DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus New Jersey
Municipal Bond Fund, Inc. for its six-month reporting period ended June 30,
1997. Your Fund produced a total return, including bond price changes and
interest income, of 2.78%.* The Fund's annualized tax-free distribution rate
per share was 5.34%.** (Some income may be subject to the Federal Alternative
Minimum Tax for certain shareholders).
ECONOMIC REVIEW
Despite recent moderation in the rate of new job creation, the latest
reported unemployment rate was 5% in June. When the unemployment rate was
last at that level, the inflation rate was heading toward double-digit
territory. Now, inflation is subdued; the Consumer Price Index rose at an
annual rate of just 1.4% for the twelve-month period through May. Producer
prices have risen a minuscule 0.6% over the same time. It has been
unprecedented for the economy to have seven years of expansion, low
unemployment and low inflation at the same time.
Ever alert for signs of incipient inflation, the Federal Open Market
Committee, the policy-making arm of the Federal Reserve Board ("the Fed"),
has raised interest rates just once in more than two years. That hike came in
March 1997 when the Federal Funds rate was increased by one quarter of a
percentage point to 5.50%. (The Federal Funds rate is the rate of interest
that banks charge one another for overnight loans.) While there have been
some signs that wages are increasing (an area of particular concern to the
Fed), there have also been indications that the economy may be slowing from
its torrid first quarter pace when it surged at a 5.9% annual rate, the
biggest advance since the fourth quarter of 1987.
Indicating possible moderation in the rate of economic growth, retail
sales have been in decline all spring despite record levels of consumer
optimism about the economy. The latest report on retail sales for March,
April, and May showed a decline at an annual rate of 5% over the previous
three months. This marked the first three-month decline since the fall of
1981. Yet, despite their sluggish spending at checkout counters, consumers'
confidence in the economy continues to climb, heavily influenced by increased
job security and low inflation.
Throughout the seven-year economic expansion, the pattern of consumer
spending has been stop-and-go, alternating between spurts of spending and
retrenchment. The 5% decline in retail sales for the three months through May
was preceded by a 15% advance over the previous three-month period. On the
production side of the economy, a survey of corporate buyers compiled by the
National Association of Purchasing Management reported that growth in factory
activity eased slightly during June. The much-observed supplier-delivery
component of the survey, a measure of how quickly orders are being satisfied
and a possible sign of production bottlenecks, also fell modestly. In further
evidence of a slowing economy during the second quarter, the Commerce
Department recently reported that factory orders fell in May.
Rising incomes, low unemployment and quiescent inflation have all
contributed to a feeling of confidence, as measured by the Conference Board's
Index of Consumer Sentiment, that has been unmatched for 28 years. Many
economists feel that the optimistic consumer sentiment indicators provide a
floor to economic growth and will spur consumer spending later in the year,
particularly if the unemployment rate remains low and job security worries
recede further. We are mindful of the potent role that consumers play in the
economy _ their spending accounts for about two thirds of economic output. So
we remain alert to signs of any strain on productive capacity caused by
increases in consumer spending that might, in turn, lead to another
tightening in monetary policy by the Federal Reserve.
MARKET ENVIRONMENT
Since our last letter at the end of December, 1996, the bond market has
been extremely volatile. Although long-term interest rates as measured by the
30-year U.S. Treasury bond ended the six-month period virtually unchanged
from December around 6.75%, the yield ranged from a low of 6.52% in
mid-February to a high of 7.17% in mid-April. The municipal market experienced
a tighter range during this period, owing to an
increase in demand from retail (or individual) investors as tax-exempt yields
approached 6.00%. The bond market correction from February to April was
largely due to the expectation of a tightening of monetary policy by the
Federal Reserve Board's Open Market Committee which materialized at the March
Meeting in the form of a 0.25% increase in the Federal Funds Target Rate to
5.50%. The rally in bond prices since mid-April coincided with the economic
slowdown during the second quarter of 1997 and the increasing perception that
the Federal Open Market Committee might not have to tighten policy again
during the remainder of the calendar year.
In the New Jersey market, the combination of scarce supply and strong
demand enabled New Jersey tax-exempt bonds to outperform their taxable
counterparts during the six-month period. This technical dynamic was
especially apparent in April as long maturity New Jersey securities traded at
the richest levels seen in over two years versus Treasury bonds.
PORTFOLIO OVERVIEW
During the first half of 1997, the Fund continued to pursue the gradual
restructuring that was embarked upon in the latter half of 1996. We have
looked to replace certain holdings with securities that combine greater
potential for price appreciation and better call protection. At the same
time, we remain committed to providing shareholders with a maximum amount of
current tax-free income by maintaining a core of high coupon bonds which
provide the Fund with much of its income stream. These large coupon
securities tend to provide some stability to the Fund's share price during
periods of extreme market volatility such as we have experienced over the
past several years. Throughout the reporting period further emphasis was
placed on enhancing the underlying credit quality of the holdings and,
therefore, the liquidity of the portfolio whenever possible. In conclusion,
we will continue to monitor the constantly changing financial and political
landscapes and adjust our portfolio strategy accordingly.
Sincerely,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
July 17, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** Distribution rate per share is based upon dividends per share paid
from net investment income during the period (annualized), divided by the net
asset value per share at the end of the period.
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS JUNE 30,1997 (UNAUDITED)
Principal
Long-Term Municipal Investments_99.4% Amount Value
___________ ___________
<S> <C> <C>
New Jersey_80.3%
Atlantic County Utilities Authority, Solid Waste System Revenue:
7%, 3/1/2008.............................................................. $ 4,250,000 $4,274,778
7.125%, 3/1/2016.......................................................... 6,650,000 6,689,966
Brick Township Municipal Utilities Authority, Water and Sewer Revenue, Refunding
5%, 12/1/2016 (Insured; FGIC)............................................. 5,450,000 5,192,651
City of Camden:
Zero Coupon, 2/15/2010 (Insured; FSA)..................................... 2,500,000 1,294,775
Zero Coupon, 2/15/2012 (Insured; FSA)..................................... 4,585,000 2,109,329
Camden County Municipal Utilities Authority, Sewer Revenue, Refunding
5.125%, 7/15/2017 (Insured; FGIC)......................................... 14,850,000 14,326,835
Camden County Pollution Control Financing Authority, Solid Waste Disposal and
Resource Recovery System Revenue 7.50%, 12/1/2010......................... 13,000,000 13,095,940
Delaware River and Bay Authority, Highway Toll Revenue
5.25%, 1/1/2026 (Insured; FGIC)........................................... 16,000,000 15,327,840
Delaware River Port Authority, Highway Toll Revenue 5.50%, 1/1/2026 (Insured; FGIC) 10,020,000 9,913,287
East Orange:
Zero Coupon, 8/1/2010 (Insured; FSA)...................................... 4,240,000 2,143,786
Zero Coupon, 8/1/2011 (Insured; FSA)...................................... 2,500,000 1,191,650
Essex County Improvement Authority, Lease Revenue
7%, 12/1/2020 (Prerefunded 12/1/2000) (Insured; AMBAC) (a)................ 4,000,000 4,415,080
Evesham Township Board of Education, COP, Lease Purchase Agreement
6.875%, 9/1/2011 (Insured; FGIC).......................................... 3,050,000 3,392,149
Gloucester County Utilities Authority, Sewer Revenue, Refunding
5.45%, 1/1/2024 (Insured; MBIA)........................................... 2,250,000 2,214,360
Gloucester Township Municipal Utilities Authority, Sewer Revenue, Refunding
5.65%, 3/1/2018 (Insured; AMBAC).......................................... 2,530,000 2,619,183
Hillsborough Township School District:
5.40%, 10/1/2020 (Insured; FSA)........................................... 1,720,000 1,706,120
5.40%, 10/1/2021 (Insured; FSA)........................................... 1,720,000 1,703,092
Howell Township, Refunding 6.80%, 1/1/2014 (Insured; FGIC).................. 5,000,000 5,452,700
Hudson County Improvement Authority:
Facility Lease Revenue 7.836%, 12/1/2025 (Insured; FGIC) (b,c)............ 13,835,000 14,561,337
MFHR (Conduit Financing - Observer Park Project) 6.90%, 6/1/2022 (Insured; FNMA) 4,190,000 4,381,441
Jersey City:
Zero Coupon, 5/15/2010 (Insured; FSA)..................................... 4,745,000 2,425,691
5.375%, 10/1/2013......................................................... 1,000,000 999,910
5.25%, 10/1/2016.......................................................... 3,080,000 2,997,887
Refunding:
6%, 10/1/2008 (Insured; AMBAC).......................................... 2,490,000 2,714,424
6%, 10/1/2009 (Insured; AMBAC).......................................... 1,890,000 2,055,092
Keansburg Board of Education, COP 8%, 11/1/2014 (Prerefunded 11/1/1999) (a). 5,000,000 5,505,950
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30,1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
___________ ___________
New Jersey (continued)
Manchester Township Board of Education, COP
7.20%, 12/15/2009 (Prerefunded 12/15/1998) (Insured; MBIA) (a)............ $ 4,175,000 $ 4,443,285
Monmouth County Improvement Authority, Revenue (Asbury Park Project)
7.375%, 12/1/2009 (Prerefunded 12/1/1999) (a)............................. 3,000,000 3,270,720
New Brunswick Parking Authority, Revenue, Refunding
7.125%, 9/1/2015 (Prerefunded 9/1/1999) (Insured; FGIC) (a)............... 2,000,000 2,151,600
State of New Jersey, Refunding 6%, 7/15/2010................................ 7,400,000 8,069,182
New Jersey Building Authority, Building Revenue, Refunding 5%, 6/15/2015.... 2,850,000 2,677,803
New Jersey Economic Development Authority, Revenue:
(Clara Maas Health System Project) 5%, 7/1/2025 (Insured; FSA)............ 7,975,000 7,381,899
(Community Mental Health Loan Program) 8.50%, 7/1/2017.................... 7,360,000 7,954,320
District Heating and Cooling
(Trigen-Trenton District Energy Co. L.P. Project):
6.10%, 12/1/2004...................................................... 3,375,000 3,543,953
6.20%, 12/1/2007...................................................... 2,725,000 2,800,837
Economic Development:
(American Airlines Inc. Project) 7.10%, 11/1/2031....................... 2,855,000 3,084,057
Refunding:
(Stolt Terminals Inc. Project) 10.50%, 1/15/2018...................... 9,440,000 9,999,698
(Tevco Inc. Project) 8.125%, 10/1/2009 (LOC; Credit Lyonnais)(d)...... 2,500,000 2,669,975
First Mortgage (The Evergreens) 9.25%, 10/1/2022.......................... 5,000,000 5,629,200
Health, Hospital and Nursing Home, Refunding (Hillcrest Health Service):
Zero Coupon, 1/1/2012 (Insured; AMBAC).................................. 1,000,000 463,040
Zero Coupon, 1/1/2013 (Insured; AMBAC).................................. 1,000,000 435,800
Zero Coupon, 1/1/2015 (Insured; AMBAC).................................. 3,250,000 1,253,070
Zero Coupon, 1/1/2017 (Insured; AMBAC).................................. 5,000,000 1,712,550
Zero Coupon, 1/1/2018 (Insured; AMBAC).................................. 2,500,000 810,500
Zero Coupon, 1/1/2020 (Insured; AMBAC).................................. 6,500,000 1,875,640
Zero Coupon, 1/1/2022 (Insured; AMBAC).................................. 6,000,000 1,548,120
Refunding:
(Morris Hall / Saint Lawrence Inc. Project):
5.50%, 4/1/2016 (LOC; Corestates Bank) (d)............................ 1,000,000 982,130
5.50%, 4/1/2027 (LOC; Corestates Bank) (d)............................ 3,500,000 3,421,985
Waste Paper Recycling (Marcal Paper Mills Inc. Project):
6.25%, 2/1/2009......................................................... 6,605,000 6,830,825
8.50%, 2/1/2010......................................................... 5,850,000 6,687,427
Water Facilities:
(American Water Co. Inc. Project) 6.50%, 4/1/2022 (Insured; FGIC)....... 11,500,000 12,278,895
(Elizebeth Water Co. Project) 6.70%, 8/1/2021........................... 3,965,000 4,202,543
New Jersey Educational Facilities Authority, Revenue, Refunding
(Seton Hall University Project):
5.625%, 7/1/2019 (Insured; MBIA)........................................ 3,625,000 3,639,754
6.85%, 7/1/2019 (Prerefunded 7/1/1999) (Insured; BIGI) (a).............. 5,280,000 5,654,352
6.85%, 7/1/2019 (Insured; BIGI)......................................... 3,770,000 4,014,711
7%, 7/1/2021............................................................ 3,500,000 3,701,880
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30,1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
______________ ____________
New Jersey (continued)
New Jersey Health Care Facilities Financing Authority, Health, Hospital and Nursing
Home Revenue:
(Kimball Medical Center) 8%, 7/1/2013................................... $ 13,000,000 $ 13,842,790
(Palisades Medical Center):
7.50%, 7/1/2006....................................................... 2,150,000 2,241,482
7.60%, 7/1/2021....................................................... 2,350,000 2,458,288
(Raritan Bay Medical Center) 7.25%, 7/1/2014.............................. 13,000,000 13,807,560
Refunding:
(Deborah Heart and Lung Center) 6.20%, 7/1/2013......................... 500,000 511,215
(Saint Elizabeth Hospital Obligation Group):
6%, 7/1/2014.......................................................... 2,500,000 2,527,275
6%, 7/1/2020.......................................................... 3,000,000 3,016,830
(Saint Joseph's Hospital and Medical Center)
5.75%, 7/1/2016 (Insured; Connie Lee)................................. 1,800,000 1,828,602
New Jersey Housing and Mortgage Finance Agency, Revenue:
Multi-Family Housing, Refunding (Presidential Plaza at Newport Project)
7%, 5/1/2030 (Insured; FHA)............................................. 5,000,000 5,368,400
Rental Housing 6.75%, 11/1/2022........................................... 9,310,000 9,588,648
New Jersey Transit Corp., Lease Purchase Agreement, COP (Raymond Plaza East Inc.)
6.50%, 10/1/2016 (Insured; FSA)........................................... 3,945,000 4,276,538
New Jersey Transportation Trust Fund Authority, Refunding (Transportation System):
6.50%, 6/15/2011 (Insured; MBIA).......................................... 11,000,000 12,518,220
7%, 6/15/2012 (Insured; MBIA)............................................. 6,000,000 7,109,580
5%, 6/15/2015 (Insured; MBIA)............................................. 15,000,000 14,323,500
New Jersey Turnpike Authority, Turnpike Revenue, Refunding
6.50%, 1/1/2016 (Insured; MBIA)........................................... 14,665,000 16,602,540
North Hudson Sewer Authority, Sewer Revenue 5.125%, 8/1/2022 (Insured; FGIC) 4,400,000 4,202,616
North Jersey District Water Supply Commission, Sewer Revenue (Wanaque South
Project)
6%, 7/1/2019 (Insured; MBIA).............................................. 2,000,000 2,152,060
Ocean County Pollution Control Financing Authority, PCR, Refunding
(Ciba Geigy Corp. Project) 6%, 5/1/2020................................... 11,700,000 12,062,115
Passaic County Utilities Authority, Solid Waste System Revenue 7%, 11/15/2007 1,500,000 1,513,020
Port Authority of New York and New Jersey:
(Delta Airlines Inc. Project) 6.95%, 6/1/2008............................. 7,200,000 7,705,512
Special Obligation Revenue:
(Continental-Eastern LaGuardia Project) 9.125%, 12/1/2015............... 6,500,000 7,340,515
(JFK International Air Terminal):
6.25%, 12/1/2015 (Insured; MBIA)...................................... 5,000,000 5,488,700
5.75%, 12/1/2022 (Insured; MBIA)...................................... 17,885,000 17,907,535
Rutgers University, College and University Revenue 5.20%, 5/1/2022 (e)...... 5,135,000 4,910,549
South Jersey Transportation Authority, Port, Airport and Marina Lease Revenue
(Raytheon Aircraft Service Inc. Project) 6.15%, 1/1/2022.................. 510,000 519,557
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30,1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
__________ __________
New Jersey (continued)
Union County Utilities Authority, Solid Waste Revenue:
7.15%, 6/15/2009.......................................................... $ 2,750,000 $ 2,762,705
7.20%, 6/15/2014.......................................................... 10,000,000 10,102,800
University of Medicine and Dentistry 7.20%, 12/1/2019 (Prerefunded 12/1/1999) (a) 5,710,000 6,212,195
Western Monmouth Utilities Authority, Sewer Revenue, Refunding
5.60%, 2/1/2014 (Insured; AMBAC).......................................... 2,190,000 2,227,734
West New York Municipal Utilities Authority, Sewer Revenue, Refunding
7.30%, 12/15/2017 (Prerefunded 12/15/2000) (Insured; FGIC) (a,f).......... 6,250,000 6,963,938
U.S. Related _19.1%
Commonwealth of Puerto Rico:
6.50%, 7/1/2014 (Insured; MBIA)........................................... 7,260,000 8,285,693
5.65%, 7/1/2015 (Insured; MBIA)........................................... 2,000,000 2,086,020
7.30%, 7/1/2020 (Prerefunded 7/1/2000) (a)................................ 10,850,000 11,999,015
5.375%, 7/1/2021 (Insured; MBIA).......................................... 6,500,000 6,388,200
5.40%, 7/1/2025........................................................... 6,300,000 6,066,963
Public Improvement 6.80%, 7/1/2021 (Prerefunded 7/1/2002) (a)............. 5,400,000 6,063,444
Puerto Rico Aqueduct and Sewer Authority, Revenue, Refunding
5%, 7/1/2019 (Insured; AMBAC)............................................. 10,325,000 9,540,713
Puerto Rico Electric Power Authority, Power Revenue 5.50%, 7/1/2025 (Insured; AMBAC) 5,000,000 4,947,150
Puerto Rico Highway and Transportation Authority, Highway Revenue:
6.45%, 7/1/2007 (b)....................................................... 11,100,000 11,335,875
5.652%, 7/1/2009 (b)...................................................... 2,950,000 2,957,375
7.75%, 7/1/2016 (Prerefunded 7/1/2000) (a)................................ 3,460,000 3,869,975
6.625%, Series S, 7/1/2018 (Prerefunded 7/1/2002) (a)..................... 13,000,000 14,495,780
6.625%, Series T, 7/1/2018 (Prerefunded 7/1/2002) (a)..................... 2,040,000 2,274,722
5%, 7/1/2036.............................................................. 8,000,000 7,236,480
5.50%, 7/1/2036........................................................... 3,000,000 2,927,100
Puerto Rico Ports Authority, Special Facilities Revenue (American Airlines Inc. Project)
6.25%, 6/1/2026 (Guaranteed; AMR Corp.)................................... 3,000,000 3,082,980
University of Puerto Rico, University Revenues
5.25%, 6/1/2025 (Insured; MBIA)........................................... 5,100,000 4,901,355
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $540,425,582)....................................................... $566,446,863
==============
Short-Term Municipal Investment_.6%
U.S. Related;
Commonwealth of Puerto Rico, Refunding, VRDN 3.75% (LOC; Credit Suisse) (d,g)
(cost $3,300,000)......................................................... $ 3,300,000 $ 3,300,000
_____________
TOTAL INVESTMENTS_100.0%
(cost $543,725,582)....................................................... $569,746,863
==============
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
BIGI Bond Investors Guaranty Insurance MBIA Municipal Bond Investors Assurance
COP Certificate of Particiption Insurance Corporation
FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue
FHA Federal Housing Administration PCR Pollution Control Revenue
FNMA Federal National Mortgage Association VRDN Variable Rate Demand Notes
FSA Financial Security Assurance
Summary of Combined Ratings (Unaudited)
Fitch (h) or Moody's or Standard & Poor's Percentage of Value
____ _______ __________________ ___________________
AAA Aaa AAA 57.1%
AA Aa AA 5.3
A A A 15.4
BBB Baa BBB 9.8
BB Ba BB 1.1
B B B 1.3
F1 Mig1 SP1 .6
Not Rated (i) Not Rated (i) Not Rated (i) 9.4
_______
100.0%
Notes to Statements of Investments:
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(b) Inverse floater security_the interest is subject to change
periodically.
(c) Securities exempt from registration under Rule 144A of the
Securities Act of 1933. The securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
June 30, 1997, these securities amounted to $14,561,337 or 2.5% of net
assets.
(d) Secured by letter of credit.
(e) Purchased on a delayed-delivery basis.
(f) Partially held in a segregated account for the purpose of
collateralizing delayed-delivery security.
(g) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(h) Fitch currently provides creditworthiness information for a limited
number of investments.
(i) Securities which, while not rated by Fitch, Moody's and Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
(j) At June 30, 1997, the Fund had $162,937,074 (28.1% of net assets)
invested in securities whose payment of principal and interest is
dependent upon revenues generated from transportation projects.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1997 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $543,725,582 $569,746,863
Interest receivable........................ 10,974,248
Receivable for investment securities sold.. 4,124,148
Receivable for shares of Common Stock subscribed 5,330
Prepaid expenses........................... 18,698
_______________
584,869,287
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 341,706
Due to Distributor......................... 7,817
Cash overdraft due to Custodian............ 29,891
Payable for investment securities purchased 4,983,227
Accrued expenses........................... 86,172
_______________
5,448,813
_______________
NET ASSETS.................................................................. $579,420,474
================
REPRESENTED BY: Paid-in capital............................ $550,796,468
Accumulated net realized gain (loss) on investments 2,602,725
Accumulated net unrealized appreciation (depreciation)
on investments_Note 4...................... 26,021,281
_______________
NET ASSETS.................................................................. $579,420,474
================
SHARES OUTSTANDING
(500 MILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED)............. 44,485,436
NET ASSET VALUE, offering and redemption price per share_Note 3(d).......... $13.02
=========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................ $17,835,637
EXPENSES: Management fee_Note 3(a)................... $1,729,855
Shareholder servicing costs_Note 3(b)...... 885,376
Professional fees.......................... 39,566
Custodian fees............................. 28,080
Directors' fees and expenses_Note 3(c)..... 18,915
Registration fees.......................... 12,386
Prospectus and shareholders' reports....... 9,695
Loan commitment fees_Note 2................ 3,741
Miscellaneous.............................. 15,333
______________
Total Expenses....................... 2,742,947
Less_reduction in management fee due to
undertaking_Note 3(a).................. (432,732)
______________
Net Expenses......................... 2,310,215
_____________
INVESTMENT INCOME_NET....................................................... 15,525,422
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments.... $1,398,891
Net unrealized appreciation (depreciation) on investments (523,781)
______________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 875,110
_____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $16,400,532
==============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
_______________ ___________________
<S> <C> <C>
OPERATIONS:
Investment income_net............................................... $ 15,525,422 $ 33,319,748
Net realized gain (loss) on investments............................. 1,398,891 9,376,479
Net unrealized appreciation (depreciation) on investments........... (523,781) (22,801,500)
_______________ ___________________
Net Increase (Decrease) in Net Assets Resulting from Operations... 16,400,532 19,894,727
_______________ ___________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net............................................... (15,525,422) (33,505,718)
Net realized gain on investments.................................... ___ (10,462,166)
_______________ ___________________
Total Dividends................................................... (15,525,422) (43,967,884)
_______________ ___________________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold....................................... 92,313,370 602,957,562
Dividends reinvested................................................ 11,408,142 33,582,759
Cost of shares redeemed............................................. (119,125,270) (672,354,345)
_______________ ___________________
Increase (Decrease) in Net Assets from Capital Stock Transactions. (15,403,758) (35,814,024)
_______________ ___________________
Total Increase (Decrease) in Net Assets......................... (14,528,648) (59,887,181)
NET ASSETS:
Beginning of Period................................................. 593,949,122 653,836,303
_______________ ___________________
End of Period....................................................... $ 579,420,474 $ 593,949,122
=============== =================
Shares Shares
_______________ ___________________
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................... 7,144,699 46,189,858
Shares issued for dividends reinvested.............................. 883,689 2,568,077
Shares redeemed..................................................... (9,218,909) (51,413,282)
_______________ ___________________
Net Increase (Decrease) in Shares Outstanding..................... (1,190,521) (2,655,347)
=============== =================
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, 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
June 30, 1997 Year Ended December 31,
_______________________________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
_________ _______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $13.00 $13.53 $12.41 $14.03 $13.17 $13.06
______ _______ ______ ______ ______ ______
Investment Operations:
Investment income_net................. .34 .72 .74 .78 .79 .80
Net realized and unrealized gain (loss)
on investments...................... .02 (.30) 1.12 (1.61) .88 .31
______ _______ ______ ______ ______ ______
Total from Investment Operations...... .36 .42 1.86 (.83) 1.67 1.11
______ _______ ______ ______ ______ ______
Distributions:
Dividends from investment income_net.. (.34) (.72) (.74) (.77) (.79) (.80)
Dividends from net realized gain on investments __ (.23) (.00)(1) __ (.02) (.20)
Dividends in excess of net realized gain
on investments...................... __ __ __ (.02) __ __
______ _______ ______ ______ ______ ______
Total Distributions................... (.34) (.95) (.74) (.79) (.81) (1.00)
______ _______ ______ ______ ______ ______
Net asset value, end of period........ $13.02 $13.00 $13.53 $12.41 $14.03 $13.17
====== ======= ====== ====== ====== ======
TOTAL INVESTMENT RETURN................... 5.61%(2) 3.43% 15.29% (6.02%) 12.97% 8.77%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .80%(2) .80% .80% .77% .72% .73%
Ratio of net investment income
to average net assets............... 5.39%(2) 5.46% 5.67% 5.94% 5.74% 6.06%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .15%(2) .14% .15% .20% .25% .25%
Portfolio Turnover Rate............... 14.76%(3) 31.30% 24.37% 10.02% 6.05% 33.58%
Net Assets, end of period (000's Omitted) $579,420 $ 593,949 $653,836 $577,525 $725,815 $614,529
(1) Amount represents less than $.01 per share.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus New Jersey Municipal Bond Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a non diversified
open-end management investment company. The Fund's investment objective is to
provide investors with as high a level of current income exempt from Federal
and New Jersey income taxes as is consistent with the preservation of
capital. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. Premier
Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
Fund's shares, which are sold to the public without a sales load.
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 each
business day by an independent pricing service ("Service") approved by the
Fund's 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
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions.
(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, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(c) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends from investment income-net on each business day. Such dividends are
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.
(d) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2_BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund on prevailing market rates
in effect at the time of borrowings. For the period ended June 30, 1997, the
Fund did not borrow under the Facility.
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 .60 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, exclusive of
taxes, brokerage, interest on borrowings, commitment fees and extraordinary
expenses, exceed 11\2 % of the value of the Fund's average net assets for any
full fiscal year, the Fund may deduct from payments to be made to the
Manager, or the Manager will bear such excess expense. The Manager has
undertaken from January 1, 1997 through December 31, 1997 to reduce the
management fee paid by the Fund, to the extent that the Fund's aggregate
annual expenses (exclusive of certain expenses as described above) exceed an
annual rate of .80 of 1% of the value of the Fund's average daily net assets.
The reduction in management fee, pursuant to the undertaking, amounted to
$432,732 during the period ended June 30, 1997.
The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(b) Under the Service Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, the Fund (a) reimburses the Distributor for payments to
certain Service Agents (a securities dealer, financial institution or other
industry professional) for distributing the Fund's shares and servicing
shareholder accounts ("Servicing") and (b) pays the Manager, Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, and any affiliate of
either of them (collectively, "Dreyfus") for advertising and marketing
relating to the Fund and for Servicing at an aggregate annual rate of .25 of
1% of the value of the Fund's average daily net assets. Both the Distributor
and Dreyfus may pay Service Agents a fee in respect of the Fund's shares
owned by shareholders with whom the Service Agent has a Servicing
relationship or for whom the Service Agent is the dealer or holder of record.
Both the Distributor and Dreyfus determine the amounts to be paid to Service
Agents to which they will make payments and the basis on which such payments
are made. The Plan also separately provides for the Fund to bear the costs of
preparing, printing and distributing certain of the Fund's prospectuses and
statements of additional information and costs associated with implementing
and operating the Plan, not to exceed the greater of $100,000 or .005 of 1%
of the Fund's average daily net assets for any full year. During the period
ended June 30, 1997, $725,431 was charged to the Fund pursuant to the Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $108,846 during the period ended June 30, 1997.
(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 $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Director Emeritus receives 50% of such compensation.
(d) A 1% redemption fee is charged on certain redemptions of Fund shares
(including redemptions through use of the Fund Exchanges service) where the
shares being redeemed were issued subsequent to a specified effective date
and the redemption or exchange occurs less than fifteen days following the
date of issuance. During the period ended June 30, 1997, redemption fees
amounted to $110.
NOTE 4_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended June 30, 1997,
amounted to $84,998,816 and $113,374,585, respectively.
At June 30, 1997, accumulated net unrealized appreciation on investments
was $26,021,281, consisting of $27,332,985 gross unrealized appreciation and
$1,311,704 gross unrealized depreciation.
At June 30, 1997, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
[Dreyfus lion "d" logo]
Registration Mark
DREYFUS NEW JERSEY MUNICIPAL
BOND FUND, INC.
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. 750SA976
[Dreyfus logo]
Registration Mark
New Jersey
Municipal
Bond Fund, Inc.
Semi-Annual
Report
June 30, 1997
