DREYFUS GLOBAL BOND FUND, INC
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report that during the six-month period ended May 31,
1997, which was marked by mediocre overseas bond markets and very weak
underlying currencies, we put in hard work to protect shareholders of Dreyfus
Global Bond Fund, Inc. from the losses caused by the sharply appreciating
U.S. dollar. During the six months ended May 31, 1997, your Fund had a
slightly negative total return of -.60%.* While disappointing in an absolute
return sense, this result compares quite favorably with the Salomon Brothers
World Government Bond Index** (unhedged) return of -3.8%, while trailing the
same Index fully hedged, which posted 2.21%. Also of note, the Fund has been
awarded a Four Star rating by Morningstar for the three-year and one-year
periods ended May 31, 1997 among 1,229 and 1,713 taxable bond funds,
respectively.***
Economic Environment
Most bond markets got off to a good start in the very early stages of
this year, only to end the first quarter with a sharp sell-off, thus giving
back most of the earlier gains. This change in sentiment was due to a
combination of many concerns, both political and economic, not the least of
which was the Federal Reserve's 25 basis point increase in the Fed Funds
rate. The move by the Fed was seen as a preemptive strike against potential
wage and inflationary pressures caused by a continued robust economy. These
fears, though, have not been entirely supported by more recent economic data,
thus allowing U.S. rates to begin to fall during the second quarter.
In Europe, the restrictive fiscal policies necessary for inclusion in the
first round of European Monetary Union (EMU) continued to have a marked
impact on economic growth and inflation and have exacerbated the slow
recoveries within these countries. In general, economic growth remains subpar
and unemployment in many countries is over 10% (in Spain, over 20%). While
this economic backdrop has provided a good background for interest rates,
many questions remain regarding the move to a single currency in 1999. The
issues of who will be included and what the actual criteria for entry will
be, have become less clear rather than more so. This, obviously, has caused
increased volatility and uncertainty within many of these countries' bond and
currency markets, making for a difficult investment environment.
It appears that Japan continues to be in the nascent stages of an
economic recovery which finally looks like it is taking hold. With aggregate
manufacturing inventory low and aggregate domestic and foreign demand fairly
robust, we believe manufacturing activity likely to continue at a reasonable
pace. The concern is that inflation at the wholesale and retail level has
continued to increase so far this year. With ten-year bond yields down around
2.5% and short-term rates at roughly 0.5%, the market has begun to discount a
rate hike by the Bank of Japan, adversely affecting Japanese bonds during the
second quarter.
Market Environment
While global bond markets got off to a strong early start, interest rates
in most bond markets ended the first half of this year near where they began.
Total returns in many markets, therefore, came mainly from coupon income.
Overall, the best performing markets in local terms were the U.K., Spain and
Australia. In fact, the U.S. bond market was actually the third worst
performing bond market over this period with an average return of around
1.5%. But looking at local returns is only half of the picture. The real
story over the last six months has been the continuing strength of the U.S.
dollar, which has dragged down global bond returns this year. The dollar
strengthened in value between 5% and 10% against most other foreign
currencies (a strengthening U.S. dollar will reduce the value of foreign bond
holdings proportionately to its increase, assuming no currency hedging is
undertaken). This dollar strength reduced the value of foreign bond markets
so greatly that the U.S. bond market went from being the third worst
performing market in local terms, to being the second best performing market
in U.S. dollar terms. Global bond returns that were in the 2% to 5% range in
local terms were
down -5% to -10% in U.S. dollar terms. To counteract the effects of the
strengthening U.S. dollar, the Fund aggressively hedged the portfolio back to
the U.S. dollar over this period. Over the six months, anywhere from 65% to
85% of the portfolio was hedged back to the U.S. dollar, thus ensuring a
significant portion of the foreign bond gains were captured and delivered to
shareholders. Had the Fund not engaged in such active hedging, this dollar
strength would have dramatically reduced overall returns.
Portfolio Focus
In addition to managing the currency exposure of the Fund during the past
six months, we worked to position the portfolio in many of the best
performing local bond markets over this period. We continued to focus the
holdings in those markets which we believed were relatively the most
attractive, as indicated by our value model. The portfolio held substantial
positions over the last six months in Australia and the U.K., which were two
of the three best performing markets, in local terms, over this period.
Because of our generally positive view of interest rates worldwide at the
beginning of the year, we maintained a longer than market maturity and
duration profile. This longer than market duration detracted from performance
as many markets saw interest rates end the last six months at levels the same
as or higher than where they began the period. We did, though, gradually
begin to reduce duration to a level nearer to that of the market in
expectation of an increase in worldwide economic activity. Maturities within
each market remain in the 5- to 15-year area as these sectors of most yield
curves look most attractive.
With the Fund solidly performing between the hedged and unhedged global
bond indices, we believe it is well positioned for the immediate future.
Sincerely,
[Christine Downton signature logo]
Christine Downton
Portfolio Manager
June 19, 1997
New York, N.Y.
* 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.
*** Morningstar proprietary ratings reflect risk-adjusted performance
through 5/31/97. The ratings are subject to change every month. Past
performance is no guarantee of future results. Morningstar ratings are
calculated from the funds' three-, five- and ten-year returns (with fee
adjustments) in excess of 90-day Treasury bill returns. The one-year rating
is calculated using the same methodology, but is not a component of the
overall rating. Ten percent of the funds in a rating category receive five
stars, and the next 22.5% receive four stars.
<TABLE>
<CAPTION>
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF INVESTMENTS MAY 31, 1997 (UNAUDITED)
Principal
Bonds and Notes-85.4% Amount Value
------- ------
<S> <C> <C>
Chemicals-4.0% Imperial Chemicals Industries,
Bonds, 9 3\4%, 2005................... $ 401,800 (a) $ 442,231
-------
Financial Services-4.1% Abbey National Treasury Services plc,
Bonds, 8%, 2003...................... 442,800 (a) 451,102
-------
Foreign/
Governmental-59.3% Australia Commonwealth Government,
Bonds, 10%, 2007..................... 1,293,190 (b) 1,515,102
France O.A.T.,
Deb., 8 1\2%, 2008.................... 564,138 (c) 682,608
Government of New Zealand,
Bonds, 8%, 2004...................... 524,020 (d) 538,921
New South Wales Treasury Corp.,
Notes, 6 1\2%, 2006................... 494,455 (b) 454,031
Queensland Treasury,
Global Notes, 8%, 2003............... 392,521 (b) 406,504
Republic of Austria,
Sr. Notes, 4 1\2%, 2005............... 430,663 (e) 492,033
Republic of Finland,
Deb., 8%, 2003....................... 442,800 (a) 453,040
Spain Government,
Deb., 8.20%, 2009.................... 207,612 (f) 229,681
Sweden Government,
Bonds, 8%, 2007...................... 929,632 (g) 992,652
Treasury Corp. of Victoria,
Bonds, 7 1\4%, 2003................... 235,817 (b) 237,733
United Kingdom Gilt Edged Securities:
7 1\2%, 2006.......................... 442,800 (a) 451,102
8 1\2%, 2007.......................... 65,600 (a) 71,422
-------
6,524,829
-------
Pharmaceuticals-2.5% Glaxo Wellcome plc,
Sr. Notes, 83\4%, 2005............... 262,400 (a) 278,472
-------
Supranational-2.9% European Investment Bank,
Notes, 8%, 2003...................... 311,600 (a) 320,948
-------
U.S. Government-12.6% U.S. Treasury Bonds,
71\4%, 5/15/2016..................... 640,000 658,500
U.S. Treasury Notes,
71\4%, 8/15/2004..................... 700,000 725,156
-------
1,383,656
-------
TOTAL BONDS AND NOTES
(cost $9,211,283).................... $ 9,401,238
=======
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997 (UNAUDITED)
Principal
Short-Term Investments-11.7% Amount Value
------- ------
U.S. Treasury Bills: 5.14% 7/24/1997......... $ 943,000 $ 936,342
5.24%, 8/14/1997....................... 45,000 44,556
5.07%, 8/21/1997....................... 313,000 309,629
-------
TOTAL SHORT-TERM INVESTMENTS
(cost $1,289,807).................... $ 1,290,527
=======
TOTAL INVESTMENTS (cost $10,501,090)........................................ 97.1% $10,691,765
==== =======
CASH AND RECEIVABLES (NET).................................................. 2.9% $ 318,959
==== =======
NET ASSETS.................................................................. 100.0% $11,010,724
==== =======
Notes to Statement of Investments:
(a) Denominated in British Pounds.
(b) Denominated in Australian Dollars.
(c) Denominated in French Francs.
(d) Denominated in New Zealand Dollars.
(e) Denominated in Japanese Yen.
(f) Denominated in Spanish Pesetas.
(g) Denominated in Swedish Krona.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1997 (UNAUDITED)
Cost Value
------- ------
ASSETS: Investments in securities-See Statement of Investments $10,501,090 $10,691,765
Cash....................................... 102,665
Interest receivable........................ 230,105
Net unrealized appreciation on forward
currency exchange contracts-Note 4(a) 24,390
Receivable for forward currency exchange contracts 9,371
Prepaid expenses and other assets.......... 41,570
-------
11,099,866
-------
LIABILITIES: Due to The Dreyfus Corporation and affiliates 6,373
Due to Distributor......................... 2,319
Payable for shares of Common Stock redeemed 27,540
Payable for forward currency exchange contracts 23,479
Accrued expenses........................... 29,431
-------
89,142
-------
NET ASSETS.................................................................. $11,010,724
=======
REPRESENTED BY: Paid-in capital............................ $10,802,646
Accumulated distributions in excess of
investment income-net (105,615)
Accumulated net realized gain (loss) on investments and
foreign currency transactions 98,628
Accumulated net unrealized appreciation (depreciation)
on investments and foreign
currency transactions-Note 4(b) 215,065
-------
NET ASSETS.................................................................. $11,010,724
=======
SHARES OUTSTANDING
(300 million shares of $.001 par value Common Stock authorized)............. 876,650
NET ASSET VALUE, offering and redemption price per share.................... $12.56
=======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED MAY 31, 1997 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income (net of $160 foreign taxes
withheld at source).................... $ 348,555
EXPENSES: Management fee-Note 3(a)................... $ 37,586
Shareholder servicing costs-Note 3(b)...... 18,999
Directors' fees and expenses-Note 3(c)..... 15,439
Registration fees.......................... 13,928
Auditing fees.............................. 10,913
Legal fees................................. 10,231
Organization expenses...................... 5,961
Custodian fees............................. 4,399
-----
Total Expenses....................... 117,456
Less-expense reimbursement from Manager due to
undertaking-Note 3(a).................. (44,745)
-----
Net Expenses......................... 72,711
-----
INVESTMENT INCOME-NET....................................................... 275,844
-----
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments and
foreign currency transactions.......... $ (34,386)
Net realized gain (loss) on forward currency
exchange contracts..................... 142,712
-----
Net Realized Gain (Loss)............. 108,326
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions...... (441,444)
-----
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (333,118)
-----
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (57,274)
=====
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
May 31, 1997 Year Ended
(Unaudited) November 30, 1996
------------------ ------------------
OPERATIONS:
Investment income-net................................................... $ 275,844 $ 853,759
Net realized gain (loss) on investments................................. 108,326 812,517
Net unrealized appreciation (depreciation) on investments............... (441,444) (391,286)
------- -------
Net Increase (Decrease) in Net Assets Resulting from Operations..... (57,274) 1,274,990
------- -------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (449,616) (1,458,377)
------- -------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 973,486 1,086,523
Dividends reinvested.................................................... 401,173 1,257,808
Cost of shares redeemed................................................. (636,057) (7,861,858)
------- -------
Increase (Decrease) in Net Assets from Capital Stock Transactions... 738,602 (5,517,527)
------- -------
Total Increase (Decrease) in Net Assets........................... 231,712 (5,700,914)
NET ASSETS:
Beginning of Period..................................................... 10,779,012 16,479,926
------- -------
End of Period........................................................... $11,010,724 $10,779,012
======= =======
Undistributed investment income (Distributions in excess of investment income)-net $ (105,615) $ 68,157
------- -------
Shares Shares
------- -------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 77,599 86,181
Shares issued for dividends reinvested.................................. 31,813 100,387
Shares redeemed......................................................... (50,619) (630,010)
------- -------
Net Increase (Decrease) in Shares Outstanding....................... 58,793 (443,442)
======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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.
<TABLE>
<CAPTION>
Six Months Ended
May 31, 1997 Year Ended November 30,
------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1)
------------ ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $13.18 $13.07 $12.04 $12.50
---- ---- ---- ----
Investment Operations:
Investment income-net............................. .32(2) .77(2) .85 .65
Net realized and unrealized gain (loss)
on investments.................................. (.40)(2) .55(2) 1.06 (.54)
---- ---- ---- ----
Total from Investment Operations.................. (.08)(2) 1.32(2) 1.91 .11
---- ---- ---- ----
Distributions:
Dividends from investment income-net.............. (.54) (1.21) (.88) (.57)
---- ---- ---- ----
Net asset value, end of period.................... $12.56 $13.18 $13.07 $12.04
---- ---- ---- ----
---- ---- ---- ----
TOTAL INVESTMENT RETURN............................... (1.20%)(3) 10.96% 16.47% 1.29%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... 1.35%(3) 1.34% .81% -
Ratio of net investment income
to average net assets........................... 5.14%(3) 5.87% 6.76% 7.83%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager.............. .83%(3) .66% 1.12% 2.49%(3)
Portfolio Turnover Rate........................... 132.99%(4) 81.34% 20.46% 4.16%(4)
Net Assets, end of period (000's Omitted)......... $11,011 $10,779 $16,480 $15,275
(1) From March 18, 1994 (commencement of operations) to November 30, 1994.
(2) Based on average shares outstanding.
(3) Annualized.
(4) Not annualized.
SEE 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-diversified open-end
management investment company. The Fund's investment objective is to seek
total return. The Dreyfus Corporation ("Manager") serves as the Fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.,
which is a wholly-owned subsidiary of Mellon Bank Corporation. Premier Mutual
Fund Services, Inc. (the "Distributor") is the distributor of the Fund's
shares, which are sold to the public without a sales charge.
As of May 31, 1997, MBIC Investment Corp., an indirect subsidiary of
Mellon Bank Corporation, held 526,370 shares of the Fund.
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 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 amount of 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. This
may result in distributions that are in excess of investment income-net and
net realized gain on a fiscal year basis. 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 30, 1997, the Board of Directors declared a cash dividend of $.060
per share from undistributed investment income-net, payable on June 2, 1997
(ex-dividend date), to shareholders of record as of the close of business on
May 30, 1997.
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 $17,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1996. If not
applied, $10,000 of the carryover expires in fiscal 2003 and $7,000 expires
in fiscal 2004.
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. For the period ended May
31, 1997, the Fund did not borrow under the Facility.
NOTE 3-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Pursuant to a management agreement with the Manager, 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. The Manager has undertaken
from December 1, 1996 through November 30, 1997 to reduce the management fee
paid by the Fund, to the extent that the Fund's aggregate annual expenses
(exclusive of taxes, brokerage, interest on borrowings, commitment fees and
extraordinary expenses) exceed an annual rate of 1.35% of the value of the
Fund's average daily net assets. The expense reimbursement, pursuant to the
undertaking, amounted to $44,745 during the period ended May 31, 1997.
(b) Under the 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. The Distributor determines the amounts to be paid to Service
Agents. During the period ended May 31, 1997, the Fund was charged an
aggregate of $13,424 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 $2,279 during the period ended May 31, 1997.
(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 4-SECURITIES TRANSACTIONS:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the period ended May 31, 1997 amounted to $12,462,431 and $12,153,685,
respectively.
DREYFUS GLOBAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
In addition, the following summarizes open forward
currency exchange contracts at May 31, 1997:
<TABLE>
<CAPTION>
Unrealized
Foreign Currency Appreciation
Forward Currency Exchange Contracts Amount Proceeds Value (Depreciation)
- -------------------------------------- ------------------ ------------ ------------ -------------
Sales:
- ------
<S> <C> <C> <C> <C>
Australian Dollar, expiring 9/17/97...... 3,416,000 $2,657,184 $2,596,160 $ 61,024
British Pounds, expiring 9/17/97......... 1,583,000 2,562,497 2,590,421 (27,924)
German Deutsche Marks, expiring 9/17/97.. 1,889,000 1,113,213 1,114,718 (1,505)
Spanish Pesetas, expiring 9/17/97........ 31,900,000 220,914 221,113 (199)
Swedish Krona, expiring 9/17/97.......... 2,700,000 351,622 351,133 489
Purchases: Cost
- ----- ------
Japanese Yen, expiring 9/17/97........... 114,500,000 1,008,894 1,001,399 (7,495)
-----
Total.................................. $ 24,390
=====
</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 gain on each open contract.
(b) At May 31, 1997, accumulated net unrealized appreciation on
investments and forward currency exchange contracts was $215,065, consisting
of $307,475 gross unrealized appreciation and $92,410 gross unrealized
depreciation.
At May 31, 1997, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
Registration Mark
[Dreyfus lion "d" logo]
DREYFUS GLOBAL BOND FUND, INC.
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
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. 098SA975
Registration Mark
[Dreyfus logo]
Global Bond
Fund, Inc.
Semi-Annual
Report
May 31, 1997
