 4.76%.**
Economic Review
The United States is now in the eighth year of economic expansion.
Inflation continues to rise at the slowest pace since 1964, and the
unemployment rate has fallen to a level not seen in 25 years. Not
surprisingly, consumer confidence has soared. Along with continued evidence
of a robust economy have come heightened expectations that the Federal
Reserve Board will raise interest rates in a preemptive move to avoid a
reignition of inflation. The last increase in short-term rates came in March
1997 when the Federal Open Market Committee (the policy-making arm of the
Fed) hiked the target rate for Federal Funds by one quarter of a percent to
5.5%. (The Federal Funds rate is the rate of interest that banks charge one
another for overnight loans.)
Inflation has remained benign on all fronts, even in the tight labor
market, an area closely watched by the Fed for signs of incipient inflation.
The Labor Department's Employment Cost Index (ECI), a measure of wage, salary
and benefit costs, suggests that wage inflation so far is not a problem. In
fact, the first quarter increase in the ECI (0.7%) was its smallest quarterly
rise in two years. Another inflation gauge, the broad-based Gross Domestic
Product Price Deflator, rose at an annual rate of only 0.9% in the first
quarter, its lowest rate since 1964. Inflation as measured by the Consumer
Price Index has been similarly tame. Prices at the consumer level have risen
at an annual rate of about 1.5% over the reporting period. The lack of
inflation has been even more dramatic at the production level of the economy
where prices have fallen: In the 12 months ended March 31, the Producer Price
Index declined 1.8%. Such a generally tepid price environment has been partly
fostered by the economic problems in Asia, which have suppressed worldwide
demand for commodities, particularly oil.
Reflecting a level of confidence not seen in three decades, consumers
increased their spending over the reporting period, the first-quarter rate
rising at the fastest pace in six years. Not surprisingly, the growth rate in
new home construction over the reporting period was the strongest in four
years. Plentiful and well-paying jobs (total wage and salary income is 7%
higher than a year ago), low interest rates, the absence of inflation, and
investment market gains have resulted in a financially healthy consumer with
a corresponding propensity to spend. Strong domestic demand for lower-priced
imports has contributed further to the quiescent inflation environment while
offsetting the drag on our economy resulting from the Asian financial crisis.
It is still widely expected that the Asian economic slowdown will have a
further dampening effect on the U.S. economy. The surge in domestic spending
has masked the full effect of the fall in Asian demand for U.S. products, but
our trade deficit has reached a ten-year high, a dramatic sign of
deterioration. Indications that our economy may be starting to slow may also
be causing the Fed's reluctance to raise short-term interest rates.
The production side of the economy has remained robust. Factory
utilization is high, production rates strong, and although exports to Asia
have fallen sharply, they are growing in the rest of the world. Such
resilience has been characteristic of one of the longest, most healthy
economic advances in our history. Yet we remain mindful that the concept of
an economic cycle is not dead, nor is inflation, and we are alert for
indications of a resurgence in price pressures.
Market Environment
Since our last letter, the bond market has turned in a strong
performance. As illustrated by the long-term Treasury Bond, rates moved from
6.32% in early October to 5.69% during January, as concern over the effect of
the Asian crisis sent investors to the safe harbor of the Treasury market.
The municipal market participated in this price rally, although not
to the same degree. As a result, municipals have remained attractive when
compared to Treasuries. Subsequently, the focus, temporarily, moved away from
the Asian problem as many assumed that some stability was returning to those
markets. This resulted in some weakness in the fixed-income markets, which
moved into a trading range that saw Treasury bond yields climb above 6%
before they recovered to lower levels.
This favorable environment brought a record level of financings into
the municipal market. Budget surpluses are not occurring in the Federal
government alone: Many states and municipalities have seen dramatic changes
in their economies with better fiscal management and strong tax receipts
enhancing their bottom lines. With interest rates remaining at relatively
low levels, municipalities can be expected to issue refunding obligations to
replace their higher interest cost, previously issued bonds with new issues
paying lower interest rates. Refundings, along with the issuance of
"new-money" bonds, can easily swell the calendar of new issues, temporarily
necessitating price adjustments in order to attract buyers.
The Portfolio
The New York market was clearly a beneficiary of the record issuance
that was brought to market over the past six months. As supply increased, we
were given opportunities to enhance yield, spread and quality. Issues that,
in the past, would command a premium to the general market are now trading on
national levels. An ongoing problem for state-specific funds is finding
investment diversity. The issuance of $3 billion in bonds by the Long Island
Power Authority provided the market with a new name and the largest single
issuance of tax-exempt debt in history. The success of such a large issue
clearly indicates how much ongoing demand is in the municipal market. We
continue to look for opportunities that will enhance the portfolio's yield,
and when weakness in the market presents itself, we have found value in the
discount sector. The improvement in the New York State economy has resulted
in credit rating improvements for the State and its appropriated debt, as
well as for New York City. The portfolio has seen this upgrade translated
into higher prices for the numerous State and City issues that it holds.
Although we believe the Fed will remain on hold over the next several months,
it is possible that we have seen the low point in rates for the foreseeable
future.
Included with this report are financial statements relating to your
Fund's holding and its financial condition. We hope you find them
informative.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
May 18, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
Income may be subject to state and local income taxes for non-New York
residents
**Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized), divided by the net asset
value per share at the end of the period, adjusted for any capital gain
distributions. Some income may be subject to the Federal Alternative Minimum
Tax (AMT) for certain shareholders.
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS APRIL 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments-100.0% Amount Value
_____________ _____________
<S> <C> <C>
New York-95.4%
Albany Industrial Development Agency:
IDR (Hampton Plaza Project) 6.25%, 3/15/2018.............................. $ 5,600,000 $ 5,809,552
LR:
(New York State Assembly Building Project) 7.75%, 1/1/2010.............. 3,515,000 3,800,875
(New York State Department of Health Building Project) 7.25%, 10/1/2010. 1,740,000 1,957,413
Board of Cooperative Educational Services, COP (Greenport Vocational Facility
Project)
7.875%, 10/1/2000......................................................... 739,732 766,614
Cohoes Industrial Development Agency, IDR (Norlite Corp. Project)
6.75%, 5/1/2009 (LOC; Dresdner Bank, Prerefunded 5/1/2002) (a, b)......... 2,400,000 2,646,648
Franklin County Solid Waste Management Authority, Solid Waste Systems Revenue
6.125%, 6/1/2009.......................................................... 1,350,000 1,398,330
Jefferson County Industrial Development Agency, SWDR
(Champion International Corp.) 7.20%, 12/1/2020........................... 2,000,000 2,195,900
Metropolitan Transportation Authority, Transportation Facilities Revenue:
6%, 7/1/2016 (Insured; FSA)............................................... 5,000,000 5,336,850
Refunding (Service Contract) 5.375%, 7/1/2021............................. 3,000,000 2,947,110
New York City:
7.65%, 2/1/2006 (Prerefunded 2/1/2002) (b)................................ 180,000 202,630
7%, 10/1/2008 (Prerefunded 10/1/2002) (b)................................. 1,750,000 1,953,263
6.375%, 8/15/2012 (Prerefunded 8/15/2005) (b)............................. 3,395,000 3,709,129
5.875%, 8/15/2013......................................................... 3,300,000 3,460,215
5.875%, 8/15/2016......................................................... 2,715,000 2,839,564
5.25%, 8/1/2017........................................................... 5,000,000 4,910,450
Refunding:
6%, 8/1/2016............................................................ 4,000,000 4,235,160
6%, 8/1/2017............................................................ 2,000,000 2,121,020
6%, 8/1/2021............................................................ 6,000,000 6,363,060
6.125%, 8/1/2025........................................................ 5,000,000 5,366,900
New York City Industrial Development Agency:
Civic Facility Revenue (YMCA of Greater New York Project) 5.80%, 8/1/2016. 1,500,000 1,551,750
IDR (Brooklyn Navy Yard Cogen Partners) 5.65%, 10/1/2028.................. 6,000,000 5,965,140
Special Facility Revenue:
(Northwest Airlines, Inc.) 6%, 6/1/2027................................. 1,300,000 1,358,292
(Terminal One Group Association Project) 6%, 1/1/2019................... 3,000,000 3,136,440
(United Airlines, Inc. Project) 5.65%, 10/1/2032........................ 2,000,000 2,009,920
New York City Municipal Water Finance Authority, Water and Sewer System
Revenue
6%, 6/15/2025 (Prerefunded 6/15/2005) (b)................................. 9,750,000 10,675,372
New York State, GO:
5.70%, 3/15/2013.......................................................... 2,000,000 2,086,900
Crossover Refunding 6.125%, 11/15/2012.................................... 5,000,000 5,360,500
New York State Dormitory Authority, Revenues:
Consolidated City University Systems:
5.75%, 7/1/2013......................................................... 10,005,000 10,506,851
5.625%, 7/1/2016........................................................ 2,500,000 2,599,775
General New York Municipal Bond Fund, Inc.
Statement of Investments (continued) April 30, 1998 (Unaudited)
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ _____________
New York (continued)
New York State Dormitory Authority, Revenues (continued):
Consolidated City University Systems (continued):
5.75%, 7/1/2018......................................................... $ 2,500,000 $ 2,638,150
Department of Health:
5.75%, 7/1/2017......................................................... 5,240,000 5,365,131
(Roswell Park Cancer) 6.625%, 7/1/2024 (Prerefunded 7/1/2005) (b)....... 2,700,000 3,077,460
Refunding (Mental Health Services Facility) 6%, 8/15/2021................. 1,750,000 1,834,858
State University Educational Facilities:
5.50%, 5/15/2013........................................................ 1,500,000 1,560,840
5.875%, 5/15/2017....................................................... 2,060,000 2,226,736
5%, 5/15/2020 (Insured; MBIA)........................................... 3,000,000 2,879,970
4.75%, 5/15/2025 (Insured; MBIA)........................................ 2,400,000 2,198,544
6%, 5/15/2025 (Prerefunded 5/15/2005) (b)............................... 3,825,000 4,210,407
WK Nursing Home Corp. 6.05%, 2/1/2026 (Insured; FHA)...................... 5,000,000 5,260,850
New York State Energy Research and Development Authority:
Electric Facilities Revenue (Long Island Lighting) 7.15%, 9/1/2022........ 3,435,000 3,761,634
Facilities Revenue (Consolidated Edison Co. of New York, Inc. Project) 7.125%, 12/1/2029 2,000,000 2,261,160
Gas Facilities Revenue (Brooklyn Union Gas Co. Project) 6.368%, 4/1/2020.. 5,000,000 5,561,100
New York State Environmental Facilities Corp.:
PCR:
(Pilgrim State Sewer Project) 6.30%, 3/15/2016.......................... 5,200,000 5,749,744
(State Water Revolving Fund) 7.25%, 6/15/2010........................... 150,000 164,407
Water Facilities Revenue (New Rochelle Water Co. Project) 6.40%, 12/1/2024 2,000,000 2,123,840
New York State Housing Finance Agency, Revenue:
LooseStrife Fields Apartments and Fairway Manor 6.75%, 11/15/2036 (Insured; FHA) 5,945,000 6,415,131
Multi-Family Housing, Second Mortgage 6.625%, 8/15/2012................... 2,500,000 2,653,175
Refunding:
Health Facilities 6%, 11/1/2007......................................... 6,000,000 6,449,460
(Housing Mortgage Project) 6.10%, 11/1/2015 (Insured; FSA).............. 2,000,000 2,160,060
Service Contract Obligation:
6%, 9/15/2016........................................................... 8,675,000 9,090,706
6%, 3/15/2026........................................................... 6,645,000 6,968,811
Refunding:
5.25%, 3/15/2011...................................................... 2,000,000 1,998,020
5.50%, 9/15/2018...................................................... 6,000,000 6,004,740
New York State Local Government Assistance Corp., Refunding
4.75%, 4/1/2015 (Insured; MBIA)........................................... 3,000,000 2,833,050
New York State Medical Care Facilities Finance Agency, Revenue:
Hospital & Nursing Home Insured Mortgage:
6.20%, 8/15/2013 (Insured; FHA)......................................... 3,000,000 3,190,860
6.125%, 2/15/2015....................................................... 5,170,000 5,518,561
(Shorefront, St. Lukes and Waterfront Nursing Homes) 6.85%, 2/15/2012 (Insured; FHA) 3,000,000 3,252,000
Improvement (Mental Health Services Facilities) 6.50%, 2/15/2019.......... 5,290,000 5,695,214
Long Term Health Care (Insured Program) 6.45%, 11/1/2010 (Insured; FSA)... 4,705,000 5,118,617
General New York Municipal Bond Fund, Inc.
Statement of Investments (continued) April 30, 1998 (Unaudited)
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ _____________
New York (continued)
New York State Mortgage Agency, Homeowner Revenue:
6%, 4/1/2017.............................................................. $ 2,000,000 $ 2,119,940
6.60%, 10/1/2019.......................................................... 3,500,000 3,781,470
6.05%, 4/1/2026........................................................... 5,665,000 5,997,875
6.40%, 4/1/2027........................................................... 3,990,000 4,317,778
New York State Thruway Authority, Service Contract Revenue
(Local Highway and Bridge):
6%, 4/1/2012............................................................ 6,195,000 6,689,485
6.25%, 4/1/2014......................................................... 2,000,000 2,163,260
5.75%, 4/1/2016......................................................... 4,950,000 5,077,661
New York State Urban Development Corp., Correctional Facilities Revenue:
5.375%, 1/1/2015.......................................................... 3,000,000 2,975,310
Refunding 5.50%, 1/1/2014................................................. 3,000,000 3,063,090
Niagara Frontier Transportation Authority, Airport Revenue
(Greater Buffalo International Airport) 6.125%, 4/1/2014 (Insured; AMBAC). 2,700,000 2,861,190
Onondaga County Industrial Development Agency, Sewer Facilities Revenue
(Bristol Meyers Squibb Co. Project) 5.75%, 3/1/2024....................... 4,000,000 4,268,960
Port Authority of NewYork and New Jersey, Special Obligation Revenue
(Special Project-JFK International Air Terminal) 5.75%, 12/1/2025 (Insured; MBIA) 4,500,000 4,633,380
Rensselaer County Industrial Development Agency, IDR (Albany International
Corp.)
7.55%, 6/1/2007........................................................... 4,000,000 4,724,160
Triborough Bridge and Tunnel Authority, General Purpose Revenue, Refunding
6.125%, 1/1/2021.......................................................... 3,000,000 3,400,980
Yonkers Industrial Development Agency, Civic Facilities Revenue (St. Joseph
Hospital)
5.90%, 3/1/2008........................................................... 3,900,000 3,891,537
United Nations Development Corp., Revenue, Refunding 5.50%, 7/1/2017........ 2,000,000 2,002,300
U.S. Related-4.6%
Puerto Rico Commonwealth, Refunding (Public Improvement):
5.50%, 7/1/2011........................................................... 2,000,000 2,096,460
6%, 7/1/2026 (Prerefunded 7/1/2007)....................................... 5,000,000 5,593,900
Puerto Rico Electric Power Authority, Power Revenue
5.929%, 7/1/2023 (Prerefunded 7/1/2002) (b)............................... 2,000,000 2,148,580
Virgin Islands Public Finance Authority, Revenue, Refunding 5.50%, 10/1/2014 4,000,000 4,000,000
_____________
TOTAL MUNICIPAL INVESTMENTS (cost $283,257,514)............................. $301,302,175
=============
</TABLE>
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
Summary of Abbreviations
<S> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
COP Certificate of Participation LR Lease Revenue
FHA Federal Housing Administration MBIA Municipal Bond Investors Assurance
FSA Financial Security Assurance Insurance Corporation
GO General Obligation PCR Pollution Control Revenue
IDR Industrial Development Revenue SWDR Solid Waste Disposal Revenue
Summary of Combined Ratings (Unaudited)
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
_______ ________ ________________ __________________
AAA Aaa AAA 20.2%
AA Aa AA 9.3
A A A 35.8
BBB Baa BBB 27.6
BB Ba BB 1.7
Not Rated (d) Not Rated (d) Not Rated (d) 5.4
_______
100.0%
=======
Notes to Statement of Investments:
(a) Secured by letters of credit.
(b) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Manager to be of comparable quality
to those rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $283,257,514 $301,302,175
Cash....................................... 9,227,029
Interest receivable........................ 4,306,332
Receivable for investment securities sold.. 3,208,492
Prepaid expenses........................... 11,460
_____________
318,055,488
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 197,975
Due to Distributor......................... 5,444
Payable for investment securities purchased 4,007,945
Accrued expenses........................... 45,532
_____________
4,256,896
_____________
NET ASSETS.................................................................. $313,798,592
=============
REPRESENTED BY: Paid-in capital............................ $293,798,970
Accumulated net realized gain (loss) on investments 1,954,961
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4................ 18,044,661
_____________
NET ASSETS.................................................................. $313,798,592
=============
SHARES OUTSTANDING
(100 million shares of $.01 par value Common Stock authorized).............. 15,583,279
NET ASSET VALUE, offering and redemption price per share-Note 3(d).......... $20.14
=======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................ $8,763,356
EXPENSES: Management fee-Note 3(a)................... $ 931,773
Shareholder servicing costs-Note 3(b)...... 386,020
Directors' fees and expenses-Note 3(c)..... 17,562
Custodian fees............................. 16,266
Professional fees.......................... 14,650
Prospectus and shareholders' reports-Note 3(b) 7,463
Registration fees.......................... 5,987
Loan commitment fees-Note 2................ 1,559
Miscellaneous.............................. 9,259
___________
Total Expenses......................... 1,390,539
___________
INVESTMENT INCOME-NET....................................................... 7,372,817
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-NOTE 4:
Net realized gain (loss) on investments.... $1,948,400
Net unrealized appreciation (depreciation) on investments (232,352)
___________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 1,716,048
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $9,088,865
===========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 1998 Year Ended
(Unaudited) October 31, 1997
_____________ _____________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 7,372,817 $ 15,209,729
Net realized gain (loss) on investments............................. 1,948,400 2,723,016
Net unrealized appreciation (depreciation) on investments........... (232,352) 7,610,372
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations. 9,088,865 25,543,117
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................... (7,372,817) (15,209,729)
Net realized gain on investments.................................... (2,714,067) (1,872,173)
_____________ _____________
Total Dividends................................................. (10,086,884) (17,081,902)
_____________ _____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold....................................... 53,416,541 168,930,855
Dividends reinvested................................................ 7,422,191 12,405,077
Cost of shares redeemed............................................. (50,999,665) (194,529,439)
_____________ _____________
Increase (Decrease) in Net Assets from Capital Stock Transactions 9,839,067 (13,193,507)
_____________ _____________
Total Increase (Decrease) in Net Assets....................... 8,841,048 (4,732,292)
NET ASSETS:
Beginning of Period................................................. 304,957,544 309,689,836
_____________ _____________
End of Period....................................................... $313,798,592 $304,957,544
============= =============
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................... 2,629,642 8,559,560
Shares issued for dividends reinvested.............................. 365,840 626,648
Shares redeemed..................................................... (2,505,950) (9,841,404)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding................... 489,532 (655,196)
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
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.
Six Months Ended
April 30, 1998 Year Ended October 31,
_________________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $20.20 $19.66 $19.90 $18.73 $21.53 $19.55
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income-net................. .48 .98 1.01 1.06 1.14 1.17
Net realized and unrealized gain (loss)
on investments...................... .12 .66 (.10) 1.29 (2.49) 2.24
______ ______ ______ ______ ______ ______
Total from Investment Operations...... .60 1.64 .91 2.35 (1.35) 3.41
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net.. (.48) (.98) (1.01) (1.06) (1.15) (1.16)
Dividends from net realized gain on investments (.18) (.12) (.14) (.12) (.30) (.27)
______ ______ ______ ______ ______ ______
Total Distributions................... (.66) (1.10) (1.15) (1.18) (1.45) (1.43)
______ ______ ______ ______ ______ ______
Net asset value, end of period........ $20.14 $20.20 $19.66 $19.90 $18.73 $21.53
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN................... 5.99%(1) 8.63% 4.68% 12.98% (6.59%) 18.05%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .90%(1) .91% .91% .86% .76% .69%
Ratio of net investment income
to average net assets............... 4.75%(1) 4.98% 5.12% 5.51% 5.62% 5.64%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. -- -- -- .04% .12% .22%
Portfolio Turnover Rate............... 21.67%(2) 66.32% 80.30% 65.91% 24.56% 23.46%
Net assets, end of period (000's Omitted) $313,799 $304,958 $309,690 $322,636 $307,996 $414,136
(1) Annualized.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-Significant Accounting Policies:
General New York Municipal Bond Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a non-diversified
open-end management investment company. The Fund's investment objective is to
maximize current income exempt from Federal, New York State and New York City
income taxes to the extent consistent with the preservation of capital. The
Dreyfus Corporation ("Manager") serves as the Fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund
Services, Inc. (the "Distributor") is the distributor of the Fund's shares,
which are sold to the public without a sales load.
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.
(a) Portfolio valuation: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Directors. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(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, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
General New York Municipal Bond Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 2-Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
April 30, 1998, the Fund did not borrow under the Facility.
NOTE 3-Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .60 of 1% of the value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides that if in any full year the aggregate expenses of the Fund,
exclusive of taxes, brokerage, interest on borrowings, commitment fees and
extraordinary expenses, exceed 1 1\2% of the value of the Fund's average net
assets, the Fund may deduct from the payments to be made to the Manager, or
the Manager will bear such excess expense. During the period ended April 30,
1998, there was no expense reimbursement pursuant to the Agreement.
(b) Under the Service Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, the Fund (a) reimburses the Distributor for payments to
certain Service Agents (a securities dealer, financial institution or other
industry professional) for distributing the Fund's shares and servicing
shareholder accounts ("Servicing") and (b) pays the Manager, Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, and any affiliate of
either of them (collectively, "Dreyfus") for advertising and marketing
relating to the Fund and for Servicing, at an aggregate annual rate of .20 of
1% of the value of the Fund's average daily net assets. Both the Distributor
and Dreyfus may pay one or more Service Agents a fee in respect of the Fund's
shares owned by shareholders with whom the Service Agent has a Servicing
relationship or for whom the Service Agent is the dealer or holder of record.
Both the Distributor and Dreyfus determine the amounts, if any, to be paid to
Service Agents under the Plan and the basis on which such payments are made.
The fees payable under the Plan are payable without regard to actual expenses
incurred. The Plan also separately provides for the Fund to bear the costs of
preparing, printing and distributing certain of the Fund's prospectuses and
statements of additional information and costs associated with implementing
and operating the Plan, not to exceed the greater of $100,000 or .005 of 1%
of the value of the Fund's average daily net assets for any full fiscal year.
During the period ended April 30, 1998, the Fund was charged $311,801
pursuant to the 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 April 30, 1998, the Fund was charged $52,110 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 $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(d) A .10% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares (including redemption through use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to
a specified effective date and the redemption or exchange occurs less than
fifteen days following the date of issuance. During the period ended April
30, 1998, redemption fees amounted to $4,561.
General New York Municipal Bond Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 4-Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1998
amounted to $66,553,777 and $72,800,436, respectively.
At April 30, 1998, accumulated net unrealized appreciation on investments
was $18,044,661, consisting of $18,538,177 gross unrealized appreciation and
$493,516 gross unrealized depreciation.
At April 30, 1998, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
Registration Mark
[Dreyfus lion "d" logo]
GENERAL NEW YORK
MUNICIPAL BOND FUND, 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. 949SA984
Registration Mark
[Dreyfus logo]
General New York
Municipal Bond
Fund, Inc.
Semi-Annual
Report
April 30, 1998
