DREYFUS GLOBAL BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report that in a period that was particularly
challenging for investments in debt instruments, Dreyfus Global Bond Fund,
Inc.'s total return, while modest, was superior to its benchmark bond index.
ECONOMIC ENVIRONMENT
Fundamental economic data from the world's major economies provided few
surprises over the first quarter of the Fund's year. Published data continued
to indicate slow growth and low inflation in the U.S. and U.K. In the core
European economies of France and Germany, growth appeared to be slowing.
Reflecting these figures, central banks across the globe were cutting their
lending rates. This benign economic picture was shaken in early March by a
non-farm payroll figure in the U.S., the strength of which was a surprise
even to Federal Reserve Board Chairman Alan Greenspan. Subsequently revised
down only slightly, this was the first in a sequence of data providing
evidence of stronger growth in the U.S. Two new aspects should, however, be
emphasized. First, the growth rate is improved, but not truly strong. The
rate is moving back to trend from a low base, with first quarter Gross
Domestic Product +2.3% (preliminary estimate of May 30). Second, there is as
yet little evidence of a rise in inflation.
In contrast to the U.S., there has been little change in the fundamental
data from European economies. Consumer sectors show signs of strength while
manufacturing remains in the doldrums. Money supply will continue to be a
concern and it seems likely that official interest rates have now reached
their bottom in the majority of economies. In Japan, loose monetary policy is
beginning to take effect, but the recovery is still patchy. Recent downward
revisions to published data have been disappointing and the banking industry
is still deeply troubled. Speculation on rises in rates is likely to
continue.
MARKET ENVIRONMENT
Since last fall, the market has seen a dramatic increase in volatility
and a sea change in sentiment. Focus shifted from concentrating entirely on
the falling interest rate/low inflation environment to viewing only the
potential pitfalls, such as growing money supply, potential for huge capital
flows to be generated from the yen/dollar exchange rate and difficult
political situations in many countries. After the sequence of stronger U.S.
data, these investor fears found a focus in stronger fundamental data.
However, the market seems to be projecting this data forward in a
questionable fashion. Recall that short-term rates have increased by
approximately 1.75% in the past six months without the Federal Reserve
lifting a finger. Thus markets have exerted significant tightening of their
own.
European markets were naturally caught in the backwash from the U.S. The
main trend of the period was market convergence driven by anticipation of
European Monetary Union. France is now trading at par with Germany and many
of the peripheral markets such as Italy, Spain, Sweden and Denmark have
narrowed spreads considerably. Yields in Japan are beginning to rise as a
rate increase is anticipated.
PORTFOLIO FOCUS
For the six months ended May 31, 1996, your Fund outperformed the Salomon
Brothers World Government Bond Index by 1.8%. The Fund's total return for the
fiscal period was .58%,* while the Salomon Brothers World Government Bond
Index returned -1.22%.**
The portfolio has been short of average duration in the U.S. market due
to concern over a possible setback. This has proved to be beneficial.
Unfortunately, our German bonds were of above-average duration and weighting
because of our belief that a delay in monetary union is inevitable. In a
correction such as the one that has taken place, we had anticipated that
Germany would perform better than it has. We are, however, maintaining our
current position.
A key to the performance has been the index weighting in Japan. Japanese
bonds were universally pilloried at the start of 1996, but have the singular
advantage of being uncorrelated (that is, they do not necessarily move
closely in step) with other bond markets. Indeed, the Japanese bond market
has remained remarkably stable in comparison to other world debt markets.
During the second quarter, weighting in the U.S. was increased at the
expense of Japan, which had performed well. ECUs and Mexican floating rate
notes were also sold in favor of U.S. obligations. Eastman Kodak, one of the
leading portfolio holdings, was upgraded from A+ to AA- by Standard & Poor's.
Germany and the U.K. have continued to disappoint but France, particularly
the STRIP bond, helped to counter this. The Spanish investment made at the
end of the last quarter has performed very well following their elections, as
have Danish bonds. A good return from the Australian investment was due
principally to currency factors.
The Fund is currently hedged approximately 77% against the yen, 77%
against the guilder and 23% against the DM assets to take into account the
U.S. dollar investor base.
Finally, it is pleasing to note the relative stability of the value of
the Fund over a volatile period for many global debt markets.
Sincerely,
(THEODORA ZEMEK signature logo)
Theodora Zemek
Portfolio Manager
Dreyfus Global Bond Fund, Inc.
M & G Investment Management, Ltd
June 19, 1996
London, U.K.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Unlike the Fund, which can
invest in both corporate and government bonds, the Salomon Brothers World
Government Bond Index is a market-capitalization weighted index consisting of
debt issues of 14 government bond markets.
<TABLE>
<CAPTION>
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF INVESTMENTS MAY 31, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES-96.2% AMOUNT VALUE
______________ ___________
<S> <C> <C>
BANKING-10.1% Bayerische Landesbank Girozentrale,
Bonds, 6%, 2004...................... $ 571,053 (a) $ 558,205
Societe Generale,
Floating Rate Notes, 5 15/16%, 2008.. 500,000 (b) 502,650
Sudwestdeutsche Landesbank Capital Markets,
Bonds (Gtd. by Sudwestdeutsche Landesbank
Girozentrale), 6 1/4%, 2003.......... 557,926 (a) 556,252
___________
1,617,107
___________
CHEMICALS-8.7% Eastman Kodak,
Notes, 7 7/8%, 1997.................. 450,000 456,469
Hoechst,
Bearer Bonds, 6%, 2000............... 500,000 485,000
Imperial Chemical Industries,
Bonds, 9 3/4%, 2005.................. 426,388 (c) 452,770
___________
1,394,239
___________
FINANCIAL SERVICES-5.1% Credit Local De France,
Bonds, 6%, 2001...................... 693,610 (d) 809,789
___________
INDUSTRIAL-5.7% Glaxo Wellcome p.l.c.,
Notes, 6 1/8%, 2006.................. 500,000 455,625
Unilever N.V.,
Gtd. Notes, 8%, 1999................. 440,000 456,500
___________
912,125
___________
MACHINERY AND
ENGINEERING-3.0% Fuji Heavy Industries,
Bonds (Gtd. by The Industrial Bank of Japan),
8 3/4%, 1999......................... 450,000 471,656
___________
MISCELLANEOUS-10.4% B.A.T. Capital,
Bonds (Gtd. by B.A.T. Industries p.l.c.),
6 1/2%, 2003......................... 500,000 470,938
Petroleos Mexicanos,
Gtd. Notes, 9%, 2003................. 503,913 (c) 451,632
Treasury Corp. of Victoria,
Bonds (Gtd. by The Government of Victoria),
7 1/4%, 2003......................... 247,783 (e) 224,244
Ville de Montreal,
Notes, 6 3/8%, 2001.................. 547,845 (f) 520,795
___________
1,667,609
___________
TELECOMMUNICATIONS-3.0% Cable and Wireless,
Bonds, 6 1/2%, 2003.................. 500,000 472,813
___________
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
_____________ ___________
UTILITIES-ELECTRIC-4.9% Chubu Electric Power,
Bonds, 6 1/8%, 2001.................. $ 462,406 (d) $ 531,304
Tokyo Electric Power,
Notes, 10 1/2%, 2001................. 219,138 (f) 245,708
___________
777,012
___________
FOREIGN/
GOVERNMENTAL-45.3% Asfinag,
Bonds (Gtd. by the Republic of Austria),
6%, 2000............................. 739,850 (d) 843,429
Bundesrepublik Deutschland:
7 1/8%, 2002......................... 541,516 (a) 576,607
7 3/8%, 2005......................... 656,383 (a) 699,114
Comunidad Andalucia,
Deb., 8%, 2000....................... 350,000 361,375
France O.A.T.:
Coupon Strips, Zero Coupon, 2018..... 1,939,300 (g) 358,383
Deb., 6 3/4%, 2004................... 387,860 (g) 398,177
Ireland Treasury Securities,
6 1/4%, 2004......................... 452,438 (h) 417,147
Kingdom of Denmark Bullet,
7%, 2004............................. 577,986 (i) 570,819
Kingdom of Spain Government Bonds,
4 5/8%, 2004......................... 462,406 (d) 510,959
Netherlands Government Bonds,
5 3/4%, 2004......................... 1,114,827 (j) 1,089,744
Republic of South Africa,
Deb., 9 5/8%, 1999................... 450,000 471,375
Spain Government Bonds,
10.15%, 2006......................... 278,232 (k) 294,929
United Kingdom Gilt Edged Securities,
7 1/2%, 2006......................... 673,227 (c) 642,721
___________
7,234,779
___________
TOTAL BONDS AND NOTES
(cost $14,969,970)................... $15,357,129
===========
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996 (UNAUDITED)
PRINCIPAL
SHORT-TERM INVESTMENTS-.5% AMOUNT VALUE
_____________ _____________
U.S. TREASURY BILLS; 4.96%, 8/1/1996
(cost $80,319)....................... $ 81,000 $ 80,316
=============
TOTAL INVESTMENTS (cost $15,050,289) .................................... 96.7% $15,437,445
============= =============
CASH AND RECEIVABLES (NET).................................................. 3.3% $ 532,693
=============== =============
NET ASSETS.................................................................. 100.0% $15,970,138
=============== =============
NOTES TO STATEMENT OF INVESTMENTS:
(a) Denominated in German Deutsche Marks.
(b) Variable rate security-interest rate subject to periodic change.
(c) Denominated in British Pounds.
(d) Denominated in Japanese Yen.
(e) Denominated in Australian Dollars.
(f) Denominated in Canadian Dollars.
(g) Denominated in French Francs.
(h) Denominated in Irish Pounds.
(i) Denominated in Danish Krone.
(j) Denominated in Dutch Guilders.
(k) Denominated in Spanish Pesetas.
See independent accountants' review report and notes to financial statements.
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1996 (UNAUDITED)
ASSETS:
Investments in securities, at value
(cost $15,050,289)-see statement...................................... $15,437,445
Cash.................................................................... 33,809
Interest receivable..................................................... 457,114
Net unrealized appreciation on forward currency exchange
contracts-Note 3(a)................................................... 48,755
Prepaid expenses........................................................ 36,990
Due from The Dreyfus Corporation and affiliates......................... 3,723
____________
16,017,836
LIABILITIES:
Due to Distributor...................................................... $ 3,395
Accrued expenses........................................................ 44,303 47,698
____________ ___________
NET ASSETS ................................................................ $15,970,138
===========
REPRESENTED BY:
Paid-in capital......................................................... $16,075,284
Accumulated distributions in excess of investment income-net............ (524,857)
Accumulated net realized (loss) on investments
and foreign currency transactions..................................... (16,200)
Accumulated net unrealized appreciation on investments
and foreign currency transactions-Note 3(b)........................... 435,911
____________
NET ASSETS at value applicable to 1,297,396 shares outstanding
(300 million shares of $.001 par value Common Stock authorized)......... $15,970,138
============
NET ASSET VALUE, offering and redemption price per share
($15,970,138 / 1,297,396 shares)........................................ $12.31
============
See independent accountants' review report and notes to financial statements.
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 584,439
EXPENSES:
Management fee-Note 2(a).............................................. $ 57,329
Shareholder servicing costs-Note 2(b)................................. 25,831
Auditing fees......................................................... 14,186
Directors' fees and expenses-Note 2(c)................................ 14,090
Registration fees..................................................... 8,422
Legal fees............................................................ 7,343
Prospectus and shareholders' reports-Note 2(b)........................ 6,783
Organization expenses................................................. 6,501
Custodian fees........................................................ 4,171
Miscellaneous......................................................... 5,310
____________
TOTAL EXPENSES.................................................. 149,966
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 41,173
____________
NET EXPENSES.................................................... 108,793
____________
INVESTMENT INCOME-NET........................................... 475,646
____________
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments and foreign
currency transactions-Note 3(a)....................................... $ (52,149)
Net realized gain on forward currency
exchange contracts-Note 3(a).......................................... 285,079
____________
NET REALIZED GAIN..................................................... 232,930
Net unrealized (depreciation) on investments and forward currency
exchange contracts.................................................... (611,884)
____________
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (378,954)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 96,692
=============
See independent accountants' review report and notes to financial statements.
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
NOVEMBER 30, MAY 31, 1996
1995 (UNAUDITED)
_______________ _______________
OPERATIONS:
Investment income-net............................................... $ 1,079,380 $ 475,646
Net realized gain on investments.................................... 59,595 232,930
Net unrealized appreciation (depreciation) on investments for the period....... 1,277,458 (611,884)
______________ _______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 2,416,433 96,692
______________ _______________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net............................................... (1,115,679) (1,069,000)
______________ _______________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold....................................... 2,400,052 660,574
Dividends reinvested................................................ 928,971 915,126
Cost of shares redeemed............................................. (3,425,344) (1,113,180)
______________ _______________
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS. (96,321) 462,520
______________ _______________
TOTAL INCREASE (DECREASE) IN NET ASSETS....................... 1,204,433 (509,788)
NET ASSETS:
Beginning of period................................................. 15,275,493 16,479,926
______________ _______________
End of period [including undistributed investment income-net;
$68,497 in 1995 and distributions in excess of investment
income-net; ($524,857) in 1996]................................... $16,479,926 $15,970,138
============== ===============
SHARES SHARES
______________ _______________
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................... 195,310 52,636
Shares issued for dividends reinvested.............................. 74,302 72,788
Shares redeemed..................................................... (277,215) (89,327)
______________ _______________
NET INCREASE (DECREASE) IN SHARES OUTSTANDING..................... (7,603) 36,097
============== ===============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GLOBAL 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.
YEAR ENDED NOVEMBER 30, SIX MONTHS ENDED
________________________ MAY 31, 1996
PER SHARE DATA: 1994(1) 1995 (UNAUDITED)
___________ __________ ___________________
<S> <C> <C> <C>
Net asset value, beginning of period................... $12.50 $12.04 $13.07
_____ _____ _____
INVESTMENT OPERATIONS:
Investment income-net.................................. .65 .85 .38
Net realized and unrealized gain (loss) on investments. (.54) 1.06 (.30)
_____ _____ _____
TOTAL FROM INVESTMENT OPERATIONS..................... .11 1.91 .08
_____ _____ _____
DISTRIBUTIONS;
Dividends from investment income-net................... (.57) (.88) (.84)
_____ _____ _____
Net asset value, end of period......................... $12.04 $13.07 $12.31
===== ===== =====
TOTAL INVESTMENT RETURN.................................... 1.29%(2) 16.47% 1.16%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................ --- .81% 1.32%(2)
Ratio of net investment income to average net assets... 7.83%(2) 6.76% 5.79%(2)
Decrease reflected in above expense ratios due to
undertakings by Dreyfus.............................. 2.49%(2) 1.12% .50%(2)
Portfolio Turnover Rate................................ 4.16%(3) 20.46% 10.08%(3)
Net Assets, end of period (000's Omitted).............. $15,275 $16,480 $15,970
__________________
(1) From March 18, 1994 (commencement of operations) to November 30, 1994.
(2) Annualized.
(3) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS GLOBAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Global Bond Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversifed open-end
management investment company. The Fund's investment objective is to seek
total return. The Dreyfus Corporation ("Dreyfus") serves as the Fund's
investment adviser. M&G Investment Management Limited ("M&G") serves as the
Fund's sub-investment adviser. Dreyfus is a direct subsidiary of Mellon Bank,
N.A. Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold to the public without a sales
load.
As of May 31, 1996, Major Trading Corporation, a subsidiary of Mellon
Bank Investments Corporation, held 489,741 of the Fund's outstanding shares.
Mellon Bank Investments Corporation is a subsidiary of Mellon Bank
Corporation.
(A) PORTFOLIO VALUATION: Investments in securities are valued each
business day at the last sales price on the securities exchange on which such
securities are primarily traded or at the last sales price on the national
securities market. Securities not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available. Investments denominated in foreign
currencies are translated to U.S. dollars at the prevailing rates of
exchange. Forward currency exchange contracts are valued at the forward rate.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between
the amounts of dividends, interest, and foreign withholding taxes recorded on
the Fund's books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities other than investments in
securities, resulting from changes in exchange rates. Such gains and losses
are included with net realized and unrealized gain or loss on investments.
(C) 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.
(D) 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, it is the policy of the Fund not to distribute such gain.
On May 31, 1996, the Board of Directors declared a cash dividend of $.060
per share from undistributed investment income-net, payable on June 3, 1996
(ex-dividend date), to shareholders of record as of the close of business on
May 31, 1996.
DREYFUS GLOBAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(E) 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.
The Fund has an unused capital loss carryover of approximately $417,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1995. The
carryover does not include net realized securities losses from November 1,
1995 through November 30, 1995 which are treated, for Federal income tax
purposes, as arising in fiscal 1996. If not applied, $241,000 of the
carryover expires in fiscal 2002 and $176,000 of the carryover expires in
fiscal 2003.
NOTE 2-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER
TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a Management Agreement with Dreyfus, the management fee
is computed at the annual rate of .70 of 1% of the value of the Fund's
average daily net assets and is payable monthly. Dreyfus and M&G have agreed
that if in any full fiscal year the Fund's aggregate expenses, exclusive of
taxes, brokerage, interest on borrowings and extraordinary expenses, exceed
the expense limitation of any state having jurisdiction over the Fund,
Dreyfus and M&G will bear the excess expense in proportion to their
management fee and sub-advisory fee to the extent required by state law. The
most stringent state expense limitation applicable to the Fund presently
requires reimbursement of expenses in any full fiscal year that such expenses
(exclusive of certain expenses as described above) exceed 2-1/2% of the first
$30 million, 2% of the next $70 million and 1-1/2% of the excess over $100
million of the average value of the Fund's net assets in accordance with
California "blue sky" regulations. The Manager had undertaken from December
1, 1995 through December 17, 1995 to reduce other expenses paid by the Fund,
to the extent that the Fund's aggregate expenses (exclusive of certain
expenses as described above) exceeded specified annual percentages of the
Fund's average daily net assets. The Manager has currently undertaken from
December 18, 1995 through November 30, 1996 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
1.35 of 1% of the value of the Fund's average daily net assets. The reduction
in management fee, pursuant to the undertakings, amounted to $41,173 during
the six months ended May 31, 1996.
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.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and M&G,
the sub-advisory fee is computed at the annual rate of .28 of 1% of the value
of the Fund's average daily net assets and is payable monthly by Dreyfus.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund pays the
Distributor an annual rate of .25 of 1% of the value of the Fund's average
daily net assets for the provision of certain services. 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. The Distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services.
DREYFUS GLOBAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Distributor determines the amounts to be paid to Service Agents. During
the six months ended May 31, 1996, the Fund was charged by the distributor an
aggregate of $20,454 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. Such
compensation amounted to $3,046 for the six months ended May 31, 1996.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the six months ended May 31, 1996 amounted to $1,860,830 and
$1,572,799, respectively.
In addition, the following summarizes open forward currency exchange
contracts at May 31, 1996:
<TABLE>
<CAPTION>
FOREIGN UNREALIZED
CURRENCY APPRECIATION
FORWARD CURRENCY SALE CONTRACTS AMOUNT PROCEEDS VALUE (DEPRECIATION)
_______________________________- _____________ ___________ __________ _______________
<S> <C> <C> <C> <C>
Dutch Guilders, expiring 10/30/96.......... 1,450,000 $ 857,481 $ 860,534 $ (3,053)
German Deutsche Marks, expiring 10/30/96... 841,580 555,498 557,449 (1,951)
Japanese Yen, expiring 10/30/96............ 223,673,472 2,165,280 2,111,521 53,759
_________
$ 48,755
=========
</TABLE>
The Fund enters into forward currency exchange contracts in order to
hedge its exposure to changes in foreign currency exchange rates on its
foreign portfolio holdings. When executing forward currency exchange
contracts, the Fund is obligated to buy or sell a foreign currency at a
specified rate on a certain date in the future. With respect to sales of
forward currency exchange contracts, the Fund would incur a loss if the value
of the contract increases between the date the forward contract is opened and
the date the forward contract is closed. The Fund realizes a gain if the
value of the contract decreases between those dates. With respect to purchase
of forward currency exchange contracts, the Fund would incur a loss if the
value of the contract decreases between the date the forward contract is
opened and the date the forward contract is closed. The Fund realizes a gain
if the value of the contract increases between those dates. The Fund is also
exposed to credit risk associated with counter party nonperformance on these
forward currency exchange contracts which is typically limited to the
unrealized gains on such contracts that are recognized in the Statement of
Assets and Liabilities.
(B) At May 31, 1996, accumulated net unrealized appreciation on
investments and forward currency exchange contracts was $435,911, consisting
of $642,719 gross unrealized appreciation and $206,808 gross unrealized
depreciation.
At May 31, 1996, 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 GLOBAL BOND FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS GLOBAL BOND FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Global Bond Fund, Inc., including the statement of investments, as of
May 31, 1996, and the related statements of operations and changes in net
assets and financial highlights for the six month period ended May 31, 1996.
These financial statements and financial highlights are the responsibility of
the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
November 30, 1995 and financial highlights for each of the two years in the
period ended November 30, 1995 and in our report dated January 8, 1996, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(ERNST & YOUNG LLP signature logo)
New York, New York
July 9, 1996
[Dreyfus lion "d" logo]
DREYFUS GLOBAL BOND FUND, INC.
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISER
M & G Investment Management Limited
Three Quays, Tower Hill
London, EC3R 6BQ, England
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 098SA965
(DREYFUS LOGO)
Global Bond
Fund, Inc.
Semi-Annual
Report
May 31, 1996
