<PAGE> PAGE 1
000 B000000 01/31/99
000 C000000 0000357159
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 FEDERATED U.S. GOV'T SECURITIES FUND: 2-5 YRS
001 B000000 811-3387
001 C000000 4122888239
002 A000000 FEDERATED INVESTORS TOWER
002 B000000 PITTSBURGH
002 C000000 PA
002 D010000 15222
002 D020000 3779
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 FEDERATED MANAGEMENT
008 B000001 A
008 C000001 801-34610
008 D010001 PITTSBURGH
008 D020001 PA
008 D030001 15222
008 D040001 3779
010 A000001 FEDERATED SERVICES COMPANY
010 C010001 PITTSBURGH
010 C020001 PA
010 C030001 15222
010 C040001 3779
011 A000001 FEDERATED SECURITIES CORP.
011 B000001 8-15561
011 C010001 PITTSBURGH
011 C020001 PA
011 C030001 15222
011 C040001 3779
<PAGE> PAGE 2
012 A000001 FEDERATED SHAREHOLDER SERVICES COMPANY
012 B000001 84-1869
012 C010001 PITTSBURGH
012 C020001 PA
012 C030001 15222
012 C040001 3779
013 A000001 ARTHUR ANDERSEN LLP
013 B010001 PITTSBURGH
013 B020001 PA
013 B030001 15222
015 A000001 STATE STREET BANK AND TRUST COMPANY
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02266
015 C040001 8600
015 E010001 X
015 A000002 BANKERS TRUST CO.
015 B000002 S
015 C010002 NEW YORK
015 C020002 NY
015 C030002 10015
015 E010002 X
015 A000003 BANK OF NEW YORK
015 B000003 S
015 C010003 NEW YORK
015 C020003 NY
015 C030003 10006
015 E010003 X
015 A000004 THE CHASE MANHATTAN CORP.
015 B000004 S
015 C010004 NEW YORK
015 C020004 NY
015 C030004 10006
015 E010004 X
015 A000005 MORGAN GUARANTY BANK & TRUST CO.
015 B000005 S
015 C010005 NEW YORK
015 C020005 NY
015 C030005 10015
015 E010005 X
015 A000006 NATIONSBANK OF NORTH CAROLINA
015 B000006 S
015 C010006 CHARLOTTE
015 C020006 NC
015 C030006 28255
015 E010006 X
015 A000007 PNC BANK, NA
015 B000007 S
015 C010007 PITTSBURGH
015 C020007 PA
<PAGE> PAGE 3
015 C030007 15265
015 E010007 X
018 000000 Y
019 A000000 N
019 B000000 0
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 B.T. SECURITIES CORP.
022 B000001 13-4941247
022 C000001 1112030
022 D000001 0
022 A000002 MORGAN STANLEY & CO., INC.
022 B000002 13-2655998
022 C000002 224010
022 D000002 193145
022 A000003 GOLDMAN SACHS & CO.
022 B000003 13-5108880
022 C000003 197833
022 D000003 169323
022 A000004 SOCIETE GENERALE
022 B000004 13-1976032
022 C000004 286280
022 D000004 0
022 A000005 BEAR, STEARNS SECURITIES CORP.
022 B000005 13-3299429
022 C000005 140727
022 D000005 129834
022 A000006 CHASE MANHATTAN BANK N.A.
022 B000006 13-2633612
022 C000006 98338
022 D000006 120499
022 A000007 CS FIRST BOSTON CORP.
022 B000007 13-5659485
022 C000007 188340
022 D000007 0
022 A000008 WESTDEUTSCHE LANDESBANK
022 C000008 154710
022 D000008 0
022 A000009 HSBC SECURITIES INC.
022 B000009 13-2650272
022 C000009 68847
022 D000009 76149
<PAGE> PAGE 4
022 A000010 PAINE WEBBER INC.
022 B000010 13-2638166
022 C000010 57237
022 D000010 68632
023 C000000 2718993
023 D000000 938755
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 Y
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 37463
028 A020000 1549
028 A030000 0
028 A040000 26531
028 B010000 35854
028 B020000 1532
028 B030000 0
028 B040000 33717
028 C010000 61522
028 C020000 1546
028 C030000 0
028 C040000 59905
028 D010000 30518
028 D020000 1649
028 D030000 0
028 D040000 40363
028 E010000 32787
028 E020000 1479
028 E030000 0
028 E040000 38417
028 F010000 39611
028 F020000 2927
028 F030000 0
028 F040000 25304
028 G010000 237755
028 G020000 10682
<PAGE> PAGE 5
028 G030000 0
028 G040000 224237
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 112
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.400
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
<PAGE> PAGE 6
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 N
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 N
054 I000000 N
054 J000000 N
054 K000000 N
054 L000000 N
054 M000000 N
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 25000
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 2.6
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 84.7
062 N000000 11.3
062 O000000 0.0
062 P000000 0.0
<PAGE> PAGE 7
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 3.6
064 A000000 N
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 966345
071 B000000 939704
071 C000000 743662
071 D000000 126
<PAGE> PAGE 8
072 A000000 12
072 B000000 43076
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 3034
072 G000000 572
072 H000000 0
072 I000000 207
072 J000000 45
072 K000000 0
072 L000000 29
072 M000000 7
072 N000000 54
072 O000000 0
072 P000000 0
072 Q000000 132
072 R000000 14
072 S000000 4
072 T000000 2009
072 U000000 0
072 V000000 0
072 W000000 27
072 X000000 6134
072 Y000000 1820
072 Z000000 38762
072AA000000 18463
072BB000000 0
072CC010000 0
072CC020000 5047
072DD010000 36624
072DD020000 2131
072EE000000 0
073 A010000 0.5500
073 A020000 0.5400
073 B000000 0.0000
073 C000000 0.0000
074 A000000 0
074 B000000 20345
074 C000000 0
074 D000000 758981
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 14812
074 M000000 0
074 N000000 794138
<PAGE> PAGE 9
074 O000000 0
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 3856
074 S000000 0
074 T000000 790282
074 U010000 67730
074 U020000 4694
074 V010000 10.91
074 V020000 10.91
074 W000000 0.0000
074 X000000 3418
074 Y000000 0
075 A000000 0
075 B000000 758507
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 LLOYD'S OF LONDON
080 B000000 ZURICH INSURANCE CO.; RELIANCE INSURANCE CO.
080 C000000 70000
081 A000000 Y
081 B000000 158
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
<PAGE> PAGE 10
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE STEVE KEANE
TITLE GENERAL COUNSEL
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000357159
<NAME> Federated U.S. Government Securities Fund: 2-5 Years
<SERIES>
<NUMBER> 001
<NAME> Federated U.S. Government Securities Fund: 2-5 Years Institutional Shares
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> Jan-31-1999
<PERIOD-END> Jan-31-1999
<INVESTMENTS-AT-COST> 767,228,112
<INVESTMENTS-AT-VALUE> 779,325,990
<RECEIVABLES> 14,811,641
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 794,137,631
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,856,000
<TOTAL-LIABILITIES> 3,856,000
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 789,663,320
<SHARES-COMMON-STOCK> 67,729,868
<SHARES-COMMON-PRIOR> 64,951,620
<ACCUMULATED-NII-CURRENT> 1,657
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (11,481,224)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12,097,878
<NET-ASSETS> 739,057,952
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 43,076,242
<OTHER-INCOME> 0
<EXPENSES-NET> 4,313,814
<NET-INVESTMENT-INCOME> 38,762,428
<REALIZED-GAINS-CURRENT> 18,462,945
<APPREC-INCREASE-CURRENT> (5,047,854)
<NET-CHANGE-FROM-OPS> 52,177,519
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (36,624,367)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 33,291,694
<NUMBER-OF-SHARES-REDEEMED> (32,008,413)
<SHARES-REINVESTED> 1,494,967
<NET-CHANGE-IN-ASSETS> 56,943,828
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (29,944,169)
<OVERDISTRIB-NII-PRIOR> (5,612)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,034,022
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,134,230
<AVERAGE-NET-ASSETS> 713,527,556
<PER-SHARE-NAV-BEGIN> 10.730
<PER-SHARE-NII> 0.550
<PER-SHARE-GAIN-APPREC> 0.180
<PER-SHARE-DIVIDEND> (0.550)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.910
<EXPENSE-RATIO> 0.55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000357159
<NAME> Federated U.S. Government Securities Fund: 2-5 Years
<SERIES>
<NUMBER> 002
<NAME> Federated U.S. Government Securities Fund: 2-5 Years Institutional Service Shares
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> Jan-31-1999
<PERIOD-END> Jan-31-1999
<INVESTMENTS-AT-COST> 767,228,112
<INVESTMENTS-AT-VALUE> 779,325,990
<RECEIVABLES> 14,811,641
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 794,137,631
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,856,000
<TOTAL-LIABILITIES> 3,856,000
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 789,663,320
<SHARES-COMMON-STOCK> 4,694,389
<SHARES-COMMON-PRIOR> 3,424,217
<ACCUMULATED-NII-CURRENT> 1,657
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (11,481,224)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12,097,878
<NET-ASSETS> 51,223,679
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 43,076,242
<OTHER-INCOME> 0
<EXPENSES-NET> 4,313,814
<NET-INVESTMENT-INCOME> 38,762,428
<REALIZED-GAINS-CURRENT> 18,462,945
<APPREC-INCREASE-CURRENT> (5,047,854)
<NET-CHANGE-FROM-OPS> 52,177,519
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,130,792)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,294,054
<NUMBER-OF-SHARES-REDEEMED> (2,182,036)
<SHARES-REINVESTED> 158,154
<NET-CHANGE-IN-ASSETS> 56,943,828
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (29,944,169)
<OVERDISTRIB-NII-PRIOR> (5,612)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,034,022
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,134,230
<AVERAGE-NET-ASSETS> 44,979,496
<PER-SHARE-NAV-BEGIN> 10.730
<PER-SHARE-NII> 0.540
<PER-SHARE-GAIN-APPREC> 0.180
<PER-SHARE-DIVIDEND> (0.540)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.910
<EXPENSE-RATIO> 0.80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Trustees of
FEDERATED U.S. GOVERNMENT SECURITIES FUND: 2-5 YEARS
In planning and performing our audit of the financial statements of
Federated U.S. Government Securities Fund: 2-5 Years for the year ended
January 31, 1999, we considered its internal control structure, including
control activities for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of Form N-SAR,
not to provide assurance on internal control.
The management of Federated U.S. Government Securities Fund: 2-5 Years is
responsible for establishing and maintaining internal control. In fulfilling
this responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's objective of
preparing financial statements for external purposes that are fairly presented
in conformity with generally accepted accounting principles. Those control
activities include the safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud may occur
and not be detected. Also, projection of any evaluation of internal control
to future periods is subject to the risk that it may become inadequate because
of changes in conditions or that the effectiveness of the design and operation
may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or
more internal control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in amounts that would be
material in relation to the financial statements being audited may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving
internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
January 31, 1999.
This report is intended solely for the information and use of management, and
Board of Trustees of Federated U.S. Government Securities Fund: 2-5 Years, and
the Securities and Exchange Commission.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
March 25, 1999
- - 2 -
