FEDERATED SHORT-TERM U.S. GOVERNMENT TRUST
SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 28, 1998
At a meeting to be held on March 29, 1999, shareholders of the Fund will be
asked to vote on the changes described below. If approved by shareholders, these
changes will take effect as of April 1, 1999, except Proposal 5, which will
occur on or after April, 23, 1999. Shareholders will be notified if any of these
changes are not approved.
Please keep this supplement for your records.
Shareholders will be asked to consider proposals:
(1) To elect seven Trustees.
(2) To ratify the selection of the Trust's independent auditors.
(3) To make non-fundamental the Trust's fundamental investment policy
regarding acquiring voting securities.
(4) To approve an amendment and restatement to the Trust's Declaration of
Trust to require the approval of a "1940 Act" majority of shareholders
in the event of the sale and conveyance of the assets of the Trust to
another trust or corporation.
(5) To approve a proposed Agreement and Plan of Reorganization between the
Trust and Money Market Obligations Trust, on behalf of its series,
Federated Short-Term U.S. Government Trust (the "New Fund"), whereby
the New Fund would acquire all of the assets of the Trust in exchange
for shares of the New Fund to be distributed PRO RATA by the Trust to
its shareholders in complete liquidation and termination of the Trust.
January 21, 1999
[Graphic]
Federated Investors
Federated Securities Corp., Distributor
Federated Investors, Inc.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
www.federatedinvestors.com
Cusip 313905101
G02546-02 (1/99)
