DREYFUS A BONDS PLUS INC, N-30D, 1997-11-25

DREYFUS A BONDS PLUS INC
N-30D, 1997-11-25

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DREYFUS A BONDS PLUS, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus A Bonds Plus,
Inc. for its six-month period ended September 30, 1997. Your Fund produced a
total return for this period, including bond price changes and interest
income, of 7.14%.* Income dividends of $.442 per share were declared to
shareholders.** This is equivalent to an annualized distribution rate per
share of 6.01%.***
THE ECONOMY
Virtually ideal economic conditions have prevailed over the reporting
period. Robust growth in the first half of 1997, the lowest unemployment rate
since the early 1970s and measures of inflation at 30-year lows have combined
to spur consumer confidence to record high ground. Businesses are similarly
optimistic: government reports show that business investment in new equipment
during the reporting period was at its fastest pace in 14 years. The question
is, how long can this favorable economic scenario continue before inflation
rekindles or, more to the point, before the Federal Reserve Board (the Fed)
embarks on a policy of monetary restraint to dampen possible future
inflationary excess? Traditionally, the Fed has acted to contain inflation
long before it could spread throughout the economy, and Fed Chairman Alan
Greenspan is a staunch inflation-fighter. Yet there are few traditional signs
of potential inflationary excess to battle against. The upward creep of
factory operating rates in response to surging industrial production is one,
the tight labor markets another. With the unemployment rate so low, there is
concern that employers will eventually raise wages to attract workers,
resulting in higher prices as increased labor costs are passed along to
consumers. So far, there has been a remarkable absence of wage and price
pressures.
There are few signs that broader measures of inflation are accelerating.
The economy grew at a 4.1% rate over the first six months of this year, a
pace that in other times would have resulted in rumblings of inflationary
pressures. Until its modest rise in September, the Producer Price Index had
an unprecedented series of seven straight monthly declines. The Consumer
Price Index rose at a 1.6% annual rate for the first eight months of the
year, a rate less than half the 3.3% rise for the comparable period in 1996.
Because of the lack of inflation, the Fed has been willing to tolerate
strong economic growth without tightening monetary policy. The Federal Open
Market Committee (FOMC), the policy-making arm of the Fed, has raised
interest rates just once in more than two years, a period roughly coinciding
with the surge of growth in the economy. The last increase in short-term
interest rates came on March 25, 1997 when the FOMC increased the Federal
Funds target rate by a modest 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.)
In addition, the Fed has expected some slowdown throughout the 18-month
economic resurgence, yet demand has remained strong throughout. However, the
latest revision of the second-quarter economic growth rate showed a
considerable buildup in business inventories. A rise in inventories could
trigger a subsequent slowdown in the economy if companies cut production in
order to work off unsold backlogs. Nevertheless, it is possible that the
inherent momentum in the economy combined with more vigorous consumer
spending in the third quarter (retail sales showed renewed strength over the
summer) could absorb these inventories without a reduction in output.
Despite the quiescence of inflation, it is difficult to imagine continued
strong economic growth without price pressures. There has been much talk of a
so-called "new era" in economics, an age when the economy continues to grow
strongly, unemployment remains low, and inflation is subdued. Perhaps, but
there are limits to everything, and some factors explaining the absence of
inflation-the strong dollar, low energy and food costs, and huge business
investment in technology - may well be temporary. We remain alert for future
changes of monetary policy by the Fed, particularly the possibility of a
tightening if economic growth continues strong throughout the rest of this
year.

THE MARKET
The alternating expectations of strong and moderate economic growth have
caused Treasury interest rates to fluctuate within a fairly well-defined
range. Over the past six months, yields on U.S. Treasury ten-year maturity
bonds reached a low of 6.01% near the end of July, and a high of 6.98% in
April. As of the end of September, yields were near the lower end of the
range at 6.10%. This declining rate environment has helped create an
historically narrow spread environment. Both corporate and mortgage-backed
securities currently provide moderate yield premiums to similar maturity
Treasury alternatives. As long as yields are range bound and economic growth
remains moderate, these tight yield spread relationships are likely to
persist.
PORTFOLIO OVERVIEW
The interest rate fluctuations we have seen over the past six months have
provided numerous opportunities to adjust the overall duration of the
portfolio. When we last wrote you at the end of March, the portfolio duration
was 5.8 years. Currently, the portfolio duration is modestly shorter at 5.2
years. On balance, lengthening duration when rates were high, and shortening
when rates were low, have added to the Fund's overall total return. Given our
outlook for the economy and the bond market, we have consistently favored
mortgage-backed securities, maintained a somewhat neutral weighting on
corporates, and maintained a modest exposure to U.S. Treasury and agency
securities. This strategy has enhanced both the yield and overall total
return of the portfolio. Sectors with the largest portfolio weightings
currently are banking and insurance corporate bonds and government and
commercial mortgage-backed securities. Some individual names we have added to
the portfolio include Smiths Food & Drug, Tosco, AH Belo, and Felcor Suites.
The average overall portfolio quality remains AA-rated.
As always, our objective is to earn as high a level of current income as
is consistent with preservation of capital. Our ongoing strategy will be to
achieve this objective through sector and security selection and duration
adjustments.
Very truly yours,

[Kevin McClintock signature logo]

Kevin McClintock
Head of Taxable Fixed
Income
October 20, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
** Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders.
***Distribution rate per share is based upon dividends per share declared
from net investment income during the period (annualized), divided by the net
asset value per share at the end of the period.
<TABLE>
<CAPTION>

DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Bonds and Notes-106.6% Amount Value
------- -----
<S> <C> <C> <C>
Asset-Backed-7.3% Bosque Asset,
Asset-Backed Notes, 7.66%, 2002..................... $ 9,285,735(a) $ 9,329,263
The Money Store Trust,
Asset Backed Ctfs., Ser. 1996-D:
Cl. A-7, 7.11%, 2025.............................. 16,000,000 16,287,000
Cl. A-16, 7.11%, 2028............................. 6,788,262 6,802,051
UCFC Acceptance,
Home Equity Loan Pass-Through Ctfs.,
Ser. 1997-A1, Cl. A-6, 7.435%, 2024................. 9,686,000 9,897,881
-------
42,316,195
-------

Banking-4.6% Barnett Capital II,
Gtd. Capital Securities, 7.95%, 2026................ 6,000,000 6,119,175
Fleet Capital Trust II,
Gtd. Capital Securities, 7.92%, 2026................ 10,000,000 10,147,170
State Street Institutional Capital A,
Gtd. Capital Securities, Ser. A, 7.94%, 2026........ 10,000,000 (a) 10,200,000
-------
26,466,345
-------

Commercial Mortgage-26.2% 277 Park Avenue Finance,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1997-C1, C1. A-2, 7.68%, 2007.................. 9,750,000 (a) 10,322,813
Asset Securitization,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1996-MD VI, Cl. A7, 7.755%, 2026............... 15,250,000 (b) 15,921,953
Commercial Mortgage Acceptance,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1996-C2, Cl. C, 7.581%, 2023................... 8,619,000 (a,b) 8,847,942
Credit Suisse First Boston Mortgage Securities,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1997-C1, Cl. E, 7 1/2%, 2011 .................. 15,000,000 (a) 15,168,750
DLJ Mortgage Acceptance,
Commercial Mortgage Pass-Through Ctfs.:
Ser. 1996-CF2, C1. A-3, 7.38%, 2021............... 3,000,000 (a) 3,098,438
Ser. 1997-CF1, C1. A-3, 7.76%, 2007............... 6,600,000 (a) 7,018,688
FDIC REMIC Trust,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1996-C1, C1. 1-B, 7 1/8%, 2026................. 7,000,000 7,132,344
First Union-Lehman Brothers Commercial Mortgage Trust,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1997-C1, Cl. C, 7.44%, 2007.................... 16,000,000 16,655,000
GMAC Commercial Mortgage Securities,
Mortgage Pass-Through Ctfs.:
Ser. 1996-C1, Cl. E, 7.86%, 2006.................. 3,105,000 3,173,407
Ser. 1997-C1, Cl. D, 6.997%, 2008................. 17,909,000 18,032,124
GS Mortgage Securities Corporation II,
Ser. 1997-GL1, Cl. G, 7.823%, 2030.................. 8,200,000 (b) 8,323,000
</TABLE>

DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
------- -------
<S> <C> <C> <C>
Commercial Mortgage (continued) Merrill Lynch Mortgage Investors,
Mortgage Pass-Through Ctfs.:
Ser. 1995-C3, Cl. C, 7.368%, 2025................. $ 4,980,000 (b) $ 5,138,737
Ser. 1996-C2, Cl. C, 6.96%, 2028.................. 10,000,000 10,104,687
Resolution Trust,
Commercial Mortgage Pass-Through Ctfs.:
Ser. 1994-C2, Cl. D, 8%, 2025..................... 10,036,570 10,290,621
Ser. 1995-C2, Cl. C, 7%, 2027..................... 6,438,290 6,488,590
Structured Asset Securities,
Mortgage Pass-Through Ctfs.,
Ser. 1996-C3, Cl. B, 7 1/8%, 2030................... 7,000,000 (a) 7,064,531
-------
152,781,625
-------

Energy-1.8% Tosco,
Notes, 7 1/4%, 2007................................. 10,000,000 10,280,660
-------

Food & Tobacco-1.6% Philip Morris Cos.,
Notes, 6.95%, 2001.................................. 9,000,000 (c) 9,178,767
-------

Foreign-3.3% Industrial Finance of Thailand,
Bonds, 7 1/8%, 2002................................. 9,000,000 (a) 8,913,960
Republic of Colombia,
Bonds, 8.70%, 2016.................................. 10,000,000 10,210,610
-------
19,124,570
-------

Industrial-.9% Mt. Washington CBO I, Ltd.,
Sr. Secured Notes, 7.14%, 2009...................... 5,000,000 (a) 5,068,750
-------

Insurance-7.4% AFC Capital Trust I,
Gtd. Capital Securities, 8.207%, 2027............... 15,000,000 16,061,130
American General Institutional Capital B,
Gtd. Capital Securities, Ser. B, 8 1/8%, 2046....... 10,000,000 (a) 10,537,500
Conseco Financing Trust II, Gtd. Capital Trust
Pass-Through Securities, 8.70%, 2026................ 10,625,000 11,369,951
NAC Re,
Notes, 8%, 1999..................................... 5,000,000 5,146,290
-------
43,114,871
-------

Oil and Gas-3.2% Halliburton,
Notes, 6 3/4%, 2007................................. 18,000,000(d) 18,498,708
-------
</TABLE>
<TABLE>
<CAPTION>

-------
Real Estate-2.7% Crescent Real Estate Equities, L. P.,
Notes, 6 5/8%, 2002 ................................ 6,000,000 (a) 5,966,925
FelCor Suites, L. P., Gtd. Sr. Notes:
7 3/8%, 2004........................................ 2,500,000 (a) 2,493,750
7 5/8%, 2007........................................ 7,500,000 (a) 7,440,675
-------
15,901,350
-------

Residential Mortgage-3.8% Collateralized Mortgage Obligation Trust 9,
Cl. C (Collateralized by GNMA Pass-Through Ctfs.),
7 3/4%, 2012........................................ 184,425 185,599
Norwest Asset Securities,
Mortgage Pass-Through Ctfs.:
Ser. 1997-6, B-1, 7 1/2%, 2027.................... 7,254,288 7,378,972
Ser. 1997-8, B-1, 7 1/2%, 2027.................... 3,968,130 4,036,333
Ser. 1997-15, B-1, 6 3/4%, 2012................... 1,106,000 1,090,101
Ser. 1997-16, B-1, 6 3/4%, 2027................... 2,202,000 2,119,425
Ser. 1997-16, B-2, 6 3/4%, 2027................... 701,000 668,141
Ser. 1997-16, M, 6 3/4%, 2027..................... 903,000 881,554
Residential Funding Mortgage Securities I,
Ser. 1996-S10, M3, 7 1/2%, 2026..................... 5,814,276 5,807,008
-------
22,167,133
-------

Retail Trade-2.4% Smith's Food & Drug Centers,
Pass Through Trusts, Pass Through Ctfs.:
Ser. 1994-A2, 8.64%, 2012......................... 3,500,000 3,797,500
Ser. 1994-A3, 9.20%, 2018........................ 9,000,000 10,181,250
-------
13,978,750
-------

Transportation-1.0% ValuJet Airlines,
Sr. Secured Notes, 10 1/4%, 2001.................... 6,500,000 6,045,000
-------

Utilities/Electric-3.3% Cleveland Electric Illuminating,
Ser. A, Secured Notes, 7.19%, 2000.................. 7,000,000 (a) 7,140,000
National Rural Utilities Cooperative Finance,
Collateral Trust Bonds, 7.30%, 2006.................. 5,000,000 5,225,330
Western Resources,
First Mortgage Bonds, 6 7/8%, 2004................... 7,000,000 7,019,425
-------
19,384,755
---------
</TABLE>

DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
------- -------
<S> <C> <C> <C>
Utilities/Telephone-2.9% Wisconsin Bell,
Deb., 6.35%, 2006.................................... $ 17,000,000 (e) $ 17,091,868
-------
U.S. Government Agency/
Mortgage Backed-27.8% FHA Project Loan Ctfs., Ser. Pool No. 6
(Reilly Mortgage Group), 7.43%, 2022................. 5,963,514 6,198,328
Federal Home Loan Mortgage, REMIC,
Multiclass Mortgage Participation Ctfs.:
Ser. 1552, Cl. JD, 7%, 8/15/2023................... 27,000,000 (f) 10,455,750
Ser. 1978, Cl. PH, 7%, 1/15/2024................... 5,878,907 (f) 1,241,919
Federal National Mortgage Association REMIC Trust,
Gtd. Pass-Through Ctfs.:
Ser. 1992-103, Cl. G, 7 1/2%, 8/25/2018............ 12,802,314 12,916,335
Ser. 1996-64, Cl. PM, 7%, 1/18/2012................ 8,557,426 (f) 2,192,840
Ser. 1996-70, Cl. PL, 7%, 2/25/2026................ 17,295,513 (f) 4,404,951
Ser. 1997-24, Cl. IA, 7%, 1/18/2026................ 18,000,000 (f) 7,891,875
Government National Mortgage Association I:
7%, 6/15/2008........................................ 147,999 151,005
9 1/2%, 11/15/2017................................... 8,214,441 9,035,886
Project Loan,
7 1/2%, 4/15/2037.................................. 6,675,800 6,934,487
Government National Mortgage Association II,
Adjustable Rate Mortgage,
5 1/2%, 12/20/2026-11/20/2027........................ 77,244,616 (g) 77,471,810
Government National Mortgage Association
REMIC Trust, Gtd. Pass-Through Securities:
Ser. 1997-2, Cl. K, 7 1/2%, 1/20/2024.............. 11,259,000 11,435,766
Ser. 1997-4, Cl. G, 7 1/2%, 11/16/2024............. 11,500,000 11,711,140
-------
162,042,092
-------
U.S. Government-3.9%.... U.S. Treasury Bonds,
6 3/8%, 8/15/2027.................................... 19,000,000 18,922,813
U.S. Treasury Notes:
6 3/8%, 5/15/2000.................................... 1,000,000 1,012,344
7 7/8%, 11/15/2004................................... 2,450,000 2,695,766
7%, 7/15/2006........................................ 300,000 316,453
-------
22,947,376
-------
TOTAL BONDS AND NOTES
(cost $611,030,594).................................. $620,624,477
=======
</TABLE>

DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Short-Term Investments-.8% Amount Value
------- -------

U.S. Government Agency; Federal Home Loan Banks,
6%, 10/1/1997
<S> <C> <C> <C>
(cost $4,421,000).................................... $ 4,421,000 $ 4,421,000
=======
TOTAL INVESTMENTS (cost $615,451,594)....................................................... 107.4% $625,045,477
==== =======
LIABILITIES, LESS CASH AND RECEIVABLES...................................................... (7.4%) $(42,844,483)
==== =======
NET ASSETS.................................................................................. 100.0% $582,200,994
==== =======
Notes to Statement of Investments:
(a) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September 30,
1997 these securities amounted to $118,611,985 or 20.4% of of net assets.
(b) Variable rate security-interest rate subject to periodic change.
(c) Reflects date security can be redeemed at holders' option; the stated
maturity date is 6/1/2006.
(d) Reflects date security can be redeemed at holder's option; the stated
maturity date is 2/1/2027.
(e) Reflects date security can be redeemed at holders' option; the stated
maturity date is 12/1/2026.
(f) Notional face amount shown.
(g) Partially purchased on a forward commitment basis.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>

DREYFUS A BONDS PLUS, INC.
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1997 (UNAUDITED)
Cost Value
-------- -------
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $615,451,594 $625,045,477
Cash....................................................... 27,709,690
Receivable for investment securities sold.................. 21,073,535
Interest receivable........................................ 6,239,850
Receivable for shares of Common Stock subscribed........... 103,258
Prepaid expenses and other assets.......................... 40,020
_____
680,211,830
_____

LIABILITIES: Due to The Dreyfus Corporation and affiliates.............. 332,084
Payable for investment securities purchased................ 96,751,391
Payable for shares of Common Stock redeemed................ 825,453
Accrued expenses and other liabilities..................... 101,908
_____
98,010,836
_____

NET ASSETS.................................................................................. $582,200,994
=====

REPRESENTED BY: Paid-in capital............................................ $562,549,379
Accumulated undistributed investment income-net............ 6,162,727
Accumulated net realized gain (loss) on investments....... 3,895,005
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4.................................... 9,593,883
_____
NET ASSETS.................................................................................. $582,200,994
=====

SHARES OUTSTANDING
(100 million shares of $.01 par value Common Stock authorized).............................. 39,657,297

NET ASSET VALUE, offering and redemption price per share.................................... $14.68
=====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>

DREYFUS A BONDS PLUS, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income.................................. $20,794,227
EXPENSES: Management fee-Note 3(a)......................... $ 1,891,424
Shareholder servicing costs-Note 3(b)............ 767,951
Prospectus and shareholders' reports............. 48,821
Registration fees................................ 34,315
Professional fees................................ 34,238
Custodian fees-Note 3(b)......................... 29,187
Directors' fees and expenses-Note 3(c)........... 24,161
Miscellaneous.................................... 2,839
-------
Total Expenses............................... 2,832,936
-------
INVESTMENT INCOME-NET............................................................. 17,961,291
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.......... $ 413,495
Net unrealized appreciation (depreciation)
on investments............................... 21,440,986
-------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS............................ 21,854,481
-------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. $39,815,772
=======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>

DREYFUS A BONDS PLUS, INC.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 1997 Year Ended
(Unaudited) March 31, 1997
---------- --------
OPERATIONS:
<S> <C> <C>
Investment income-net........................................................... $ 17,961,291 $ 36,566,343
Net realized gain (loss) on investments......................................... 413,495 8,631,964
Net unrealized appreciation (depreciation) on investments....................... 21,440,986 (22,130,009)
-------- -------
Net Increase (Decrease) in Net Assets Resulting from Operations. 39,815,772 23,068,298
-------- -------
NET EQUALIZATION CREDITS (DEBITS)-Note 1(e)....................................... (69,818) (142,308)
-------- -------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net......................................................... (17,855,829) (36,573,464)
-------- -------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold................................................... 109,493,167 188,296,554
Dividends reinvested............................................................ 15,392,318 31,341,242
Cost of shares redeemed......................................................... (136,154,895) (232,961,296)
-------- -------
Increase (Decrease) in Net Assets from Capital Stock Transactions (11,269,410) (13,323,500)
-------- -------
Total Increase (Decrease) in Net Assets................................ 10,620,715 (26,970,974)
NET ASSETS:
Beginning of Period............................................................ 571,580,279 598,551,253
-------- -------
End of Period.................................................................. $ 582,200,994 $ 571,580,279
======== =======
Undistributed investment income-net.............................................. $ 6,162,727 $ 6,127,083
-------- -------
Shares Shares
-------- -------
CAPITAL SHARE TRANSACTIONS:
Shares sold.................................................................... 7,669,449 13,245,473
Shares issued for dividends reinvested......................................... 1,081,066 2,202,148
Shares redeemed................................................................ (9,532,757) (16,381,726)
-------- -------
Net Increase (Decrease) in Shares Outstanding.............................. (782,242) (934,105)
======== =======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>

DREYFUS A BONDS PLUS, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock 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
September 30, 1997 Year Ended March 31,
(Unaudited)
----------- ----------------------------------------------------
PER SHARE DATA: 1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $14.13 $14.47 $13.75 $14.38 $15.43 $14.35
---- ---- ---- ---- ---- ----
Investment Operations:
Investment income-net................. .45 .88 .92 .94 .98 1.05
Net realized and unrealized gain (loss)
on investments...................... .54 (.34) .73 (.56) (.46) 1.29
---- ---- ---- ---- ---- ----
Total from Investment Operations...... .99 .54 1.65 .38 .52 2.34
---- ---- ---- ---- ---- ----
Distributions:
Dividends from investment income-net.. (.44) (.88) (.93) (.94) (.99) (1.05)
Dividends from net realized gain on investments - - - (.07) (.58) (.21)
---- ---- ---- ---- ---- ----
Total Distributions................... (.44) (.88) (.93) (1.01) (1.57) (1.26)
---- ---- ---- ---- ---- ----
Net asset value, end of period........ $14.68 $14.13 $14.47 $13.75 $14.38 $15.43
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................... 14.24% (1) 3.88% 12.12% 3.01% 3.09% 17.09%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .97% (1) .96% .93% .99% .90% .93%
Ratio of net investment income
to average net assets............... 6.17%(1) 6.12% 6.32% 6.89% 6.30% 7.07%
Portfolio Turnover Rate............... 162.91%(2) 415.69% 165.50% 172.60% 93.67% 81.15%
Net Assets, end of period (000's omitted) $582,201 $571,580 $598,551 $539,140 $593,615 $574,431

(1) Annualized.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

DREYFUS A BONDS PLUS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus A Bonds Plus, Inc. (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 the maximum amount of current income to the extent consistent with the
preservation of capital and the maintenance of liquidity. 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 (excluding short-term
investments and U.S. Government obligations) are valued each business day by
an independent pricing service ("Service") approved by the Board of
Directors. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the
Service are valued at the mean between the quoted bid prices (as obtained by
the Service from dealers in such securities) and asked prices (as calculated
by the Service based upon its evaluation of the market for such securities).
Other investments (which constitute a majority of the portfolio securities)
are carried at fair value as determined by the Service, based on methods
which include consideration of: yields or prices of securities of comparable
quality, coupon, maturity and type; indications as to values from dealers;
and general market conditions. Investments in U.S. Government obligations,
including U. S. Treasury Bills, are valued at the mean between quoted bid and
asked prices. Investments denominated in foreign currencies are translated to
U.S. dollars at the prevailing rates of exchange. Short-term investments,
excluding U. S. Treasury Bills, are carried at amortized cost, which
approximates value.
(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: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
On September 30, 1997, the Board of Directors declared a cash dividend of
$.075 per share from undistributed investment income-net, payable on October
1, 1997 (ex-dividend date), to shareholders of record as of the close of
business on September 30, 1997.
(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.
(e) Equalization: The Fund follows the accounting practice known as
"equalization" by which a portion of the amounts received on issuances and
the amounts paid on redemptions of Fund shares (equivalent, on a per share
basis, to the amount of distributable investment income-net on the date of
the transaction) is allocated to undistributed investment income-net so that
undistributed investment income-net per share is unaffected by Fund shares
issued or redeemed.

DREYFUS A BONDS PLUS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 2-BANK LINE OF CREDIT:
The Fund may borrow up to $20 million for leveraging purposes under a
short-term unsecured line of credit and 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. At September 30,
1997, the Fund had no outstanding borrowings under either line of credit.
NOTE 3-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .65 of 1% of the value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses of the Fund,
exclusive of taxes, interest on borrowings, brokerage commissions and
extraordinary expenses, exceed 1 1/2% of the value of the Fund's average net
assets, the Fund may deduct from the payments to be made to the Manager, or
the Manager will bear, the amount of such excess expenses. There was no
expense reimbursement for the period ended September 30, 1997.
(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 September 30, 1997, the Fund was charged $529,070
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 September 30, 1997, the Fund was charged $130,994 pursuant to
the transfer agency agreement.
The Fund compensates Mellon under a custody agreement to provide
custodial services for the Fund. During the period ended September 30, 1997,
the Fund was charged $29,187 pursuant to the custody agreement.
(c) Each director 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 $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales (including paydowns) of
investment securities, excluding short-term securities, during the period
ended September 30, 1997, amounted to $942,982,987 and $896,936,234,
respectively.
At September 30, 1997, accumulated net unrealized appreciation on
investments was $9,593,883, consisting of $11,067,231 gross unrealized
appreciation and $1,473,348 gross unrealized depreciation.
At September 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).

Registration Mark
[Dreyfus lion "d" logo]
DREYFUS A BONDS PLUS, INC.
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. 084SA979
Registration Mark
[Dreyfus logo]
A Bonds Plus
Semi-Annual
Report
September 30, 1997