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 the six-month reporting period ended June 30,
1998. Your Fund produced a total return, including share price changes and
dividend income generated, of 2.71%,* and an annualized tax-free distribution
rate per share of 4.94%.**
Economic Review
In recent testimony to Congress, Federal Reserve Board Chairman Alan Greenspan
proclaimed the economy to be "as impressive as any I have witnessed." Indeed,
the performance of the economy has been tremendous, with solid, noninflationary
economic growth and a robust rate of new job creation. Accordingly, the
unemployment rate hovers near its 28-year low. Not surprisingly, consumers brim
with confidence: new home sales were recently at record levels, and retail sales
have surged since January. The enthusiastic spending of consumers has, so far,
offset the adverse effects of the economic problems in Asia. In fact, the
financial crisis in the Far East has proved a boon to consumers, since lower
import prices have further subdued domestic price pressures and helped keep
interest rates low. Remarkably, despite the strengthening economy since the
beginning of this year, inflation has waned further. With inflation under
control and the economy just beginning to experience a reduction in foreign
demand, the Federal Reserve Board has been reluctant to raise interest rates for
fear of further roiling Asian financial markets. The last increase in short-term
rates came in March 1997 when the Federal Reserve Board Open Market Committee
(the policy-making arm of The Federal Reserve) hiked the target rate for Federal
Funds by one quarter of a percent to 5.5%.
Even with the booming job market, wage gains have had little inflationary
effect, since business spending in productivity-enhancing capital equipment has
been strong throughout the economic expansion. The one soft spot in the job
market has been in manufacturing: industrial production has slowed -- a clear
sign that Asian economic woes are being felt here -- and inventories of domestic
manufacturers have risen due to the reduction in foreign demand. Many analysts
expect that the growing trade deficit will retard second-quarter economic growth
and possibly serve as a drag over the foreseeable future. This reduction in
foreign demand could further moderate the rate of domestic production and
consequently ease the demand for labor, thus lessening inflationary pressure
resulting from wage increases. Cheaper imports have also weakened the pricing
environment for U.S. manufacturers and, in consequence, acted as an additional
curb to inflation. All this has been part of what Chairman Greenspan called our
economy' s "virtuous cycle" where even so-called crises have proven economically
beneficial. As a further example, the economic upheavals in Asia and Russia have
caused nervous foreign investors to seek refuge in the U.S. bond market, causing
a demand surge that has helped maintain our low interest rate environment. Yet
we, along with Chairman Greenspan, are skeptical that our economy has somehow
moved "beyond history," and we share his vigilance regarding signs of
inflationary imbalances.
Market Environment
The environment for long-term interest rates has been extremely favorable
during the past six months. Moderate economic growth, generally low inflation
and a strong currency continue to be a prop for the bond market. However, the
push to lower interest rates is due mainly to ongoing concerns regarding the
severity and duration of the Asian financial crisis. The 30-year benchmark
Treasury bond yield reached a new low of 5.57% as the crisis appeared to worsen
during June, its price boosted by non-traditional buyers in a flight to quality
out of Asian markets and into U.S. Government securities.
Municipal bonds were supported by the same factors that helped Treasuries
record higher prices. But while Treasuries were experiencing a decline in supply
during the period, municipalities were issuing debt at a record pace. Through
June 30, municipal issuance was approximately $164.8 billion, an increase of
about 43% versus one year earlier. This supply more than offset strong demand
for municipals as the municipal/Treasury yield ratio (as measured by the Bond
Buyer Revenue Bond Index /30-year Treasury yield) increased from 91% to 95% by
June 30. For the six-month period, Treasury yields declined by about 30 basis
points to close at 5.63%, while municipal yields fell by only 6 basis points as
measured by the Bond Buyer Revenue Bond Index. From an historic perspective,
municipals are very attractive at these percentages relative to Treasuries. In
addition, tax-exempt supply traditionally wanes as the summer months approach,
thus offering the prospect for municipal outperformance in the months ahead.
Although the Fed is admittedly concerned about the low U.S. unemployment rate
and the possibility of subsequent wage inflation, the general consensus is that
the FOMC will not implement a change in policy that could compound the problems
in Asia. We are of the same opinion and since we can envision no quick
resolution to the Asian crisis, foreign events should remain as the dominant
influence on long-term interest rates in the near future. Thus, we anticipate
steady monetary policy and strong underpinnings for the bond market.
Portfolio Overview
In direct contrast to national new-issue volume, the supply of New Jersey
tax-exempt paper actually decreased by 39% versus the same period in the prior
year. The resulting supply/demand imbalance kept a strong bid in the market for
New Jersey paper throughout the reporting period. Deals of note include $410
million NJ general obligations, and five separate hospital issues ranging in
size from $50 to $125 million. Also of major importance were four large Puerto
Rico deals (which are New Jersey tax-exempt) that were between $500 million and
$1.2 billion. With the direction of long-term interest rates uncertain at best,
we attempted to reposition the portfolio with securities that offer greater
potential for price appreciation without increasing the risk profile of the
Fund. This was done by selling less desirable bonds and purchasing several of
the new issues at what we believe to be attractive levels. We have maintained a
nucleus of high-coupon, income generating securities which historically have
performed well in times of uncertainty by stabilizing net asset value while
producing a generous level of tax-free income. At present, approximately 84% of
the Fund is invested in securities which are rated "A" or better, and we will
look for opportunities to increase this percentage as credit spreads are
currently very narrow.
Looking forward, New Jersey issuance could decrease further as the summer
months advance. However, we will continue to look for opportunities to sell
securities with inferior call features and/or liquidity and replace them with
new issues that offer greater potential for price appreciation. In conclusion,
the current environment has the bond market firmly entrenched in a well-defined
range. This will not go on indefinitely. We will remain alert for signals of the
next trend for long-term interest rates and stand ready to adjust the portfolio
accordingly.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
July 20, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
Income may be subject to state and local income taxes for non-New Jersey
residents.
** 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. Some income may be subject to the Federal
Alternative Minimum Tax (AMT) for certain shareholders.
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
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STATEMENT OF INVESTMENTS JUNE 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments--99.8% Amount Value
- -------------------------------------------------------
____________ ____________
New Jersey--83.7%
Atlantic County Utilities Authority, Solid Waste System Revenue:
<S> <C> <C>
7%, 3/1/2008 $ 4,250,000 $ 4,268,488
7.125%, 3/1/2016 6,650,000 6,678,794
City of Camden:
Zero Coupon, 2/15/2010 (Insured; FSA) 2,500,000 1,470,100
Zero Coupon, 2/15/2012 (Insured; FSA) 4,585,000 2,396,121
Camden County Improvement Authority, Health Hospital and Nursing Home Revenue
(Catholic Health East) 5%, 11/15/2028 (Insured; AMBAC) 3,200,000 3,128,896
Camden County Pollution Control Financing Authority, Solid Waste Disposal and
Resource Recovery System Revenue 7.50%, 12/1/2010 13,000,000 13,022,230
Clearview Regional High School District, Refunding
5.375%, 8/1/2015 (Insured; FGIC) 3,625,000 3,835,540
Delaware River Port Authority, Highway Toll Revenue 5.50%, 1/1/2026 (Insured; FGIC) 5,000,000 5,170,050
East Orange:
Zero Coupon, 8/1/2010 (Insured; FSA) 4,240,000 2,441,307
Zero Coupon, 8/1/2011 (Insured; FSA) 2,500,000 1,357,725
East Orange Board Of Education, COP, Lease Revenue:
5.50%, 8/1/2012 (Insured; FSA) (a) 11,000,000 11,758,010
Zero Coupon, 2/1/2015 (Insured; FSA) 1,420,000 629,017
Zero Coupon, 8/1/2016 (Insured; FSA) 1,425,000 581,272
Zero Coupon, 8/1/2019 (Insured; FSA) 1,000,000 347,930
Zero Coupon, 2/1/2021 (Insured; FSA) 2,845,000 920,272
Zero Coupon, 2/1/2026 (Insured; FSA) 1,845,000 462,375
Zero Coupon, 2/1/2028 (Insured; FSA) 2,845,000 644,734
Essex County Improvement Authority, Revenue:
Lease:
7%, 12/1/2020 (Prerefunded 12/1/2000) (Insured; AMBAC) (b) 4,000,000 4,357,120
(County Correctional Facility Project) 5.70%, 1/1/2027 (Insured; FGIC) 7,030,000 7,426,140
Water (Utility System-Orange Franchise) 5.75%, 7/1/2027 (Insured; MBIA) 2,000,000 2,122,600
Evesham Township Board of Education, COP, Lease Purchase Agreement
6.875%, 9/1/2011 (Prerefunded 9/1/2001) (Insured; FGIC) (b) 3,050,000 3,363,631
Gloucester County Industrial Pollution Control Financing Authority,
Industrial Revenue, Refunding (Mobil Oil Refining Corp. Project)
5.625%, 12/1/2028 (Guaranteed; Mobil Oil Refining Corp.) 1,000,000 1,037,050
Gloucester County Utilities Authority, Sewer Revenue, Refunding
5.45%, 1/1/2024 (Insured; MBIA) 1,250,000 1,282,050
Gloucester Township Municipal Utilities Authority, Sewer Revenue, Refunding
5.65%, 3/1/2018 (Insured; AMBAC) 2,530,000 2,747,504
Hillsborough Township School District:
5.40%, 10/1/2020 (Insured; FSA) 1,720,000 1,758,322
5.40%, 10/1/2021 (Insured; FSA) 1,270,000 1,295,730
Hoboken, Refunding 4.75%, 8/1/2011 (Insured; FSA) 7,780,000 7,851,498
Howell Township, Refunding 6.80%, 1/1/2014 (Insured; FGIC) 5,000,000 5,481,750
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
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STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
____________ ____________
New Jersey (continued)
Hudson County Improvement Authority:
Facility Lease Revenue 7.986%, 12/1/2025 (Insured; FGIC) (c,d) $ 13,835,000 $ 16,117,775
MFHR (Conduit Financing - Observer Park Project) 6.90%, 6/1/2022 (Insured; FNMA) 4,190,000 4,491,470
Jersey City:
Zero Coupon, 5/15/2010 (Insured; FSA) 4,745,000 2,758,553
5.375%, 10/1/2013 1,000,000 1,038,250
Refunding:
6%, 10/1/2008 (Insured; AMBAC) 2,490,000 2,794,950
6%, 10/1/2009 (Insured; AMBAC) 1,890,000 2,128,216
Keansburg Board of Education, COP 8%, 11/1/2014 (Prerefunded 11/1/1999) (b) 5,000,000 5,369,050
Manchester Township Board of Education, COP
7.20%, 12/15/2009 (Prerefunded 12/15/1998) (Insured; MBIA) (b) 4,175,000 4,326,218
Middlesex County Improvement Authority, Revenue
(Golf Course Project) 5.20%, 2/1/2018 1,000,000 1,006,970
Monmouth County Improvement Authority, Revenue (Asbury Park Project)
7.375%, 12/1/2009 (Prerefunded 12/1/1999) (b) 3,000,000 3,204,930
New Brunswick Parking Authority, Revenue, Refunding
7.125%, 9/1/2015 (Prerefunded 9/1/1999) (Insured; FGIC) (b) 2,000,000 2,107,740
State of New Jersey, Refunding 6%, 7/15/2010 7,400,000 8,389,898
New Jersey Economic Development Authority, Revenue:
(Community Mental Health Loan Program) 8.50%, 7/1/2017 7,230,000 8,034,338
District Heating and Cooling
(Trigen - Trenton District Energy Co. L.P. Project):
6.10%, 12/1/2004 3,375,000 3,644,730
6.20%, 12/1/2007 2,725,000 2,899,971
Economic Development:
(American Airlines Inc. Project) 7.10%, 11/1/2031 2,855,000 3,110,180
Refunding (Tevco Inc. Project) 8.125%, 10/1/2009 (LOC; Credit Lyonnais) (e) 2,500,000 2,649,025
First Mortgage (The Evergreens) 9.25%, 10/1/2022 (Prerefunded 10/1/2002) (b) 5,000,000 6,022,400
Health, Hospital and Nursing Home, Refunding:
First Mortgage (Cadbury Corp. Project):
5.50%, 7/1/2018 (Insured ACA) 1,000,000 1,018,040
5.50%, 7/1/2028 (Insured ACA) 1,500,000 1,520,400
(Hillcrest Health Service):
Zero Coupon, 1/1/2012 (Insured; AMBAC) 1,000,000 525,650
Zero Coupon, 1/1/2013 (Insured; AMBAC) 1,000,000 497,670
Zero Coupon, 1/1/2015 (Insured; AMBAC) 3,250,000 1,445,568
Zero Coupon, 1/1/2017 (Insured; AMBAC) 5,000,000 1,987,050
Zero Coupon, 1/1/2018 (Insured; AMBAC) 2,500,000 941,600
Zero Coupon, 1/1/2020 (Insured; AMBAC) 6,500,000 2,214,875
Zero Coupon, 1/1/2022 (Insured; AMBAC) 6,000,000 1,853,100
Local or Guaranteed Housing, First Mortgage, Refunding (Fellowship Village):
5.50%, 1/1/2018 2,500,000 2,490,525
5.50%, 1/1/2025 3,000,000 2,993,760
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
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STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
____________ ____________
New Jersey (continued)
New Jersey Economic Development Authority, Revenue (continued):
Refunding (Morris Hall / Saint Lawrence Inc. Project):
<S> <C> <C>
5.50%, 4/1/2016 (LOC; Corestates Bank) (e) $ 1,000,000 $ 1,035,400
5.50%, 4/1/2027 (LOC; Corestates Bank) (e) 3,500,000 3,594,045
Waste Paper Recycling (Marcal Paper Mills Inc. Project):
6.25%, 2/1/2009 6,605,000 7,126,399
8.50%, 2/1/2010 5,850,000 6,940,850
Water Facilities:
(American Water Co. Inc. Project) 6.50%, 4/1/2022 (Insured; FGIC) 11,500,000 12,469,335
(Elizabeth Water Co. Project) 6.70%, 8/1/2021 3,965,000 4,260,630
New Jersey Educational Facilities Authority, Revenue, Refunding:
(Saint Peter's College Project):
5.375%, 7/1/2018 1,000,000 1,003,510
5.50%, 7/1/2027 1,750,000 1,758,400
(Seton Hall University Project):
6.85%, 7/1/2019 (Prerefunded 7/1/1999) (Insured; BIGI) (b) 5,280,000 5,549,808
6.85%, 7/1/2019 (Insured; BIGI) 575,000 602,002
7%, 7/1/2021 3,500,000 3,770,095
New Jersey Health Care Facilities Financing Authority, Health, Hospital and
Nursing
Home Revenue:
(Kimball Medical Center) 8%, 7/1/2013 (Prerefunded 7/1/2000) (b) 13,000,000 14,264,640
(Palisades Medical Center):
7.50%, 7/1/2006 2,000,000 2,149,120
7.60%, 7/1/2021 2,350,000 2,524,793
(Raritan Bay Medical Center) 7.25%, 7/1/2014 13,000,000 14,118,910
Refunding:
(Atlantic Health Systems Hospital Corp.) 5%, 7/1/2027 (Insured; AMBAC) 5,750,000 5,625,053
(Hackensack University Medical Center) 5%, 1/1/2022 (Insured; MBIA) (f) 6,900,000 6,755,238
(Princeton Medical Center Obligation Group) 5.125%, 7/1/2018 (Insured; AMBAC) 2,000,000 2,001,780
(Rahway Hospital Obligation Group) 5.125%, 7/1/2014 750,000 733,980
(Saint Elizabeth Hospital Obligation Group):
6%, 7/1/2014 2,500,000 2,649,850
6%, 7/1/2020 3,000,000 3,166,980
(Saint Joseph's Hospital and Medical Center)
5.75%, 7/1/2016 (Insured; Connie Lee) 1,800,000 1,904,526
New Jersey Higher Education Assistance Authority, Student Loan Revenue
5.30%, 6/1/2017 (Insured; AMBAC) 9,250,000 9,282,838
New Jersey Housing and Mortgage Finance Agency, Revenue:
Multi-Family Housing:
5.40%, 11/1/2017 (Insured; AMBAC) 2,000,000 2,040,660
5.65%, 5/1/2040 (Insured; AMBAC) 15,000,000 15,364,800
Refunding (Presidential Plaza at Newport Project) 7%, 5/1/2030 (Insured; FHA) 5,000,000 5,412,250
Rental Housing (Tiffany Manor) 6.75%, 11/1/2022 9,310,000 9,920,550
New Jersey Transit Corp., Lease Purchase Agreement, COP (Raymond Plaza East
Inc.)
6.50%, 10/1/2016 (Insured; FSA) 3,945,000 4,515,447
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
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STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
____________ ____________
New Jersey (continued)
New Jersey Transportation Trust Fund Authority, Refunding (Transportation
System):
6.50%, 6/15/2011 (Insured; MBIA) $ 11,000,000 $ 12,993,310
7%, 6/15/2012 (Insured; MBIA) 6,000,000 7,372,920
New Jersey Turnpike Authority, Turnpike Revenue, Refunding
6.50%, 1/1/2016 (Insured; MBIA) 14,665,000 17,372,599
North Jersey District Water Supply Commission, Sewer Revenue (Wanaque South
Project)
6%, 7/1/2019 (Insured; MBIA) 2,000,000 2,240,320
Ocean County Pollution Control Financing Authority, PCR, Refunding
(Ciba Geigy Corp. Project) 6%, 5/1/2020 11,700,000 12,487,293
Passaic County Utilities Authority, Solid Waste System Revenue 7%, 11/15/2007 1,500,000 1,485,255
Port Authority of New York and New Jersey:
(Delta Airlines Inc. Project) 6.95%, 6/1/2008 7,200,000 7,864,920
Port, Airport, and Marina Improvements Revenue:
Refunding:
5.25%, 7/1/2014 1,970,000 1,998,801
5%, 12/1/2017 5,475,000 5,345,188
5%, 6/1/2018 4,780,000 4,647,642
Special Obligation Revenue:
(U.S. Air LaGuardia Project) 9.125%, 12/1/2015 6,500,000 7,276,945
(JFK International Air Terminal):
6.25%, 12/1/2015 (Insured; MBIA) 5,000,000 5,765,350
5.75%, 12/1/2022 (Insured; MBIA) 17,885,000 18,968,473
5.75%, 12/1/2025 (Insured; MBIA) 5,345,000 5,608,188
Rutgers University, College and University Revenue 5.20%, 5/1/2022 4,400,000 4,452,404
South Jersey Transportation Authority, Port, Airport and Marina Lease Revenue
(Raytheon Aircraft Service Inc. Project) 6.15%, 1/1/2022 510,000 546,144
Union City, Refunding 5.20%, 9/1/2012 (Insured; MBIA) 8,000,000 8,384,480
Union County Utilities Authority, Solid Waste Revenue:
7.15%, 6/15/2009 2,750,000 2,755,280
7.20%, 6/15/2014 10,000,000 10,019,100
University of Medicine and Dentistry 7.20%, 12/1/2019 (Prerefunded 12/1/1999) (b) 5,710,000 6,091,314
Western Monmouth Utilities Authority, Sewer Revenue, Refunding
5.60%, 2/1/2014 (Insured; AMBAC) 2,190,000 2,311,852
West New York Municipal Utilities Authority, Sewer Revenue, Refunding
7.30%, 12/15/2017 (Prerefunded 12/15/2000) (Insured; FGIC) (b) 6,250,000 6,858,188
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
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STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
____________ ____________
U.S. Related --16.1%
Commonwealth of Puerto Rico:
5.40%, 7/1/2025 $ 6,300,000 $ 6,429,339
5.375%, 7/1/2025 2,580,000 2,624,195
Refunding:
6.50%, 7/1/2014 (Insured; MBIA) 7,260,000 8,636,641
5.65%, 7/1/2015 (Insured; MBIA) 2,000,000 2,191,160
Public Improvement 6.80%, 7/1/2021 (Prerefunded 7/1/2002) (b) 5,400,000 6,015,006
Puerto Rico Aqueduct and Sewer Authority, Revenue, Refunding
5%, 7/1/2019 (Insured; AMBAC) 4,215,000 4,121,216
Puerto Rico Electric Power Authority, Power Revenue 5.50%, 7/1/2025 (Insured; AMBAC) 5,000,000 5,141,700
Puerto Rico Highway and Transportation Authority, Highway Revenue:
6.361%, 7/1/2007 (c) 11,100,000 12,293,250
6.448%, 7/1/2009 (c) 2,950,000 3,252,375
7.75%, 7/1/2016 (Prerefunded 7/1/2000) (b) 3,460,000 3,782,161
6.625%, Series S, 7/1/2018 (Prerefunded 7/1/2002) (b) 13,000,000 14,399,320
6.625%, Series T, 7/1/2018 (Prerefunded 7/1/2002) (b) 2,040,000 2,259,586
5%, 7/1/2036 8,000,000 7,926,000
5%, 7/1/2038 11,000,000 10,568,690
Puerto Rico Public Buildings Authority, Lease Revenue
5.25%, 7/1/2021 (Guaranteed; Commonwealth of Puerto Rico) 3,165,000 3,187,345
Puerto Rico Ports Authority, Special Facilities Revenue
(American Airlines Inc. Project) 6.25%, 6/1/2026 (Guaranteed; AMR Corp.) 3,000,000 3,251,340
_____________
TOTAL INVESTMENTS (cost $553,309,134) 99.8% $594,886,337
_______ ______________
CASH AND RECEIVABLES (NET) .2% $ 1,001,295
_______ ______________
NET ASSETS 100.0% $595,887,632
_______ ______________
</TABLE>
<TABLE>
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
ACA American Capital Access FSA Financial Security Assurance
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
BIGI Bond Investors Guaranty Insurance MBIA Municipal Bond Investors Assurance
COP Certificate of Participation 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
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch (g) or Moody's or Standard & Poor's Percentage of Value
_______ ________ __________________ ____________________
<S> <C> <C> <C>
AAA Aaa AAA 55.9%
AA Aa AA 6.3
A A A 17.5
BBB Baa BBB 10.6
BB Ba BB 1.0
B B B 1.2
Not Rated (h) Not Rated (h) Not Rated (h) 7.5
_______
100.0%
_______
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Security held in segregated account for the purpose of collateralizing
delayed-delivery security.
(b) 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.
(c) Inverse floater security -- the interest is subject to change periodically
(d) Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At June 30, 1998, this security
amounted to $16,117,775 or 2.7% of net assets.
(e) Secured by letter of credit.
(f) Purchased on a delayed-delivery basis.
(g) Fitch currently provides creditworthiness information for a limited number
of investments.
(h) 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.
(i) At June 30, 1998, the Fund had $153,318,063 (25.7% 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, 1998 (UNAUDITED)
Cost Value
____________ ____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $553,309,134 $594,886,337
Interest receivable 9,892,233
Receivable for investment securities sold 2,447,490
Receivable for shares of Common Stock subscribed 5,445
Prepaid expenses 13,035
_____________
607,244,540
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 383,765
Due to Distributor 11,093
Payable for investment securities purchased 6,820,574
Cash overdraft due to Custodian 4,028,324
Payable for shares of Common Stock redeemed 23,981
Accrued expenses 89,171
_____________
11,356,908
_____________
NET ASSETS $595,887,632
_____________
REPRESENTED BY: Paid-in capital $551,295,597
Accumulated net realized gain (loss) on investments 3,014,832
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 41,577,203
_____________
NET ASSETS $595,887,632
_____________
SHARES OUTSTANDING
(500 MILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED) 44,524,504
NET ASSET VALUE, offering and redemption price per share--Note 3(d) $13.38
_______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income $17,261,438
EXPENSES: Management fee--Note 3(a) $ 1,773,513
Shareholder servicing costs--Note 3(b) 892,205
Custodian fees 28,861
Professional fees 27,861
Directors' fees and expenses--Note 3(c) 18,136
Prospectus and shareholders' reports 12,618
Registration fees 6,513
Loan commitment fees--Note 2 2,905
Miscellaneous 13,334
____________
Total Expenses 2,775,946
Less--reduction in management fee due to
undertaking--Note 3(a) (148,456)
____________
Net Expenses 2,627,490
____________
INVESTMENT INCOME--NET 14,633,948
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments $ 2,291,875
Net unrealized appreciation (depreciation)
on investments (846,953)
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 1,444,922
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $16,078,870
____________
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, 1998 Year Ended
(Unaudited) December 31, 1997
_______________ _______________
OPERATIONS
<S> <C> <C>
Investment income--net $ 14,633,948 $ 30,630,024
Net realized gain (loss) on investments 2,291,875 3,536,391
Net unrealized appreciation (depreciation) on investments (846,953) 15,879,094
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations 16,078,870 50,045,509
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net (14,633,948) (30,630,024)
Net realized gain on investments ------ (4,017,268)
_____________ _____________
Total Dividends (14,633,948) (34,647,292)
_____________ _____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold 51,544,902 137,672,657
Dividends reinvested 10,662,421 25,649,350
Cost of shares redeemed (63,982,884) (176,451,075)
_____________ _____________
Increase (Decrease) in Net Assets from Capital Stock Transactions (1,775,561) (13,129,068)
_____________ _____________
Total Increase (Decrease) in Net Assets (330,639) 2,269,149
NET ASSETS:
Beginning of Period 596,218,271 593,949,122
_____________ _____________
End of Period $595,887,632 $596,218,271
_____________ _____________
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold 3,856,935 10,576,756
Shares issued for dividends reinvested 798,601 1,956,865
Shares redeemed (4,789,337) (13,551,273)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding (133,801) (1,017,652)
_____________ _____________
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, 1998 Year Ended December 31,
_____________________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
____________ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.35 $13.00 $13.53 $12.41 $14.03 $13.17
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net .33 .68 .72 .74 .78 .79
Net realized and unrealized gain (loss)
on investments .03 .44 (.30) 1.12 (1.61) .88
_______ _______ _______ _______ _______ _______
Total from Investment Operations .36 1.12 .42 1.86 (.83) 1.67
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net (.33) (.68) (.72) (.74) (.77) (.79)
Dividends from net realized gain on investments -- (.09) (.23) (.00)(1) -- (.02)
Dividends in excess of net realized gain
on investments -- -- -- -- (.02) --
_______ _______ _______ _______ _______ _______
Total Distributions (.33) (.77) (.95) (.74) (.79) (.81)
_______ _______ _______ _______ _______ _______
Net asset value, end of period $13.38 $13.35 $13.00 $13.53 $12.41 $14.03
_______ _______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN 5.46%(2) 8.84% 3.43% 15.29% (6.02%) 12.97%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .89%(2) .80% .80% .80% .77% .72%
Ratio of net investment income
to average net assets 4.95%(2) 5.23% 5.46% 5.67% 5.94% 5.74%
Decrease reflected in above expense ratios due
to undertakings by the Manager .05%(2) .14% .14% .15% .20% .25%
Portfolio Turnover Rate 16.04%(3) 28.01% 31.30% 24.37% 10.02% 6.05%
Net Assets, end of period (000's omitted) $595,888 $596,218 $593,949 $653,836 $577,525 $725,815
- ------------
(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. Under the terms of the custodian
agreement, the Fund received net earning credits of $86 during the period ended
June 30, 1998 based on available cash balances left on deposit. Income earned
under this arrangement is included in interest income.
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 at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended June
30, 1998, 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 1 1/2 % 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 had undertaken through June
30, 1998 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) exceeded an annual rate of .90 of 1% of the value of the Fund's average
daily net assets. The reduction in management fee, pursuant to the undertaking,
amounted to $148,456 during the period ended June 30, 1998.
(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 amount, if any, to be paid to Service Agents 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 value of the Fund's average daily net assets for any full
year. During the period ended June 30, 1998, the Fund was charged $741,273
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. During the period
ended June 30, 1998, the Fund was charged $103,378 pursuant to the transfer
agency 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 $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 and retained by the Fund 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, 1998,
redemption fees amounted to $155.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended June 30, 1998, amounted
to $116,850,809 and $93,046,061, respectively.
At June 30, 1998, accumulated net unrealized appreciation on investments was
$41,577,203, consisting of $42,516,428 gross unrealized appreciation and
$939,225 gross unrealized depreciation.
At June 30, 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).
(reg.tm)
(reg.tm)
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. 750SA986
New Jersey
Municipal
Bond Fund, Inc.
Semi-Annual
Report
June 30, 1998
