DREYFUS PREMIER MUNICIPAL BOND FUND
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LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Premier Municipal Bond
Fund for the six-month reporting period ended October 31, 1998, as shown in the
following table:
<TABLE>
<CAPTION>
ANNUALIZED
TOTAL RETURN* DISTRIBUTION RATE**
___________ _______________
<S> <C> <C>
Class A shares . . . . . . . . . . . . . . . . . . . . 2.52% 4.88%
Class B shares . . . . . . . . . . . . . . . . . . . . 2.26% 4.59%
Class C shares . . . . . . . . . . . . . . . . . . . . 2.12% 4.33%
</TABLE>
ECONOMY REVIEW
In the face of soaring consumer confidence and strong first-quarter economic
growth, the Federal Reserve Board (the "Fed") 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. is 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.) At that point, 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 the 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
The general fixed-income markets have traded off in a downward-spiked pattern
since appreciating dramatically and topping in mid-October. Market participants
have been greatly influenced by the overall trend to perceived safer securities
(mainly Treasury notes and bonds), incited by the Asian economic crisis. This
crisis has prompted notions of domestic economic contraction, creating the
perception that bonds whose credit quality is dependent on the business cycle
are vulnerable. Therefore, many securities, such as corporate, mortgage, asset
backed, or project related bonds, have traded off in this period. Currently, the
expectation is that the interest rate spreads of these types of securities and
Treasuries will remain wide. Additionally, the recent exaggerated nature of
short-term price performance (both up and down) was greatly influenced by the
financial problems of leveraged hedge funds and the quick response by the
Federal Reserve. The municipal market focused on these trends and its
participants initially benefited from the same direction, though not to the same
level of appreciation, as the Treasury bond markets. Correspondingly, in the
recent market price decline, municipals outperformed Treasuries, maintaining
more of their value.
PORTFOLIO OVERVIEW
In the past, your Fund has been a responder to the supply-and-demand pressure
dynamic of the tax-exempt bond market. New issuance, usually our primary
concern, was replaced by the fundamental concerns of interest rate trends and
the previously mentioned widening of interest rate levels among different
classes of bonds. While your Fund is not adversely impacted to the same extent
as many other asset groups, some bonds in your Fund were affected and some
losses were realized in the current quarter.
As a protective measure, some high-quality, highly liquid securities were
added to your Fund. Bonds that could erode in price due to the current market
sentiment were replaced. Likewise, bonds with short call features on premium
priced positions that bring prices down with the passing of time were traded.
These exchanges were accomplished at a modest change in yield in most
circumstances. This new balance leaves many defensive securities in the
portfolio, which is appropriate in a scenario where recent Fed rate cuts have
primarily enhanced the value of the equity markets and not the bond market.
However, if there is another upward price rally in fixed income, the newly added
bonds will participate.
Included in this report is a series of detailed financial statements, which
outline the Fund' s current holdings and its financial condition. We hope that
you find them informative.
Very truly yours,
[Richard J. Moynihan signature logo]
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,
and does not take into consideration the maximum initial sales charge in the
case of Class A shares, or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B and Class C shares.
**Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized) , divided by the maximum
offering price per share at the end of the period in the case of Class A shares,
or the net asset value per share in the case of Class B and Class C shares. Some
income may be subject to the Federal Alternative Minimum Tax (AMT) for certain
shareholders.
<TABLE>
<CAPTION>
DREYFUS PREMIER MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments--98.0% Amount Value
- ------------------------------------------------------- _____________ _____________
<S> <C> <C>
ARIZONA--.9%
Maricopa County Pollution Control Corporation, PCR, Refunding
(Public Service Co. - New Mexico Project) 6.30%, 12/1/2026 . . . . . . . . . . . . . . . $ 5,000,000 $ 5,360,250
CALIFORNIA--3.4%
Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue:
6%, 1/1/2034 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,353,900
5%, 1/1/2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 7,708,240
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue
(Senior Lien) 5%, 1/1/2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,500,000 6,257,680
COLORADO--9.2%
Arapahoe County Capital Improvement Trust Fund, Highway Revenue (E-470 Project)
Zero Coupon, 8/31/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,530,000 1,914,679
Zero Coupon, 8/31/2007 (Prerefunded 8/31/2005) (a) . . . . . . . . . . . . . . . . . . . 4,000,000 2,701,440
7%, 8/31/2026 (Prerefunded 8/31/2005) (a) . . . . . . . . . . . . . . . . . . . . . . . 11,000,000 13,232,890
Dawson Ridge, Metropolitan District Number 1, Refunding:
Zero Coupon, 10/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,930,000 3,557,422
Zero Coupon, 10/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,535,000 12,983,234
Denver City and County, Airport Revenue:
7.50%, 11/15/2023 (Prerefunded 11/15/2004) (a) . . . . . . . . . . . . . . . . . . . . . 2,060,000 2,481,517
7.50%, 11/15/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,715,000 11,330,993
7%, 11/15/2025 (Prerefunded 11/15/2001) (a) . . . . . . . . . . . . . . . . . . . . . . 820,000 898,392
7%, 11/15/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,405,000 3,653,871
Connecticut--2.0%
Connecticut Development Authority
First Mortgage Gross Revenue (Elim Park Baptist Home, Inc. Project)
9%, 12/1/2020 (Prerefunded 12/1/1999) (a) . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,271,980
PCR, Refunding (Connecticut Light & Power)
5.85%, 9/1/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 8,053,360
Delaware--.7%
Delaware Housing Authority, MFMR 7%, 5/1/2025. . . . . . . . . . . . . . . . . . . . . . . 3,725,000 4,043,115
Florida--6.5%
Florida Turnpike Authority, Turnpike Revenue, Refunding
4.75%, 7/1/2020 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,050,000 10,679,162
Lee County Industrial Development Authority, Health Care Facilities Revenue
(Cypress Cove Health Park):
5.625%, 10/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,041,760
5.875%, 10/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,063,820
6.25%, 10/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,131,340
6.375%, 10/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500,000 4,722,120
Palm Beach County, Solid Waste IDR:
(Okeelanta Power LP Project) 6.85%, 2/15/2021 (b) . . . . . . . . . . . . . . . . . . . 6,750,000 5,400,000
(Osceola Power LP) 6.95%, 1/1/2022 (b) . . . . . . . . . . . . . . . . . . . . . . . . . 7,500,000 5,925,000
Santa Rosa Bay Bridge Authority, Revenue 6.25%, 7/1/2028 . . . . . . . . . . . . . . . . . 3,000,000 3,276,270
DREYFUS PREMIER MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Hawaii--.3%
Hawaii Department of Transportation, Special Facilities Revenue
(Continental Airlines, Inc.) 5.625%, 11/15/2027 . . . . . . . . . . . . . . . . . . . . $ 1,850,000 $ 1,838,678
Illinois--3.0%
Carol Stream, First Mortgage Revenue, Refunding
(Windsor Park Manor Project) 6.50%, 12/1/2007 . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,158,160
East Chicago, PCR, Refunding
(Inland Steel Company Project) 7.125%, 6/1/2007 . . . . . . . . . . . . . . . . . . . . 3,000,000 3,260,370
Illinois Development Finance Authority, Revenue
(Community Rehabilitation Providers Facility):
8.75%, 3/1/2010 (Prerefunded 3/1/1999) (a) . . . . . . . . . . . . . . . . . . . . . . 5,873,000 6,097,995
8.75%, 3/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337,000 347,582
8.50%, 9/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,550,000 1,651,711
8.25%, 8/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,815,000 3,441,664
Indiana--3.5%
Indiana Development Finance Authority:
Environmental Improvement Revenue, Refunding (USX Corp. Project)
6.15%, 7/15/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,287,840
Exempt Facilities Revenue, Refunding (Inland Steel) 5.75%, 10/1/2011 . . . . . . . . . . 11,500,000 11,370,510
PCR, Refunding (Inland Steel Co., Project Number 12) 6.85%, 12/1/2012 . . . . . . . . . 4,000,000 4,223,920
Kentucky--2.3%
Kentucky Economic Development Finance Authority,
Hospital System Improvement Revenue, Refunding
(Appalachian Regional Health Center) 5.85%, 10/1/2017 . . . . . . . . . . . . . . . . . 6,000,000 6,245,760
Perry County, SWDR (TJ International Project):
7%, 6/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 3,872,365
6.55%, 4/15/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,762,725
Louisiana--1.1%
Louisiana Housing Finance Agency, MFHR, Refunding
(LaBelle Projects) 9.75%, 10/1/2020 . . . . . . . . . . . . . . . . . . . . . . . . . . 4,155,000 4,333,166
Louisiana Public Facilities Authority, Student Loan Revenue
7%, 9/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,900,000 2,010,086
Maryland--.6%
Maryland Energy Financing Administration, SWDR
(Wheelabrator Water Projects) 6.45%, 12/1/2016 . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,308,550
Massachusetts--3.2%
Massachusetts Industrial Finance Agency:
Health Care Facility Revenue (Metro Health Foundation, Inc. Project)
6.75%, 12/1/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 8,581,920
RRR, Refunding (Ogden Haverhill Project):
5.50%, 12/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,543,850
5.60%, 12/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,470,000 4,485,734
Water Treatment Revenue (American Hingham) 6.95%, 12/1/2035 . . . . . . . . . . . . . . 2,640,000 2,939,957
DREYFUS PREMIER MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Michigan--2.0%
Michigan Hospital Finance Authority, HR, Refunding (Genesys Regional Medical -
A)
5.375%, 10/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,000,000 $ 4,107,920
Wayne Charter County, Special Airport Facilities Revenue, Refunding
(Northwest Airlines, Inc.) 6.75%, 12/1/2015 . . . . . . . . . . . . . . . . . . . . . . 4,995,000 5,505,639
Wayne County Building Authority 8%, 3/1/2017 (Prerefunded 3/1/2002) (a). . . . . . . . . . 1,500,000 1,722,405
New Jersey--5.2%
New Jersey Building Authority, Building Revenue, Refunding:
5%, 6/15/2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000 46,940
5.915%, 6/15/2011 (c,d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,400,000 6,951,680
New Jersey Economic Development Authority, First Mortgage Gross Revenue
(The Evergreens) 9.25%, 10/1/2022 (Prerefunded 10/1/2002) (a) . . . . . . . . . . . . . 15,000,000 18,172,500
New Jersey Sports and Exposition Authority, Revenue, Refunding
(Monmouth Park) 8%, 1/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,560,440
New Mexico--1.5%
Farmington, PCR:
Refunding (Public Service Co. - San Juan Project) 6.375%, 4/1/2022 . . . . . . . . . . . 5,000,000 5,428,950
(Tucson Electric Power Company of San Juan) 6.95%, 10/1/2020 . . . . . . . . . . . . . . 3,000,000 3,333,480
New York--12.1%
Long Island Power Authority, Electric System Revenue
5.125%, 4/1/2012 (Insured; MBIA) (e) . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 7,307,510
New York City 7.10%, 2/1/2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 560,000 620,105
New York City Industrial Development Agency
IDR, Refunding (laguardia Associates LP Project)
5.80% 11/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,710,000 8,702,161
Civic Facility Improvement Revenue, Refunding (Lighthouse International Project)
4.50%, 7/1/2020 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 694,628
New York State Energy Research and Development Authority,
Electric Facilities Revenue (Long Island Lighting Co.):
7.15%, 9/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,650,000 3,989,012
7.15%, 6/1/2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,371,520
7.15%, 12/1/2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,464,400
7.15%, 2/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500,000 8,196,600
New York State Local Government Assistance Corporation:
6.30%, 4/1/2013 (c,d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,900,000 7,426,884
Refunding 4.50%, 4/1/2017 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,773,600
New York State Thruway Authority
Service Contract Revenue, 6.45%, 4/1/2010 (c,d) . . . . . . . . . . . . . . . . . . . . 5,000,000 5,562,700
Port Authority of New York and New Jersey, Special Obligation Revenue
(Special Project - JFK International Airport Terminal) 6.25%, 12/1/2013 (Insured; MBIA) . 6,000,000 7,021,560
Scotia Housing Authority, Housing Revenue
(Coburg Village, Inc. Project) 6.10%, 7/1/2018 . . . . . . . . . . . . . . . . . . . . . 5,400,000 5,475,978
DREYFUS PREMIER MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
North Carolina--2.8%
Charlotte, Special Facilities Revenue, Refunding
(Charlotte/Douglas International Airport) 5.60%, 7/1/2027 . . . . . . . . . . . . . . . $ 5,000,000 $ 4,955,150
North Carolina Eastern Municipal Power Agency, Power System Revenue, Refunding:
7%, 1/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 4,129,685
6%, 1/1/2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,750,000 7,080,278
Ohio--2.5%
Ohio Turnpike Commission, Turnpike Revenue, 4.50%, 2/15/2024 (Insured; FGIC) . . . . . . . 6,000,000 5,600,220
Ohio Water Development Authority, Pollution Control Facilites Revenue, Refunding
(Cleveland Electric) 6.10%, 8/1/2020 . . . . . . . . . . . . . . . . . . . . . . . . . . 8,500,000 8,704,425
Oklahoma--1.4%
Holdenville Industrial Authority, Correctional Facility Revenue:
6.60%, 7/1/2010 (Prerefunded 7/1/2006) (a) . . . . . . . . . . . . . . . . . . . . . . . 2,045,000 2,419,501
6.70%, 7/1/2015 (Prerefunded 7/1/2006) (a) . . . . . . . . . . . . . . . . . . . . . . . 4,625,000 5,502,224
Oregon--.9%
Oregon, EDR, Refunding (Georgia Pacific Corp. Project)
5.70%, 12/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,119,450
Pennsylvania--6.8%
Beaver County Industrial Development Authority, PCR, Refunding 7.75%, 7/15/2025. . . . . . 6,000,000 6,851,520
Blair County Hospital Authority, Revenue (Altoona Hospital)
8.042%, 7/1/2013 (Insured; AMBAC) (c) . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,891,550
Dauphin County General Authority, Office and Parking Revenue
(Riverfront Office) 5.50%, 1/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . 4,205,000 4,245,368
Delaware County Industrial Development Authority, Revenue, Refunding
(Resource Recovery Facility) 6.20%, 7/1/2019 . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,373,050
Lancaster County Hospital Authority, Revenue (Health Center - United Church
Homes Project) 9.125%, 10/1/2014 (Prerefunded 10/1/1999) (a) . . . . . . . . . . . . . . 1,465,000 1,572,223
Lehigh County General Purpose Authority, Revenue (Wiley House)
9.50%, 11/1/2016 (Prerefunded 11/1/2001) (a) . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,532,380
Montgomery County Higher Education and Health Authority, First Mortgage Revenue
(AHF/Montgomery, Inc. Project) 10.50%, 9/1/2020 . . . . . . . . . . . . . . . . . . . . 3,430,000 3,720,418
Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue
(Philadelphia Funding Program) 6.80%, 6/15/2022 (Prerefunded 6/15/2002) (a) . . . . . . 2,000,000 2,210,200
Philadelphia, Water and Sewer Revenue 7.35%, 9/1/2004. . . . . . . . . . . . . . . . . . . 4,900,000 5,568,801
Rhode Island--.6%
Providence, Special Tax Increment Obligation 6.65%, 6/1/2016 . . . . . . . . . . . . . . . 3,000,000 3,291,450
Tennessee--1.1%
Shelby County Health Educational and Housing Facilities,
Multi-Family Housing Board Revenue (Cameron Kirby):
5.90%, 7/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,152,490
7.25%, 7/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,100,000 3,242,507
DREYFUS PREMIER MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Texas--11.2%
Alliance Airport Authority, Special Facilities Revenue:
(American Airlines, Inc. Project) 7%, 12/1/2011 . . . . . . . . . . . . . . . . . . . . $ 10,700,000 $ 12,578,278
(Federal Express Corp. Project) 6.375%, 4/1/2021 . . . . . . . . . . . . . . . . . . . . 5,000,000 5,400,200
Austin, Revenue, Refunding
5.25%, 5/15/2025 (Insured; MBIA) (e) . . . . . . . . . . . . . . . . . . . . . . . . . . 12,040,000 12,671,016
Houston Airport System, Special Facilities Improvement Revenue
(Continental Airline Terminal):
6.125%, 7/15/2017 (Guaranteed; Continental Airline, Inc.) . . . . . . . . . . . . . . 8,375,000 8,633,201
6.125%, 7/15/2027 (Guaranteed; Continental Airline, Inc.) . . . . . . . . . . . . . . 6,800,000 7,009,644
Rio Grande City Consolidated Independent School District, Public Facilities
Corp. LR
6.75%, 7/15/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 6,614,460
Texas Public Property Finance Corp., Revenue (Mental Health and Retardation
Center)
8.20%, 10/1/2012 (Prerefunded 10/1/2002) (a) . . . . . . . . . . . . . . . . . . . . . . 7,745,000 9,036,479
Tyler Health Facilities Development Corporation, HR, Refunding
(Mother Frances Hospital) 5.62%, 7/1/2013 . . . . . . . . . . . . . . . . . . . . . . . 2,680,000 2,705,808
Utah--2.3%
Carbon County, SWDR, Refunding:
(East Carbon Development Corp.) 9%, 7/1/2012 . . . . . . . . . . . . . . . . . . . . . . 3,900,000 4,242,966
(Sunnyside Cogeneration) 9.25%, 7/1/2018 (b) . . . . . . . . . . . . . . . . . . . . . . 15,000,000 9,003,000
Virginia--.9%
Virginia Housing Development Authority
(Commonwealth Mortgage) 5.50% 1/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,108,450
West Virginia--1.4%
Upshur County, SWDR (TJ International Project) 7%, 7/15/2025 . . . . . . . . . . . . . . . 7,000,000 7,846,720
U.S. Related--8.6%
Puerto Rico Commonwealth:
Public Improvement:
5.50%, 7/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,445,150
6.50%, 7/1/2014 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 6,074,150
Zero Coupon, 7/1/2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400,000 1,074,408
Refunding:
6.25%, 7/1/2013 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,568,020
6%, 7/1/2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 429,584
5.65%, 7/1/2015 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,690,000 11,873,597
Puerto Rico Commonwealth Aqueduct and Sewer Authority, Revenue, Refunding
6.25%, 7/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000,000 10,512,990
Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue
5%, 7/1/2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,037,700
DREYFUS PREMIER MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
U.S. RELATED (CONTINUED)
Puerto Rico Electric Power Authority, Power Revenue
6.25%, 7/1/2017 (Prerefunded 7/1/2002) (a) . . . . . . . . . . . . . . . . . . . . . . . $ 520,000 $ 574,257
Puerto Rico Telephone Authority, Revenue, Refunding
6.538%, 1/25/2007 (Insured; MBIA) (c) . . . . . . . . . . . . . . . . . . . . . . . . . 3,950,000 4,409,188
_______________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $530,112,155). . . . . . . . . . . . . . . . . $561,253,746
_______________
SHORT-TERM MUNICIPAL INVESTMENTS--6.0%
- -------------------------------------------------------
Alabama--1.5%
McIntosh Industrial Development Board, Enviromental Improvement Revenue,
Refunding VRDN 3.75% (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,700,000 $ 8,700,000
Minnesota--.9%
Cohasset, Revenue, Refunding, VRDN
(Minnesota Power and Light Company Project) 3.65% (LOC; ABN Amro Bank) (f) . . . . . . . 1,400,000 1,400,000
Mankato, MFHR, Refunding, VRDN
(Highland Hills Project) 3.25% (LOC; First Bank) (f) . . . . . . . . . . . . . . . . . . 3,000,000 3,000,000
Saint Paul Housing and Redevelopment Authority, Revenue, VRDN
(Science Museum of Minnesota) 3.20% (LOC; First Bank) (f) . . . . . . . . . . . . . . . 700,000 700,000
New York--1.7%
Port Authority of New York and New Jersey, Special Obligation Revenue, VRDN 3.70% (f). . . 9,400,000 9,400,000
Ohio--.4%
Twinsburg Industrial Development, Revenue, VRDN
(United Stationers Supply Company) 3.85% (LOC; PNC Bank) (f) . . . . . . . . . . . . . . 2,400,000 2,400,000
South Dakota--.8%
Lawrence County, SWDR, VRDN (Homestake Mining)
3.80% (LOC; The Chase Manahattan Bank) (f) . . . . . . . . . . . . . . . . . . . . . . . 4,800,000 4,800,000
Texas--.7%
Harris County Health Facilities Development Corporation, HR, VRDN
(Methodist Hospital) 3.70% (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,000,000
_______________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $34,400,000). . . . . . . . . . . . . . . . . $ 34,400,000
_______________
_______________
TOTAL INVESTMENTS (cost $564,512,155). . . . . . . . . . . . . . . . . . . . . . . . . . 104.0% $595,653,746
_______ _______________
LIABILITIES, LESS CASH AND RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . . (4.0%) $ (23,173,389)
_______ _______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $572,480,357
_______ _______________
DREYFUS PREMIER MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
EDR Economic Development Revenue MFMR Multi-Family Mortgage Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
HR Hospital Revenue RRR Resources Recovery Revenue
IDR Industrial Development Revenue SWDR Solid Waste Disposal Revenue
LR Lease Revenue VRDN Variable Rate Demand Note
MBIA Municipal Bond Investors Assurance
Insurance Corporation
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
______ _______ ________________ _________________
AAA Aaa AAA 22.5%
AA Aa AA .9
A A A 11.8
BBB Baa BBB 20.9
BB Ba BB 6.8
B B B 3.0
F-1+ & F-1 MIG1, VMIG1 & P1 SP1 & A1 5.8
Not Rated (g) Not Rated (g) Not Rated (g) 28.3
_______
100.0%
_______
_______
Notes to Statement of Investments:
</TABLE>
- -----------------------------------------------------------------------------
(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) Non-income producing security; interest payments in default.
(c) Inverse floater security--the interest rate is subject to change
periodically.
(d) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
regristration, normally to qualified institutional buyers. At October 31,
1998, these securities amounted to $19,941,264 or 3.5% of net assets.
(e) Purchased on a delayed-delivery basis.
(f) Securities payable on demand. Variable interest rate subject to periodic
change
(g) 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
rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
DREYFUS PREMIER MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $564,512,155 $595,653,746
Interest receivable . . . . . . . . . . . . . . . . . . . 8,341,029
Receivable for shares of Beneficial Interest subscribed . . 461,442
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 43,269
_______________
604,499,486
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 277,190
Due to Distributor . . . . . . . . . . . . . . . . . . . 179,510
Cash overdraft due to Custodian . . . . . . . . . . . . . 3,343,376
Payable for investment securities purchased . . . . . . . 27,861,412
Payable for shares of Beneficial Interest redeemed . . . 144,831
Accrued expenses . . . . . . . . . . . . . . . . . . . . 212,810
_______________
32,019,129
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $572,480,357
_______________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $533,106,301
Accumulated net realized gain (loss) on investments . . . 8,232,465
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 31,141,591
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $572,480,357
_______________
</TABLE>
NET ASSET VALUE PER SHARE
--------------------
<TABLE>
<CAPTION>
Class A Class B Class C
______________ ______________ _______________
<S> <C> <C> <C>
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $441,130,884 $124,141,295 $ 7,208,178
Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . 30,049,520 8,454,443 490,339
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . . . . $14.68 $14.68 $14.70
_______ _______ _______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . $17,317,832
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . $ 1,592,163
Shareholder servicing costs--Note 3(c) . . . . . 926,029
Distribution fees--Note 3(b) . . . . . . . . . . 323,992
Custodian fees . . . . . . . . . . . . . . . . . 27,683
Registration fees . . . . . . . . . . . . . . . . 27,035
Professional fees . . . . . . . . . . . . . . . . 23,111
Prospectus and shareholders' reports . . . . . . 18,026
Trustees' fees and expenses--Note 3(d) . . . . . 17,035
Loan commitment fees--Note 2 . . . . . . . . . . 2,726
Miscellaneous . . . . . . . . . . . . . . . . . . 12,152
_____________
Total Expenses . . . . . . . . . . . . . . . . 2,969,952
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,347,880
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . $ 2,638,390
Net unrealized appreciation (depreciation)
on investments . . . . . . . . . . . . . . . . (2,941,274)
_____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . (302,884)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $14,044,996
____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1998 Year Ended
(Unaudited) April 30, 1998
_______________ _____________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,347,880 $ 30,469,152
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 2,638,390 10,610,253
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . (2,941,274) 15,681,076
_______________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 14,044,996 56,760,481
_______________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,459,376) (24,679,815)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,781,150) (5,696,047)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (107,354) (93,290)
Net realized gain on investments:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (2,600,891)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (670,463)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (13,085)
_______________ ______________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,347,880) (33,753,591)
_______________ ______________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,880,880 113,213,669
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,719,021 17,652,591
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,519,758 1,951,054
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,436,374 15,608,787
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,495,999 3,578,795
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,726 41,919
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (86,867,434) (156,745,426)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,452,697) (15,746,393)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (324,657) (79,409)
_______________ ______________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . 2,438,970 (20,524,413)
_______________ ______________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . 2,136,086 2,482,477
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570,344,271 567,861,794
_______________ ______________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $572,480,357 $570,344,271
_______________ ______________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
______________________________
Six Months Ended
October 31, 1998 Year Ended
(Unaudited) April 30, 1998
_______________ _____________
CAPITAL SHARE TRANSACTIONS:
Class A
________
<S> <C> <C>
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,004,107 7,726,113
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 435,837 1,065,410
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,888,443) (10,709,000)
__________ ____________
Net Increase (Decrease) in Shares Outstanding . . . . . (448,499) (1,917,477)
__________ ____________
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 793,051 1,206,389
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 101,280 244,184
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (572,312) (1,077,080)
__________ ____________
Net Increase (Decrease) in Shares Outstanding . . . . . 322,019 373,493
__________ ____________
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,883 133,508
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 2,145 2,854
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,979) (5,369)
__________ ____________
Net Increase (Decrease) in Shares Outstanding . . . . . 285,049 130,993
__________ ____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER MUNICIPAL BOND 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>
Class A Shares
_________________________________________________________________________
Six Months Ended
October 31, 1998 Year Ended April 30,
_______________________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
__________ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . $14.69 $14.11 $13.85 $13.86 $13.81 $14.45
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . .38 .79 .82 .86 .84 .89
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . (.01) .66 .27 (.01) .05 (.59)
_______ _______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . .37 1.45 1.09 .85 .89 .30
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . (.38) (.79) (.82) (.86) (.84) (.89)
Dividends from net realized gain on investments . . -- (.08) (.01) -- -- (.05)
_______ _______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . (.38) (.87) (.83) (.86) (.84) (.94)
_______ _______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . $14.68 $14.69 $14.11 $13.85 $13.86 $13.81
_______ _______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . 5.00%(2) 10.52% 8.03% 6.08% 6.72% 1.84%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . .91%(2) .91% .91% .92% .92% .85%
Ratio of net investment income
to average net assets . . . . . . . . . . . 5.07%(2) 5.42% 5.84% 5.98% 6.16% 6.01%
Decrease reflected in above expense ratios due
to undertakings by the Manager . . . . . . -- -- -- -- -- .06%
Portfolio Turnover Rate . . . . . . . . . . . . 25.44%(3) 26.33% 28.17% 36.59% 38.60% 22.15%
Net Assets, end of period (000's Omitted) . . . $441,131 $447,869 $457,327 $474,044 $495,616 $546,036
- ---------------
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
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>
Class B Shares
_________________________________________________________________________
Six Months Ended
October 31, 1998 Year Ended April 30,
_______________________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
__________ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . $14.69 $14.11 $13.85 $13.86 $13.81 $14.45
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . .34 .72 .75 .78 .77 .80
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . (.01) .66 .27 (.01) .05 (.59)
_______ _______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . .33 1.38 1.02 .77 .82 .21
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . (.34) (.72) (.75) (.78) (.77) (.80)
Dividends from net realized gain on investments . . -- (.08) (.01) -- -- (.05)
_______ _______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . (.34) (.80) (.76) (.78) (.77) (.85)
_______ _______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . $14.68 $14.69 $14.11 $13.85 $13.86 $13.81
_______ _______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . 4.48%(2) 9.95% 7.49% 5.53% 6.15% 1.26%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . 1.43%(2) 1.42% 1.43% 1.43% 1.44% 1.40%
Ratio of net investment income
to average net assets . . . . . . . . . . . 4.56%(2) 4.89% 5.33% 5.46% 5.62% 5.33%
Decrease reflected in above expense ratios due
to undertakings by the Manager . . . . . . -- -- -- -- -- .05%
Portfolio Turnover Rate . . . . . . . . . . . . 25.44%(3) 26.33% 28.17% 36.59% 38.60% 22.15%
Net Assets, end of period (000's Omitted) . . . $124,141 $119,457 $109,485 $106,931 $99,411 $95,643
- ---------------
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
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>
Class C Shares
________________________________________________
Six Months Ended
October 31, 1998 Year Ended April 30,
_______________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996(1)
_________ _______ _______ _______
<S> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $14.71 $14.12 $13.87 $14.28
_______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . .32 .68 .72 .60
Net realized and unrealized gain (loss) on investments . . . . . . . . (.01) .67 .26 (.41)
_______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . .31 1.35 .98 .19
_______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . (.32) (.68) (.72) (.60)
Dividends from net realized gain on investments . . . . . . . . . . . . -- (.08) (.01) --
_______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . (.32) (.76) (.73) (.60)
_______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $14.70 $14.71 $14.12 $13.87
_______ _______ _______ _______
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . . . . . . . . . . . . 4.21%(3) 9.73% 7.16% 1.56%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . 1.69%(3) 1.69% 1.64% 1.77%(3)
Ratio of net investment income to average net assets . . . . . . . . . 4.23%(3) 4.55% 5.01% 4.84%(3)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 25.44%(4) 26.33% 28.17% 36.59%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $7,208 $3,019 $1,049 $340
- ---------------
(1) From July 13, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER MUNICIPAL BOND FUND
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier Municipal Bond Fund (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "Act") as a diversified open-end
management investment company. The Fund's investment objective is to maximize
current income exempt from Federal income tax 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. The Fund is authorized to issue an unlimited number of $.001
par value shares in each of the following classes of shares: Class A, Class B
and Class C. Class A shares are subject to a sales charge imposed at the time of
purchase, Class B shares are subject to a contingent deferred sales charge
(" CDSC") imposed on Class B share redemptions made within six years of purchase
(five years for shareholders beneficially owning Class B shares on November 30,
1996) and Class C shares are subject to a CDSC imposed on Class C shares
redeemed within one year of purchase. Other differences between the classes
include the services offered to and the expenses borne by each class and certain
voting rights.
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 Trustees. 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. Income earned under this arrangement is included in
interest income.
DREYFUS PREMIER MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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, 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 (" 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 the borrowings. During the period ended
October 31, 1998, the Fund did not borrow under the line of credit.
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 .55 of 1% of the value of the Fund's average
daily net assets and is payable monthly.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $1,268 during the period ended October 31, 1998 from commissions earned
on sales of the Fund's shares.
(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act,
Class B and Class C shares pay the Distributor for distributing their shares at
an annual rate of .50 of 1% of the value of the average daily net assets of
Class B shares and .75 of 1% of the value of the average daily net assets of
Class C shares. During the period ended October 31, 1998, Class B and Class C
shares were charged $304,962 and $19,030, respectively, pursuant to the
Distribution Plan.
(C) Under the Shareholder Services Plan, Class A, Class B and Class C shares
pay the Distributor at an annual rate of .25 of 1% of the value of the average
daily net assets of their shares for the provision of certain services. 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. The Distributor may make payments to Service Agents (a
securities dealer, financial institution or other industry professional) in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents. During the period ended October 31, 1998, Class A, Class B and
Class C shares were charged $564,886, $152,481 and $6,343, respectively,
pursuant to the Shareholder Services Plan.
DREYFUS PREMIER MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 $119,104 pursuant to the transfer
agency agreement.
(D) 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.
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 $145,717,657 and $143,103,797, respectively.
At October 31, 1998, accumulated net unrealized appreciation on investments
was $31,141,591, consisting of $42,219,951 gross unrealized appreciation and
$11,078,360 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).
DREYFUS PREMIER MUNICIPAL
BOND FUND
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. 022SA9810
SEMI-ANNUAL REPORT
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DREYFUS PREMIER
MUNICIPAL BOND
FUND
- -------------------------------------------------------------------------------
OCTOBER 31, 1998
(reg.tm)
