<PAGE>
Dreyfus
100% U.S. Treasury
Intermediate
Term Fund
Semi-Annual
Report
June 30, 1997
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus 100% U.S.
Treasury Intermediate Term Fund. For its semi-annual reporting ended June
30, 1997, your Fund produced a total return of 1.50%, including bond price
changes and interest income.* Income dividends of approximately $ .445 per
share were paid during the six-month period, which is equivalent to an
annualized distribution rate per share of 7.22%.**
Economic Review
Despite recent moderation in the rate of new job creation, the latest
reported unemployment rate was 5% in June. When the unemployment rate was
last at that level, the inflation rate was heading toward double-digit
territory. Now, inflation appears to be subdued: the Consumer Price Index
rose at an annual rate of just 1.4% for the 12-month period through May.
Producer prices have risen a minuscule 0.6% over the same time. It has been
unprecedented for the economy to have seven years of expansion, low
unemployment and low inflation at the same time.
Ever alert for signs of incipient inflation, the Federal Open Market
Committee (FOMC), the policy-making arm of the Federal Reserve Board, has
raised interest rates just once in more than two years. That hike came in
March 1997 when the Federal Funds rate was increased by one-quarter of a
percentage point to 5.50%. (The Federal Funds rate is the rate of interest
that banks charge one another for overnight loans.) While there have been
some signs that wages are increasing (an area of particular concern to the
Federal Reserve), there have also been indications that the economy may be
slowing from its torrid first quarter pace when it surged at a 5.9% annual
rate, the biggest advance since the fourth quarter of 1987.
Indicating possible moderation in the rate of economic growth, retail
sales were in decline all spring despite record levels of consumer optimism
about the economy. The latest report on retail sales for March, April, and
May showed a decline at an annual rate of 5% over the previous three months.
This marked the first three-month decline since the fall of 1981. Yet,
despite their sluggish spending at checkout counters, consumers' confidence
in the economy continues to climb, heavily influenced by increased job
security and low inflation.
Throughout the seven-year economic expansion, the pattern of consumer
spending has been stop-and-go, alternating between spurts of spending and
retrenchment. The 5% decline in retail sales for the three months through
May was preceded by a 15% advance over the previous three-month period. On
the production side of the economy, a survey of corporate buyers compiled by
the National Association of Purchasing Management reported that growth in
factory activity eased slightly during June. The much observed
supplier-delivery component of the survey, a measure of how quickly orders
are being satisfied and a possible sign of production bottlenecks, also fell
modestly. In further evidence of a slowing economy during the second
quarter, the Commerce Department recently reported that factory orders fell
in May.
Rising incomes, low unemployment and quiescent inflation have all
contributed to a feeling of confidence, as measured by the Conference Board's
Index of Consumer Sentiment, that has been unmatched for 28 years. Many
economists feel that the optimistic consumer sentiment indicators provide a
floor to economic growth and will spur consumer spending later in the year,
particularly if the unemployment rate remains low and job security worries
recede further. We are mindful of the potent role that consumers play in the
economy - their spending accounts for about two-thirds of economic output. So
we remain alert to signs of any strain on productive capacity caused by
increases in consumer spending that might, in turn, lead to another
tightening in monetary policy by the Federal Reserve.
Market Environment
At the close of the reporting period, a number of political and technical
factors in the bond market appeared to be quite positive. A balanced budget
looks like an achievable goal. The Treasury is currently in the process of
figuring which sector of the yield curve to reduce supply in because of the
reduced deficit. U.S. interest rates are currently higher than in most other
developed countries, making our rates attractive globally, and the dollar
continues to remain strong. Last, commodity prices have been drifting lower.
At the consumer level, the rate outlook has been positive too. Bank
lending criteria, especially in the credit card arena, have become more
stringent. The primary reason for that is the continued rise of consumer
delinquencies. Retail sales have been sluggish, and car sales have also
turned sluggish. As just one example, some of the hottest selling vehicles
last year now have incentives to buy them. Further, some manufacturers are
offering financing at 0% interest for two years.
Portfolio Overview
Currently, the maturity of the Fund is at a 6.675-year weighted average
life with an effective duration of 4.817 years. During the reporting period,
we extended maturity of the Fund by moving into the five to seven-year bond
sector. The Fund benefited from this allocation in two ways-by extending
duration in a declining rate environment, and by taking advantage of the
flatter yield curve structure (longer maturities outperformed shorter
maturities).
Two factors that we feel could change our allocation are consumer
behavior and foreign economies. If consumer spending were to increase
significantly or foreign economies were to appear much stronger, we would
seriously consider readjusting our outlook. As always, we will be monitoring
these factors, as well as numerous other indicators.
Sincerely,
[Gerald E. Thunelius signature logo]
Gerald E. Thunelius
Portfolio Manager
July 17, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**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.
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statement of Investments June 30, 1997 (Unaudited)
Principal
Bonds and Notes--97.7% Amount Value
- ---------------------------------------------------------------------------- ----------- --------------
<S> <C> <C>
U.S. Treasury Bonds--61.2%
11 3/4%, 2/15/2001......................................................... $ 2,000,000 $ 2,350,313
11 1/8%, 8/15/2003......................................................... 19,400,000 23,940,812
11 7/8%, 11/15/2003........................................................ 7,500,000 9,596,485
13 3/4%, 8/15/2004......................................................... 25,900,000 36,494,719
11 5/8%, 11/15/2004........................................................ 5,400,000 7,002,281
12%, 5/15/2005............................................................. 13,850,000 18,457,290
13 7/8%, 5/15/2011......................................................... 6,700,000 9,916,000
11 1/4%, 2/15/2015......................................................... 2,000,000 2,908,750
------------
110,666,650
------------
U.S. Treasury Inflation Protection Securities -- 2.7%
3 3/8%, 1/15/2007.......................................................... 5,000,000 (a) 4,937,997
------------
U.S. Treasury Notes--33.8%
9 1/8%, 5/15/1999........................................................... 17,125,000 18,037,442
8 1/2%, 11/15/2000.......................................................... 12,000,000 12,798,750
6 5/8%, 6/30/2001........................................................... 15,000,000 15,150,000
6 1/2%, 5/31/2002........................................................... 15,000,000 15,067,970
------------
61,054,162
------------
TOTAL INVESTMENTS
(cost $178,632,862)........................................................ 97.7% $176,658,809
======= ============
CASH AND RECEIVABLES (NET)..................................................... 2.3% $ 4,076,879
======= ============
NET ASSETS.................................................................... 100.0% $180,735,688
======= ============
<FN>
Notes to Statement of Investments:
- -------------------------------------
(a) Interest rate changes based on principal adjustments linked to changes in
the Consumer Price Index.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statement of Assets and Liabilities June 30, 1997 (Unaudited)
Cost Value
-------------- --------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $178,632,862 $176,658,809
Cash................................................... 364,493
Interest receivable.................................... 3,334,771
Receivable for shares of Beneficial Interest subscribed 609,514
Prepaid expenses and other assets...................... 15,573
------------
180,983,160
------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.......... 46,077
Payable for shares of Beneficial Interest redeemed..... 166,852
Accrued expenses....................................... 34,543
------------
247,472
------------
NET ASSETS ................................................................... $180,735,688
============
REPRESENTED BY: Paid-in capital........................................ $203,666,164
Accumulated net realized gain (loss) on investments.... (20,956,423)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 ............................... (1,974,053)
------------
NET ASSETS ................................................................... $180,735,688
============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized). 14,543,112
NET ASSET VALUE, offering and redemption price per share....................... $12.43
======
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended June 30, 1997 (Unaudited)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income........................................ $ 7,319,312
EXPENSES: Management fee--Note 3(a)............................... $ 549,339
Shareholder servicing costs--Note 3(b).................. 280,771
Professional fees...................................... 22,741
Registration fees...................................... 21,652
Trustees' fees and expenses--Note 3(c)................. 18,955
Custodian fees--Note 3(b)............................... 10,463
Prospectus and shareholders' reports.................. 9,230
Loan commitment fees--Note 2............................ 1,204
Miscellaneous.......................................... 1,871
------------
Total Expenses................................... 916,226
Less--reduction in management fee due to
undertaking--Note 3(a)............................... (182,570)
------------
Net Expenses..................................... 733,656
-----------
INVESTMENT INCOME--NET.......................................................... 6,585,656
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments................ $(3,206,244)
Net unrealized appreciation (depreciation) on investments (690,839)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... (3,897,083)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $ 2,688,573
===========
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
----------------- ------------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 6,585,656 $ 12,674,163
Net realized gain (loss) on investments.............................. (3,206,244) (3,220,201)
Net unrealized appreciation (depreciation) on investments............ (690,839) (3,682,345)
------------- -------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 2,688,573 5,771,617
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net............................................... (6,585,656) (12,743,881)
------------- -------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................ 16,430,284 52,985,573
Dividends reinvested................................................. 4,350,173 8,428,334
Cost of shares redeemed.............................................. (28,444,035) (59,115,390)
------------ -------------
Increase (Decrease) in Net Assets from Beneficial Interest
Transactions..................................................... (7,663,578) 2,298,517
------------ -------------
Total Increase (Decrease) in Net Assets........................ (11,560,661) (4,673,747)
NET ASSETS:
Beginning of Period................................................. 192,296,349 196,970,096
------------ -------------
End of Period....................................................... $180,735,688 $ 192,296,349
============ =============
</TABLE>
<TABLE>
<CAPTION>
Shares Shares
------------ -------------
CAPITAL SHARE TRANSACTIONS:
<S> <C> <C>
Shares sold.......................................................... 1,318,125 4,149,186
Shares issued for dividends reinvested............................... 349,436 663,235
Shares redeemed...................................................... (2,281,288) (4,654,680)
------------ -------------
Net Increase (Decrease) in Shares Outstanding.................... (613,727) 157,741
============ =============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
Financial Highlights
Contained below is per share operating performance data for a share of
Beneficial Interest 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.
<TABLE>
<CAPTION>
Six Months Ended Year Ended December 31,
June 30, 1997 ------------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
---------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.69 $13.13 $12.16 $13.60 $13.12 $13.22
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net............... .45 .82 .89 .91 .95 1.00
Net realized and unrealized gain (loss)
on investments.................... (.26) (.44) .97 (1.44) .48 (.10)
------ ------ ------ ------ ------ ------
Total from Investment Operations.... .19 .38 1.86 (.53) 1.43 .90
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net (.45) (.82) (.89) (.91) (.95) (1.00)
------ ------ ------ ------ ------ ------
Net asset value, end of period...... $12.43 $12.69 $13.13 $12.16 $13.60 $13.12
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN................ 3.02%(1) 3.08% 15.77% (3.97%) 11.05% 7.17%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .80%(1) .80% .84% .89% .73% .52%
Ratio of net investment income
to average net assets............. 7.19%(1) 6.41% 7.02% 7.15% 6.92% 7.68%
Decrease reflected in above expense ratios
due to undertakings by the Manager .20%(1) .13% .02% -- .13% .38%
Portfolio Turnover Rate............. 332.15%(2) 728.01% 492.76% 696.65% 333.76% 115.78%
Net Assets, end of period (000's Omitted) $180,736 $192,296 $196,970 $185,261 $254,278 $231,094
<FN>
________________
(1) Annualized.
(2) Not annualized.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus 100% U.S.Treasury Intermediate Term Fund
(the "Fund") is registered under the Investment Company Act of
1940 ("Act") as a diversified open-end management investment company.
The investment objective is to provide investors with as high a
level of current income as is 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.
("Mellon"). 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'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 are valued at
the mean between quoted bid and asked prices.
(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,
including, where applicable, amortization of discount on investments, is
recognized on the accrual basis.
(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, if any, 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, 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, if such
qualification is in the best interests of its shareholders, by complying
with the applicable provisions of the Internal Revenue Code, and to make
distributions of taxable income sufficient to relieve it from substantially
all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately
$17,527,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to
December 31, 1996. If not applied, $14,530,000 of the carryover expires in
fiscal 2002 and $2,997,000 expires in fiscal 2004.
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 June 30, 1997, there were no borrowings under
the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management 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 Manager has undertaken
from January 1, 1997 through December 31, 1997 to reduce the management
fee paid by the Fund, to the extent that the Fund's aggregate expenses
(exclusive of taxes, brokerage, interest on borrowings, commitment fees
and extraordinary expenses) exceed an annual rate of .80 of 1% of the value
of the Fund's average daily net assets. The reduction in management fee,
pursuant to the undertaking, amounted to $182,570 during the period ended
June 30, 1997.
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(b) Under the Shareholder Services Plan, the Fund 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 the Fund's
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 June 30, 1997, the Fund was
charged an aggregate of $199,111 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. Such compensation
amounted to $54,017 during the period ended June 30, 1997.
The Fund compensates Mellon under a custody agreement to provide
custodial services for the Fund. During the period ended June 30, 1997,
$10,463 was charged by Mellon pursuant to the custody agreement.
(c) Each trustee 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
$250 per meeting. The Chairman of the Board receives an additional
25% of such compensation and the Trustee Emeritus receives 50% of
such compensation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended June 30, 1997,
amounted to $632,691,276 and $660,930,553, respectively.
At June 30, 1997, accumulated net unrealized depreciation on investments
was $1,974,053, consisting of $187,791 gross unrealized appreciation and
$2,161,844 gross unrealized depreciation.
At June 30, 1997, 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).
<PAGE>
Dreyfus 100% U.S. Treasury
Intermediate Term Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 072SA976
