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 12-month period ended October 31, 1998. Your
Fund produced a total return, including share price changes and dividend income
generated, of 8.14%* and an annualized tax-free distribution rate per share of
4.60%.**
Economic Review
In the face of soaring consumer confidence and strong first-quarter economic
growth, the Federal Reserve Board earlier this year refrained from increasing
interest rates, partially to avoid further roiling international financial
markets. In addition, the Fed evidently felt then that the economic slowdown
overseas might curtail the U.S. economy to some degree, which would alleviate
the need for monetary restraint. The Fed's expectations have proven to be true,
and its judgment accurate. The U.S. balance of trade has worsened and there have
been increasing signs of a slowdown in export-related industries. On September
29, concerns about a weakening U.S. economy caused the Federal Open Market
Committee (the F.O.M.C., the policy-making arm of the Fed) to pare the Federal
Funds target rate by 25 basis points, the first reduction since January 1996.
(The Federal Funds rate is the rate of interest that banks charge each other for
overnight loans.) Fed Chairman Alan Greenspan described the economic outlook for
the United States as having "weakened measurably." Two weeks later, on October
15, the F.O.M.C. again reduced its target rate by an additional 25 basis points,
putting the Federal Funds rate at 5.0%.
Despite the concerns of the Fed regarding an economic slowdown, aggregate
economic statistics showed a growing and resilient economy during the reporting
period. Low unemployment and negligible inflation, combined with car makers
rebuilding inventory after a long strike and rising consumer incomes, resulted
in solid economic growth (3.3%) for the third quarter of this year. While a
significant portion of this gain was due to inventory replenishment after the
automobile strike, the overall results were still an improvement over
second-quarter economic growth of 1.8%. Inflation, as measured by the Consumer
Price Index, remained at levels not witnessed since 1963.
The Fed' s responsibility is to enact monetary policy that is anticipatory of
future economic conditions. The U.S. trade deficit has continued to widen
because of the global economic slide. Slumping exports have weakened
manufacturing activity since midyear and there is concern that this slackness
could become more pronounced and widen into other sectors of the economy. While
the increase in imports also restrains domestic production, it has helped
contain inflation as well, since domestic producers are reluctant to raise
prices. This provides additional flexibility for the Fed to lower interest rates
still further. So far, economic problems overseas have not caused any measurable
reaction in the U.S. labor market. Only the growth rate in new jobs has eased
from its torrid pace earlier in the year. The unemployment rate has remained
near 30-year lows and worker inflation-adjusted take-home pay has been rising.
The condition of the labor market is a key determinant of consumer confidence
which, of course, relates directly to consumer spending, a force that accounts
for two thirds of all economic activity. Business spending has shown signs of
weakness, so the role of the consumer will be of even greater importance in the
future. It is significant that measures of consumer confidence have receded from
earlier record high levels, largely because of concerns about the volatility of
financial markets.
Market Environment
Prices moved higher during the reporting period as demand from various classes
of investors found municipal bonds appealing, despite the extent to which
equities vied for investors' attention for most of the period. Low inflation and
low interest rates helped create and maintain a "bond friendly" atmosphere. Not
to be overlooked, either, is the improved fiscal posture enjoyed by many states
and municipalities, the result of several years of strong economic growth that
enhanced the creditworthiness of many municipal securities' issuers, and gave
added comfort to investors. The dollar value of newly issued bonds so far in
1998 has surpassed the volume experienced in all but a few previous years. At
$245 billion, it is approximately 29% over the same period last year, but it
should be noted that a dearth of appropriate bonds persists in several states.
The market has absorbed the new issuance without inordinate volatility in the
process. Municipal yields have been, and continue to be, very favorably aligned
vis-a-vis U.S. Treasury Bonds. Historically, longer-term municipals have been
viewed as being good values when their yields approached 80% to 85% of the
yields available on comparable Treasuries. Presently, most measures place the
ratio well in excess of 90%. The environment for municipal bonds still appears
to be positive, particularly with the Fed' s current preference for lower
interest rates.
Portfolio Overview
The market has gone through several cycles during the past year, from subdued
volatility to substantial same-day movements. During periods of low volatility
we found it advantageous to maintain a full coupon position, since the greater
part of the performance earlier in the year came mainly from coupons rather than
market movement. Except for underlying corporate credits, the yield spreads in
the municipal market tightened. We also apportioned a percentage of the
portfolio to paper that would benefit from a downswing in rates. We saw the
expected results of these positions as the 30-year Treasury Bond's yield dropped
below 5% . There were several issues that contributed to the Fund's performance
during the year. The buyout of LILCO by the Long Island Power Authority (LIPA)
brought to market the largest single issue in the history of the municipal
industry. The interest in this deal was very strong, and it was priced to
attract investors. Perhaps the most notable change in the New York market was
the strong improvement in New York City debt and other lower rated State and
City issues. When compared to AAA paper, the value spread on these issues has
tightened significantly. The Fund currently holds a large percentage of this
type of paper. During the upheaval in the stock market and the taxable fixed
income markets, the Fund experienced some drag from issues whose credit quality
is tied to corporate issuers; however, since the portfolio holds a limited
amount of this type of paper, the underperformance of that sector had only a
minimal effect on the overall performance. As measured within our Lipper sector
(New York Municipal Debt) , the Fund produced a total return of 8.14%, which
compares favorably to the sector's average return of 7.34%.
Very truly yours,
[Richard J. Moynihan signature]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 16, 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>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC. OCTOBER 31, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN GENERAL NEW YORK
MUNICIPAL BOND FUND, INC. AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
Dollars
$21,915
Lehman Brothers Municipal Bond Index*
$21,044
General New York Municipal Bond Fund, Inc.
*Source: Lehman Brothers
Average Annual Total Returns
- --------------------------------------------------------------------------------
One Year Ended Five Years Ended Ten Years Ended
October 31, 1998 October 31, 1998 October 31, 1998
___________________ ___________________ _________________________
<S> <C> <C> <C>
8.14% 5.35% 7.72%
- ------------------------
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in the General New York
Municipal Bond Fund, Inc. on 10/31/88 to a $10,000 investment made in the Lehman
Brothers Municipal Bond Index on that date. All dividends and capital gain
distributions are reinvested.
The Fund invests primarily in New York municipal securities and its performance
shown in the line graph takes into account fees and expenses. The Lehman
Brothers Municipal Bond Index is not limited to investments principally in New
York municipal obligations and does not take into account fees and expenses. The
Lehman Brothers Municipal Bond Index, unlike the Fund, is an unmanaged total
return performance benchmark for the long-term, investment-grade, geographically
unrestricted tax exempt bond market, calculated by using municipal bonds
selected to be representative of the municipal market overall. These factors can
contribute to the Index potentially outperforming the Fund. Further information
relating to Fund performance, including expense reimbursements, if applicable,
is contained in the Financial Highlights section of the Prospectus and elsewhere
in this report.
<TABLE>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS OCTOBER 31, 1998
Principal
Long-Term Municipal Investments--98.6% Amount Value
- ------------------------------------------------------- _____________ _____________
<S> <C> <C>
New York--94.5%
Albany Industrial Development Agency:
IDR (Hampton Plaza Project) 6.25%, 3/15/2018 . . . . . . . . . . . . . . . . . . . . . . $ 5,600,000 $ 5,859,840
LR:
(New York State Assembly Building Project) 7.75%, 1/1/2010 . . . . . . . . . . . . . . 3,460,000 3,785,967
(New York State Department of Health Building Project) 7.25%, 10/1/2010 . . . . . . . 1,730,000 1,969,726
Board of Cooperative Educational Services, COP (Greenport Vocational Facility
Project)
7.875%, 10/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606,192 626,687
Cohoes Industrial Development Agency, IDR (Norlite Corp. Project)
6.75%, 5/1/2009 (LOC; Dresdner Bank, Prerefunded 5/1/2002) (a) . . . . . . . . . . . . . 2,400,000 2,674,320
Franklin County Solid Waste Management Authority, Solid Waste Systems Revenue
6.125%, 6/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,350,000 1,409,494
Jefferson County Industrial Development Agency, SWDR
(Champion International Corp.) 7.20%, 12/1/2020 . . . . . . . . . . . . . . . . . . . . 2,000,000 2,204,100
Long Island Power Authority, Electric System Revenue 5.50%, 12/1/2029. . . . . . . . . . . 2,960,000 3,058,805
Metropolitan Transportation Authority, Transportation Facilities Revenue:
6%, 7/1/2016 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,613,400
Refunding (Service Contract) 5.375%, 7/1/2021 . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,053,430
New York City:
5.875%, 8/15/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,300,000 3,592,644
5.875%, 8/15/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,715,000 2,918,842
Refunding:
6.375%, 8/15/2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,670,000 2,983,832
6%, 8/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,347,520
6%, 8/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,183,660
6%, 8/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 6,550,980
6.125%, 8/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,495,850
New York City Industrial Development Agency:
Civic Facility Revenue:
(College of Aeronautics Project) 5.50%, 5/1/2028 . . . . . . . . . . . . . . . . . . . 1,600,000 1,636,288
(YMCA of Greater New York Project) 5.80%, 8/1/2016 . . . . . . . . . . . . . . . . . . 1,500,000 1,593,165
IDR, Refunding (LaGuardia Association LP Project) 6%, 11/1/2028 . . . . . . . . . . . . 2,790,000 2,798,035
Special Facility Revenue (Terminal One Group Association Project)
6%, 1/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,193,440
New York City Municipal Water Finance Authority, Water and Sewer System Revenue
6%, 6/15/2025 (Prerefunded 6/15/2005) (a) . . . . . . . . . . . . . . . . . . . . . . . 9,750,000 10,988,933
State of New York, GO 5.70%, 3/15/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,150,480
New York State Dormitory Authority, Revenues:
Consolidated City University Systems:
5.75%, 7/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,005,000 11,148,171
5.625%, 7/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,701,650
5.75%, 7/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,747,750
Department of Health:
5.75%, 7/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,240,000 5,564,880
(Roswell Park Cancer) 6.625%, 7/1/2024 (Prerefunded 7/1/2005) (a) . . . . . . . . . . 2,700,000 3,151,710
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
New York (continued)
New York State Dormitory Authority, Revenues (continued):
Refunding:
(Mental Health Services Facility) 6%, 8/15/2021 . . . . . . . . . . . . . . . . . . . $ 1,750,000 $ 1,911,315
Secured Hospital (New York Downtown Hospital) 5.30%, 2/15/2020 . . . . . . . . . . . . 5,000,000 5,049,950
State University Educational Facilities:
5.50%, 5/15/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,631,145
5.875%, 5/15/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,060,000 2,298,775
6%, 5/15/2025 (Prerefunded 5/15/2005) (a) . . . . . . . . . . . . . . . . . . . . . . 3,825,000 4,333,496
4.75%, 5/15/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,500,000 5,211,690
WK Nursing Home Corp. 6.05%, 2/1/2026 (Insured; FHA) . . . . . . . . . . . . . . . . . . 5,000,000 5,430,400
New York State Energy Research and Development Authority:
Electric Facilities Revenue (Long Island Lighting) 7.15%, 9/1/2022 . . . . . . . . . . . 3,435,000 3,754,043
Facilities Revenue (Consolidated Edison Co. of New York, Inc. Project) 7.125%, 12/1/2029 . . 2,000,000 2,308,940
Gas Facilities Revenue (Brooklyn Union Gas Co. Project) 6.368%, 4/1/2020 . . . . . . . . 5,000,000 5,750,500
New York State Environmental Facilities Corp.:
PCR (Pilgrim State Sewer Project) 6.30%, 3/15/2016 . . . . . . . . . . . . . . . . . . . 5,200,000 5,799,404
Water Facilities Revenue (New Rochelle Water Co. Project) 6.40%, 12/1/2024 . . . . . . . 2,000,000 2,130,400
New York State Housing Finance Agency, Revenue:
LooseStrife Fields Apartments and Fairway Manor 6.75%, 11/15/2036 (Insured; FHA) . . . . 5,925,000 6,475,255
Multi-Family Housing, Second Mortgage 6.625%, 8/15/2012 . . . . . . . . . . . . . . . . 2,500,000 2,667,350
Refunding:
Health Facilities 6%, 11/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 6,703,380
(Housing Mortgage Project) 6.10%, 11/1/2015 (Insured; FSA) . . . . . . . . . . . . . . 1,965,000 2,146,684
Service Contract Obligation:
6%, 9/15/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,675,000 9,347,486
6%, 3/15/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,645,000 7,170,885
Refunding:
5.25%, 3/15/2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,102,460
5.50%, 9/15/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 6,160,500
New York State Medical Care Facilities Finance Agency, Revenue:
Hospital & Nursing Home Insured Mortgage:
6.85%, 2/15/2012 (Prerefunded 2/15/2002)(Insured; FHA) (a) . . . . . . . . . . . . . . 2,670,000 2,972,538
6.20%, 8/15/2013 (Insured; FHA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,222,570
6.125%, 2/15/2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,170,000 5,613,017
Improvement (Mental Health Services Facilities) 6.50%, 2/15/2019 . . . . . . . . . . . . 4,705,000 5,199,119
New York State Mortgage Agency, Homeowner Revenue:
6%, 4/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,155,740
6.60%, 10/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 3,816,435
6.05%, 4/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,610,000 6,037,594
6.40%, 4/1/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,980,000 4,361,403
New York State Thruway Authority, Service Contract Revenue
(Local Highway and Bridge):
6%, 4/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,195,000 6,844,608
6.25%, 4/1/2014 (Prerefunded 4/1/2005) (a) . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,278,000
5.75%, 4/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,950,000 5,216,458
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
New York (continued)
New York State Urban Development Corp., Correctional Facilities Revenue:
5.375%, 1/1/2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 $ 3,102,900
Refunding 5.50%, 1/1/2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,209,160
Niagara Frontier Transportation Authority, Airport Revenue
(Greater Buffalo International Airport) 6.125%, 4/1/2014 (Insured; AMBAC) . . . . . . . 2,700,000 2,928,798
Onondaga County Industrial Development Agency, Sewer Facilities Revenue
(Bristol Meyers Squibb Co. Project) 5.75%, 3/1/2024 . . . . . . . . . . . . . . . . . . 4,000,000 4,443,400
Orange County Industrial Development Agency, Life Care Community Revenue
(Glenn Arden Inc. Project) 5.625%, 1/1/2018 . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,001,610
Port Authority of New York and New Jersey, Special Obligation Revenue
(Special Project-JFK International Air Terminal) 5.75%, 12/1/2025 (Insured; MBIA) . . . 4,500,000 4,772,475
Rensselaer County Industrial Development Agency, IDR (Albany International
Corp.)
7.55%, 6/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,882,760
Scotia Housing Authority, Housing Revenue (Coburg Village Inc. Project)
6.15%, 7/1/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,042,090
Triborough Bridge and Tunnel Authority, General Purpose Revenue, Refunding
6.125%, 1/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,513,570
Yonkers Industrial Development Agency, Civic Facilities Revenue (St. Joseph
Hospital)
5.90%, 3/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,900,000 3,954,951
U.S. Related--4.1%
Puerto Rico Commonwealth, Refunding (Public Improvement)
6%, 7/1/2026 (Prerefunded 7/1/2007) (a) . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,773,450
Puerto Rico Electric Power Authority, Power Revenue
5.929%, 7/1/2023 (Prerefunded 7/1/2002) (a) . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,178,060
Virgin Islands Public Finance Authority, Revenue, Refunding 5.50%, 10/1/2014 . . . . . . . 4,000,000 4,145,040
_____________
TOTAL INVESTMENTS
(cost $264,733,634) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98.6% $289,053,403
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4% $ 4,177,401
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $293,230,804
_______ _____________
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
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 or Moody's or Standard & Poor's Percentage of Value
____ ________ ________________ __________________
AAA Aaa AAA 26.0%
AA Aa AA 9.7
A A A 28.8
BBB Baa BBB 27.1
BB Ba BB .4
Not Rated (b) Not Rated (b) Not Rated (b) 8.0
_______
100.0%
_______
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) 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.
(b) Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to those
securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $264,733,634 $289,053,403
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 199,015
Interest receivable . . . . . . . . . . . . . . . . . . . 4,247,653
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 9,377
_____________
293,509,448
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 198,633
Due to Distributor . . . . . . . . . . . . . . . . . . . 5,726
Accrued expenses . . . . . . . . . . . . . . . . . . . . 74,285
_____________
278,644
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $293,230,804
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $265,247,276
Accumulated undistributed investment income--net . . . . 36,940
Accumulated net realized gain (loss) on investments . . . 3,626,819
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 24,319,769
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $293,230,804
_____________
_____________
SHARES OUTSTANDING
(100 MILLION SHARES OF $.01 PAR VALUE COMMON STOCK AUTHORIZED) . . . . . . . . . . . . . . 14,196,414
NET ASSET VALUE, offering and redemption price per share--Note 3(d). . . . . . . . . . . . $20.66
_______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest income . . . . . . . . . . . . . . . . . . . . . $17,363,517
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . . . . . $ 1,862,525
Shareholder servicing costs--Note 3(b) . . . . . . . . . 776,809
Directors' fees and expenses--Note 3(c) . . . . . . . . . 35,630
Professional fees . . . . . . . . . . . . . . . . . . . . 34,046
Custodian fees . . . . . . . . . . . . . . . . . . . . . 31,760
Prospectus and shareholders' reports--Note 3(b) . . . . . 13,085
Registration fees . . . . . . . . . . . . . . . . . . . . 11,726
Loan commitment fees--Note 2 . . . . . . . . . . . . . . 2,322
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 17,062
____________
Total Expenses . . . . . . . . . . . . . . . . . . 2,784,965
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,578,552
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . . . . . $ 3,851,809
Net unrealized appreciation (depreciation) on investments . . 6,042,756
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . 9,894,565
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $24,473,117
____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
October 31, 1998 October 31, 1997
________________ ________________
OPERATIONS:
<S> <C> <C>
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,578,552 $ 15,209,729
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . . . . 3,851,809 2,723,016
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . . . . 6,042,756 7,610,372
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . . . . 24,473,117 25,543,117
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,541,612) (15,209,729)
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,945,618) (1,872,173)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,487,230) (17,081,902)
_____________ _____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,000,612 168,930,855
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,761,186 12,405,077
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (104,474,425) (194,529,439)
_____________ _____________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . . . . . . . (18,712,627) (13,193,507)
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . . (11,726,740) (4,732,292)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,957,544 309,689,836
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 293,230,804 $ 304,957,544
_____________ _____________
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 36,940 --
_____________ _____________
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,587,659 8,559,560
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . 625,795 626,648
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,110,787) (9,841,404)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . . . . . . (897,333) (655,196)
_____________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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.
Year Ended October 31,
______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $20.20 $19.66 $19.90 $18.73 $21.53
______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .96 .98 1.01 1.06 1.14
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . .65 .66 (.10) 1.29 (2.49)
______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . 1.61 1.64 .91 2.35 (1.35)
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.96) (.98) (1.01) (1.06) (1.15)
Dividends from net realized gain on investments . . . . . (.19) (.12) (.14) (.12) (.30)
______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . . . . . (1.15) (1.10) (1.15) (1.18) (1.45)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . $20.66 $20.20 $19.66 $19.90 $18.73
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . 8.14% 8.63% 4.68% 12.98% (6.59%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . .90% .91% .91% .86% .76%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 4.70% 4.98% 5.12% 5.51% 5.62%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . . -- -- -- .04% .12%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 32.96% 66.32% 80.30% 65.91% 24.56%
Net Assets, end of period (000's Omitted) . . . . . . . . $293,231 $304,958 $309,690 $322,636 $307,996
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
General New York Municipal Bond Fund, Inc. (the "Fund") is registered under
the Investment Company Act of 1940, as amended (the "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 (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. (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. Under the terms of the custody
agreement, the Fund receives net earnings credits based on available cash
balances left on deposit.
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 of 1986, as
amended (the "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 Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 October 31, 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 October 31, 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 October 31, 1998, the
Fund was charged $623,640 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 October 31, 1998, the Fund was charged $101,850 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 redemption or exchange occurs less than fifteen
days following the date of issuance. During the period ended October 31, 1998,
redemption fees amounted to $5,041.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1998
amounted to $100,553,186 and $127,229,876, respectively.
At October 31, 1998, accumulated net unrealized appreciation on investments
was $24,319,769, consisting of $24,355,549 gross unrealized appreciation and
$35,780 gross unrealized depreciation.
At October 31, 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).
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Directors
General New York Municipal Bond Fund, Inc.
We have audited the accompanying statement of assets and liabilities of
General New York Municipal Bond Fund, Inc., including the statement of
investments, as of October 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 October 31, 1998 by correspondence with the custodian. 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
General New York Municipal Bond Fund, Inc. at October 31, 1998, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for each
of the indicated years, in conformity with generally accepted accounting
principles.
[ERNST & YOUNG LLP Signature Logo]
New York, New York
December 4, 1998
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended October 31, 1998:
-- all the dividends paid from investment income-net are "exempt-interest
dividends" (not generally subject to regular Federal income tax and, for
individuals who are New York residents, New York State and New York City
personal income taxes), and
-- the Fund hereby designates $.1265 per share as a long-term capital gain
distribution of the $.1775 per share paid on December 4, 1997. The Fund also
designates $.0154 per share as a long-term capital gain distribution paid on
July 7, 1998.
As required by Federal tax law rules, shareholders will receive notification
of their portion of the Fund's taxable ordinary dividends (if any) and capital
gain distributions (if any) paid for the 1998 calendar year on Form 1099-DIV
which will be mailed by January 31, 1999.
[reg.tm logo]
(reg.tm)
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. 949AR9810
General New York
Municipal Bond
Fund, Inc.
Annual Report
October 31, 1998
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
LEHMAN GENERAL
BROTHERS NEW YORK
PERIOD MUNICIPAL MUNICIPAL
BOND INDEX * BOND FUND, INC.
10/31/88 10,000 10,000
10/31/89 10,811 10,479
10/31/90 11,613 11,052
10/31/91 13,026 12,691
10/31/92 14,119 13,735
10/31/93 16,108 16,215
10/31/94 15,406 15,146
10/31/95 17,692 17,113
10/31/96 18,700 17,913
10/31/97 20,288 19,460
10/31/98 21,915 21,044
*Source: Lehman Brothers
