Average magnetic moments as well as information on the time evolution of the continuum structure of " Dy at high spin have been obtained using the transient hyperfine magnetic field acting on fast ions traversing a thin, magnetized gadolinium foil. ' Dy nuclei were populated by the Ge(' Se, 4n)" Dy fusion-evaporation reaction at E(' Se) =326.5 MeV. The target-ferromagnet arrangement corresponds to a time window of about 70 & t & 1100 fs, during which the excited nuclei experience the transient field interaction. The statistical y rays, as well as the high-energy, E~) 1200 keV, y rays contributing to the collective E2 "bump, " exhibit a negligible precession, in accordance with the very short lifetimes of these states. The precession of the angular distribution of discrete yrast y rays deexciting the nucleus from spin I-35k down yields an average magnetic moment for states with 43%~I~31k. The resulting (g ) =0.21i2i is considerably lower than the collective value Z/3 -0.43 and indicates an appreciable contribution from aligned neutrons to the lower-spin region populated within the above time frame. The results are discussed in the framework of model calculations of the y-ray cascade.