FEDERATED U.S. GOVERNMENT BOND FUND
SUPPLEMENT TO THE PROSPECTUS DATED OCTOBER 31, 1994
Please replace the last paragraph, referring to Gary J. Madich, under the
subsection entitled "Adviser's Background" on page 9 of the Prospectus with
the following paragraph:
"Joseph M. Balestrino has been the Fund's co-portfolio manager
since March 1, 1995. Mr. Balestrino joined Federated Investors
in 1986 and has been an Assistant Vice President of the Fund's
investment adviser since 1991. Mr. Balestrino served as an
Investment Analyst of the investment adviser from 1989 until
1991, and from 1986 until 1989 he acted as Project Manager in
the Product Development Department. Mr. Balestrino is a
Chartered Financial Analyst and received his M.A. in Urban and
Regional Planning from the University of Pittsburgh."
Finally, please note that Susan M. Nason will remain as the Fund's portfolio
manager.
March 8, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
314284100
G01053-01 (3/95)
