US Treasury Bond Reporting, which box

I am reporting US Treasury interest made during the year in TT.  In the section there is a box 1 and a box 3. The form 1099 that I got from the UST says Ref box 3 and Ref box 4. It says nothing about box 1. I assume I put $0 in box 1 and my interest $440 in box three? Is that correct? 

If I put the $440 in box 1 as well as 3 it reports it to Massachusetts as taxable income, even though I check the box as non taxed in MA on the following page.