[Dreyfus logo]
Registration Mark
Dreyfus
100% U.S. Treasury
Short Term Fund
Semi-Annual
Report
June 30, 1997
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
LETTER TO SHAREHOLDERS
Dreyfus 100% U.S. Treasury Short Term Fund
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus 100% U.S.
Treasury Short Term Fund. For its semi-annual reporting period ended June 30,
1997, your Fund produced a total return of 2.20%, which includes price
fluctuations.* Income dividends of approximately $.451 per share were paid,
which is equivalent to an annualized distribution rate per share of 6.19%.**
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 is 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, the policy-making arm of the Federal Reserve, 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 have been in decline all spring despite record levels of consumer
optimism about the economy. The latest report on retail sales through June
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 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
The technical factors in the bond market are quite positive, and should
continue to push interest rates lower. A balanced budget amendment looks like
an achievable goal. U.S. interest rates are currently higher than almost all
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 looks positive too. Bank
lending criteria, especially in the credit card arena, are becoming 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. In fact, some of the hottest selling vehicles last year now
have incentives to buy them. Some of these loans carry 0% interest for 2
years. This shows that auto dealers are having trouble clearing 1997
inventory.
Portfolio Overview
Currently, the maturity of the fund is at a 2.98 year weighted average
life, which makes the effective duration 2.62 years. Going forward, we plan
to extend the maturity of the Fund to take advantage of the outlook for
interest rates. As for positioning on the interest rate curve, it is our
intention to move assets out of the six- to 18-month sector and into the
3-year sector. We anticipate that this will help the Fund in two ways_first
by extending duration in a declining rate environment, and by locking in a
higher yield because of the very steep yield curve between one and three year
notes.
We plan to maintain this positive outlook for the immediately
foreseeable future. The two factors that we feel could change our allocation
are consumer behavior and foreign economies. If either one were to start to
appear much stronger, we would readjust 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 at the end of the period.
<TABLE>
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
STATEMENT OF INVESTMENTS JUNE 30, 1997 (UNAUDITED)
Principal
Bonds and Notes_98.6% Amount Value
_____________ __________
<S> <C> <C>
U.S. Treasury Bonds_8.4%
11 3\4%, 2/15/2001........................................................ $ 5,000,000 $ 5,875,782
13 1\8%, 5/15/2001........................................................ 5,850,000 7,201,899
13 3\4%, 8/15/2004........................................................ 1,200,000 1,690,875
_____________
14,768,556
_____________
U.S. Treasury Notes_90.2%
6 1\8%, 8/31/1998......................................................... 8,000,000 8,021,250
6 3\8%, 4/30/1999......................................................... 12,600,000 12,670,875
9 1\8%, 5/15/1999......................................................... 64,700,000 68,147,300
6 3\4%, 5/31/1999......................................................... 6,700,000 6,780,610
7 3\4%, 1/31/2000......................................................... 29,700,000 30,795,187
8 1\2%, 11/15/2000........................................................ 18,800,000 20,051,375
5 5\8%, 11/30/2000........................................................ 8,000,000 7,841,250
7 1\2%, 11/15/2001........................................................ 5,000,000 5,214,063
_____________
159,521,910
_____________
TOTAL BONDS AND NOTES
(cost $174,887,343)....................................................... $174,290,466
===============
Short-Term Investments_.2%
U.S. Treasury Bills;
4.96%, 8/21/1997
(cost $412,084)........................................................... $ 415,000 $ 412,020
=============
TOTAL INVESTMENTS
(cost $175,299,427)....................................................... 98.8% $174,702,486
======== =============
CASH AND RECEIVABLES (NET).................................................. 1.2% $ 2,144,901
======== =============
NET ASSETS.................................................................. 100.0% $176,847,387
======== =============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1997 (UNAUDITED)
Cost Value
___________ ___________
<S> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $175,299,427 $174,702,486
Cash....................................... 629,134
Interest receivable........................ 2,722,434
Receivable for shares of Beneficial Interest subscribed 63
Prepaid expenses and other assets.......... 23,583
_____________
178,077,700
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 45,865
Payable for shares of Beneficial Interest redeemed 1,141,563
Accrued expenses........................... 42,885
_____________
1,230,313
_____________
NET ASSETS.................................................................. $176,847,387
==============
REPRESENTED BY: Paid-in capital............................ $194,407,390
Accumulated net realized gain (loss) on investments (16,963,062)
Accumulated net unrealized appreciation (depreciation)
on investments_Note 4 (596,941)
_____________
NET ASSETS.................................................................. $176,847,387
==============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest
authorized)................................................................. 12,037,218
NET ASSET VALUE, offering and redemption price per share ................... $14.69
========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................ $ 6,148,558
EXPENSES: Management fee_Note 3(a)................... $ 536,843
Shareholder servicing costs_Note 3(b)...... 361,144
Registration fees.......................... 20,817
Professional fees.......................... 18,439
Trustees' fees and expenses_Note 3(c)...... 17,539
Custodian fees_Note 3(b)................... 10,046
Prospectus and shareholders' reports....... 7,207
Miscellaneous.............................. 1,309
_________
Total Expenses....................... 973,344
Less_reduction in management fee due to
undertaking_Note 3(a).................. (347,028)
_________
Net Expenses......................... 626,316
____________
INVESTMENT INCOME_NET....................................................... 5,522,242
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments.... $(1,392,406)
Net unrealized appreciation (depreciation) on investments (142,147)
_________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (1,534,553)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 3,987,689
=============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
_______________ __________________
<S> <C> <C>
OPERATIONS:
Investment income_net................................................... $ 5,522,242 $ 11,754,849
Net realized gain (loss) on investments................................. (1,392,406) (2,701,782)
Net unrealized appreciation (depreciation) on investments............... (142,147) (1,586,270)
_______________ ___________________
Net Increase (Decrease) in Net Assets Resulting from Operations..... 3,987,689 7,466,797
_______________ ___________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net................................................... (5,522,242) (11,820,993)
_______________ ___________________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 27,010,253 97,381,967
Dividends reinvested................................................... 4,237,529 8,806,448
Cost of shares redeemed................................................. (40,692,178) (102,733,977)
_______________ ___________________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (9,444,396) 3,454,438
_______________ ___________________
Total Increase (Decrease) in Net Assets........................... (10,978,949) (899,758)
NET ASSETS:
Beginning of Period..................................................... 187,826,336 188,726,094
_______________ ___________________
End of Period....................................................... $ 176,847,387 $ 187,826,336
================ =================
Shares Shares
_______________ ___________________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 1,836,193 6,545,260
Shares issued for dividends reinvested.................................. 288,327 593,259
Shares redeemed......................................................... (2,764,993) (6,927,652)
_______________ ___________________
Net Increase (Decrease) in Shares Outstanding....................... (640,473) 210,867
================ =================
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS 100% U.S. TREASURY SHORT 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.
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.. $14.82 $15.14 $ 14.55 $15.75 $15.91 $16.18
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income_net................. .45 .90 1.03 1.15 1.25 1.35
Net realized and unrealized gain (loss)
on investments...................... (.13) (.32) .59 (1.20) (.16) (.27)
_______ _______ _______ _______ _______ _______
Total from Investment Operations...... .32 .58 1.62 (.05) 1.09 1.08
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income_net.. (.45) (.90) (1.03) (1.15) (1.25) (1.35)
_______ _______ _______ _______ _______ _______
Net asset value, end of period........ $14.69 $14.82 $ 15.14 $14.55 $15.75 $15.91
====== ======== ======= ====== ======= ========
TOTAL INVESTMENT RETURN................... 4.44%(1) 4.07% 11.38% (.33%) 7.03% 7.01%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .70%(1) .70% .65% .35% .11% .03%
Ratio of net investment income
to average net assets............... 6.17%(1) 6.04% 6.90% 7.61% 7.82% 8.34%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .39%(1) .27% .29% .59% .85% 1.09%
Portfolio Turnover Rate............... 313.05%(2) 539.38% 480.44% 499.11% 322.62% 137.93%
Net Assets, end of period (000's Omitted) $176,847 $187,826 $188,726 $172,556 $188,300 $144,058
(1) Annualized.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_Significant Accounting Policies:
Dreyfus 100% U.S. Treasury Short Term Fund (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a diversified open-end
management investment company. The Fund's investment objective is to provide
investors with as high a level of current income as is consistent with the
preservation of capital. 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
$15,571,000 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, $10,865,000 of the carryover expires in fiscal 2002,
$2,004,000 expires in fiscal 2003 and $2,702,000 expires in fiscal 2004.
NOTE 2_Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the
time of borrowings. For the period ended June 30, 1997, 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 .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 and extraordinary expenses)
exceed an annual rate of .70 of 1% of the value of the Fund's average daily
net assets. The reduction in management fee, pursuant to the undertaking,
amounted to $347,028 during the period ended June 30, 1997.
DREYFUS 100% U.S. TREASURY SHORT 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 $285,203 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 $52,007 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,
$10,046 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 $569,716,408 and $607,736,205, respectively.
At June 30, 1997, accumulated net unrealized depreciation on investments
was $596,941, consisting of $230,790 gross unrealized appreciation and
$827,731 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).
[Dreyfus lion "d" logo]
Registration Mark
Dreyfus 100% U.S. Treasury
Short 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. 081SA976
