DREYFUS HIGH YIELD STRATEGIES FUND, N-30D, 2000-11-27

DREYFUS HIGH YIELD STRATEGIES FUND
N-30D, 2000-11-27

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Dreyfus
High Yield
Strategies Fund

SEMIANNUAL REPORT September 30, 2000

(reg.tm)

The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.

* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value

Contents

THE FUND
--------------------------------------------------

2 Letter from the President

3 Discussion of Fund Performance

6 Statement of Investments

14 Statement of Assets and Liabilities

15 Statement of Operations

16 Statement of Cash Flows

17 Statement of Changes in Net Assets

18 Financial Highlights

19 Notes to Financial Statements

FOR MORE INFORMATION
---------------------------------------------------------------------------

Back Cover

The Fund

Dreyfus High Yield
Strategies Fund

LETTER FROM THE PRESIDENT

Dear Shareholder:

This is the semiannual report for Dreyfus High Yield Strategies Fund, covering
the six-month period from April 1, 2000 through September 30, 2000. Inside,
you'll find valuable information about how the fund was managed during the
reporting period, including a discussion with the fund's portfolio manager,
Roger King.

Bond prices have been mixed over the past six months. Despite some volatility,
prices of U.S. Treasury securities generally ended the period near where they
began and corporate bond prices ended the period at modestly lower levels than
where they began. More recently, most sectors of the U.S. bond market have been
affected by slowing economic growth. Additionally, the moderating effects of the
Federal Reserve Board's (the "Fed") interest-rate hikes during the first half of
2000 helped the Fed to achieve its goal of slowing the U.S. economy. Other
factors such as higher energy prices and a weak euro also served to slow
economic growth.

For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com.

Thank you for investing in Dreyfus High Yield Strategies Fund.

Sincerely,

Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 16, 2000

DISCUSSION OF FUND PERFORMANCE

Roger King, Portfolio Manager

How did Dreyfus High Yield Strategies Fund perform relative to its benchmark?

For the six-month period ended September 30, 2000, Dreyfus High Yield Strategies
Fund produced a total return of -14.64%.(1) In comparison, the Merrill Lynch
High Yield Master II Index, the fund's benchmark, produced a total return of
1.30% for the same period.(2)

The fund also produced aggregate income dividends of $0.7002 per share for the
same reporting period. In a move designed to bring the fund's dividend
distributions in line with actual income, on September 26, 2000 we reduced the
fund's monthly dividend to $0.0958 per share.

We attribute the fund's weak absolute and relative performance to two factors.
First, on an absolute basis returns suffered generally from ongoing
deterioration as a result of adverse investor sentiment and a subsequent
reduction of investment activities in the high yield bond market. Investors
apparently believed that alternatives other than high yield bonds offered better
opportunities with fewer risks. Second, on a relative basis the fund's holdings
of lower rated bonds, which accounted for a greater proportion of the fund than
the Index, experienced more severe price declines than higher rated high yield
(non-investment-grade) bonds. Third, 11 portfolio securities defaulted during
the period, a percentage higher than market averages. Finally, the fund (like
most other closed-end high yield funds) employs leverage and that can magnify
performance gains or losses relative to an index.

What is the fund's investment approach?

The fund seeks high current income. We generally invest most of the fund's
assets in fixed-income securities of below-investment-grade credit quality.
Issuers of below-investment-grade securities may be companies in the early
stages of development or may be firms with a highly lever
The Fund

DISCUSSION OF FUND PERFORMANCE (CONTINUED)

aged financial structure. To compensate investors for taking on greater risk,
such companies typically must offer higher yields than those offered by more
established or conservatively financed corporations.

We select individual issues based on careful credit analysis -- our projection
of each issuer's ability to meet its obligations as they become due. To
diversify our portfolio, we buy debt from a wide range of issuers. Newly
established companies are significant issuers of high yield debt. We look to
balance our portfolio by buying "seasoned" bonds, which have been issued by
companies with an established track record and have been outstanding for a
number of years. We also seek out bonds that are convertible into an issuer's
common stock.

Our investment approach also includes identifying and investing in special
situations. We search for out-of-favor companies whose bonds we believe to be
undervalued. We attempt to identify and anticipate trigger events that could
lead the market to discover the value we have seen and create potential price
appreciation. We also employ leverage, buying additional bonds with borrowed
money in an effort to increase the fund's return.

What other factors influenced the fund's performance?

In our opinion, the past six months have been part of the most difficult period
for the lower tier portion (CCC and B) of the high yield bond market in almost a
decade, which happens to be where a good portion of the fund's investments are
concentrated. In a series of steps dating back to the near-collapse of a leading
hedge fund in 1998, many institutional investors have reduced their high yield
market activities. With less activity in the market, liquidity -- the ability to
buy and sell securities quickly and easily -- declined substantially. Liquidity
has been an increasingly bigger problem as you move down the credit quality
scale of high yield investments. Most significantly, it has become difficult for
market participants to sell high yield bonds at competitive prices, resulting in
the ongoing downward repricing of outstanding bonds.

Despite such an illiquid market, the months of June, July and August brought
what we believe to be the first significant high yield market rally in the past
two years in the high yield bonds with the strongest credit rating. However,
high yield bonds with lower credit ratings, which account for a significant
portion of the fund's portfolio, did not participate in this rally and continued
to perform poorly.

September saw a return to the overall high yield market slump. Concerns grew as
to how the continuing investment needs of newly established, fast growing
companies in the telecommunications and technology industries could be met in
the absence of a vibrant high yield bond market. These worries created more
widespread concerns that we might be in the first stages of a generalized credit
contraction that could lead to a sharper economic slowdown than the market has
anticipated.

What is the fund's current strategy?

Under such difficult market conditions, we have continued our attempt to
increase overall credit quality. Our holdings are broadly diversified across
market sectors as well as by individual issuers.

Over the near term, we have continued to pursue opportunities in the bonds of
fundamentally strong companies where we believe the market, in its current
disarray, may have overreacted. Over the longer term, we continue to believe
that the high yield market should recover when the investment environment
changes and investors once again desire the attractive levels of income that
high yield bonds have traditionally provided. Of course there is no guarantee if
and when such a recovery might occur.

October 16, 2000

(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
BASED UPON NET ASSET VALUE PER SHARE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS.

(2) SOURCE: BLOOMBERG L. P. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MERRILL LYNCH HIGH YIELD MASTER II
INDEX IS AN UNMANAGED PERFORMANCE BENCHMARK COMPOSED OF U.S. DOMESTIC AND YANKEE
BONDS RATED BELOW INVESTMENT GRADE WITH AT LEAST $100 MILLION PAR AMOUNT
OUTSTANDING AND GREATER THAN OR EQUAL TO ONE YEAR TO MATURITY.

The Fund

STATEMENT OF INVESTMENTS

September 30, 2000 (Unaudited)
<TABLE>

STATEMENT OF INVESTMENTS

Principal
BONDS AND NOTES--130.5% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>

AIRCRAFT & AEROSPACE--6.9%

Air 2 US, Ser. D,

Enhanced Equipment Notes, 12.266%, 2020 9,976,219 (a) 10,292,815

Aircraft Finance Trust,

Asset-Backed Notes,

Ser. 1999-1A, Cl. D, 11%, 2024 10,000,000 (a) 10,006,250

American Pacific,

Sr. Notes, 9.25%, 2005 13,825,000 13,755,875

Stellex Industries, Ser. B,

Sr. Sub. Notes, 9.5%, 2007 13,000,000 (b) 1,495,000

35,549,940

AUTOMOTIVE--7.2%

Advanced Accessory Systems/Capital, Ser. B,

Sr. Sub. Notes, 9.75%, 2007 11,000,000 8,882,500

Aetna Industries,

Sr. Notes, 11.875%, 2006 14,195,000 10,291,375

American Axle & Manufacturing,

Sr. Sub. Notes, 9.75%, 2009 10,000,000 9,750,000

Anchor Lamina,

Sr. Sub. Notes, 9.875%, 2008 11,025,000 5,677,875

J.H. Heafner,

Sr. Notes, 10%, 2008 7,000,000 2,625,000

37,226,750

BROADCASTING--7.7%

Acme Intermediate Holdings/Finance, Ser. B,

Sr. Secured Discount Notes, 0/12%, 2005 4,800,000 (c) 3,288,000

Acme Television/Finance, Ser. B,

Sr. Discount Notes, 0/10.875%, 2004 5,400,000 (c) 5,157,000

CD Radio,

Sr. Discount Notes, 0/15%, 2007 11,750,000 (c) 6,697,500

Radio Unica,

Sr. Discount Notes, 0/11.75%, 2006 13,850,000 (c) 9,972,000

Telemundo Holdings, Ser. B,

Sr. Discount Notes, 0/11.5%, 2008 8,050,000 (c) 5,675,250

Tri-State Outdoor Media Group,

Sr. Notes, 11%, 2008 10,400,000 9,048,000

39,837,750

BUILDING MATERIALS--4.4%

American Builders & Contractors, Ser. B,

Sr. Sub. Notes, 10.625%, 2007 10,000,000 8,700,000

Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------

BUILDING MATERIALS (CONTINUED)

American Eco, Ser. B,

Sr. Notes, 9.625%, 2008 20,645,000 (b) 516,125

ICF Kaiser International,

Sr. Sub. Notes, 13%, 2003 12,324,000 (b) 4,375,020

United Rentals,

Sr. Sub. Notes, 9.5%, 2008 10,000,000 9,200,000

22,791,145

BUSINESS SERVICES--.5%

Employee Solutions, Ser. B,

Sr. Notes, 10%, 2004 10,000,000 (b) 1,050,000

U.S. Office Products,

Sr. Notes, 9.75%, 2008 12,250,000 1,347,500

2,397,500

CABLE TELEVISION--10.2%

Coaxial Communications/Phoenix,

Sr. Notes, 10%, 2006 5,650,000 5,565,250

Coaxial/Finance,

Sr. Discount Notes, 0/12.875%, 2008 11,000,000 (c) 7,865,000

Echostar DBS,

Sr. Notes, 9.375%, 2009 11,000,000 10,835,000

Star Choice Communications,

Sr. Secured Notes, 13%, 2005 12,000,000 13,020,000

UIH Australia/Pacific:

Ser. B, Sr. Discount Notes, 0/14%, 2006 13,745,000 (c) 12,576,675

Ser. D, Sr. Discount Notes, 0/14%, 2006 2,655,000 (c) 2,429,325

52,291,250

CHEMICALS--5.6%

ISG Resources,

Sr. Sub. Notes, 10%, 2008 12,050,000 10,061,750

Lyondell Chemical, Ser. A,

Notes, 9.625%, 2007 9,500,000 9,298,125

Sterling Chemicals:

Ser. A, Sr. Sub. Notes, 11.25%, 2007 8,450,000 5,830,500

Ser. B, Secured Notes, 12.375%, 2006 1,500,000 1,522,500

Sr. Sub. Notes, 11.75%, 2006 2,000,000 1,410,000

Trans-Resources,

Ser. B, Sr. Notes, 10.75%, 2008 3,500,000 507,500

28,630,375

The Fund

STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)

Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------

CONSUMER--7.9%

Amazon.com,

Sr. Discount Notes, 0/10%, 2008 9,500,000 (c) 5,035,000

Coinmach, Ser. D,

Sr. Notes, 11.75%, 2005 2,000,000 2,010,000

Concord Camera, Ser. B,

Sr. Notes, 11%, 2005 15,000,000 14,850,000

Corning Consumer Products,

Sr. Sub. Notes, 9.625%, 2008 9,000,000 3,015,000

E & S Holdings, Ser. B,

Sr. Sub. Notes, 10.375%, 2006 4,500,000 1,822,500

Revlon Consumer Products,

Sr. Sub. Notes, 8.625%, 2008 6,500,000 3,737,500

Sparkling Spring Water,

Sr. Sub. Notes, 11.5%, 2007 13,000,000 10,205,000

40,675,000

ENERGY--5.0%

Anker Coal Group, Ser. B,

Sr. Notes, 14.25%, 2007 7,155,950 3,255,957

Belden & Blake, Ser. B,

Sr. Sub. Notes, 9.875%, 2007 12,000,000 10,350,000

Northern Offshore ASA,

Sr. Notes, 10%, 2005 5,000,000 3,675,000

Petsec Energy, Ser. B,

Sr. Sub. Notes, 9.5%, 2007 15,250,000 (b) 8,387,500

25,668,457

ENTERTAINMENT--4.5%

American Skiing, Ser. B,

Sr. Sub. Notes, 12%, 2006 12,900,000 10,642,500

Booth Creek Ski Holdings, Ser. B,

Sr. Notes, 12.5%, 2007 11,500,000 8,711,250

Production Resource Group,

Sr. Sub. Notes, 11.5%, 2008 13,000,000 3,965,000

23,318,750

FINANCIAL--6.6%

AmeriCredit,

Sr. Notes, 9.875%, 2006 15,800,000 15,879,000

Imperial Credit Industries, Ser. B,

Sr. Notes, 9.875%, 2007 4,750,000 2,161,250

Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------

FINANCIAL (CONTINUED)

Macsaver Financial Services,

Notes (Gtd. By Heilig-Meyers):

7.4%, 2002 2,000,000 (b) 360,000

7.875%, 2003 5,000,000 (b) 900,000

Resource America,

Sr. Notes, 12%, 2004 6,000,000 5,520,000

Superior Financial,

Sr. Notes, 8.65%, 2003 9,200,000 (a) 9,029,699

33,849,949

FOOD & BEVERAGES--4.4%

CKE Restaurants,

Conv. Sub. Deb., 4.25%, 2004 2,700,000 1,231,875

Envirodyne Industries,

Sr. Notes, 10.25%, 2001 4,019,000 2,592,255

North Atlantic Trading, Ser. B,

Sr. Notes, 11%, 2004 16,000,000 13,540,000

SFC,

Sr. Sub. Discount Deb., 0/11%, 2009 329,987 (a,c,d) 33

SFC New Holdings,

Sr. Notes, 11.25%, 2001 5,224,000 5,145,640

22,509,803

FOREST PRODUCTS--1.7%

U.S. Timberlands Klamath Falls/Finance,

Sr. Notes, 9.625%, 2007 9,750,000 8,823,750

GAMING--4.5%

Jazz Casino,

Sr. Sub. Notes, 6.046%, 2009 10,451,960 (e) 1,837,464

MGM Grand (MGM Mirage),

Sr. Sub. Notes, 9.75%, 2007 10,000,000 10,400,000

Mirage Resorts (MGM Mirage),

Notes, 6.75%, 2007 2,000,000 1,834,484

Venetian Casino/Las Vegas Sands,

Notes, 14.25%, 2005 8,600,000 8,901,000

22,972,948

HEALTH CARE--1.5%

Healthsouth,

Conv. Sub. Deb., 3.25%, 2003 9,000,000 7,537,500

The Fund

STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)

Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------

INDUSTRIAL--9.3%

Alliance Laundry Systems,

Sr. Sub. Notes, 9.625%, 2008 13,000,000 11,440,000

Elgin National Industries, Ser. B,

Sr. Notes, 11%, 2007 13,250,000 11,063,750

International Knife & Saw,

Sr. Sub. Notes, 11.375%, 2006 4,500,000 2,266,875

Key Components/Finance,

Sr. Notes, 10.5%, 2008 14,000,000 12,565,000

Neenah:

Ser. B, Sr. Sub. Notes, 11.125%, 2007 9,345,000 7,289,100

Ser. D, Sr. Sub. Notes, 11.125%, 2007 3,960,000 3,088,800

47,713,525

METALS--1.1%

Recycling Industries,

Sr. Sub. Notes, 13%, 2005 10,000,000 (b) 70,000

Renco Steel Holdings,

Sr. Notes, 11.5%, 2003 15,150,000 5,794,875

5,864,875

PAPER & PACKAGING--4.0%

BPC Holding, Ser. B,

Sr. Notes, 13.25%, 2006 6,175,574 4,497,370

Indesco International,

Sr. Sub. Notes, 9.75%, 2008 6,000,000 (e) 2,250,000

SF Holdings Group, Ser. B,

Sr. Secured Discount Notes, 0/12.75%, 2008 26,550,000 (c) 13,938,750

20,686,120

PUBLISHING--1.7%

Day International Group,

Sr. Sub. Notes, 9.5%, 2008 10,000,000 8,650,000

REAL ESTATE--1.8%

LNR Property, Ser. B,

Sr. Sub. Notes, 9.375%, 2008 10,000,000 9,500,000

RETAIL--2.3%

J Crew Operating,

Sr. Sub. Notes, 10.375%, 2007 12,000,000 10,860,000

Rite Aid,

Deb., 6.875%, 2013 2,500,000 787,500

11,647,500

Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------

SHIPPING--2.0%

Cenargo International,

First Pfd. Ship Mortgage, 9.75%, 2008 10,000,000 8,025,000

Holt Group,

Sr. Notes, 9.75%, 2006 17,500,000 2,362,500

10,387,500

TECHNOLOGY--11.6%

Amkor Technologies,

Sr. Notes, 9.25%, 2006 15,000,000 14,962,500

Axiohm Transactions Solutions,

Sr. Sub. Notes, 9.75%, 2007 10,000,000 (b) 1,050,000

Details, Ser. B,

Sr. Sub. Notes, 10%, 2005 9,000,000 8,865,000

Flextronics International,

Sr. Sub. Notes, 9.875%, 2010 10,000,000 (a) 10,325,000

Orbital Imaging, Ser. B,

Sr. Notes, 11.625%, 2005 8,950,000 3,177,250

Packard Bioscience, Ser. B,

Sr. Sub. Notes, 9.375%, 2007 10,895,000 10,159,588

Viasystems,

Sr. Sub. Notes, 9.75%, 2007 11,960,000 11,332,100

59,871,438

TELECOMMUNICATION/CARRIERS--5.5%

FirstWorld Communications,

Sr. Discount Notes, 0/13%, 2008 16,660,000 (c) 3,748,500

MGC Communications, Ser. B,

Sr. Secured Notes, 13%, 2004 11,000,000 9,185,000

McLeodUSA,

Sr. Discount Notes, 0/10.5%, 2007 14,686,000 (c) 12,115,950

RSL Communications,

Sr. Notes, 9.125%, 2008 15,000,000 3,075,000

28,124,450

TEXTILES--1.0%

Sassco Fashions,

Sr. Notes, 13%, 2004 9,800,000 5,341,000

TRANSPORTATION--4.1%

Fine Air Services,

Sr. Notes, 9.875%, 2008 10,493,750 (b) 4,709,070

The Fund

STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)

Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------

TRANSPORTATION (CONTINUED)

TFM, S.A. de C.V.,

Sr. Notes, 10.25%, 2007 8,000,000 7,540,000

ValuJet,

Sr. Notes, 10.25%, 2001 9,000,000 8,527,500

20,776,570

WIRELESS COMMUNICATIONS--7.5%

Dolphin Telecom,

Sr. Discount Notes, 0/11.5%, 2008 13,250,000 (c) 2,716,250

Filtronic,

Sr. Notes, 10%, 2005 10,000,000 9,137,500

OrbCommunications Global/Capital, Ser. B,

Sr. Notes, 14%, 2004 13,000,000 (b) 2,015,000

SBA Communications,

Sr. Discount Notes, 0/12%, 2008 15,000,000 (c) 11,175,000

Satelites Mexicanos, Ser. B,

Sr. Notes, 10.125%, 2004 10,000,000 6,325,000

Telesystem International Wireless:

Ser. B, Sr. Discount Notes, 0/13.25%, 2007 6,000,000 (c) 3,750,000

Ser. C, Sr. Discount Notes, 0/10.5%, 2007 6,500,000 (c) 3,542,500

38,661,250

TOTAL BONDS AND NOTES

(cost $928,036,085) 671,305,095
------------------------------------------------------------------------------------------------------------------------------------

COMMON STOCKS-.1% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------

CABLE TELEVISION--.0%

Classic Communications 12,000 (a,d) 60,750

CONSTRUCTION--.0%

FWT, Cl. A 229,600 45,920

ENERGY--.0%

Anker Coal Group (warrants) 156 (a,d) 0

PAPER & PACKAGING--.0%

SF Holdings Group, Cl. C 4,928 (a,d) 24,640

TECHNOLOGY--.0%

Orbital Imaging (warrants) 3,950 (a,d) 20,244

TELECOMMUNICATION/CARRIERS--.1%

FirstWorld Communications (warrants) 18,660 (a,d) 373,200

TRANSPORTATION--.0%

Track Communications (warrants) 8,660 (a,d) 21,650

TOTAL COMMON STOCKS

(cost $250,215) 546,404

PREFERRED STOCKS--7.4% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------

BROADCASTING--5.8%

Cumulus Media, Ser. A,

Cum., $137.50 9,820 7,708,700

Paxson Communications:

Cum., $1,325 1,153 11,299,400

Cum., Conv., $975 1,125 (a) 10,912,500

29,920,600

CONSTRUCTION--.2%

FWT, Ser. A,

Cum., $.10 2,296,000 1,033,200

CONSUMER--.4%

Samsonite,

Cum., $ 138.75 2,871 2,074,344

PAPER & PACKAGING--.0%

SF Holdings Group, Ser. B,

Cum., $1,375 20 110,000

RETAIL--1.0%

HMV Media Group,

Sr. Cum., $12.875 (Units) 6,500 (a,d,f) 4,745,000

TOTAL PREFERRED STOCKS

(cost $43,549,890) 37,883,144
------------------------------------------------------------------------------------------------------------------------------------

Principal
SHORT-TERM INVESTMENTS--5.6% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------

COMMERCIAL PAPER;

UBS Finance,

6.68%, 10/2/2000

(cost $29,009,616) 29,015,000 29,009,616
------------------------------------------------------------------------------------------------------------------------------------

TOTAL INVESTMENTS (cost $1,000,845,806) 143.6% 738,744,259

LIABILITIES, LESS CASH AND RECEIVABLES (43.6%) (224,136,685)

NET ASSETS 100.0% 514,607,574

(A) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT SEPTEMBER 30,
2000, THESE SECURITIES AMOUNTED TO $55,811,781 OR 10.8% OF NET ASSETS.

(B) NON-INCOME PRODUCING-SECURITY IN DEFAULT.

(D) NON-INCOME PRODUCING

(E) VARIABLE RATE SECURITY-INTEREST RATE SUBJECT TO PERIODIC CHANGE.

(F) WITH COMMON STOCK ATTACHED

SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

The Fund

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2000 (Unaudited)

Cost Value
--------------------------------------------------------------------------------

ASSETS ($):

Investments in securities--See Statement of
Investments 1,000,845,806 738,744,259

Cash 864,406

Interest and dividends receivable 22,810,091

Unrealized appreciation on interest rate swaps--Note 4(a) 3,251,873

Prepaid expenses and other assets 132,194

765,802,823
--------------------------------------------------------------------------------

LIABILITIES ($):

Due to The Dreyfus Corporation and affiliates 588,668

Due to Shareholder Servicing Agent 63,252

Bank loan payable--Note 2 245,000,000

Swap expense payable 4,430,829

Interest payable--Note 2 651,171

Payable for investment securities purchased 260,800

Accrued expenses 200,529

251,195,249
--------------------------------------------------------------------------------

NET ASSETS ($) 514,607,574
--------------------------------------------------------------------------------

COMPOSITION OF NET ASSETS ($):

Paid-in capital 959,446,519

Accumulated undistributed investment income--net 3,128,263

Accumulated net realized gain (loss) on investments (189,117,534)

Accumulated net unrealized appreciation (depreciation)
on investments and interest rate swaps--Note 4(b) (258,849,674)
--------------------------------------------------------------------------------

NET ASSETS ($) 514,607,574
--------------------------------------------------------------------------------

SHARES OUTSTANDING

(unlimited number of $.001 par value shares of
Beneficial Interest authorized) 64,863,906

NET ASSET VALUE, per share ($) 7.93

SEE NOTES TO FINANCIAL STATEMENTS.

STATEMENT OF OPERATIONS

Six Months Ended September 30, 2000 (Unaudited)

--------------------------------------------------------------------------------

INVESTMENT INCOME ($):

INCOME:

Interest 48,962,891

Cash dividends 1,819,951

TOTAL INCOME 50,782,842

EXPENSES:

Management fee--Note 3(a) 3,689,087

Interest expense--Note 2 8,501,101

Shareholder servicing costs--Note 3(a,b) 453,041

Trustees' fees and expenses--Note 3(c) 117,974

Shareholders' reports 100,285

Professional fees 96,957

Loan commitment fees--Note 2 40,666

Custodian fees--Note 3(a) 34,192

Registration fees 24,205

Miscellaneous 12,324

TOTAL EXPENSES 13,069,832

INVESTMENT INCOME--NET 37,713,010
--------------------------------------------------------------------------------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):

Net realized gain (loss) on investments (74,687,272)

Net unrealized appreciation (depreciation) on investments
and interest rate swaps (55,300,963)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (129,988,235)

NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (92,275,225)

SEE NOTES TO FINANCIAL STATEMENTS.

The Fund

STATEMENT OF CASH FLOWS

September 30 2000 (Unaudited)

--------------------------------------------------------------------------------

CASH FLOWS FROM OPERATING ACTIVITIES ($):

Interest received 36,959,286

Dividends received 1,864,026

Interest and loan commitment fees paid (8,630,190)

Operating expenses paid (552,840)

Paid to The Dreyfus Corporation (3,810,126) 25,830,156
--------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES ($):

Purchases of portfolio securities (154,328,639)

Net purchases of short-term portfolio securities (17,743,906)

Proceeds from sales of portfolio securities 186,913,500 14,840,955
--------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES ($):

Cash dividends paid (45,134,608)

Dividends reinvested 5,341,105 (39,793,503)

Increase in cash 877,608

Cash at beginning of period (13,202)
--------------------------------------------------------------------------------

CASH AT END OF PERIOD 864,406
--------------------------------------------------------------------------------

RECONCILIATION OF NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES ($):

Net Decrease in Net Assets Resulting From Operations (92,275,225)

ADJUSTMENTS TO RECONCILE NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS TO NET CASH USED BY OPERATING ACTIVITIES ($):

Increase in interest receivable 3,782,180

Increase in dividends receivable 44,075

Decrease in interest and loan commitment fees (88,333)

Decrease in accrued operating expenses (46,529)

Increase in prepaid expenses 332,577

Decrease in due to The Dreyfus Corporation (121,039)

Net interest sold on investments (2,149,936)

Net realized gain on investments 74,687,272

Net unrealized depreciation on investments 55,300,963

Net amortization of discount on investments (13,635,849)
--------------------------------------------------------------------------------

NET CASH USED BY OPERATING ACTIVITIES 25,830,156

SEE NOTES TO FINANCIAL STATEMENTS.

STATEMENT OF CHANGES IN NET ASSETS

--------------------------------------------------------------------------------

Six Months Ended
September 30, 2000 Year Ended
(Unaudited) March 31, 2000
--------------------------------------------------------------------------------

OPERATIONS ($):

Investment income--net 37,713,010 93,416,637

Net realized gain (loss) on investments (74,687,272) (66,277,778)

Net unrealized appreciation (depreciation)
on investments (55,300,963) (45,624,395)

NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (92,275,225) (18,485,536)
--------------------------------------------------------------------------------

DIVIDENDS TO SHAREHOLDERS FROM ($):

INVESTMENT INCOME--NET (45,134,608) (94,286,468)
--------------------------------------------------------------------------------

BENEFICIAL INTEREST TRANSACTIONS ($):

DIVIDENDS REINVESTED--NOTE 1(C) 5,341,105 16,614,859

TOTAL INCREASE (DECREASE) IN NET ASSETS (132,068,728) (96,157,145)
--------------------------------------------------------------------------------

NET ASSETS ($):

Beginning of Period 646,676,302 742,833,447

END OF PERIOD 514,607,574 646,676,302

Undistributed investment income--net 3,128,263 10,549,861
--------------------------------------------------------------------------------

CAPITAL SHARE TRANSACTIONS (SHARES):

SHARES ISSUED FOR DIVIDENDS REINVESTED 605,232 1,443,677

SEE NOTES TO FINANCIAL STATEMENTS.

The Fund

FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements and market price data for the fund's shares.

<TABLE>

Six Months Ended
September 30, 2000 Year Ended March 31,
---------------------
(Unaudited) 2000 1999(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>

PER SHARE DATA ($):

Net asset value, beginning of period 10.06 11.83 15.00

Investment Operations:

Investment income--net .58 1.46 1.38

Net realized and unrealized

gain (loss) on investments (2.01) (1.75) (3.35)

Total from Investment Operations (1.43) (.29) (1.97)

Distributions:

Dividends from investment income--net (.70) (1.48) (1.20)

Net asset value, end of period 7.93 10.06 11.83

Market value, end of period 7 11/16 8 7/8 11 7/8
------------------------------------------------------------------------------------------------------------------------------------

TOTAL RETURN (%)(B) (12.39)(c) (14.35) (14.12)(c)
------------------------------------------------------------------------------------------------------------------------------------

RATIOS/SUPPLEMENTAL DATA (%):

Ratio of operating expenses to average net assets 1.58(c) 1.50 1.46(c)

Ratio of interest expense to average net assets 2.97(c) 2.21 2.17(c)

Ratio of net investment income
to average net assets 13.14(c) 13.20 11.64(c)

Portfolio Turnover Rate 17.38(d) 28.37 59.40(d)
------------------------------------------------------------------------------------------------------------------------------------

Net Assets, end of period ($ x 1,000) 514,608 646,676 742,833

(A) FROM APRIL 29, 1998 (COMMENCEMENT OF OPERATIONS) TO MARCH 31, 1999.

(B) CALCULATED BASED ON MARKET VALUE.

(D) NOT ANNUALIZED.

SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Dreyfus High Yield Strategies Fund (the "fund" ) is registered under the
Investment Company Act of 1940, as amended (the "Act") as a non-diversified
closed-end management investment company. The fund' s primary investment
objective is to seek high current income by investing at least 65% of its total
assets in income securities rated below investment grade. The Dreyfus
Corporation (the "Manager" ) serves as the fund' s investment manager and
administrator. The Manager is a direct subsidiary of Mellon Bank, N.A.
("Mellon").

The fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.

(A) PORTFOLIO VALUATION: Investments in securities (excluding short-term
investments, other than U.S. Treasury Bills) are valued each business day by an
independent pricing service (" Service" ) approved by the Board of Trustees.
Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service are
valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of securities of comparable quality, coupon, maturity and
type; indications as to values from dealers; and general market conditions.
Securities for which there are no such valuations are valued at fair value as
determined in good faith under the direction of the Board of Trustees.
Short-term investments, excluding U.S. Treasury Bills, are carried at amortized
cost, which approximates value. Interest rate swap transactions are valued based
on the net present value of all future cash settlement amounts based on implied
forward interest rates.

The Fund

NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)

(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. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund received net
earnings credits of $1,573 during the period ended September 30, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income. The fund includes in interest income amounts paid
and received under its interest rate swap agreements.

(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net are declared and paid monthly. Dividends
from net realized capital gain, if any, are declared and paid at least annually.
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.

For shareholders who elect to receive their distributions in additional shares
of the fund, in lieu of cash, such distributions will be reinvested at the lower
of the market price or net asset value per share (but not less than 95% of the
market price) based on the record date's respective price. If the net asset
value per share on the record date is lower than the market price per share,
shares will be issued by the fund at the record date's net asset value on the
payable date of the distribution. If the net asset value per share is less than
95% of the market value, shares will be issued by the fund at 95% of the market
value. If the market price is lower than the net asset value per share on the
record date, Mellon will purchase fund shares in the open market commencing on
the payable date and reinvest those shares accordingly. As a result of
purchasing fund shares in the open market, fund shares outstanding will not be
affected by this form of reinvestment.

On September 26, 2000, the Board of Trustees declared a cash dividend of $.0958
per share from investment income-net, payable on October 24, 2000 to
shareholders of record as of the close of business on October 10, 2000.

(D) FEDERAL INCOME TAXES: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Internal
Revenue Code of 1986, as amended, 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 $64,412,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 2000. This amount
is calculated based on Federal income tax regulations which may differ from
financial reporting in accordance with generally accepted accounting principles.
If not applied, $32,078,000 of the carryover expires in fiscal 2007 and
$32,334,000 expires in fiscal 2008.

NOTE 2--Borrowings:

The fund may borrow money from banks or enter into reverse repurchase agreements
for leveraging purposes.

The fund has entered into a $325,000,000 line of credit facility (the
"Facility") which expires on June 15, 2001. Under the terms of the Facility the
fund may borrow under either a Eurodollar Loan, a Federal Funds Rate Loan or a
combination of the two. Interest is charged to the fund at rates in effect at
time of borrowing for the loan type chosen by the fund. In addition, the fund
pays a commitment fee of .10 of 1% on the unused portion of the Facility.

The average daily amount of borrowings outstanding during the period ended
September 30, 2000 was approximately $245,000,000, with a related weighted
average annualized interest rate of 6.85%.

The Fund

NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)

NOTE 3--Management Fee and Other Transactions With Affiliates:

(A) Pursuant to a management and administration agreement with the Manager, the
management and administration fee is computed at the annual rate of .90 of 1% of
the value of the fund's average weekly total assets minus the sum of accrued
liabilities (other than the aggregate indebtedness constituting financial
leverage) (the "Managed Assets") and is payable monthly.

The fund compensates ChaseMellon Shareholder Services, LLC, an affiliate of the
manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended September 30, 2000, the fund was charged $5,941 pursuant to the transfer
agency agreement.

The fund compensates Mellon, an affiliate of the manager, under a custody
agreement for providing custodial services for the fund. During the period ended
September 30, 2000, the fund was charged $34,192 pursuant to the custody
agreement.

(B) In accordance with the Shareholder Servicing Agreement, Paine- Webber, Inc.
provides certain shareholder services for which the fund pays a fee computed at
the annual rate of .10 of 1% of the value of the fund's average weekly Managed
Assets. During the period ended September 30, 2000, the fund was charged
$409,899 pursuant to the Shareholder Servicing Agreement.

(C) Each Trustee who is not an "interested person" of the fund as defined in
the Act receives $17,000 per year plus $1,000 for each Board meeting attended
and $2,000 for separate committee meetings attended which are not held in
conjunction with a regularly scheduled Board meeting. In the event that there is
a joint committee meeting of the Dreyfus/Laurel Funds, Inc., The Dreyfus/Laurel
Tax-Free Municipal Funds, The Dreyfus/Laurel Funds Trust, collectively, (the
"Dreyfus/Laurel Funds") and the fund, the $2,000 fee will be allocated between
the Dreyfus/Laurel Funds and the fund. Each Trustee who is not an interested
person also receives $500 for Board meetings and separate committee meetings
attended that are conducted by telephone. The fund also reimburses each Trustee
who is not an "interested person" of the fund for travel and out-of-pocket
expenses. The Chairman of the Board receives an additional 25% of such
compensation (with the exception of reimbursable amounts).

NOTE 4--Securities Transactions:

(A) The aggregate amount of purchases and sales (including paydowns) of
investment securities, excluding short-term securities, during the period ended
September 30, 2000, amounted to $132,486,028 and $170,393,052, respectively.

In addition, the following summarizes open interest rate swap agreements at
September 30, 2000:

<TABLE>
RATE PAID RATE RECEIVED NET
SWAP NOTIONAL BY THE FUND BY THE FUND FLOATING TERMINATION UNREALIZED
COUNTER-PARTY PRINCIPAL ($) AT 9/30/2000 AT 9/30/2000 RATE INDEX DATE GAIN ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>

Chase 150,000,000 6.0875% 6.81% 3-month LIBOR 6/15/2003 2,442,219

J.P. Morgan 150,000,000 6.0205% 6.81% 3-month LIBOR 6/15/2001 809,654

3,251,873
</TABLE>

The fund enters into interest rate swaps to hedge its exposure to floating rate
financing currently utilized to leverage its portfolio. Interest rate swaps
involve the exchange of commitments to pay or receive interest, e.g., an
exchange of floating-rate payments for fixed rate payments. If forecasts of
interest rates and other factors are incorrect, investment performance will
diminish compared to what performance would have been if these investment
techniques were not used. Even
The Fund

NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)

if the forecasts are correct, there is the risk that the positions may correlate
imperfectly with the assets or liability being hedged. The fund is also exposed
to credit risk associated with counter party nonperformance on these
transactions as well as the fact that a liquid secondary market for these
transactions may not always exist.

(B) At September 30, 2000, accumulated net unrealized depreciation on
investments was $258,849,674, consisting of $15,887,856 gross unrealized
appreciation and $274,737,530 gross unrealized depreciation.

At September 30, 2000, 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).

For More Information

Dreyfus
High Yield Strategies Fund
200 Park Avenue
New York, NY 10166

Manager

The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian

Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258

Transfer Agent &
Dividend Disbursing Agent

ChaseMellon Shareholder Services, LLC
450 West 33rd Street
New York, NY 10001