<PAGE>
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T. Rowe Price
- --------------------------------------------------------------------------------
Semiannual Report
U.S. Treasury Funds
- --------------------------------------------------------------------------------
November 30, 1999
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REPORT HIGHLIGHTS
================================================================================
U.S. Treasury Funds
* Interest rates rose during the past six months, depressing bond fund
prices; money fund yields, however, benefited.
* The U.S. Treasury Money Fund posted a solid six-month return that
slightly exceeded its benchmark.
* Rising interest rates weighted down results for the U.S. Treasury
Intermediate and the U.S. Treasury Long-Term Funds, which lagged their
peer averages for the six months.
* Both U.S. Treasury Intermediate and U.S. Treasury Long-Term were aided
by holdings in mortgages and Treasury inflation-protected securities.
* Real interest rates are attractive given our outlook for restrained
inflation.
UPDATES AVAILABLE
- -----------------
For updates on T. Rowe Price funds following the end of each calendar
quarter, please see our Web site at www.troweprice.com.
<PAGE>
================================================================================
FELLOW SHAREHOLDERS
- --------------------------------------------------------------------------------
The U.S. economy continued its remarkable run of strong, steady growth
during the six months ended November 30, 1999, and signs of inflation were
modest. Nonetheless, the Federal Reserve raised the federal funds target rate
three times, and interest rates overall rose significantly. The rising rate
environment had a modestly positive effect on money market funds but was
challenging to longer-term Treasury funds.
MARKET ENVIRONMENT
- ------------------
There was little doubt during either the past six or 12 months that the
U.S. economy was on solid footing. Annual GDP data have painted an attractive
picture, with growth rates fluctuating between 3.5% and 4.5% for nearly four
years now. During the past spring and summer, however, economic data hinted at
an increase in inflationary pressure. That, combined with an improving outlook
overseas, prompted the Fed to raise the federal funds target rate in June,
August, and November by a total of 75 basis points (100 basis points equal one
percent). The target rate now stands at 5.5% N the same as August 1998, just
before the Fed cut rates three-quarters of a percent to alleviate a short-lived
global financial crisis.
*****************************************
[Line Chart showing interest rates
for 30-Year Treasury Bonds, 5-Year
Treasury Notes, and 90-Day Treasury
Bills 11/30/98 through 11/30/99.]
*****************************************
There were some signs of higher prices, and at times the bond market
appeared concerned about the possibility of inflation. However, the extent to
which real inflation has been held in check is remarkable.
<PAGE>
Both the closely watched employment cost index and the wage component of
the GDP report have shown only modest increases. Clearly technology and
increased globalization have played significant roles in containing costs,
reducing pricing power, and improving productivity and efficiency. These trends,
combined with the Fed's sound monetary policy, are very positive for bonds in
the long term.
The market largely anticipated the Fed's actions, pushing rates sharply
higher throughout the year, especially on intermediate-term bonds. For example,
30-year Treasury bond yields climbed 101 basis points to 6.22% on November 30
from one year earlier, while five-year Treasury note yields rose 141 basis
points to 6.03%. Money market rates also rose: 90-day Treasury yields climbed 70
basis points to 5.28%. The environment proved to be very difficult for the bond
market, and especially for Treasuries, whose price performance is closely, and
inversely, related to the direction of interest rates.
Another important trend of the past half year was a decline in liquidity
among non-Treasury and agency bonds. This occurred because Wall Street
broker-dealers cut back their bond market activities in advance of year-end by
reducing inventories and committing less capital to market-making (that is,
buying and selling existing issues for clients). Reduced liquidity exaggerated
volatility in the overall bond markets. However, Treasuries were bolstered early
in the fall, as investors sought safe issues to hold over year-end.
U.S. TREASURY MONEY FUND
- ------------------------
PERFORMANCE COMPARISON
----------------------
Periods Ended 11/30/99 6 Months 12 Months
---------------------- -------- ---------
U.S. Treasury Money Fund 2.15% 4.26%
Lipper U.S. Treasury
Money Market Funds Average 2.13 4.19
Your investment in the U.S. Treasury Money Fund is neither insured nor
guaranteed by the U.S. government.
- --------------------------------------------------------------------------------
<PAGE>
Your fund posted 6- and 12-month returns of 2.15% and 4.26%, respectively.
These results modestly exceeded the 2.13% and 4.19% gains for the Lipper U.S.
Treasury Money Market Funds Average. The uptick in interest rates during the
past six months helped stabilize yields in our market after a long period of
decline. The fund's six-month dividend per share was flat after falling earlier
in the year, contributing to an improved seven-day compound dividend yield.
Rising interest rates during the period prompted a modest shift in our
investment strategy. Earlier in the fiscal year, rates had been relatively low
and the fund's yield had been slipping as a result. As we noted in the last
shareholder report, our strategy early in the year was to capture the higher
yields at the longer end of the money market universe by maintaining an average
maturity about 10 days longer than our average peer. With rates rising, however,
we reduced the portfolio's weighted average maturity after late spring. For much
of the six months, the fund was about 10 days shorter than its average peer. At
the period's end, maturity stood at 69 days, down from 75 days on May 31, 1999.
In recent weeks, we have taken advantage of the attractive yields on some
slightly longer securities in our market, but we will likely wait until interest
rates seem more stable before aggressively extending average maturity again. To
achieve the 69-day average, the fund has kept about 50% of its assets in very
short Treasury bills and about 50% in slightly longer Treasury coupons that
mature in less than one year. Beyond interest rates, supply and demand were
major considerations. The budget surplus continued to reduce the supply of
securities in our market, while demand remained largely unchanged. Indeed, with
the periodic "flights to quality" that sometimes occur, demand can spike,
causing sharply lower yields. The Treasury is looking for ways to ease the
effects of weak supply, but we expect the trend will have a dampening effect on
fund yield in the coming year.
<PAGE>
U.S. TREASURY INTERMEDIATE FUND
- -------------------------------
PERFORMANCE COMPARISON
----------------------
Periods Ended 11/30/99 6 Months 12 Months
---------------------- -------- ---------
U.S. Treasury
Intermediate Fund 0.30% -2.11%
Lipper Average of Intermediate
U.S. Treasury Funds 0.54 -1.31
Salomon Smith Barney
1-7 Year Treasury Index 1.69 1.88
- --------------------------------------------------------------------------------
Your fund finished the six-month period with a 0.30% gain, somewhat behind
the 0.54% advance of the Lipper peer group average. For the 12 months, the
fund's -2.11% showing also trailed the Lipper average. Fortunately, rising rates
helped rebuild intermediate Treasury yields from a relatively low point one year
ago, and dividends per share for the past six months rose by a penny.
In this report, we are also presenting the results of the Salomon Smith
Barney 1-7 Year Treasury Index for comparison. This index will often have a
somewhat shorter average maturity than the fund, and during the past year
certainly did. Shorter maturity holdings typically hold up better than longer
ones when rates rise; this is why the index's showing considerably outpaced the
fund's. Interest rate sensitivity also explains why the fund underperformed the
Lipper average, although by a much smaller margin.
To mitigate this effect, we trimmed the fund's duration during the past
year. (Duration is a measure of price sensitivity to changes in interest rates
where higher numbers mean potential for greater price fluctuation.) Duration
fell to 4.6 years on November 30 from 5.3 years one year earlier. Although this
defensive move did not occur quickly enough to benefit our relative performance,
it significantly cushioned the share price in a negative environment. The fund's
net asset value slipped only 12 cents from May 31, a relatively modest decline
considering the significant increase in rates in the market.
<PAGE>
We feel that duration, at 4.6 years, is modestly short, and we expect to
position the portfolio somewhat longer when interest rates appear more stable.
We continue to believe that maintaining a slightly longer duration than the
average intermediate Treasury fund will produce the best performance in the long
run. Because longer maturities generally have higher yields, the fund should
outperform its shorter peers in stable or declining interest rate environments.
During the period, we purchased both mortgages and Treasury
inflation-protected securities (TIPS) as they provided return and yield
enhancement without sacrificing credit quality. We maintained our mortgage
position near the maximum allowed allocation of 15%. As mortgages outperformed
Treasuries in both the six-month and one-year time frames, this strategy
provided a buffer against losses in the last half year. We will continue to seek
appropriate exposure to the mortgage sector, which has consistently provided
additional income to the fund.
We increased the portfolio's holdings in TIPS. These securities offer a
hedge against inflation since their principal value is adjusted monthly to
reflect changes in the consumer price index. TIPS increase diversification and
offset negative returns when interest rates rise. In recent months, they have
offered attractive yields and have performed very well versus traditional
Treasuries year-to-date.
U.S. TREASURY LONG-TERM FUND
- ----------------------------
PERFORMANCE COMPARISON
----------------------
Periods Ended 11/30/99 6 Months 12 Months
---------------------- -------- ---------
U.S. Treasury
Long-Term Fund -1.97% -7.49%
Lipper Average of General
U.S. Treasury Funds -0.99 -5.29
Salomon Smith Barney
Treasury Index 0.40 -1.63
- --------------------------------------------------------------------------------
<PAGE>
The rising interest rate environment of the past year was especially
difficult for your fund. As shown in the accompanying Performance Comparison
table, its -1.97% six-month and -7.49% 12-month results underperformed the
Lipper Average of General U.S. Treasury Funds over both periods. The table now
also includes the returns of the Salomon Smith Barney Treasury Index for
comparison purposes; the fund trailed this benchmark as well. During the
six-month period, the share price declined from $11.07 to $10.54, and dividend
income of $0.31 per share did not offset that drop.
As in the prior six-month period, interest rate exposure explains the
lion's share of fund performance. In general, our fundamental investment
approach is to maintain a long portfolio duration, because longer bonds
typically carry the highest yields in our market and therefore offer the best
long-term total return potential (see U.S. Treasury Intermediate for an
explanation of duration). Our viewpoint has been validated over time. For the
five and 10 years ended November 30, the fund notched average annual returns of
8.80% and 7.72%, compared with returns of 7.82% and 7.53% for the Lipper
benchmark over the same time periods.
However, we recognize that long bonds are sensitive to interest rate
changes, and rising rates will lead to periods of short-term weakness. In an
effort to moderate this impact, we trimmed the fund's weighted average effective
duration throughout the year, to 10.2 years on November 30 from 11.7 years 12
months earlier. Although our efforts brought us closer to a neutral rate posture
relative to our peer group, the current duration still leaves the fund with a
very high sensitivity to movements in interest rates. We attempted to control
overall portfolio volatility through careful issue selection. Over the past six
months, we added significantly to our stake in intermediate-term securities. So,
for example, we increased allocations to bonds with maturities in the
five-to-seven, seven-to-10, and 10-to-20 year ranges, while reducing holdings in
20-to-30 year and three-to-five year bonds. We "bulleted" the portfolio in this
way because the intermediate segment of the bond market was hit especially hard
by rising rates this past year and, as a result, is now attractively priced.
This strategy modestly reduced the fund's income stream in the short term, but
when the rate environment stabilizes, we expect these holdings to bounce back
and provide solid total return.
<PAGE>
The fund also maintained a 13% stake in GNMAs, near its 15% maximum. This
benefited performance, as mortgages were among the top-performing fixed income
categories over the last six months. We purchased some premium coupon bonds to
hedge against rising rates and enhance income. Finally, we took advantage of
opportunities to use Treasury inflation-protected securities (TIPS) as a hedge
against a possible rise in inflation. Inflation concerns have made TIPS popular;
they were a leading segment over the last six months. (See also the discussion
of TIPS in the U.S. Treasury Intermediate Fund section.)
OUTLOOK
- -------
We expect the year 2000 to be more favorable for bond investors. Neither
inflation nor long-term interest rates are likely to rise significantly from
current levels, though another Fed rate hike is possible in the first quarter of
2000. Economic growth should moderate eventually, to an annual rate of 3.5% or
slightly lower. U.S. consumer demand will likely slow, since mortgage
refinancing (a source of spendable cash) has dried up and because the recent
rise in oil prices will act like a tax increase on consumers. Given the Fed's
proactive stance and the positive influence of technological advancements,
including the Internet, we expect inflation to remain at 3% or lower. In the
short-term area of our market, we will need to carefully monitor supply and
demand trends, as these could heavily affect yields. However, we think
intermediate and longer bonds are well positioned to deliver results more in
line with their long-term averages in the year ahead.
Respectfully submitted,
/s/
William T. Reynolds
President
December 21, 1999
================================================================================
<PAGE>
T. ROWE PRICE U.S. TREASURY FUNDS
- ---------------------------------
PORTFOLIO HIGHLIGHTS
- --------------------
KEY STATISTICS
- --------------
5/31/99 11/30/99
------- --------
U.S. TREASURY MONEY FUND
------------------------
Price Per Share $ 1.00 $ 1.00
- -----------------------------------------------------------------------------
Dividends Per Share
For 6 months 0.021 0.021
- -----------------------------------------------------------------------------
For 12 months 0.044 0.042
- -----------------------------------------------------------------------------
Dividend Yield (7-Day Compound) * 4.13% 4.57%
- -----------------------------------------------------------------------------
Weighted Average Maturity (days) 75 69
- -----------------------------------------------------------------------------
Weighted Average Quality ** First Tier First Tier
- -----------------------------------------------------------------------------
U.S. TREASURY INTERMEDIATE FUND
-------------------------------
Price Per Share $ 5.19 $ 5.07
- -----------------------------------------------------------------------------
Dividends Per Share
For 6 months 0.13 0.14
- -----------------------------------------------------------------------------
For 12 months 0.27 0.27
- -----------------------------------------------------------------------------
Dividend Yield *
- -----------------------------------------------------------------------------
For 6 months 5.14% 5.37%
- -----------------------------------------------------------------------------
For 12 months 5.35 5.38
- -----------------------------------------------------------------------------
30-Day Standardized Yield 5.10 6.10
- -----------------------------------------------------------------------------
Weighted Average Maturity (years) 6.3 6.1
- -----------------------------------------------------------------------------
Weighted Average Effective Duration (years) 4.9 4.6
- -----------------------------------------------------------------------------
Weighted Average Quality *** AAA AAA
<PAGE>
U.S. TREASURY LONG-TERM FUND
----------------------------
Price Per Share $ 11.07 $ 10.54
- -----------------------------------------------------------------------------
Dividends Per Share
For 6 months 0.31 0.31
- -----------------------------------------------------------------------------
For 12 months 0.62 0.62
- -----------------------------------------------------------------------------
Dividend Yield *
- -----------------------------------------------------------------------------
For 6 months 5.68% 5.99%
- -----------------------------------------------------------------------------
For 12 months 5.74 6.06
- -----------------------------------------------------------------------------
30-Day Standardized Yield 5.48 6.06
- -----------------------------------------------------------------------------
Weighted Average Maturity (years) 17.6 17.2
- -----------------------------------------------------------------------------
Weighted Average Effective Duration (years) 10.6 10.2
- -----------------------------------------------------------------------------
Weighted Average Quality *** AAA AAA
- -----------------------------------------------------------------------------
* Dividends earned and reinvested for the periods indicated are
annualized and divided by the fund's net asset value per share at the
end of the period.
** All securities purchased in the money fund are rated in the two
highest categories (tiers) as established by national rating agencies
or, if unrated, are deemed of comparable quality by T. Rowe Price.
*** Based on T. Rowe Price research.
Note: Investments in the U.S. Treasury funds are not insured or guaranteed
by the U.S. government.
================================================================================
<PAGE>
T. ROWE PRICE U.S. TREASURY FUNDS
- ---------------------------------
PERFORMANCE COMPARISON
- ----------------------
These charts show the value of a hypothetical $10,000 investment in each
fund over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with benchmarks, which may include a
broad-based market index and a peer group average or index. Market indexes do
not include expenses, which are deducted from fund returns as well as mutual
fund averages and indexes.
[SEC Charts for U.S. Treasury Money Fund; U.S. Treasury Intermediate Fund
and U.S. Treasury Long-term Fund are shown here]
AVERAGE ANNUAL COMPOUND TOTAL RETURN
- ------------------------------------
This table shows how each fund would have performed each year if its actual (or
cumulative) returns for the periods shown had been earned at a constant rate.
Periods Ended 11/30/99 1 Year 3 Years 5 Years 10 Years
- ---------------------- ------ ------- ------- --------
U.S. Treasury Money Fund 4.26% 4.64% 4.79% 4.62%
U.S. Treasury Intermediate Fund -2.11 4.83 6.66 6.85
U.S. Treasury Long-Term Fund -7.49 5.34 8.80 7.72
Investment return represents past performance and will vary. Shares of the
bond funds may be worth more or less at redemption than at original purchase.
Investments in the Money Fund are not insured or guaranteed by the FDIC or any
other government agency. Although it seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
fund.
================================================================================
<PAGE>
T. ROWE PRICE U.S. TREASURY MONEY FUND
- --------------------------------------
Unaudited For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
- --------------------
6 Months Year
Ended Ended
11/30/99 5/31/99 5/31/98 5/31/97 5/31/96 5/31/95
-------- ------- ------- ------- ------- -------
NET ASSET VALUE
Beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Investment activities
Net investment income 0.021 0.044 0.048 0.046 0.050 0.045
Distributions
Net investment income (0.021) (0.044) (0.048) (0.046) (0.050) (0.045)
- ------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Ratios/Supplemental Data
Total return* 2.15% 4.46% 4.91% 4.74% 5.08% 4.58%
- ------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 0.48%+ 0.51% 0.51% 0.56% 0.53% 0.56%
- ------------------------------------------------------------------------------
Ratio of net investment
income to average
net assets 4.26%+ 4.37% 4.82% 4.65% 4.93% 4.51%
- ------------------------------------------------------------------------------
Net assets, end of
period(in thousands) $914,713 $889,945 $846,586 $821,075 $760,010 $719,215
- ------------------------------------------------------------------------------
* Total return reflects the rate that an investor would have earned on
an iestment in the fund during each period, assuming reinvestment of
all distributions.
+ Annualized
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE U.S. TREASURY INTERMEDIATE FUND
- ---------------------------------------------
Unaudited For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
- --------------------
6 Months Year
Ended Ended
11/30/99 5/31/99 5/31/98 5/31/97 5/31/96 5/31/95
NET ASSET VALUE
Beginning of period $ 5.19 $ 5.30 $ 5.12 $ 5.11 $ 5.25 $ 5.11
- ------------------------------------------------------------------------------
Investment activities
Net investment income 0.14 0.27 0.30 0.31 0.33 0.31
Net realized and
unrealized gain (loss) (0.12) (0.04) 0.18 0.01 (0.14) 0.14
- ------------------------------------------------------------------------------
Total from
investment activities 0.02 0.23 0.48 0.32 0.19 0.45
- ------------------------------------------------------------------------------
Distributions
Net investment income (0.14) (0.27) (0.30) (0.31) (0.33) (0.31)
Net realized gain -- (0.07) -- -- -- --
- ------------------------------------------------------------------------------
Total distributions (0.14) (0.34) (0.30) (0.31) (0.33) (0.31)
NET ASSET VALUE
End of period $ 5.07 $ 5.19 $ 5.30 $ 5.12 $ 5.11 $ 5.25
Ratios/Supplemental Data
Total return* 0.30% 4.28% 9.58% 6.48% 3.52% 9.29%
- ------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 0.64%+ 0.62% 0.61% 0.64% 0.65% 0.69%
- ------------------------------------------------------------------------------
Ratio of net investment
income to average
net assets 5.29%+ 5.02% 5.72% 6.11% 6.14% 6.19%
- ------------------------------------------------------------------------------
Portfolio turnover rate 38.5%+ 61.2% 112.8% 57.9% 40.7% 81.1%
- ------------------------------------------------------------------------------
Net assets, end of
period(in thousands) $253,142 $255,987 $203,027 $180,609 $174,176 $172,666
- ------------------------------------------------------------------------------
* Total return reflects the rate that an investor would have earned on
an investment in the fund during each period, assuming reinvestment of
all distributions.
+ Annualized
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE U.S. TREASURY LONG-TERM FUND
- ------------------------------------------
Unaudited For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
- --------------------
6 Months Year
Ended Ended
11/30/99 5/31/99 5/31/98 5/31/97 5/31/96 5/31/95
-------- ------- ------- ------- ------- -------
NET ASSET VALUE
- ---------------
Beginning of period $ 11.07 $ 11.39 $ 10.17 $ 10.02 $ 10.54 $ 9.81
- --------------------------------------------------------------------------------
Investment activities
Net investment income 0.31 0.62 0.63 0.63 0.65* 0.68*
Net realized and
unrealized gain (loss) (0.53) (0.25) 1.22 0.15 (0.52) 0.73
- --------------------------------------------------------------------------------
Total from
investment activities (0.22) 0.37 1.85 0.78 0.13 1.41
- --------------------------------------------------------------------------------
Distributions
Net investment income (0.31) (0.62) (0.63) (0.63) (0.65) (0.68)
Net realized gain -- (0.07) -- -- -- --
- --------------------------------------------------------------------------------
Total distributions (0.31) (0.69) (0.63) (0.63) (0.65) (0.68)
NET ASSET VALUE
End of period $ 10.54 $ 11.07 $ 11.39 $ 10.17 $ 10.02 $ 10.54
Ratios/Supplemental Data
Total return** (1.97)% 3.06% 18.58% 7.97% 1.02%* 15.24%*
- -------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 0.64%+ 0.66% 0.67% 0.80% 0.80%* 0.80%*
- -------------------------------------------------------------------------------
Ratio of net investment
income to average
net assets 5.83%+ 5.30% 5.71% 6.22% 6.05%* 7.05%*
- -------------------------------------------------------------------------------
Portfolio turnover rate 8.8%+ 74.1% 80.8% 67.6% 60.1% 99.3%
- -------------------------------------------------------------------------------
Net assets, end of
period(in thousands) $336,862 $333,535 $275,850 $71,263 $70,326 $65,284
- --------------------------------------------------------------------------------
** Total return reflects the rate that an investor would have earned on
an investment in the fund during each period, assuming reinvestment of
all distributions.
+ Annualized
* Excludes expenses in excess of a 0.80% voluntary expense limitation in
effect through 5/31/99.
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE U.S. TREASURY MONEY FUND
- --------------------------------------
Unaudited November 30, 1999
STATEMENT OF NET ASSETS
- -----------------------
Par Value
In thousands
U.S. TREASURY OBLIGATIONS 98.8%
U.S. Treasury Bills
4.45%, 12/16/99 $ 5,000 $ 4,991
- ---------------------------------------------------------------------
4.46%, 12/2/99 20,000 19,998
- ---------------------------------------------------------------------
4.52%, 12/9/99 26,477 26,450
- ---------------------------------------------------------------------
4.53%, 12/16/99 19,938 19,900
- ---------------------------------------------------------------------
4.55%, 12/2/99 15,000 14,998
- ---------------------------------------------------------------------
4.575%, 12/9/99 2,833 2,830
- ---------------------------------------------------------------------
4.58%, 12/9/99 4,402 4,398
- ---------------------------------------------------------------------
4.585%, 12/9/99 30,000 29,969
- ---------------------------------------------------------------------
4.59%, 12/9/99 - 1/6/00 10,382 10,336
- ---------------------------------------------------------------------
4.63%, 12/30/99 50,000 49,814
- ---------------------------------------------------------------------
4.67%, 12/9/99 - 2/10/00 47,088 46,886
- ---------------------------------------------------------------------
4.68%, 12/23/99 15,000 14,957
- ---------------------------------------------------------------------
4.72%, 12/30/99 15,000 14,943
- ---------------------------------------------------------------------
4.78%, 12/30/99 10,000 9,962
- ---------------------------------------------------------------------
4.80%, 2/10/00 610 604
- ---------------------------------------------------------------------
4.805%, 12/2/99 15,000 14,998
- ---------------------------------------------------------------------
4.845%, 12/23/99 10,000 9,970
- ---------------------------------------------------------------------
4.88%, 2/24/00 555 549
- ---------------------------------------------------------------------
4.90%, 2/10/00 2,457 2,433
- ---------------------------------------------------------------------
4.935%, 2/24/00 10,350 10,229
<PAGE>
- ---------------------------------------------------------------------
5.025%, 2/10/00 2,353 2,330
- ---------------------------------------------------------------------
5.035%, 2/10/00 25,000 24,752
- ---------------------------------------------------------------------
5.08%, 2/10/00 11,333 11,219
- ---------------------------------------------------------------------
5.165%, 2/24/00 40,000 39,512
- ---------------------------------------------------------------------
5.19%, 1/20/00 50,000 49,640
- ---------------------------------------------------------------------
5.20%, 1/20/00 25,000 24,819
- ---------------------------------------------------------------------
5.21%, 1/20/00 17,010 16,887
- ---------------------------------------------------------------------
U.S. Treasury Notes
5.375%, 1/31/00 90,000 90,043
- ---------------------------------------------------------------------
5.50%, 3/31 - 5/31/00 140,000 140,060
- ---------------------------------------------------------------------
5.875%, 2/15/00 90,000 90,129
- ---------------------------------------------------------------------
6.125%, 7/31/00 10,000 10,047
- ---------------------------------------------------------------------
6.25%, 8/31/00 10,000 10,051
- ---------------------------------------------------------------------
7.125%, 2/29/00 75,000 75,343
- ---------------------------------------------------------------------
7.75%, 12/31/99 10,000 10,017
- ---------------------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $904,064) 904,064
- ---------------------------------------------------------------------
Total Investments in Securities
98.8% of Net Assets (Cost $904,064) $ 904,064
Other Assets Less Liabilities 10,649
NET ASSETS $ 914,713
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 81
Accumulated net realized gain/loss - net of distributions 218
Paid-in-capital applicable to 914,492,987 shares of $0.01
par value capital stock outstanding; 1,000,000,000 shares
of the Corporation authorized 914,414
NET ASSETS $ 914,713
NET ASSET VALUE PER SHARE $ 1.00
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE U.S. TREASURY INTERMEDIATE FUND
- ---------------------------------------------
Unaudited November 30, 1999
STATEMENT OF NET ASSETS
- -----------------------
Par/Shares Value
In thousands
U.S. GOVERNMENT OBLIGATIONS 82.7%
U.S. Treasury Obligations 82.7%
U.S. Treasury Bonds
9.375%, 2/15/06 $ 5,150 $ 5,956
- -------------------------------------------------------------------------------
11.625%, 11/15/04 6,800 8,321
- -------------------------------------------------------------------------------
12.00%, 5/15/05 19,300 24,300
- -------------------------------------------------------------------------------
U.S. Treasury Inflation-Indexed Notes
3.375%, 1/15/07 15,311 14,571
- -------------------------------------------------------------------------------
3.625%, 7/15/02 4,853 4,819
- -------------------------------------------------------------------------------
U.S. Treasury Notes
Zero Coupon, 2/15/04 15,000 11,579
- -------------------------------------------------------------------------------
Zero Coupon, 2/15/05 25,200 18,197
- -------------------------------------------------------------------------------
Zero Coupon, 2/15/06 25,000 16,907
- -------------------------------------------------------------------------------
Zero Coupon, 2/15/08 10,000 5,904
- -------------------------------------------------------------------------------
6.00%, 8/15/09 8,500 8,392
- -------------------------------------------------------------------------------
6.125%, 8/15/07 24,200 23,937
- -------------------------------------------------------------------------------
6.50%, 5/15/05 - 10/15/06 40,410 40,898
- -------------------------------------------------------------------------------
7.00%, 7/15/06 3,700 3,843
- -------------------------------------------------------------------------------
7.50%, 2/15/05 20,500 21,634
- -------------------------------------------------------------------------------
Total U.S. Government Obligations
(Cost $216,197) 209,258
- -------------------------------------------------------------------------------
<PAGE>
U.S. GOVERNMENT MORTGAGE-BACKED SECURITIES 13.4%
U.S. Government Guaranteed Obligations 13.4%
Government National Mortgage Assn.
I
6.00%, 12/15/08 - 3/15/11 711 685
- -------------------------------------------------------------------------------
6.50%, 8/15/02 - 2/15/29 21,058 20,068
- -------------------------------------------------------------------------------
7.00%, 7/15/16 - 6/15/28 2,934 2,879
- -------------------------------------------------------------------------------
7.50%, 10/15/07 - 8/15/29 2,976 2,995
- -------------------------------------------------------------------------------
8.00%, 2/15/08 - 10/15/25 1,515 1,550
- -------------------------------------------------------------------------------
8.50%, 8/15/04 - 4/15/23 835 862
- -------------------------------------------------------------------------------
9.00%, 5/15/01 - 11/15/25 731 753
- -------------------------------------------------------------------------------
9.50%, 12/15/24 - 5/15/25 557 595
- -------------------------------------------------------------------------------
Government National Mortgage Assn.
I
10.00%, 8/15/19 $ 78 $ 84
- -------------------------------------------------------------------------------
10.50%, 11/15/14 160 176
- -------------------------------------------------------------------------------
11.00%, 12/15/09 - 12/15/19 662 738
- -------------------------------------------------------------------------------
11.50%, 3/15/10 - 2/15/18 1,198 1,349
- -------------------------------------------------------------------------------
12.50%, 10/15/13 - 3/15/15 135 156
- -------------------------------------------------------------------------------
II
9.00%, 10/20/16 - 2/20/27 96 101
- -------------------------------------------------------------------------------
9.50%, 1/20 - 11/20/25 125 134
- -------------------------------------------------------------------------------
10.50%, 1/20/16 - 6/20/19 460 507
- -------------------------------------------------------------------------------
GPM, I, 11.00%, 9/15/10 71 79
- -------------------------------------------------------------------------------
Midget, I
9.50%, 9/15/00 - 12/15/05 206 211
- -------------------------------------------------------------------------------
10.00%, 11/15/00 - 9/15/05 117 123
- -------------------------------------------------------------------------------
10.50%, 1/15/01 - 9/15/04 23 24
- -------------------------------------------------------------------------------
11.00%, 8/15/00 5 5
- -------------------------------------------------------------------------------
11.50%, 3/15 - 7/15/00 6 6
- -------------------------------------------------------------------------------
Midget, II, 11.50%, 2/20 - 3/20/00 0 0
- -------------------------------------------------------------------------------
Total U.S. Government Mortgage-Backed
Securities (Cost $35,211) 34,080
- -------------------------------------------------------------------------------
Money Market Funds 3.2%
Government Reserve Investment Fund, 5.46% # 8,100 8,100
Total Money Market Funds (Cost $8,100) 8,100
99.3% of Net Assets (Cost $259,508) $ 251,438
Other Assets Less Liabilities 1,704
NET ASSETS $ 253,142
Net Assets Consist of:
Accumulated net investment income - net of distributions $ (917)
Accumulated net realized gain/loss - net of distributions 864
Net unrealized gain (loss) (8,070)
Paid-in-capital applicable to 49,939,872 shares of $0.01 par
value capital stock outstanding; 1,000,000,000 shares
of the Corporation authorized 261,265
NET ASSETS $ 253,142
NET ASSET VALUE PER SHARE $ 5.07
# Seven-day yield
GPM Graduated Payment Mortgage
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE U.S. TREASURY LONG-TERM FUND
- ------------------------------------------
Unaudited November 30, 1999
STATEMENT OF NET ASSETS
- -----------------------
Par/Shares Value
In thousands
U.S. GOVERNMENT OBLIGATIONS 84.7%
U.S. Treasury Obligations 84.7%
U.S. Treasury Bonds
6.25%, 8/15/23 $ 42,000 $ 40,593
- -----------------------------------------------------------------------
7.125%, 2/15/23 22,700 24,205
- -----------------------------------------------------------------------
7.25%, 5/15/16 34,450 36,638
- -----------------------------------------------------------------------
7.50%, 11/15/24 14,500 16,199
- -----------------------------------------------------------------------
7.625%, 2/15/25 16,775 19,028
- -----------------------------------------------------------------------
8.75%, 5/15/17 37,000 45,010
- -----------------------------------------------------------------------
8.875%, 2/15/19 36,150 44,886
- -----------------------------------------------------------------------
U.S. Treasury Inflation-Indexed Notes
3.375%, 1/15/07 6,093 5,798
- -----------------------------------------------------------------------
3.625%, 7/15/02 2,883 2,862
- -----------------------------------------------------------------------
U.S. Treasury Notes
Zero Coupon, 5/15/16 70,000 23,460
- -----------------------------------------------------------------------
Zero Coupon, 11/15/16 70,000 22,713
- -----------------------------------------------------------------------
5.875%, 2/15/04 4,000 3,968
- -----------------------------------------------------------------------
Total U.S. Government Obligations
(Cost $297,750) 285,360
- -----------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED SECURITIES 13.2%
U.S. Government Guaranteed Obligations 13.2%
Government National Mortgage Assn.
I
6.50%, 8/15/28 3,784 3,600
- -----------------------------------------------------------------------
7.00%, 8/15 - 9/15/25 1,717 1,680
- -----------------------------------------------------------------------
7.50%, 8/15/27 - 8/15/29 9,271 9,255
- -----------------------------------------------------------------------
8.00%, 2/15/04 - 1/15/29 4,607 4,686
- -----------------------------------------------------------------------
8.50%, 12/15/05 - 2/15/27 2,903 3,000
- -----------------------------------------------------------------------
9.00%, 11/15/04 - 8/15/25 4,680 4,956
- -----------------------------------------------------------------------
9.50%, 8/15/09 - 12/15/17 5,104 5,466
- -----------------------------------------------------------------------
10.00%, 12/15/17 - 7/15/22 660 719
- -----------------------------------------------------------------------
10.50%, 5/15/13 - 7/15/19 171 189
- -----------------------------------------------------------------------
11.50%, 10/15/10 - 8/15/15 91 103
- -----------------------------------------------------------------------
<PAGE>
Government National Mortgage Assn.
II
7.00%, 11/20/23 - 1/20/24 $ 30 $ 30
- -----------------------------------------------------------------------
8.50%, 10/20/24 344 356
- -----------------------------------------------------------------------
REMIC
6.35%, 1/20/28 5,000 4,461
- -----------------------------------------------------------------------
6.50%, 5/20/28 4,533 4,137
- -----------------------------------------------------------------------
7.00%, 5/16/24 2,000 1,937
- -----------------------------------------------------------------------
Interest Only, 8.00%, 6/16/23 ** 441 53
- -----------------------------------------------------------------------
Total U.S. Government Mortgage-Backed
Securities (Cost $46,152) 44,628
- -----------------------------------------------------------------------
Money Market Funds 1.2%
Government Reserve Investment Fund, 5.46% # 3,873 3,873
- -----------------------------------------------------------------------
Total Money Market Funds (Cost $3,873) 3,873
99.1% of Net Assets (Cost $347,775) $ 333,861
Other Assets Less Liabilities 3,001
NET ASSETS $ 336,862
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 12
Accumulated net realized gain/loss - net of distributions 3,448
Net unrealized gain (loss) (13,914)
Paid-in-capital applicable to 31,965,502 shares of $0.01 par
value capital stock outstanding; 1,000,000,000 shares of
the Corporation authorized 347,316
NET ASSETS $ 336,862
NET ASSET VALUE PER SHARE $ 10.54
** For Interest Only securities, amount represents notional principal, on
which the fund receives interest
# Seven-day yield
REMIC Real Estate Mortgage Investment Conduit
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE U.S. TREASURY FUNDS
- ---------------------------------
Unaudited
STATEMENT OF OPERATIONS
- -----------------------
In thousands
Money Intermediate Long-Term
Fund Fund Fund
6 Months 6 Months 6 Months
Ended Ended Ended
11/30/99 11/30/99 11/30/99
-------- -------- --------
Investment Income
Interest income $ 21,244 $ 7,493 $ 10,920
- ------------------------------------------------------------------------------
Expenses
Investment management 1,437 468 624
Shareholder servicing 592 232 361
Custody and accounting 56 56 53
Prospectus and shareholder reports 47 17 13
Registration 8 23 24
Legal and audit 7 7 7
Directors 4 3 3
Miscellaneous 3 2 3
- ------------------------------------------------------------------------------
Total expenses 2,154 808 1,088
Expenses paid indirectly (18) - -
- ------------------------------------------------------------------------------
Net expenses 2,136 808 1,088
- ------------------------------------------------------------------------------
Net investment income 19,108 6,685 9,832
- ------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on securities 32 (2,097) (671)
Change in net unrealized gain or loss
on securities - (3,694) (16,093)
- ------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 32 (5,791) (16,764)
- ------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 19,140 $ 894 $ (6,932)
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE U.S. TREASURY MONEY FUND
- -------------------------------------- Unaudited
STATEMENT OF CHANGES IN NET ASSETS
- ---------------------------------- In thousands
6 Months Year
Ended Ended
11/30/99 5/31/99
-------- -------
Increase (Decrease) in Net Assets
Operations
Net investment income $ 19,108 $ 39,311
Net realized gain (loss) 32 24
- ------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 19,140 39,335
- ------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (19,108) (39,311)
- ------------------------------------------------------------------------------
Capital share transactions *
Shares sold 1,605,949 3,541,154
Distributions reinvested 18,337 37,444
Shares redeemed (1,599,550) (3,535,263)
- ------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 24,736 43,335
Net Assets
Increase (decrease) during period 24,768 43,359
Beginning of period 889,945 846,586
End of period $ 914,713 $ 889,945
*Share information
Shares sold 1,605,949 3,541,154
Distributions reinvested 18,337 37,444
Shares redeemed (1,599,550) (3,535,263)
- ------------------------------------------------------------------------------
Increase (decrease) in shares outstanding 24,736 43,335
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE U.S. TREASURY INTERMEDIATE FUND
- --------------------------------------------- Unaudited
STATEMENT OF CHANGES IN NET ASSETS
- ---------------------------------- In thousands
6 Months Year
Ended Ended
11/30/99 5/31/99
Increase (Decrease) in Net Assets
Operations
Net investment income $ 6,685 $ 12,593
Net realized gain (loss) (2,097) 4,087
Change in net unrealized gain or loss (3,694) (7,518)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 894 9,162
- -------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (6,685) (12,593)
Net realized gain - (3,321)
- -------------------------------------------------------------------------------
Decrease in net assets from distributions (6,685) (15,914)
- -------------------------------------------------------------------------------
Capital share transactions *
Shares sold 41,542 159,141
Distributions reinvested 5,551 13,541
Shares redeemed (44,147) (112,970)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 2,946 59,712
Net Assets
Increase (decrease) during period (2,845) 52,960
Beginning of period 255,987 203,027
End of period $ 253,142 $ 255,987
*Share information
Shares sold 8,129 29,337
Distributions reinvested 1,087 2,501
Shares redeemed (8,631) (20,762)
- -------------------------------------------------------------------------------
Increase (decrease) in shares outstanding 585 11,076
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE U.S. TREASURY LONG-TERM FUND
- ------------------------------------------ Unaudited
STATEMENT OF CHANGES IN NET ASSETS
- ---------------------------------- In thousands
6 Months Year
Ended Ended
11/30/99 5/31/99
-------- -------
Increase (Decrease) in Net Assets
Operations
Net investment income $ 9,832 $ 16,425
Net realized gain (loss) (671) 5,011
Change in net unrealized gain or loss (16,093) (13,040)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (6,932) 8,396
- -------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (9,832) (16,425)
Net realized gain - (1,812)
- -------------------------------------------------------------------------------
Decrease in net assets from distributions (9,832) (18,237)
- -------------------------------------------------------------------------------
Capital share transactions *
Shares sold 49,434 195,948
Distributions reinvested 9,401 17,337
Shares redeemed (38,744) (145,759)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 20,091 67,526
Net Assets
Increase (decrease) during period 3,327 57,685
Beginning of period 333,535 275,850
End of period $ 336,862 $ 333,535
*Share information
Shares sold 4,582 16,744
Distributions reinvested 878 1,477
Shares redeemed (3,610) (12,318)
- -------------------------------------------------------------------------------
Increase (decrease) in shares outstanding 1,850 5,903
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE U.S. TREASURY FUNDS
- ---------------------------------
Unaudited November 30, 1999
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
- ----------------------------------------
T. Rowe Price U.S. Treasury Funds, Inc. (the corporation) is registered
under the Investment Company Act of 1940. The U.S. Treasury Money Fund (the
Money Fund), and the U.S. Treasury Intermediate Fund (the Intermediate Fund),
the U.S. Treasury Long-Term Fund (the Long Term Fund), diversified, open-end
management investment companies, are the three portfolios established by the
corporation and commenced operations on June 28, 1982, September 29, 1989, and
September 29, 1989, respectively.
The accompanying financial statements are prepared in accordance with
generally accepted accounting principles for the investment company industry;
these principles may require the use of estimates by fund management.
Valuation Except for securities held by the Money Fund, securities are
valued based upon market quotations. When market quotations are not readily
available, these securities are valued at a representative bid price or yield
equivalent as quoted by dealers who make markets in such securities. Securities
held by the Money Fund are valued at amortized cost.
Investments in mutual funds are valued at the closing net asset value per
share of the mutual fund on the day of valuation.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of that
fund, as authorized by the Board of Directors.
<PAGE>
Premiums and Discounts Premiums and discounts on debt securities, other
than mortgage-backed securities (MBS), are amortized for both financial
reporting and tax purposes. Premiums and discounts on all MBS are recognized
upon disposition or principal repayment as gain or loss for financial reporting
purposes. For tax purposes, premiums and discounts on MBS acquired on or before
June 8, 1997, are recognized upon disposition or principal repayment as ordinary
income. For MBS acquired after June 8, 1997, premiums are recognized as gain or
loss; discounts are recognized as gain or loss, except to the extent of accrued
market discount.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses are
reported on the identified cost basis. Distributions to shareholders are
recorded by each fund on the ex-dividend date. Income and capital gain
distributions are determined in accordance with federal income tax regulations
and may differ from those determined in accordance with generally accepted
accounting principles. Expenses paid indirectly reflect credits earned on daily
uninvested cash balances at the custodian, which are used to reduce each fund's
custody charges.
NOTE 2 - INVESTMENT TRANSACTIONS
- --------------------------------
*******************************************************************************
Intermediate Long-Term
Fund Fund
------------ ---------
U.S. GOVERNMENT SECURITIES
Purchases $ 47,629,000 $ 34,133,000
Sales 48,780,000 14,572,000
*******************************************************************************
Purchases and sales of U.S. Government securities, other than short-term
securities, for the six months ended November 30, 1999, were as follows:
NOTE 3 - FEDERAL INCOME TAXES
- -----------------------------
No provision for federal income taxes is required since each fund intends
to continue to qualify as a regulated investment company and distribute all of
its taxable income.
At November 30, 1999, the costs of investments for the Money, Intermediate,
and Long-Term Funds for federal income tax purposes was substantially the same
as for financial reporting and totaled $904,064,000, $259,508,000, and
$347,775,000, respectively. For the Money Fund, amortized cost is equivalent to
value. For the Intermediate and Long-Term Funds, net unrealized loss on
investments was as follows:
*******************************************************************************
Intermediate Long-Term
Fund Fund
------------ ---------
Appreciated investments $ 141,000 $ 3,225,000
Depreciated investments (8,211,000) (17,139,000)
Net unrealized loss $(8,070,000) $ (13,914,000)
*******************************************************************************
<PAGE>
NOTE 4 - RELATED PARTY TRANSACTIONS
- -----------------------------------
The investment management agreement between each fund and T. Rowe Price
Associates, Inc. (the manager) provides for an annual investment management fee,
of which $237,000, $77,000, and $104,000 were payable at November 30, 1999 by
the Money, Intermediate, and Long-Term Funds, respectively. The fee is computed
daily and paid monthly, and consists of an individual fund fee equal to 0.05% of
average daily net assets for the Intermediate and Long-Term Funds, and a group
fee. The Money Fund does not have an individual fee, only a group fee. The group
fee is based on the combined assets of certain mutual funds sponsored by the
manager or Rowe Price-Fleming International, Inc. (the group). The group fee
rate ranges from 0.48% for the first $1 billion of assets to 0.295% for assets
in excess of $120 billion. At November 30, 1999, and for the six months then
ended, the effective annual group fee rate was 0.32%. Each fund pays a pro-rata
share of the group fee based on the ratio of its net assets to those of the
group.
In addition, each fund has entered into agreements with the manager and two
wholly owned subsidiaries of the manager, pursuant to which each fund receives
certain other services. The manager computes the daily share price and maintains
the financial records of each fund. T. Rowe Price Services, Inc. is each fund's
transfer and dividend disbursing agent and provides shareholder and
administrative services to the funds. T. Rowe Price Retirement Plan Services,
Inc. provides subaccounting and recordkeeping services for certain retirement
accounts invested in each fund. The Money, Intermediate, and Long-Term Funds
incurred expenses pursuant to these related party agreements totaling
approximately $523,000, $218,000 and $141,000, respectively, for the six months
ended November 30, 1999, of which $122,000, $45,000 and $31,000, respectively,
were payable at period-end.
Additionally, the Long-Term Fund is one of several T. Rowe Price-sponsored
mutual funds (underlying funds) in which the T. Rowe Price Spectrum Funds
(Spectrum) may invest. Spectrum does not invest in the underlying funds for the
purpose of exercising management or control. Expenses associated with the
operation of Spectrum are borne by each underlying fund to the extent of
estimated savings to it and in proportion to the average daily value of its
shares owned by Spectrum, pursuant to special servicing agreements between and
among Spectrum, the underlying funds, T. Rowe Price, and, in the case of
T. Rowe Price Spectrum International, Rowe Price-Fleming International.
Spectrum Income Fund held approximately 60.4% of the outstanding shares of the
Long-Term Fund at November 30, 1999. For the six months then ended, the
Long-Term Fund was allocated $230,000 of Spectrum expenses, $22,000 of which was
payable at period-end. The funds may invest in the Reserve Investment Fund and
Government Reserve Investment Fund (collectively, the Reserve Funds), open-end
management investment companies managed by T. Rowe Price Associates, Inc. The
Reserve Funds are offered as cash management options only to mutual funds and
other accounts managed by T. Rowe Price and its affiliates and are not available
to the public. The Reserve Funds pay no investment management fees.
Distributions from the Reserve Funds to the Intermediate and Long-Term Funds for
the six months ended November 30, 1999, totaled $84,000 and $89,000,
respectively, and are reflected as interest income in the accompanying Statement
of Operations.
================================================================================
<PAGE>
FOR FUND AND ACCOUNT INFORMATION
OR TO CONDUCT TRANSACTIONS,
24 HOURS, 7 DAYS A WEEK
By touch-tone telephone
TELE*ACCESS 1-800-638-2587
By Account Access on the Internet
WWW.TROWEPRICE.COM/ACCESS
FOR ASSISTANCE
WITH YOUR EXISTING
FUND ACCOUNT, CALL:
Shareholder Service Center
1-800-225-5132
TO OPEN A BROKERAGE ACCOUNT
OR OBTAIN INFORMATION, CALL:
1-800-638-5660
INTERNET ADDRESS:
www.troweprice.com
PLAN ACCOUNT LINES FOR RETIREMENT
PLAN PARTICIPANTS:
The appropriate 800 number appears on
your retirement account statement.
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for
distribution only to shareholders
and to others who have received
a copy of the prospectus appropriate
to the fund or funds covered in this
report.
WALK-IN INVESTOR CENTERS:
For directions, call 1-800-225-5132
or visit our Web site
BALTIMORE AREA
DOWNTOWN
101 East Lombard Street
OWINGS MILLS
Three Financial Center
4515 Painters Mill Road
BOSTON AREA
386 Washington Street
Wellesley
COLORADO SPRINGS
4410 ArrowsWest Drive
LOS ANGELES AREA
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
TAMPA
4200 West Cypress Street
10th Floor
WASHINGTON, D.C.
900 17th Street N.W.
Farragut Square
T. Rowe Price Investment Services, Inc., Distributor. C07-051 11/30/99
