DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus BASIC U.S. Government
Money Market Fund for the six-month period ended August 31, 1998. For the
period, your Fund produced an annualized yield of 5.17% and, after taking into
account the effect of compounding, the annualized effective yield was 5.30%.*
THE ECONOMY
Having consistently viewed inflation as the primary threat to our strong
growth, low unemployment economy, the Federal Reserve Board (the "Fed") now has
another factor to ponder in setting monetary policy: the risk of global
recession. The wave of economic uncertainty that shook stock markets and caused
currencies to devalue, which began in Thailand on July 2, 1997 (the onset of the
Asian financial crisis), has spread throughout Asia and around the world. This
financial tumult has underscored just how economically interrelated the world's
nations are. In fact, the fragility of global financial markets was a key factor
in the Fed's reluctance to raise interest rates in an economy now in its seventh
year of economic expansion. It feared that an increase in rates might threaten
the stability of other currencies.
There were additional economic factors that stayed the Fed's hand.
Inflation has remained tame, comfortably below 2% on the consumer level, and is
minimal at the production level of the economy as well. One reason for the
low inflation rate is the strong dollar, which keeps import prices down;
domestic producers are constrained from raising prices by competition from
lower priced foreign goods. This has all been good news for consumers, who
account for two thirds of all economic activity. Bolstered by solid wage
gains and abundant jobs, consumers have been a driving positive force in
the economy. Whether it was housing, automobiles, big ticket or small ticket
items, their spending and their overall economic optimism both were robust. By
the end of the reporting period, however, there were hints that this could
change. The political and economic instability in Russia jolted the U.S.
stock market in August. The stock market selloff could cause consumers to grow
less confident and curtail spending, even though the larger-scale economic
fundamentals for consumers remain positive: low inflation and plentiful jobs
(unemployment remains near its 28-year low of 4.5%).
The wave of currency devaluations that began over a year ago in Southeast Asia
has become stronger. Collapsing currencies, the latest being the Russian
ruble, have triggered often violent reactions in foreign financial markets. The
distantfinancial turmoil has resulted in a reduced demand for U.S. exports, and
has begun to curtail domestic corporate profit growth. In the second quarter,
profits declined year-over-year for the first time in almost a decade.
Mirroring the slide in corporate profits, industrial production declined in
June and July. In addition to the profit pinch, second-quarter economic growth
lessened to 1.6%, the slowest rate in three years and dramatically below the
5.5% rate reported for the first quarter. We remain alert for additional signs
of the domestic effects of global financial problems.
THE MARKET ENVIRONMENT
The economic forces described above drove down short-term interest rates in
late July and during August, finally pushing them below the narrow band that had
prevailed for many months.
The most notable result was that, toward the end of the six-month fiscal
period, the yield curve became inverted, with three-month Treasury bills
actually yielding more than longer money market maturities.
The inverted yield curve was caused by a flight to quality due to turmoil in
both foreign and domestic financial markets. It also reflected an expectation in
the market that the Fed's next move will be to reduce short-term rates, rather
than boost them as had been assumed for more than a year.
<PAGE>
PORTFOLIO FOCUS
In this environment, we have continued to maintain average maturities somewhat
longer than the industry standard. This strategy provided very competitive
yields for investors over the reporting period. We will continue this approach
as long as warranted by the market outlook.
Sincerely,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Senior Portfolio Manager
September 17, 1998
New York, N.Y.
*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
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DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
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STATEMENT OF INVESTMENTS AUGUST 31, 1998 (UNAUDITED)
Annualized
Yield on
Date of Principal
U.S. Government Agencies--85.3% Purchase Amount Value
- -------------------------------------------------------------------------- __________ _______________ _______________
<S> <C> <C> <C>
Federal Farm Credit Banks, Discount Notes
9/14/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.70% $ 8,700,000 $ 8,682,894
9/15/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.69 25,000,000 24,947,111
9/17/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.70 11,185,000 11,157,957
10/5/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.72 4,380,000 4,357,476
11/13/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.72 10,000,000 9,890,297
3/12/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.50 5,000,000 4,861,067
8/3/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.56 5,000,000 4,995,844
Federal Farm Credit Banks, Floating Rate Notes
6/18/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.60 (a) 50,000,000 50,000,000
6/22/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.54 (a) 40,000,000 39,980,991
6/23/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.54 (a) 75,000,000 74,964,485
1/28/00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.56 (a) 50,000,000 49,983,249
6/29/00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.55 (a) 40,000,000 39,979,160
Federal Home Loan Banks, Discount Notes
10/2/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.64 5,000,000 4,999,652
1/29/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.42 25,000,000 24,464,583
3/2/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.51 22,950,000 22,949,204
3/12/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.57 23,100,000 23,092,405
3/23/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.48 10,000,000 9,995,718
4/7/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.65 25,000,000 24,988,055
6/10/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.59 25,000,000 24,970,834
6/11/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.61 40,000,000 39,975,848
7/6/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.45 10,000,000 9,995,528
7/13/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.59 2,000,000 1,998,969
7/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.50 30,060,000 30,053,354
Federal Home Loan Banks, Floating Rate Notes
9/8/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.80 (a) 10,000,000 9,999,862
9/24/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.66 (a) 35,000,000 34,999,623
3/10/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.57 (a) 35,000,000 34,999,271
Federal Home Loan, Notes
3/12/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.57 5,800,000 5,800,174
7/23/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.36 5,700,000 5,722,336
Federal Home Loan Mortgage Corp., Discount Notes
3/12/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.48 10,000,000 9,995,356
Federal National Mortgage Association, Discount Notes
10/16/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.64 45,000,000 44,694,250
8/4/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.49 10,000,000 9,512,286
8/9/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.59 25,000,000 24,978,474
8/20/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.45 8,000,000 7,594,442
Federal National Mortgage Association, Floating Rate Notes
9/15/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.58 (a) 25,000,000 24,999,249
1/6/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.61 (a) 50,000,000 49,988,953
3/16/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.60 (a) 10,000,000 9,993,825
10/20/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.52 (a) 50,000,000 50,000,000
1/21/00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.57 (a) 50,000,000 50,000,000
<PAGE>
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
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STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
Annualized
Yield on
Date of Principal
U.S. Government Agencies (continued) Purchase Amount Value
- ---------------------------------------------------------------------------
__________ _______________ _______________
Federal National Mortgage Association, Notes
7/30/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.39% $ 5,000,000 $ 5,014,380
Student Loan Marketing Association, Discount Notes
2/10/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.37 63,073,000 63,044,478
Student Loan Marketing Association, Floating Rate Notes
9/16/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.72 (a) 25,000,000 25,000,556
9/16/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.83 (a) 25,000,000 24,999,200
Student Loan Marketing Association, Notes
6/30/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.52 15,000,000 15,004,593
_______________
TOTAL U.S. GOVERNMENT AGENCIES (cost $1,047,625,989) . . . . . . . . . . . $1,047,625,989
===============
Repurchase Agreements--13.7%
- ----------------------------------------------
Barclays De Zoette Wedd Securtities, Inc.
dated 8/31/98, due 9/1/98 in the amount of $18,688,985
(fully collateralized by $18,445,000 U.S. Treasury
Notes, 6.75%, due 5/31/99, value $18,961,423) . . . . . . . . . . . . . 5.75% $ 18,686,000 $ 18,686,000
Donaldson Lufkin & Jenrette Securities Corp.
dated 8/31/98, due 9/1/98 in the amount of $74,011,819
(fully collateralized by $73,834,000 U.S. Treasury
Notes, 5.875-6.875%, due from 7/31/99-8/31/99, value $74,810,178) . . . 5.75 74,000,000 74,000,000
Morgan Stanley Dean Witter & Co
dated 8/31/98, due 9/1/98 in the amount of $75,011,979
(fully collateralized by $76,499,000 U.S. Treasury Notes,
5.875%, due 2/28/99, value $76,750,475) . . . . . . . . . . . . . . . . 5.75 75,000,000 75,000,000
_______________
TOTAL REPURCHASE AGREEMENTS (cost $167,686,000). . . . . . . . . . . . . . $ 167,686,000
===============
TOTAL INVESTMENTS (cost $1,215,311,989). . . . . . . . . . . . 99.0% $ 1,215,311,989
======== ===============
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . 1.0% $ 12,617,527
======== ===============
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $ 1,227,929,516
======== ===============
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Variable interest rate--subject to periodic change.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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<TABLE>
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DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
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STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1998 (UNAUDITED)
Cost Value
_______________ _______________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments
(including Repurchase agreements $167,686,000)
--Note 1(b) . . . . . . . . . . . . . . . . . . . . . . $1,215,311,989 $1,215,311,989
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 1,129,855
Interest receivable . . . . . . . . . . . . . . . . . . . 11,870,982
_______________
1,228,312,826
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 274,454
Accrued expenses and other liabilities . . . . . . . . . 108,856
_______________
383,310
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,227,929,516
===============
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $1,228,547,747
Accumulated net realized gain (loss) on investments . . . (618,231)
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,227,929,516
===============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized) . . . . . . 1,228,547,747
NET ASSET VALUE, offering and redemption price per share . . . . . . . . . . . . . . . . . $1.00
======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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<TABLE>
<CAPTION>
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
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STATEMENT OF OPERATIONS SIX MONTHS ENDED AUGUST 31, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $35,448,867
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . . . . . $ 3,144,513
Shareholder servicing costs--Note 2(b) . . . . . . . . . 628,141
Custodian fees . . . . . . . . . . . . . . . . . . . . . 51,647
Registration fees . . . . . . . . . . . . . . . . . . . . 41,544
Professional fees . . . . . . . . . . . . . . . . . . . . 22,731
Trustees' fees and expenses--Note 2(c) . . . . . . . . . 14,139
Prospectus and shareholders' reports . . . . . . . . . . 14,012
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 9,955
____________
Total Expenses . . . . . . . . . . . . . . . . . . 3,926,682
Less--reduction in management fee due to
undertaking--Note 2(a) . . . . . . . . . . . . . . . . (1,064,702)
____________
Net Expenses . . . . . . . . . . . . . . . . . . . 2,861,980
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,586,887
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b) . . . . . . . . . . . . . . . . . . . . (1,245)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $32,585,642
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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<TABLE>
<CAPTION>
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
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STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
August 31, 1998 Year Ended
(Unaudited) February 28, 1998
_________________ _________________
OPERATIONS:
<S> <C> <C>
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,586,887 $ 70,607,074
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . (1,245) (89,610)
_______________ _______________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . 32,585,642 70,517,464
_______________ _______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32,773,430) (70,420,531)
_______________ _______________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . 500,128,502 1,279,726,698
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,168,574 66,574,075
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (611,827,191) (1,497,699,684)
_______________ _______________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . . (80,530,115) (151,398,911)
_______________ _______________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . (80,717,903) (151,301,978)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,308,647,419 1,459,949,397
_______________ _______________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,227,929,516 $1,308,647,419
=============== ===============
Undistributed investment income--net . . . . . . . . . . . . . . . . . . . . . . . . -- $ 186,543
_______________ _______________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
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FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Six Months Ended
August 31, 1998 Fiscal Year Ended February,
___________________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . .026 .052 .051 .058 .046 .032
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . (.026) (.052) (.051) (.058) (.046) (.032)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN. . . . . . . . . . . 5.26%* 5.33% 5.20% 5.94% 4.67% 3.30%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . .45%* .45% .45% .31% .17% .02%
Ratio of net investment income
to average net assets . . . . . . . . 5.18%* 5.22% 5.09% 5.79% 5.05% 3.24%
Decrease reflected in above expense ratios
due to undertakings by the Manager . .17%* .17% .20% .36% .44% .64%
Net Assets, end of period (000's Omitted) . . $1,227,930 $1,308,647 $1,459,949 $1,366,056 $1,041,722 $265,691
- -----------------------------
* Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus BASIC U.S. Government Money Market 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 provide investors with as high a level of current income as is
consistent with the preservation of capital and the maintenance of liquidity.
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. is the distributor of the Fund's shares, which are sold to the
public without a sales charge.
It is the Fund's policy to maintain a continuous net asset value per share of
$1.00; the Fund has adopted certain investment, portfolio valuation and dividend
and distribution policies to enable it to do so. There is no assurance, however,
that the Fund will be able to maintain a stable net asset value per share of
$1.00.
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 amortized
cost, which has been determined by the Fund's Board of Trustees to represent the
fair value of the Fund's investments.
(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 is
recognized on the accrual basis. Cost of investments represents amortized cost.
Under the terms of the custodian agreement, the Fund receives net earnings
credits based on available cash balances left on deposit.
The Fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the Fund' s Manager, subject to the seller's
agreement to repurchase and the Fund's agreement to resell such securities at a
mutually agreed upon price. Securities purchased subject to repurchase
agreements are deposited with the Fund's custodian and, pursuant to the terms of
the repurchase agreement, must have an aggregate market value greater than or
equal to the repurchase price plus accrued interest at all times. If the value
of the underlying securities falls below the value of the repurchase price plus
accrued interest, the Fund will require the seller to deposit additional
collateral by the next business day. If the request for additional collateral is
not met, or the seller defaults on its repurchase obligation, the Fund maintains
the right to sell the underlying securities at market value and may claim any
resulting loss against the seller.
(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 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, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the 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 $566,500
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to February 28, 1998. The
carryover does not include net realized securities losses from November 1, 1997
through February 28, 1998 which are treated, for Federal income tax purposes, as
arising in fiscal 1999. If not applied, $200 of the carryover expires in fiscal
2003, $523,000 expires in fiscal 2005 and $43,300 expires in fiscal 2006.
<PAGE>
DREYFUS BASIC U.S. GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
At August 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).
NOTE 2--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 .50 of 1% of the value of the Fund's average
daily net assets and is payablemonthly. The Manager has undertaken, until such
time as it gives shareholders at least 90 days' notice to the contrary, 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 .45 of 1% of the value of the
Fund's average daily net assets. The reduction in management fee, pursuant to
the undertaking, amounted to $1,064,702 during the period ended August 31,
1998.
(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
August 31, 1998, the Fund was charged $452,488 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. During the period
ended August 31, 1998, the Fund was charged $80,246 pursuant to the transfer
agency agreement.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,500 and an attendance fee of $250 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
<PAGE>
Dreyfus lion "d" logo (reg.tm)
Dreyfus logo (reg.tm)
DREYFUS BASIC U.S. GOVERNMENT
MONEY MARKET 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. 124SA988
BASIC
U.S. Government
Money Market Fund
Semi-Annual
Report
August 31, 1998
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