MONEY MARKET OBLIGATIONS TRUST /NEW/, 485BPOS, 1999-04-26

MONEY MARKET OBLIGATIONS TRUST /NEW/
485BPOS, 1999-04-26

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1933 Act File No. 33-31602
1940 Act File No. 811-5950

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X
------

Pre-Effective Amendment No. ....................

Post-Effective Amendment No. 26 ................... X
--------- ---------

and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 X
--------

Amendment No. 27 ..................................... X
------ ------

MONEY MARKET OBLIGATIONS TRUST

(Exact Name of Registrant as Specified in Charter)

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, Pennsylvania 15237-7000
(Address of Principal Executive Offices)

(412) 288-1900
(Registrant's Telephone Number)

John W. McGonigle, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)

It is proposed that this filing will become effective:

_x immediately upon filing pursuant to paragraph (b)
__ on _____________________, pursuant to paragraph (b)
60 days after filing pursuant to paragraph (a) (i)
on _________________, pursuant to paragraph (a) (i)
75 days after filing pursuant to paragraph (a)(ii) on _________________
pursuant to paragraph (a)(ii) of Rule 485.

If appropriate, check the following box:

This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.

Copies to: Matthew G. Maloney, Esquire
Dickstein Shapiro Morin & Oshinsky LLP
2101 L Street, N.W.
Washington, DC 20037

PROSPECTUS

FEDERATED MASTER TRUST

A Portfolio of Money Market Obligations Trust

A money market mutual fund seeking current income consistent with stability of
principal by investing in a portfolio of money market securities maturing in
thirteen months or less. As with all mutual funds, the Securities and
Exchange Commission has not approved or disapproved these securities or passed
upon the adequacy of this prospectus, and any representation to the contrary is
a criminal offense.

CONTENTS

Risk/Return Summary 1
What are the Fund's Fees and Expenses? 3
What are the Fund's Investment Strategies? 4
What are the Principal Securities in Which
the Fund Invests? 4
What are the Specific Risks of Investing in the Fund? 5
What do Shares Cost? 6
How is the Fund Sold? 6
How to Purchase Shares 6
How to Redeem Shares 7
Account and Share Information 9
Who Manages the Fund? 10
Financial Information

APRIL 28, 1999

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The Fund is a money market fund which seeks to maintain a stable net asset value
of $1.00. The Fund's investment objective is current income consistent with
stability of principal. While there is no assurance that the Fund will achieve
its investment objective, it endeavors to do so by following the strategies and
policies described in this prospectus.

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The Fund invests in a portfolio of high quality fixed income securities maturing
in thirteen months or less. The dollar-weighted average maturity of the Fund's
portfolio will be 90 days or less.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

Although the Fund seeks to maintain a stable net asset value, it is possible to
lose money by investing in the Fund. The Shares offered by this prospectus are
not deposits or obligations of any bank, are not endorsed or guaranteed by any
bank and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Risk/Return Bar Chart and Table The Bar Chart and
Performance Table below reflect historical performance data for Federated Master
Trust (the "Former Fund") prior to its reorganization into the Fund, which is a
newly created portfolio of Money Market Obligations Trust (the "Trust"). On the
date of the reorganization, April 30, 1999, the Former Fund was dissolved and
its net assets (inclusive of liabilities recorded on the Former Fund's records)
were transferred into the Fund.

[GRAPH APPEARS HERE]

Historically, the Former Fund has maintained a constant $1.00 net asset value
per share. The bar chart shows the variability of the Former Fund's actual total
returns on a calendar year basis.

The Former Fund's Shares were not sold subject to a sales charge (load). The
total returns displayed above are based upon the net asset value. The Former
Fund's total return from January 1, 1999 to March 31, 1999 was 1.15%.

Within the period shown in the chart, the Former Fund's highest quarterly return
was 2.36% (quarter ended June 30, 1989). Its lowest quarterly return was 0.70%
(quarters ended June 30 and September 30, 1993).

Average Annual Total Return Table

The following table represents the Former Fund's Average Annual Total Return for
the calendar periods ending December 31, 1998.

Calendar Period Fund

1 Year 5.28%
5 Years 5.09%
10 Years 5.51%

The Former Fund's 7-Day Net Yield as of December 31, 1998 was 4.85%.

Investors may call the Fund at 1-800-341-7400 to acquire the current 7-Day Net
Yield.

Past performance does not necessarily predict future performance. This
information provides you with historical performance information so that you can
analyze whether the Fund's investment risks are balanced by its potential
rewards. What are the Fund's Fees and Expenses?

FEDERATED MASTER TRUST

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of Federated Master Trust

<TABLE>
<CAPTION>
Shareholder Fees
<S> <C>
Fees Paid Directly From Your Investment
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) None
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price None
or redemption proceeds, as applicable)
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) None
(as a percentage of offering price)
Redemption Fee (as a percentage of amount redeemed, if applicable) None
Exchange Fee None

Annual Fund Operating Expenses
Expenses That are Deducted From Fund Assets (as a percentage of average net assets)
Management Fee 0.40%
Distribution (12b-1) Fee None
Shareholder Services Fee 0.25%
Other Expenses 0.13%
Total Annual Fund Operating Expenses (before waivers)1 0.78%
Total Waiver of Fund Expenses 0.33%
Total Actual Annual Fund Operating Expenses (after waivers)2 0.45%

2Total Actual Annual Fund Operating Expenses represent the net expenses the
Fund expects to actually pay for the fiscal year ended November 30, 1999. For
the fiscal year ended November 30, 1998, prior to the reorganization of
Federated Master Trust, the Former Fund, as a portfolio of Money Market
Obligations Trust, the Total Annual Fund Operating Expenses and Total Actual
Annual Fund Operating Expenses (after waivers) were 0.78% and 0.45%,
respectively.
</TABLE>

EXAMPLE

The following Example is intended to help you compare the cost of investing in
the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses are based upon the contractually imposed expense
limitation of 0.45% as shown above. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:

1 Year 3 Years 5 Years 10 Years
$46 $144 $252 $567

What are the Fund's Investment Strategies?

The Fund invests in a portfolio of high quality fixed income securities maturing
in thirteen months or less. The dollar-weighted average maturity of the Fund's
portfolio will be 90 days or less.

The adviser performs a fundamental credit analysis to develop an approved list
of issuers and securities that meet the adviser's minimum credit standards. The
adviser targets a dollar-weighted average portfolio maturity range for the Fund
based upon its interest rate outlook. The adviser formulates its interest rate
outlook by analyzing a variety of factors, such as:

. current U.S. economic activity and the outlook for future activity,
. current short-term interest rates, and
. recent actions by the Federal Reserve Board regarding short-term interest
rates and market expectations regarding future actions.

The adviser generally shortens the portfolio's dollar-weighted average maturity
when it expects interest rates to rise and extends the maturity when it expects
interest rates to fall. The adviser selects securities from the approved list of
securities used to lengthen or shorten the portfolio's dollar-weighted average
maturity by comparing the returns currently offered by different investments to
their historical and expected returns.

INDUSTRY CONCENTRATION

The Fund may invest 25% or more of its assets in commercial paper issued by
finance companies.

What are the Principal Securities in Which the Fund Invests?

FIXED INCOME SECURITIES

Fixed income securities pay interest, dividends or distributions at a specified
rate. The rate may be a fixed percentage of the principal or adjusted
periodically. In addition, the issuer of a fixed income security must repay the
principal amount of the security, normally within a specified time.

The following describes the principal types of fixed income securities in
which the Fund invests.

CORPORATE DEBT SECURITIES

Corporate debt securities are fixed income securities issued by businesses.
Notes, bonds, debentures and commercial paper are the most prevalent types of
corporate debt securities. The Fund may also purchase interests in bank loans to
companies.

COMMERCIAL PAPER

Commercial paper is an issuer's obligation with a maturity of nine months or
less. Companies typically issue commercial paper to pay for current
expenditures. Most issuers constantly reissue their commercial paper and use the
proceeds (or bank loans) to repay maturing paper. If the issuer cannot continue
to obtain liquidity in this fashion, its commercial paper may default.

DEMAND INSTRUMENTS

Demand instruments are corporate debt securities that the issuer must repay upon
demand. Other demand instruments require a third party, such as a dealer or
bank, to repurchase the security for its face value upon demand. The Fund treats
demand instruments as short-term securities, even though their stated maturity
may extend beyond one year.

ASSET BACKED SECURITIES

Asset backed securities are payable from pools of debt obligations. Most asset
backed securities involve consumer or commercial debts with maturities of less
than ten years. However, almost any type of fixed income assets (including other
fixed income securities) may be used to create an asset backed security. The
simplest form of asset backed securities are pass-through certificates. An
issuer of pass-through certificates gathers payments from an underlying pool of
obligations. Then, the issuer deducts its fees and expenses and passes the
balance of the payments onto the certificate holders. Asset backed securities
may also take the form of commercial paper or notes.

BANK INSTRUMENTS

Bank instruments are unsecured interest bearing deposits with banks. Bank
instruments include bank accounts, time deposits, certificates of deposit and
banker's acceptances.

CREDIT ENHANCEMENT

Credit enhancement consists of an arrangement in which a company agrees to pay
amounts due on a fixed income security if the issuer defaults. In some cases the
company providing credit enhancement makes all payments directly to the security
holders and receives reimbursement from the issuer. Normally, the credit
enhancer has greater financial resources and liquidity than the issuer. For this
reason, the Adviser may evaluate the credit risk of a fixed income security
based solely upon its credit enhancement.

Common types of credit enhancement include guarantees, letters of credit, bond
insurance and surety bonds. Credit enhancement also includes arrangements where
securities or other liquid assets secure payment of a fixed income security. If
a default occurs, these assets may be sold and the proceeds paid to security's
holders. Either form of credit enhancement reduces credit risks by providing
another source of payment for a fixed income security. Repurchase
Agreements

INVESTMENT RATINGS

The securities in which the Fund invests must be rated in the two highest
short-term rating categories by one or more nationally recognized rating
services or be of comparable quality to securities having such ratings.
Nationally recognized ratings services incude Duff & Phelps Credit Rating Co.,
Fitch IBCA, Moody's Investors Service, Inc., Standard & Poors Ratings Services,
and Thompson Financial Bankwatch. What are the Specific Risks of Investing
in the Fund?

Although there are many factors which may effect an investment in the Fund, the
principal risks of investing in a corporate money market fund are described
below.

MARKET RISK

Prices of fixed income securities rise and fall in response to interest rate
changes for similar securities. Generally, when interest rates rise, prices of
fixed income securities fall.

Interest rate changes have a greater affect on the price of fixed income
securities with longer maturities. Money market funds try to minimize this risk
by purchasing short-term securities.

CREDIT RISK

Credit risk is the possibility that an issuer will default (fails to repay
interest and principal when due). If an issuer defaults, the Fund may lose
money. Money market funds try to minimize this risk by purchasing higher quality
securities.

Many fixed income securities receive credit ratings from nationally recognized
ratings services. Fixed income securities receive different credit ratings
depending on the rating company's assessment of the likelihood of default by the
issuer. The lower the credit rating, the greater the credit risk.

SECTOR RISKS

A substantial part of the Fund's portfolio may be comprised of securities issued
or credit enhanced by companies in similar businesses, or with other similar
characteristics. As a result, the Fund will be more susceptible to any economic,
business, political, or other developments which generally affect these issuers.

What do Shares Cost?

The Fund does not charge a front-end sales charge. NAV is determined at 12:00
noon and 3:00 p.m. (Eastern time) and as of the end of regular trading (normally
4:00 p.m. Eastern time) each day the NYSE is open.

The required minimum initial investment for Fund Shares is $25,000. There is
no required minimum subsequent investment amount.

An account may be opened with a smaller minimum amount as long as the $25,000
minimum is reached within 90 days. An institutional investor's minimum
investment is calculated by combining all accounts it maintains with the Fund.
Accounts established through investment professionals may be subject to a
smaller minimum investment amount. Keep in mind that investment professionals
may charge you fees for their services in connection with your Share
transactions.

How is the Fund Sold?

The Fund's Distributor markets the Shares described in this prospectus to
institutions acting in an agency or fiduciary capacity or to individuals
directly or through investment professionals.

The Distributor and its affiliates may pay out of their assets other amounts
(including items of material value) to investment professionals for marketing
and servicing Shares. The Distributor is a subsidiary of Federated Investors,
Inc. (Federated).

How to Purchase Shares

You may purchase Shares through an investment professional or directly from the
Fund. The Fund reserves the right to reject any request to purchase Shares.

THROUGH AN INVESTMENT PROFESSIONAL

. Establish an account with the investment professional; and

. Submit your purchase order to the investment professional before 3:00 p.m.
Eastern time. You will receive that day's dividend if the investment
professional forwards the order to the Fund and the Fund receives payment by
3:00 p.m. Eastern time. You will become the owner of Shares and receive
dividends when the Fund receives your payment.

Investment professionals should send payments according to the instructions in
the sections "By Wire" or "By Check."

DIRECTLY FROM THE FUND

. Establish your account with the Fund by submitting a completed New Account
Form; and . Send your payment to the Fund by Federal Reserve wire or check.

You will become the owner of Shares after the Fund receives your wire or your
check. If your check does not clear, your purchase will be canceled and you
could be liable for any losses or fees the Fund or its transfer agent incurs.

An institution may establish an account and place an order by calling the Fund
and will become a shareholder after the Fund receives the order.

By Wire Send your wire to:
State Street Bank and Trust Company
Boston, MA
Dollar Amount of Wire
ABA Number 011000028
Attention: EDGEWIRE
Wire Order Number, Dealer Number, or Group Number
Nominee/Institution Name
Fund Name and Number and Account Number
You cannot purchase Shares by wire on holidays when wire transfers are
restricted.

By Check
Make your check payable to The Federated Funds, note your account number on the
check, and mail it to:
Federated Shareholder Services Company
P.O. Box 8600
Boston, MA 02266-8600
If you send your check by a private courier or overnight delivery service that
requires a street address, mail it to:
Federated Shareholder Services Company
1099 Hingham Street
Rockland, MA 02370-3317

Payment should be made in U.S. dollars and drawn on a U.S. bank. The Fund will
not accept third-party checks (checks originally payable to someone other than
you or The Federated Funds). Orders by mail are considered received when payment
by check is converted into federal funds (normally the business day after the
check is received) and Shares begin earning dividends the next day.

BY AUTOMATIC INVESTMENTS

You may establish an account with your financial institution to automatically
purchase Shares on pre-determined dates or when your bank account reaches a
certain level. Under this program, participating financial institutions are
responsible for prompt transmission of orders and may charge you for this
service. You should read this prospectus along with your financial institution's
agreement or materials describing this service.

BY AUTOMATED CLEARINGHOUSE (ACH)

Once you have opened an account, you may purchase additional Shares through a
depository institution that is an ACH member. This purchase option can be
established by completing the appropriate sections of the New Account Form.

How to Redeem Shares

You should redeem Shares:

. through an investment professional if you purchased Shares through an
investment professional; or
. directly from the Fund if you purchased Shares directly from the Fund.

THROUGH AN INVESTMENT PROFESSIONAL

Submit your redemption request to your investment professional by the end of
regular trading on the NYSE (normally 4:00 p.m. Eastern time). The redemption
amount you will receive is based upon the next calculated NAV after the Fund
receives the order from your investment professional. Investment professionals
are responsible for promptly submitting redemption requests and providing proper
written redemption instructions as outlined below. DIRECTLY FROM THE FUND

By Telephone
You may redeem Shares by calling the Fund once you have completed the
appropriate authorization form for telephone transactions.
If you call before 3:00 p.m. (Eastern time) your redemption will be wired to
you the same day. You will not receive that day's dividend.
If you call after 3:00 p.m. (Eastern time) your redemption will be wired to
you the following business day. You will receive that day's dividend.

By Mail
You may redeem Shares by mailing a written request to the Fund.

You will receive a redemption amount based on the NAV on the day the Fund
receives your written request in proper form. Dividends are paid up to and
including the day that a redemption request is processed. Send requests by mail
to:

. Fund Name and Share Class, account number and account registration;
. amount to be redeemed; and
. signatures of all Shareholders exactly as registered.

Call your investment professional or the Fund if you need special instructions.

Signature Guarantees

Signatures must be guaranteed if:

. your redemption will be sent to an address other than the address of record;
. your redemption will be sent to an address of record that was changed within
the last thirty days; or
. a redemption is payable to someone other than the shareholder(s) of record.

A signature guarantee is designed to protect your account from fraud. Obtain a
signature guarantee from a bank or trust company, savings association, credit
union, or broker, dealer, or securities exchange member. A notary public cannot
provide a signature guarantee.

PAYMENT METHODS FOR REDEMPTIONS

Your redemption proceeds will be mailed by check to your address of record. The
following payment options are available if you complete the appropriate section
of the New Account Form or an Account Service Options Form. These payment
options require a signature guarantee if they were not established when the
account was opened:

. an electronic transfer to your account at a financial institution that is an
ACH member; or
. wire payment to your account at a domestic commercial bank that is a Federal
Reserve System member.

REDEMPTION IN KIND

Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.

LIMITATIONS ON REDEMPTION PROCEEDS

Redemption proceeds normally are wired or mailed within one business day after
receiving a request in proper form. Payment may be delayed up to seven days:

. to allow your purchase to clear;
. during periods of market volatility; or
. when a shareholder's trade activity or amount adversely impacts the Fund's
ability to manage its assets.

You will not accrue interest or dividends on uncashed checks from the Fund if
those checks are undeliverable and returned to the Fund.

ADDITIONAL CONDITIONS

Telephone Transactions

The Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

Share Certificates

The Fund no longer issues share certificates. If you are redeeming Shares
represented by certificates previously issued by the Fund, you must return the
certificates with your written redemption or exchange request. For your
protection, send your certificates by registered or certified mail, but do not
endorse them.

Account and Share Information

ACCOUNT ACTIVITY

You will receive periodic statements reporting all account activity, including
dividends and capital gains paid.

DIVIDENDS AND CAPITAL GAINS

The Fund declares any dividends daily and pays them monthly to shareholders. If
you purchase shares by wire, you begin earning dividends on the day your wire is
received. If you purchase shares by check, you begin earning dividends on the
business day after the Fund receives your check. In either case, you earn
dividends through the day your redemption request is received.

The Fund does not expect to realize any capital gains or losses. If capital
gains or losses were to occur, they could result in an increase or decrease in
dividends. The Fund pays any capital gains at least annually. Your dividends and
capital gains distributions will be automatically reinvested in additional
shares without a sales charge, unless you elect cash payments.

ACCOUNTS WITH LOW BALANCES

Due to the high cost of maintaining accounts with low balances, non-retirement
accounts may be closed if redemptions cause the account balance to fall below
the minimum initial investment amount. Before an account is closed, you will be
notified and allowed 30 days to purchase additional Shares to meet the minimum.

TAX INFORMATION

The Fund sends an annual statement of your account activity to assist you in
completing your federal, state and local tax returns. Fund distributions of
dividends and capital gains are taxable to you whether paid in cash or
reinvested in the Fund. Dividends are taxable as ordinary income; capital gains
are taxable at different rates depending upon the length of time the Fund holds
its assets.

Fund distributions are expected to be primarily dividends. Redemptions are
taxable sales. Please consult your tax adviser regarding your federal, state,
and local tax liability.

Who Manages the Fund?

The Board of Trustees governs the Fund. The Board selects and oversees the
Adviser, Federated Investment Management Company. The Adviser manages the Fund's
assets, including buying and selling portfolio securities. The Adviser's address
is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA 15222-3779.

The Adviser and other subsidiaries of Federated advise approximately 175
mutual funds and separate accounts, which total more than $111 billion in assets
as of December 31, 1998. Federated was established in 1955 and is one of the
largest mutual fund investment managers in the United States with approximately
1,900 employees. More than 4,000 investment professionals make Federated Funds
available to their customers. ADVISORY FEES

The Adviser receives an annual investment advisory fee of 0.40% of the Fund's
average daily net assets. Under the investment advisory contract, which is
subject to annual renewal by the Fund's Board of Trustees, the Adviser will
waive the amount, limited to the amount of the advisory fee, by which the Fund's
aggregate annual operating expenses, including the investment advisory fee but
excluding interest, taxes, brokerage commissions, expenses of registering or
qualifying the Fund and its shares under federal and state laws and regulations,
expenses of withholding taxes, and extraordinary expenses exceed 0.45% of its
average daily net assets.

YEAR 2000 READINESS

The "Year 2000" problem is the potential for computer errors or failures because
certain computer systems may be unable to interpret dates after December 31,
1999 or experience other date-related problems. The Year 2000 problem may cause
systems to process information incorrectly and could disrupt businesses, such as
the Fund, that rely on computers.
While it is impossible to determine in advance all of the risks to the Fund,
the Fund could experience interruptions in basic financial and operational
functions. Fund shareholders could experience errors or disruptions in Fund
share transactions or Fund communications.

The Fund's service providers are making changes to their computer systems to
fix any Year 2000 problems. In addition, they are working to gather information
from third-party providers to determine their Year 2000 readiness.

However, this may be difficult with certain issuers. For example, funds
dealing with foreign service providers or investing in foreign securities, will
have difficulty determining the Year 2000 readiness of those entities. This is
especially true of entities or issuers in emerging markets.

The financial impact of these issues for the Fund is still being determined.
There can be no assurance that potential Year 2000 problems would not have a
material adverse effect on the Fund.

Financial Information

FINANCIAL HIGHLIGHTS

This information has been audited by Deloitte & Touche LLP, whose report,
along with the Fund's audited financial statements, is included in this
Prospectus. Financial Highlights

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Reference is made to the Independent Auditors' Report on page 23.

<TABLE>
<CAPTION>
Year Ended November 30 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income 0.05 0.05 0.05 0.06 0.04
Less Distributions:
Distributions from net investment income (0.05) (0.05) (0.05) (0.06) (0.04)
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return1 5.33% 5.27% 5.18% 5.73% 3.78%

Ratios to Average Net Assets:
Expenses 0.45% 0.45% 0.45% 0.46% 0.46%
Net investment income 5.22% 5.16% 5.04% 5.59% 3.72%
Supplemental Data:
Net assets, end of period (000 omitted) $465,134 $ 494,399 $ 626,764 $ 729,144 $ 773,260
</TABLE>

1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

NOVEMBER 30, 1998

<TABLE>
<CAPTION>
Principal Value
Amount
CERTIFICATE OF DEPOSIT--3.8%
Banking--3.8%
<S> <C> <C>
$ 5,000,000 Bankers Trust Co., New York, 5.645%, 2/26/1999 $ 4,999,600
3,500,000 Credit Communal de Belgique, Brussles, 5.650%, 3/19/1999 3,498,241
1,000,000 KeyBank, N.A., 5.080%, 4/9/1999 1,000,000
8,000,000 Societe Generale, Paris, 5.706%, 4/16/1999 7,999,370
TOTAL CERTIFICATE OF DEPOSIT 17,497,211
COMMERCIAL PAPER--41.8%1
Banking--18.3%
5,000,000 Abbey National N.A. Corp., (Guaranteed by Abbey National Bank PLC, London), 5.003%, 5/4/1999 4,895,622
8,500,000 Aspen Funding Corp., (Insured by MBIA Insurance Corporation, Guaranteed by Deutsche Bank, AG), 8,388,827
5.634%, 2/25/1999
21,000,000 Cregem North America, Inc., (Guaranteed by Credit Communal de Belgique, Brussles), 4.943% - 5.605%, 20,822,714
1/21/1999 - 2/23/1999
17,549,000 Fountain Square Commercial Funding Corp., (Fifth Third Bank, Cincinnati Support Agreement), 5.119% 17,300,393
- 5.450%, 1/8/1999 - 4/26/1999
7,000,000 Societe Generale North America, Inc., (Guaranteed by Societe Generale, Paris), 5.123%, 4/7/1999 6,876,775
22,000,000 UBS Finance (Delaware), Inc., (UBS AG LOC), 4.953% - 5.609%, 21,786,478
12/31/1998 - 3/29/1999
5,000,000 Wood Street Funding Corp., (PNC Bank, N.A. Support Agreement), 5.423%, 2/1/1999 4,953,931
TOTAL 85,024,740
Brokerage--2.1%
10,000,000 Salomon Smith Barney Holdings, Inc., 5.268%, 1/26/1999 9,919,111
Consumer Products--3.2%
15,000,000 Diageo Capital PLC, 5.600%, 12/11/1998 14,977,125
Finance - Automotive--3.2%
15,000,000 Ford Motor Credit Corp., 5.139%, 2/5/1999 14,861,125
Finance - Commercial--5.3%
3,000,000 Beta Finance, Inc., 5.106%, 4/15/1999 2,943,975
15,000,000 General Electric Capital Corp., 5.058% - 5.455%, 2/12/1999 - 3/17/1999 14,819,044
7,000,000 Sheffield Receivables Corp., 5.369%, 2/5/1999 6,932,240
TOTAL 24,695,259
Finance - Retail--4.2%
$ 5,000,000 American Express Credit Corp., 5.023%, 4/12/1999 $ 4,910,167
15,000,000 Associates Corp. of North America, 4.867%, 4/19/1999 14,724,896
TOTAL 19,635,063
Insurance--5.1%
12,000,000 CXC, Inc., 5.161% - 5.502%, 12/7/1998 - 5/17/1999 11,764,854
12,000,000 Marsh & McLennan Cos., Inc., 5.128% - 5.637%, 3/29/1999 - 5/5/1999 11,748,796
TOTAL 23,513,650
Machinery, Equipment, Auto--0.4%
2,000,000 Eaton Corp., 5.597%, 5/11/1999 1,951,521
TOTAL COMMERCIAL PAPER 194,577,594
CORPORATE NOTES--5.3%
Finance - Automotive--2.7%
9,094,565 Ford Credit Auto Owner Trust 1998-C, Class A-2, 5.670%, 6/15/1999 9,094,565
3,308,881 MMCA Auto Owner Trust 1998-1, Class A-1, 5.621%, 8/16/1999 3,308,881
TOTAL 12,403,446
Finance - Commercial--1.1%
5,000,000 Beta Finance, Inc., 5.790%, 4/8/1999 4,999,825
Finance - Retail--1.0%
4,731,385 Greentree Recreational, Equipment & Consumer Trust 1998-C, Class A-1, 4,731,385
5.554%, 8/15/1999
Insurance--0.5%
683,520 ContiMortgage Home Equity Loan Trust 1998-2, Class A-1, (Guaranteed by MBIA Insurance Corporation), 683,520
5.649%, 6/15/1999
2,000,000 WFS Financial 1998-C Owner Trust, Class A1, (Guaranteed by FSA), 2,000,000
5.395%, 11/20/1999
TOTAL 2,683,520
TOTAL CORPORATE NOTES 24,818,176
LOAN PARTICIPATION--2.6%
Electrical Equipment--0.7%
3,100,000 Mt. Vernon Phenol Plant Partnership, (Guaranteed by General Electric Co.), 3,100,000
5.370%, 5/17/1999
Finance - Automotive--1.1%
5,000,000 General Motors Acceptance Corp., Mortgage of PA, (Guaranteed by General Motors Acceptance Corp.), 5,000,000
5.320%, 12/1/1998
Finance - Equipment--0.8%
4,000,000 Pitney Bowes Credit Corp., 5.324%, 12/10/1998 3,994,700
TOTAL LOAN PARTICIPATION 12,094,700
NOTES - VARIABLE--24.2%3
Banking--14.4%
$ 10,000,000 Bankers Trust Co., New York, 4.920%, 12/1/1998 $ 9,996,538
10,000,000 Barclays Bank PLC, London, 5.320%, 12/1/1998 10,000,000
665,000 Dave White Chevrolet, Inc., Series 1996, (Huntington National Bank, Columbus, OH LOC), 5.140%, 665,000
12/3/1998
25,000,000 2Liquid Asset Backed Securities Trust, Series 1996-3, (Westdeutsche Landesbank Girozentrale Swap 25,000,000
Agreement), 5.429%, 12/15/1998
11,852,138 2Rabobank Optional Redemption Trust, Series 1997-101, 5.343%, 2/15/1999 11,852,138
8,000,000 Societe Generale, Paris, 4.923%, 12/1/1998 7,996,347
1,525,000 White Brothers Properties, Series 1996, (Huntington National Bank, Columbus, OH LOC), 5.140%, 1,525,000
12/3/1998
TOTAL 67,035,023
Insurance--9.8%
10,000,000 General American Life Insurance Co., 5.250%, 12/21/1998 10,000,000
11,338,777 2Liquid Asset Backed Securities Trust, Series 1997-3 Senior Notes, (Guaranteed by AMBAC), 5.408%, 11,338,777
12/28/1998
24,000,000 Peoples Security Life Insurance Company, 5.660%, 12/1/1998 24,000,000
TOTAL 45,338,777
TOTAL NOTES - VARIABLE 112,373,800
REPURCHASE AGREEMENTS--22.1%4
35,000,000 ABN AMRO Chicago Corp., 5.500%, dated 11/30/1998, due 12/1/1998 35,000,000
10,000,000 J.P. Morgan & Co., Inc., 5.500%, dated 11/30/1998, due 12/1/1998 10,000,000
20,000,000 Nationsbanc Montgomery Securities, Inc., 5.500%, dated 11/30/1998, due 12/1/1998 20,000,000
32,700,000 Societe Generale, New York, 5.330%, dated 11/30/1998, due 12/1/1998 32,700,000
5,000,000 Warburg Dillon Reed LLC, 5.350%, dated 11/30/1998, due 12/1/1998 5,000,000
TOTAL REPURCHASE AGREEMENTS 102,700,000
TOTAL INVESTMENTS (AT AMORTIZED COST)5 $ 464,061,481
</TABLE>

1 Each issue shows the rate of discount at the time of purchase for discount
issues, or the coupon for interest bearing issues.

2 Denotes a restricted security which is subject to restrictions on resale
under Federal Securities laws. As of November 30, 1998, these securities
amounted to $48,190,915 which represents 10.4% of net assets.

3 Floating rate note with current rate and next reset date shown.

4 The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio. The
investments in the repurchase agreements are through participation in joint
accounts with other Federated funds.

5 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of net assets
($465,133,895) at November 30, 1998.

The following acronyms are used throughout this portfolio:

AMBAC--American Municipal Bond Assurance Corporation
FSA --Financial Security Assurance
LLC --Limited Liability Corporation
LOC --Letter of Credit
MBIA --Municipal Bond Investors Assurance
PLC --Public Limited Company

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

NOVEMBER 30, 1998

<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Investments in repurchase agreements $ 102,700,000
Investments in securities 361,361,481
Total investments in securities, at amortized cost and value $ 464,061,481
Income receivable 1,493,035
Receivable for shares sold 1,268,410
TOTAL ASSETS 466,822,926
Liabilities:
Payable to bank 24,559
Payable for shares redeemed 41,037
Income distribution payable 1,556,379
Accrued expenses 67,056
TOTAL LIABILITIES 1,689,031
Net Assets for 465,133,895 shares outstanding $ 465,133,895
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$465,133,895 / 465,133,895 shares outstanding $1.00
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Operations

YEAR ENDED NOVEMBER 30, 1998

<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C> <C>
Interest $ 29,786,581
Expenses:
Investment advisory fee $ 2,105,177
Administrative personnel and services fee 396,826
Custodian fees 45,299
Transfer and dividend disbursing agent fees and expenses 11,014
Directors'/Trustees' fees 12,684
Auditing fees 15,091
Legal fees 7,550
Portfolio accounting fees 95,264
Shareholder services fee 1,315,736
Share registration costs 30,176
Printing and postage 13,376
Insurance premiums 44,837
Miscellaneous 13,332
TOTAL EXPENSES 4,106,362
Waivers:
Waiver of investment advisory fee $ (655,273)
Waiver of shareholder services fee (1,052,589)
TOTAL WAIVERS (1,707,862)
Net expenses 2,398,500
Net investment income $ 27,388,081
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

<TABLE>
<CAPTION>
Year Ended November 30 1998 1997
Increase (Decrease) in Net Assets:
Operations:
<S> <C> <C>
Net investment income $ 27,388,081 $ 30,087,046
Distributions to Shareholders:
Distributions from net investment income (27,388,081) (30,087,046)
Share Transactions:
Proceeds from sale of shares 2,348,710,920 2,432,924,857
Net asset value of shares issued to shareholders in payment of distributions 6,627,670 7,298,023
declared
Cost of shares redeemed (2,384,603,857) (2,572,588,103)
Change in net assets resulting from share transactions (29,265,267) (132,365,223)
Change in net assets (29,265,267) (132,365,223)
Net Assets:
Beginning of period 494,399,162 626,764,385
End of period $ 465,133,895 $ 494,399,162
</TABLE>

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

NOVEMBER 30, 1998

Federated Master Trust (the "Fund") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as an open-end management investment
company. The investment objective of the Fund is current income consistent with
stability of principal.

SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.

Investment Valuations

The Fund uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.

Repurchase Agreements

It is the policy of the Fund to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System, or to have
segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been
established by the Fund to monitor, on a daily basis, the market value of each
repurchase agreement's collateral to ensure that the value of collateral at
least equals the repurchase price to be paid under the repurchase agreement
transaction.

The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Fund's adviser to be creditworthy pursuant to the guidelines and/ or
standards reviewed or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Fund could receive less than
the repurchase price on the sale of collateral securities.

Investment Income, Expenses and Distributions

Interest income and expenses are accrued daily. Bond premium and discount, if
applicable, are amortized as required by the Internal Revenue Code, as amended
(the "Code"). Distributions to shareholders are recorded on the ex-dividend
date.

Federal Taxes

It is the Fund's policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of its income. Accordingly, no provisions for federal tax are
necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund
records when-issued securities on the trade date and maintains security
positions such that sufficient liquid assets will be available to make payment
for the securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.

Restricted Securities

Restricted securities are securities that may only be resold upon registration
under federal securities laws or in transactions exempt from such registration.
Many restricted securities may be resold in the secondary market in transactions
exempt from registration. In some cases, the restricted securities may be resold
without registration upon exercise of a demand feature. Such restricted
securities may be determined to be liquid under criteria established by the
Trustees. The Fund will not incur any registration costs upon such resales.
Restricted securities are valued at amortized cost in accordance with Rule 2a-7
under the Act.

Additional information on each restricted security held at November 30, 1998 is
as follows:

<TABLE>
<CAPTION>
Security Acquisition Date Acquisition Cost
<S> <C> <C>
Liquid Asset Backed Securities Trust, Series 1996-3 8/15/1996 $25,000,000
Liquid Asset Backed Securities Trust, Series 1997-3 6/27/1997 11,852,138
Rabobank Optional Redemption Trust, Series 197-101 4/17/1997 11,338,777
</TABLE>

Use of Estimates

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.

Other
Investment transactions are accounted for on the trade date.

SHARES OF BENEFICIAL INTEREST

The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At
November 30, 1998, capital paid-in aggregated $465,133,895.

Transactions in shares were as follows:

<TABLE>
<CAPTION>
Year Ended November 30 1998 1997
<S> <C> <C>
Shares sold 2,348,710,920 2,432,924,857
Shares issued to shareholders in payment of distributions declared 6,627,670 7,298,023
Shares redeemed (2,384,603,857) (2,572,588,103)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS (29,265,267) (132,365,223)
</TABLE>

INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fee

Federated Research, the Fund's investment adviser (the "Adviser"), receives for
its services an annual investment advisory fee equal to 0.40% of the Fund's
average daily net assets. The Adviser will waive, to the extent of its advisory
fee, the amount, if any, by which the Fund's aggregate annual operating expenses
exceed 0.45% of average daily net assets of the Fund.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee
paid to FServ is based on the level of average aggregate daily net assets of all
funds advised by subsidiaries of Federated Investors, Inc. for the period. The
administrative fee received during the period of the Administrative Services
Agreement shall be at least $125,000 per portfolio and $30,000 per each
additional class of shares.

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund or the period. The fee paid to FSSC is used to finance
certain services for shareholders and to maintain shareholder accounts. FSSC may
voluntarily choose to waive any portion of its fee. FSSC can modify or terminate
this voluntary waiver at any time at its sole discretion.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing
agent for the Fund. The fee paid to FSSC is based on the size, type, and number
of accounts and transactions made by shareholders.

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund's average daily net assets for the period,
plus out-of-pocket expenses

Interfund Transactions

During the period ended November 30, 1998 the Fund engaged in purchase and sale
transactions with funds that have a common investment adviser (or affiliated
investment advisers), common Directors/Trustees, and/or common Officers. These
purchase and sale transactions were made at current market value pursuant to
Rule 17a-7 under the Act amounting to $127,805,997 and $32,750,498,
respectively.

General

Certain of the Officers and Trustees of the Fund are Officers and Directors or
Trustees of the above companies.

YEAR 2000 (UNAUDITED)

Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Adviser and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund. Independent
Auditors' Report

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF FEDERATED MASTER TRUST:

We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Federated Master Trust as of November 30, 1998,
and the related statement of operations for the year then ended, the statement
of changes in net assets for each of the years ended November 30, 1998 and 1997,
and the financial highlights for the years in the five-year period ended
November 30, 1998. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned as of
November 30, 1998, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Federated Master
Trust as of November 30, 1998, the results of its operations, the changes in its
net assets and its financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.

Deloitte & Touche LLP
Boston, Massachusetts
January 15, 1999

Federated Master Trust

A Portfolio of Money Market Obligations Trust

APRIL 28, 1999

A Statement of Additional Information (SAI) dated April 28, 1999 is incorporated
by reference into this prospectus. Additional information about the Fund's
investments is contained in the Fund's semi-annual report to shareholders as it
becomes available. To obtain the SAI, semi-annual report and other information
without charge, call your investment professional or the Fund at 1-800-341-7400.

You can obtain information about the Fund (including the SAI) by visiting or
writing the Public Reference Room of the Securities and Exchange Commission in
Washington, DC 20549-6009 or from the Commission's Internet site at
http://www.sec.gov. You can call 1-800-SEC-0330 for information on the Public
Reference Room's operations and copying charges.

[FEDERATED LOGO]

Federated Master Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com

Federated Securities Corp., Distributor

Investment Company Act File No. 811-5950

Cusip 60934N740 8010411A (4/99)

Federated is a registered mark
of Federated Investors, Inc. [RECYCLED PAPER LOGO]

Statement of Additional Information

FEDERATED MASTER TRUST

A Portfolio of Money Market Obligations Trust

This Statement of Additional Information (SAI) is not a prospectus. Read
this SAI in conjunction with the prospectus for Federated Master Trust (Fund)
dated April 28, 1999.

Obtain the prospectus without charge by calling 1-800-341-7400.

april 28, 1999

Contents
How is the Fund Organized?
Securities in Which the Fund Invests
How is the Fund Sold?
Subaccounting Services
Redemption in Kind
Massachusetts Partnership Law
Account and Share Information
Tax Information
Who Manages and Provides Services to the Fund?
How Does the Fund Measure Performance?
Who is Federated Investors, Inc.?
Addresses
Cusip 60934N740

8010411B (4/99)

<PAGE>

HOW IS THE FUND ORGANIZED?

The Fund is a diversified portfolio of Money Market Obligations Trust
(Trust). The Trust is an open-end, management investment company that was
established under the laws of the Commonwealth of Massachusetts on October 3,
1988. The Trust may offer separate series of shares representing interests in
separate portfolios of securities. The Fund, which was established on October
10, 1977, was reorganized as a portfolio of the Trust on April 30, 1999. The
Fund's investment adviser is Federated Investment Management Company.

SECURITIES IN WHICH THE FUND INVESTS

In pursuing its investment strategy, the Fund may invest in the following
securities for any purpose that is consistent with its investment objective.

SECURITIES DESCRIPTIONS AND TECHNIQUES

Fixed Income Securities
Fixed income securities pay interest, dividends or distributions at a specified
rate. The rate may be a fixed percentage of the principal or adjusted
periodically. In addition, the issuer of a fixed income security must repay the
principal amount of the security, normally within a specified time. Fixed income
securities provide more regular income than equity securities. However, the
returns on fixed income securities are limited and normally do not increase with
the issuer's earnings. This limits the potential appreciation of fixed income
securities as compared to equity securities.

A security's yield measures the annual income earned on a security as a
percentage of its price. A security's yield will increase or decrease depending
upon whether it costs less (a discount) or more (a premium) than the principal
amount. If the issuer may redeem the security before its scheduled maturity, the
price and yield on a discount or premium security may change based upon the
probability of an early redemption. Securities with higher risks generally have
higher yields.

The following describes the types of fixed income securities in which the Fund
invests.

Treasury Securities
Treasury securities are direct obligations of the federal government of the
United States. Investors regard treasury securities as having the lowest credit
risks.

Agency Securities
Agency securities are issued or guaranteed by a federal agency or other
government sponsored entity acting under federal authority (GSE). The United
States supports some GSEs with its full, faith and credit. Other GSEs receive
support through federal subsidies, loans or other benefits. A few GSEs have no
explicit financial support, but are regarded as having implied support because
the federal government sponsors their activities. Investors regard agency
securities as having low credit risks, but not as low as treasury securities.

Corporate Debt Securities
Corporate debt securities are fixed income securities issued by businesses.
Notes, bonds, debentures and commercial paper are the most prevalent types of
corporate debt securities. The Fund may also purchase interests in bank loans to
companies. The credit risks of corporate debt securities vary widely among
issuers.

Commercial Paper
Commercial paper is an issuer's obligation with a maturity of nine months or
less. Companies typically issue commercial paper to pay for current
expenditures. Most issuers constantly reissue their commercial paper and use the
proceeds (or bank loans) to repay maturing paper. If the issuer cannot continue
to obtain liquidity in this fashion, its commercial paper may default. The short
maturity of commercial paper reduces both the market and credit risks as
compared to other debt securities of the same issuer.

Demand Instruments
Demand instruments are corporate debt securities that the issuer must repay upon
demand. Other demand instruments require a third party, such as a dealer or
bank, to repurchase the security for its face value upon demand. The Fund treats
demand instruments as short-term securities, even though their stated maturity
may extend beyond one year.

Asset Backed Securities
Asset backed securities are payable from pools of obligations other than
mortgages. Most asset backed securities involve consumer or commercial debts
with maturities of less than ten years. However, almost any type of fixed income
assets (including other fixed income securities) may be used to create an asset
backed security. Asset backed securities may take the form of commercial paper,
notes, or pass through certificates. Asset backed securities may also resemble
some types of CMOs, such as Floaters, Inverse Floaters, IOs and POs.

Municipal Securities
Municipal securities are issued by states, counties, cities and other political
subdivisions and authorities. Although many municipal securities are exempt from
federal income tax, the Fund may invest in taxable municipal securities.

Mortgage Backed Securities
For purposes of repurchase agreements, the Fund treats mortgage backed
securities guaranteed by GSEs as agency securities. Mortgage backed securities
represent interests in pools of mortgages. The mortgages that comprise a pool
normally have similar interest rates, maturities and other terms. Mortgages may
have fixed or adjustable interest rates. Interests in pools of adjustable rate
mortgages are know as ARMs.

Mortgage backed securities come in a variety of forms. Many have extremely
complicated terms. The simplest form of mortgage backed securities are
pass-through certificates. An issuer of pass-through certificates gathers
monthly payments from an underlying pool of mortgages. Then, the issuer deducts
its fees and expenses and passes the balance of the payments onto the
certificate holders once a month. Holders of pass-through certificates receive a
pro rata share of all payments and pre-payments from the underlying mortgages.

Zero Coupon Securities
Zero coupon securities do not pay interest or principal until final maturity
unlike debt securities that provide periodic payments of interest (referred to
as a coupon payment). Investors buy zero coupon securities at a price below the
amount payable at maturity. The difference between the purchase price and the
amount paid at maturity represents interest on the zero coupon security. An
investor must wait until maturity to receive interest and principal, which
increases the market and credit risks of a zero coupon security.

There are many forms of zero coupon securities. Some are issued at a discount
and are referred to as zero coupon or capital appreciation bonds. Others are
created from interest bearing bonds by separating the right to receive the
bond's coupon payments from the right to receive the bond's principal due at
maturity, a process known as coupon stripping. Treasury STRIPs are the most
common forms of stripped U.S. Treasury zero coupon securities.

Bank Instruments

Bank instruments are unsecured interest bearing deposits with banks. Bank
instruments include bank accounts, time deposits, certificates of deposit and
banker's acceptances. Yankee instruments are denominated in U.S. dollars and
issued by U.S. branches of foreign banks.

Insurance Contracts
Insurance contracts include guaranteed investment contracts, funding agreements
and annuities. The Fund treats these contracts as fixed income securities.

Credit Enhancement
Credit enhancement consists of an arrangement in which a company agrees to pay
amounts due on a fixed income security after the issuer defaults. In some cases
the company providing credit enhancement makes all payments directly to the
security holders and receives reimbursement from the issuer. Normally, the
credit enhancer has greater financial resources and liquidity than the issuer.
For this reason, the Adviser may evaluate the credit risk of a fixed income
security based solely upon its credit enhancement.

Common types of credit enhancement include guarantees, letters of credit, bond
insurance and surety bonds. Credit enhancement also includes arrangements where
securities or other liquid assets secure payment of a fixed income security.
Following a default, these assets may be sold and the proceeds paid to
security's holders. Either form of credit enhancement reduces credit risks by
providing another source of payment for a fixed income security.

Foreign Securities
Foreign securities are securities of issuers based outside the United States.
The Fund considers an issuer to be based outside the United States if:

o it is organized under the laws of, or has a principal office located in,
another country;

o the principal trading market for its securities is in another country; or

o it (or its subsidiaries) derived in its most current fiscal year at least
50% of its total assets, capitalization, gross revenue or profit from goods
produced, services performed, or sales made in another country.

The Fund does not invest in foreign securities denominated in foreign
currencies. Along with the risks normally associated with domestic securities of
the same type, foreign securities are subject to risks of foreign investing.

Investing in Securities of Other Investment Companies
The Trust may invest its assets in securities of other investment companies as
an efficient means of carrying out its investment policies. It should be noted
that investment companies incur certain expenses, such as management fees, and,
therefore, any investment by the Trust in shares of other investment companies
may be subject to such duplicate expenses. At the present time, the Trust
expects that its investments in other investment companies will be limited to
shares of money market funds affiliated with the Trust's investment adviser.

Special Transactions

Repurchase Agreements
Repurchase agreements are transactions in which the Fund buys a security from a
dealer or bank and agrees to sell the security back at a mutually agreed upon
time and price. The repurchase price exceeds the sale price, reflecting the
Fund's return on the transaction. This return is unrelated to the interest rate
on the underlying security. The Fund will enter into repurchase agreements only
with banks and other recognized financial institutions, such as securities
dealers, deemed creditworthy by the Adviser.

The Fund's custodian or subcustodian will take possession of the securities
subject to repurchase agreements. The Adviser or subcustodian will monitor the
value of the underlying security each day to ensure that the value of the
security always equals or exceeds the repurchase price.

Repurchase agreements are subject to credit risks.

When Issued Transactions
When issued transactions are arrangements in which the Fund buys securities for
a set price, with payment and delivery of the securities scheduled for a future
time. During the period between purchase and settlement, no payment is made by
the Fund to the issuer and no interest accrues to the Fund. The Fund records the
transaction when it agrees to buy the securities and reflects their value in
determining the price of its shares. Settlement dates may be a month or more
after entering into these transactions so that the market values of the
securities bought may vary from the purchase prices. Therefore, when issued
transactions create market risks for the Fund. When issued transactions also
involve credit risks in the event of a counterparty default.

To Be Announced Securities (TBAs)
As with other when issued transactions, a seller agrees to issue a TBA security
at a future date. However, the seller does not specify the particular securities
to be delivered. Instead, the Fund agrees to accept any security that meets
specified terms. For example, in a TBA mortgage backed transaction, the Fund and
the seller would agree upon the issuer, interest rate and terms of the
underlying mortgages. However, the seller would not identify the specific
underlying mortgages until it issues the security. TBA mortgage backed
securities increase market risks because the underlying mortgages may be less
favorable than anticipated by the Fund.

Asset Coverage
In order to secure its obligations in connection with derivatives contracts or
special transactions, the Fund will either own the underlying assets, enter into
an offsetting transaction or set aside readily marketable securities with a
value that equals or exceeds the Fund's obligations. Unless the Fund has other
readily marketable assets to set aside, it cannot trade assets used to secure
such obligations entering into an offsetting derivative contract or terminating
a special transaction. This may cause the Fund to miss favorable trading
opportunities or to realize losses on derivative contracts or special
transactions.

Investment Ratings
An nationally recognized ratings service's highest rating category is
determined without regard for sub-categories and gradations. For example,
securities rated A-1 or A-1+ by Standard & Poor's Ratings Group ("S&P"), Prime-1
by Moody's Investors Service, Inc. ("Moody's"), D-1 or D-1+ by Duff & Phelps, or
F-1 (+or-) by Fitch IBCA ("Fitch") are all considered rated in the highest
short-term rating category. The Fund will follow applicable regulations in
determining whether a security rated by more than one nationally recognized
ratings service can be treated as being in the second highest short-term rating
category; currently, such securities must be rated by two nationally recognized
ratings services two highest rating categories. See "Regulatory Compliance."

INVESTMENT RISKS
There are many factors which may affect an investment in the Fund. The Fund's
principal risks are described in its prospectus. Additional risk factors are
outlined below.

Credit Risks
Credit risk is the possibility that an issuer will default on a security by
failing to pay interest or principal when due. If an issuer defaults, the Fund
will lose money.

Credit risk includes the possibility that a party to a transaction involving the
Fund will fail to meet its obligations. This could cause the Fund to lose the
benefit of the transaction or prevent the Fund from selling or buying other
securities to implement its investment strategy.

Liquidity Risks
Trading opportunities are more limited for fixed income securities that have not
received any credit ratings, have received ratings below investment grade or are
not widely held. These features may make it more difficult to sell or buy a
security at a favorable price or time. Consequently, the Fund may have to accept
a lower price to sell a security, sell other securities to raise cash or give up
an investment opportunity, any of which could have a negative effect on the
Fund's performance. Infrequent trading may also lead to greater price
volatility.

Risks of Foreign Investing
Foreign securities pose additional risks because foreign economic or political
conditions may be less favorable that those of the United States. Foreign
financial markets may also have fewer investor protections. Securities in
foreign markets may also be subject to taxation policies that reduce returns for
U.S. investors.

Due to these risk factors, foreign securities may be more volatile and less
liquid than similar securities traded in the U.S.

INVESTMENT LIMITATIONS

Selling Short and Buying on Margin
The Fund will not sell any securities short or purchase any securities on
margin, but it may obtain such short-term credits as may be necessary for
clearance of purchase and sales of securities. The Fund may purchase and dispose
of U.S. Government securities before the issuance thereof. The Fund may also
purchase U.S. Government securities on a delayed delivery basis. The settlement
dates of these transactions shall be determined by the mutual agreement of the
parties.

Issuing Senior Securities and Borrowing Money
The Fund will not borrow money, except as a temporary measure for extraordinary
or emergency purposes, and then (a) only in amounts not in excess of 5% of the
value of its total assets or (b) in an amount up to one-third of the value of
its total assets, including the amount borrowed, in order to meet redemption
requests without immediately selling any portfolio securities (any such
borrowings under this section will not be collateralized).

Lending Cash or Securities
The Fund will not make loans to other persons; provided, however, that the
purchase or holding of money market instruments, to include repurchase
agreements and variable amount demand master notes, in accordance with the
Fund's investment objective and policies, shall not constitute the making of a
loan.

Investing in Commodities
The Fund will not invest in commodities or commodity contracts.

Investing in Real Estate
The Fund will not invest in real estate, except that the Fund may purchase money
market instruments issued by companies which invest in real estate or interests
therein.

Underwriting
The Fund will not engage in underwriting of securities issued by others.

Diversification of Investments
With respect to securities comprising 75% of the value of its total assets, the
Fund will not purchase securities of any one issuer (other than cash, cash
items, securities issued or guaranteed by the government of the United States or
its agencies or instrumentalities and repurchase agreements collateralized by
such U.S. government securities, and securities of other investment companies)
if as a result more than 5% of the value of its total assets would be invested
in the securities of that issuer, or it would own more than 10% of the
outstanding voting securities of that issuer.

The above limitations cannot be changed unless authorized by the "vote of a
majority of its outstanding voting securities" as defined by the Investment
Company Act. The following investment limitations, however, may be changed by
the Board without shareholder approval. Shareholders will be notified before any
material change in these limitations becomes effective.

Concentration of Investments
The Fund will not invest 25% or more of its total assets in any one industry.
However, investing in U.S. government securities and domestic bank instruments
shall not be considered investments in any one industry.

Pledging Assets
The Fund will not mortgage, pledge or hypothecate assets except as necessary to
secure permitted borrowings. In those cases, it may pledge assets having a
market value not exceeding the lesser of the dollar amounts borrowed or 10% of
the value of the total assets at the time of the pledge.

Investing for Control
The Fund will not invest in securities of a company for the purpose of
exercising control or management.

Investing in Illiquid Securities
The Fund will not invest more than 10% of the value of its net assets in
illiquid securities including certain restricted securities not determined to be
liquid under criteria established by the Trustees, non-negotiable time deposits,
and repurchase agreements providing for settlement in more than seven days after
notice.

Investing in Options
The Fund will not invest in puts, calls, straddles, spreads, or any combination
of them.

For purposes of the above limitations, the Fund considers certificates of
deposit and demand and time deposits issued by a U.S. branch of a domestic bank
or savings association having capital, surplus, and undivided profits in excess
of $100,000,000 at the time of investment to be "cash items." Except with
respect to borrowing money, if a percentage limitation is adhered to at the time
of investment, a later increase or decrease in percentage resulting from any
change in value or net assets will not result in a violation of such limitation.

Regulatory Compliance
The Fund may follow non-fundamental operational policies that are more
restrictive than its fundamental investment limitations, as set forth in the
prospectus and this Statement of Additional Information, in order to comply with
applicable laws and regulations, including the provisions of and regulations
under the Investment Company Act of 1940. In particular, the Fund will comply
with the various requirements of Rule 2a-7 (the "Rule"), which regulates money
market mutual funds. The Fund will also determine the effective maturity of its
investments, as well as its ability to consider a security as having received
the requisite short-term ratings by nationally recognized rating services,
according to the Rule. The Fund may change these operational policies to reflect
changes in the laws and regulations without the approval of its
shareholders.

DETERMINING MARKET VALUE OF SECURITIES
The Trustees have decided that the best method for determining the value of
portfolio instruments is amortized cost. Under this method, portfolio
instruments are valued at the acquisition cost as adjusted for amortization of
premium or accumulation of discount rather than at current market value.
Accordingly, neither the amount of daily income nor the net asset value is
affected by any unrealized appreciation or depreciation of the portfolio. In
periods of declining interest rates, the indicated daily yield on shares of the
Fund computed by dividing the annualized daily income on the Fund's portfolio by
the net asset value computed as above may tend to be higher than a similar
computation made by using a method of valuation based upon market prices and
estimates. In periods of rising interest rates, the opposite may be true.

The Fund's use of the amortized cost method of valuing portfolio instruments
depends on its compliance with certain conditions in the Rule. Under the Rule,
the Trustees must establish procedures reasonably designed to stabilize the net
asset value per share, as computed for purposes of distribution and redemption,
at $1.00 per share, taking into account current market conditions and the Fund's
investment objective. The procedures include monitoring the relationship between
the amortized cost value per share and the net asset value per share based upon
available indications of market value. The Trustees will decide what, if any,
steps should be taken if there is a difference of more than 0.5 of 1% between
the two values. The Trustees will take any steps they consider appropriate (such
as redemption in kind or shortening the average portfolio maturity) to minimize
any material dilution or other unfair results arising from differences between
the two methods of determining net asset value.

Trading in Foreign Securities
Trading in foreign securities may be completed at times which vary from the
closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund
values foreign securities at the latest closing price on the exchange on which
they are traded immediately prior to the closing of the NYSE. Certain foreign
currency exchange rates may also be determined at the latest rate prior to the
closing of the NYSE. Foreign securities quoted in foreign currencies are
translated into U.S. dollars at current rates. Occasionally, events that affect
these values and exchange rates may occur between the times at which they are
determined and the closing of the NYSE. If such events materially affect the
value of portfolio securities, these securities may be valued at their fair
value as determined in good faith by the Fund's Board, although the actual
calculation may be done by others.

HOW IS THE FUND SOLD?

Under the Distributor's Contract with the Fund, the Distributor (Federated
Securities Corp.) offers Shares on a continuous, best-efforts basis.

SHAREHOLDER SERVICES
The Fund may pay Federated Shareholder Services Company, a subsidiary of
Federated Investors, Inc.(Federated) for providing shareholder services and
maintaining shareholder accounts. Federated Shareholder Services Company may
select others to perform these services for their customers and may pay them
fees.

Supplemental Payments
Investment professionals may be paid fees out of the assets of the Distributor
and/or Federated Shareholder Services Company (but not out of Fund assets). The
Distributor and/or Federated Shareholder Services Company may be reimbursed by
the Adviser or its affiliates.

Investment professionals receive such fees for providing distribution-related or
shareholder services such as sponsoring sales, providing sales literature,
conducting training seminars for employees, and engineering sales-related
computer software programs and systems. Also, investment professionals may be
paid cash or promotional incentives, such as reimbursement of certain expenses
relating to attendance at informational meetings about the Fund or other special
events at recreational-type facilities, or items of material value. These
payments will be based upon the amount of Shares the investment professional
sells or may sell and/or upon the type and nature of sales or marketing support
furnished by the investment professional.

SUBACCOUNTING SERVICES

Certain investment professionals may wish to use the transfer agent's
subaccounting system to minimize their internal recordkeeping requirements. The
transfer agent may charge a fee based on the level of subaccounting services
rendered. Investment professionals holding Shares in a fiduciary, agency,
custodial, or similar capacity may charge or pass through subaccounting fees as
part of or in addition to normal trust or agency account fees. They may also
charge fees for other services that may be related to the ownership of Shares.
This information should, therefore, be read together with any agreement between
the customer and the investment professional about the services provided, the
fees charged for those services, and any restrictions and limitations imposed.

REDEMPTION IN KIND

Although the Fund intends to pay Share redemptions in cash, it reserves the
right, as described below, to pay the redemption price in whole or in part by a
distribution of the Fund's portfolio securities.

Because the Fund has elected to be governed by Rule 18f-1 under the Investment
Company Act of 1940, the Fund is obligated to pay Share redemptions to any one
shareholder in cash only up to the lesser of $250,000 or 1% of the net assets
represented by such Share class during any 90-day period.

Any Share redemption payment greater than this amount will also be in cash
unless the Fund's Board determines that payment should be in kind. In such a
case, the Fund will pay all or a portion of the remainder of the redemption in
portfolio securities, valued in the same way as the Fund determines its NAV. The
portfolio securities will be selected in a manner that the Fund's Board deems
fair and equitable and, to the extent available, such securities will be readily
marketable. Redemption in kind is not as liquid as a cash redemption. If
redemption is made in kind, shareholders receiving the portfolio securities and
selling them before their maturity could receive less than the redemption value
of the securities and could incur certain transaction costs.

MASSACHUSETTS PARTNERSHIP LAW

Under certain circumstances, shareholders may be held personally liable as
partners under Massachusetts law for obligations of the Fund. To protect its
shareholders, the Fund has filed legal documents with Massachusetts that
expressly disclaim the liability of its shareholders for acts or obligations of
the Fund.

In the unlikely event a shareholder is held personally liable for the Fund's
obligations, the Fund is required by the Declaration of Trust to use its
property to protect or compensate the shareholder. On request, the Fund will
defend any claim made and pay any judgment against a shareholder for any act or
obligation of the Fund. Therefore, financial loss resulting from liability as a
shareholder will occur only if the Fund itself cannot meet its obligations to
indemnify shareholders and pay judgments against them.

ACCOUNT AND SHARE INFORMATION

VOTING RIGHTS
Each share of the Fund gives the shareholder one vote in Trustee elections and
other matters submitted to shareholders for vote. All Shares of the Fund have
equal voting rights.

Trustees may be removed by the Board or by shareholders at a special meeting. A
special meeting of shareholders will be called by the Board upon the written
request of shareholders who own at least 10% of the Fund's outstanding shares of
all series entitled to vote.

As of April 6, 1999, the following shareholders owned of record,
beneficially, or both, 5% or more of outstanding Shares: Saxon & Co., Lester,
PA, owned approximately 104,641,883 shares (24.08%); Bost & Co., Pittsburgh, PA,
owned approximately 29,899,840 shares (6.88%); and Trust Company of Washington,
Seattle, WA, owned approximately 29,612,945 shares (6.81%).

TAX INFORMATION

WHO MANAGES AND PROVIDES SERVICES TO THE FUND?

BOARD OF TRUSTEES
The Board is responsible for managing the Trust's business affairs and for
exercising all the Trust's powers except those reserved for the shareholders.
Information about each Board member is provided below and includes each
person's: name, address, birth date, present position(s) held with the Trust,
principal occupations for the past five years and positions held prior to the
past five years, total compensation received as a Trustee from the Trust for its
most recent fiscal year, and the total compensation received from the Federated
Fund Complex for the most recent calendar year. The Trust is comprised of 13
funds and the Federated Fund Complex is comprised of 56 investment companies,
whose investment advisers are affiliated with the Trust's Adviser.

As of April 6, 1999, the Fund's Board and Officers as a group owned less than
1% of the Fund's outstanding shares. An asterisk (*) denotes a Trustee who is
deemed to be an interested person as defined in the Investment Company Act of
1940. The following symbol (#) denotes a Member of the Board's Executive
Committee, which handles the Board's responsibilities between its meetings.

<PAGE>

Name Total
Birth Date Aggregate Compensation From
Address Principal Occupations Compensation Trust and Fund
Position With Trust for Past Five Years From Trust Complex
John F. Donahue*+ Chief Executive Officer and Director or Trustee of $0 $0 for the
Birth Date: July 28, 1924 the Federated Fund Complex; Chairman and Director, Trust and
Federated Investors Tower Federated Investors, Inc.; Chairman and Trustee, 54 other investment
1001 Liberty Avenue Federated Investment Management Company; Chairman and companies
Pittsburgh, PA Director, Federated Investment Counseling, and in the Fund Complex
CHAIRMAN AND TRUSTEE Federated Global Investment Management Corp.;
Chairman, Passport Research, Ltd.
Thomas G. Bigley Director or Trustee of the Federated Fund Complex; $18,351 $113,860.22 for the
Birth Date: February 3, 1934 Director, Member of Executive Committee, Children's Trust and 54 other
15 Old Timber Trail Hospital of Pittsburgh; formerly: Senior Partner, investment
Pittsburgh, PA Ernst & Young LLP; Director, MED 3000 Group, Inc.; companies
TRUSTEE Director, Member of Executive Committee, University in the Fund Complex
of Pittsburgh.

John T. Conroy, Jr. Director or Trustee of the Federated Fund Complex; $20,189 $125,264.48 for the
Birth Date: June 23, 1937 President, Investment Properties Corporation; Senior Trust and 54 other
Wood/IPC Commercial Dept. Vice President, John R. Wood and Associates, Inc., investment
John R. Wood Associates, Inc. Realtors; Partner or Trustee in private real estate companies
Realtors ventures in Southwest Florida; formerly: President, in the Fund Complex
3255 Tamiami Trial North Naples Property Management, Inc. and Northgate
Naples, FL Village Development Corporation.
TRUSTEE

John F. Cunningham++ Director or Trustee of some of the Federated Funds; $0 $0 for the Trust
Birth Date: March 5, 1943 Chairman, President and Chief Executive Officer, and 26 other
353 El Brillo Way Cunningham & Co., Inc. ; Trustee Associate, Boston investment
Palm Beach, FL College; Director, EMC Corporation; formerly: companies in the
TRUSTEE Director, Redgate Communications. Fund Complex

Retired: Chairman of the Board and Chief Executive
Officer, Computer Consoles, Inc., President and Chief
Operating Officer, Wang Laboratories; Director, First
National Bank of Boston; Director, Apollo Computer,
Inc.

Lawrence D. Ellis, M.D.* Director or Trustee of the Federated Fund Complex; $18,351 $113,860.22 for the
Birth Date: October 11, 1932 Professor of Medicine, University of Pittsburgh; Trust and 54 other
3471 Fifth Avenue Medical Director, University of Pittsburgh Medical investment
Suite 1111 Center - Downtown; Hematologist, Oncologist, and companies
Pittsburgh, PA Internist, University of Pittsburgh Medical Center; in the Fund Complex
TRUSTEE Member, National Board of Trustees, Leukemia Society
of America.

Peter E. Madden Director or Trustee of the Federated Fund Complex; $18,351 $113,860.22 for the
Birth Date: March 16, 1942 formerly: Representative, Commonwealth of Trust and 54 other
One Royal Palm Way Massachusetts General Court; President, State Street investment
100 Royal Palm Way Bank and Trust Company and State Street Corporation. companies
Palm Beach, FL in the Fund Complex
TRUSTEE Retired: Director, VISA USA and VISA International;
Chairman and Director, Massachusetts Bankers
Association; Director, Depository Trust Corporation.

Charles F. Mansfield, Jr.++ Director or Trustee of some of the Federated Funds; $0 $0 for the Trust
Birth Date: April 10, 1945 Management Consultant. and 26 other
80 South Road investment
Westhampton Beach, NY TRUSTEE Retired: Chief Executive Officer, PBTC International companies in the
Bank; Chief Financial Officer of Retail Banking Fund Complex
Sector, Chase Manhattan Bank; Senior Vice President,
Marine Midland Bank; Vice President, Citibank;
Assistant Professor of Banking and Finance, Frank G.
Zarb School of Business, Hofstra University.

John E. Murray, Jr., J.D., Director or Trustee of the Federated Fund Complex; $18,351 $113,860.22 for the
S.J.D. President, Law Professor, Duquesne University; Trust and 54 other
Birth Date: December 20, 1932 Consulting Partner, Mollica & Murray. investment
President, Duquesne University companies
Pittsburgh, PA Retired: Dean and Professor of Law, University of in the Fund Complex
TRUSTEE Pittsburgh School of Law; Dean and Professor of Law,
Villanova University School of Law.

Marjorie P. Smuts Director or Trustee of the Federated Fund Complex; $18,351 $113,860.22 for the
Birth Date: June 21, 1935 Public Relations/Marketing/Conference Planning. Trust and 54 other
4905 Bayard Street investment
Pittsburgh, PA Retired: National Spokesperson, Aluminum Company of companies in the
TRUSTEE America; business owner. Fund Complex

John S. Walsh++ Director or Trustee of some of the Federated Funds; $0 $0 for the Trust
Birth Date: November 28, 1957 President and Director, Heat Wagon, Inc.; President and 23 other
2007 Sherwood Drive and Director, Manufacturers Products, Inc.; investment
Valparaiso, IN President, Portable Heater Parts, a division of companies in the
TRUSTEE Manufacturers Products, Inc.; Director, Walsh & Fund Complex
Kelly, Inc.; formerly, Vice President, Walsh & Kelly,
Inc.

J. Christopher Donahue+ President or Executive Vice President of the $0 $0 for the Trust
Birth Date: April 11, 1949 Federated Fund Complex; Director or Trustee of some and 16 other
Federated Investors Tower of the Funds in the Federated Fund Complex; President investment
1001 Liberty Avenue and Director, Federated Investors, Inc.; President companies in the
Pittsburgh, PA and Trustee, Federated Investment Management Company; Fund Complex
PRESIDENT President and Director, Federated Investment
Counseling and Federated Global Investment
Management Corp.; President, Passport
Research, Ltd.; Trustee, Federated
Shareholder Services Company; Director,
Federated Services Company.

<PAGE>

Edward C. Gonzales $0 $0 for the Trust and
Birth Date: October 22, 1930 Trustee or Director of some of the Funds in the 1 other investment
Federated Investors Tower Federated Fund Complex; President, Executive Vice companies in the
1001 Liberty Avenue President and Treasurer of some of the Funds in the Fund Complex
Pittsburgh, PA Federated Fund Complex; Vice Chairman, Federated
EXECUTIVE VICE PRESIDENT Investors, Inc.; Vice President, Federated Investment
Management Company, Federated Investment Counseling,
Federated Global Investment Management Corp. and
Passport Research, Ltd.; Executive Vice President and
Director, Federated Securities Corp.; Trustee,
Federated Shareholder Services Company

John W. McGonigle Executive Vice President and Secretary of the $0 $0 for the Trust
Birth Date: October 26, 1938 Federated Fund Complex; Executive Vice President, and 54 other
Federated Investors Tower Secretary, and Director, Federated Investors, Inc.; investment
1001 Liberty Avenue Trustee, Federated Investment Management Company; companies in the
Pittsburgh, PA Director, Federated Investment Counseling and Fund Complex
EXECUTIVE VICE PRESIDENT AND Federated Global Investment Management Corp.;
SECRETARY Director, Federated Services Company; Director,
Federated Securities Corp
Richard J. Thomas Treasurer of the Federated Fund Complex; Vice $0 $0 for the Trust
Birth Date: June 17, 1954 President - Funds Financial Services Division, and 54 other
Federated Investors Tower Federated Investors, Inc.; Formerly: various investment
1001 Liberty Avenue management positions within Funds Financial Services companies in the
Pittsburgh, PA Division of Federated Investors, Inc. Fund Complex
TREASURER

William D. Dawson, III Chief Investment Officer of this Fund and various $0 $0 for the Trust
Birth Date: March 3, 1949 other Funds in the Federated Fund Complex; Executive and 41 other
Federated Investors Tower Vice President, Federated Investment Counseling, investment
1001 Liberty Avenue Federated Global Investment Management Corp., companies in the
Pittsburgh, PA Federated Investment Management Company and Passport Fund Complex
CHIEF INVESTMENT OFFICER Research, Ltd.; Registered Representative, Federated
Securities Corp.; Portfolio Manager,
Federated Administrative Services; Vice
President, Federated Investors, Inc.;
formerly: Executive Vice President and Senior
Vice President, Federated Investment
Counseling Institutional Portfolio Management
Services Division; Senior Vice President,
Federated Investment Management Company and
Passport Research, Ltd.

Richard B. Fisher President or Vice President of some of the Funds in $0 $0 for the Trust
Birth Date: May 17, 1923 the Federated Fund Complex; Director or Trustee of and 6 other
Federated Investors Tower some of the Funds in the Federated Fund Complex; investment
1001 Liberty Avenue Executive Vice President, Federated Investors, Inc.; companies in the
Pittsburgh, PA Chairman and Director, Federated Securities Corp. Fund Complex
VICE PRESIDENT

Deborah A. Cunningham Deborah A. Cunningham is Vice President of the Trust. $0 $0 for the Trust
Birth Date: September 15, Ms. Cunningham joined Federated Investors in 1981 and 6 other
1959 and has been a Senior Portfolio Manager and a Senior investment
Federated Investors Tower Vice President of the Fund's investment adviser since companies in the
1001 Liberty Avenue 1997. Ms. Cunningham served as a Portfolio Manager Fund Complex
Pittsburgh, PA and a Vice President of the investment adviser from
VICE PRESIDENT 1993 until 1996. Ms. Cunningham is a Chartered
Financial Analyst and received her M.S.B.A. in
Finance from Robert Morris College.

Mary Jo Ochson Mary Jo Ochson is Vice President of the Trust. Ms. $0 $0 for the Trust
Birth Date: September 12, Ochson joined Federated Investors in 1982 and has and 7 other
1953 been a Senior Portfolio Manager and a Senior Vice investment
Federated Investors Tower President of the Fund's investment adviser since companies in the
1001 Liberty Avenue 1996. From 1988 through 1995, Ms. Ochson served as a Fund Complex
Pittsburgh, PA Portfolio Manager and a Vice President of the Fund's
VICE PRESIDENT investment adviser. Ms. Ochson is a Chartered
Financial Analyst and received her M.B.A. in Finance
from the University of Pittsburgh.

Susan R. Hill Susan R. Hill is Vice President of the Trust. Ms. $0 $0 for the Trust
Birth Date: June 20, 1963 Hill joined Federated Investors in 1990 and has been and 9 other
Federated Investors Tower a Portfolio Manager since 1993 and a Vice President investment
1001 Liberty Avenue of the Fund's investment adviser since 1997. Ms. companies in the
Pittsburgh, PA Hill was a Portfolio Manager and an Assistant Vice Fund Complex
VICE PRESIDENT President of the investment adviser from 1994 until
1997. Ms. Hill is a Chartered Financial Analyst and
received an M.S. in Industrial Administration from
Carnegie Mellon University.
</TABLE>

+Mr. Donahue is the father of J. Christopher Donahue, President of the Trust.

++Messrs. Cunningham , Mansfield, and Walsh became members of the Board of
Trustees on January 1, 1999. They did not earn any fees for serving the Fund
Complex since these fees are reported as of the end of the last calendar year.
They did not receive any fees as of the fiscal year end of the Trust.

<PAGE>

INVESTMENT ADVISER
The Adviser conducts investment research and makes investment decisions for the
Fund.

The Adviser is a wholly owned subsidiary of Federated.

The Adviser shall not be liable to the Fund or any Fund shareholder for any
losses that may be sustained in the purchase, holding, or sale of any security
or for anything done or omitted by it, except acts or omissions involving
willful misfeasance, bad faith, gross negligence, or reckless disregard of the
duties imposed upon it by its contract with the Fund.

The adviser must waive the portion of its advisory fee that increases the Fund's
aggregate annual operating expenses above 0.45% of its average daily net assets.
The Fund's operating expenses include the advisory fee but exclude interest,
taxes, brokerage commissions, expenses of registering the Fund and its shares
under federal and state laws, expenses of withholding taxes, and extraordinary
expenses.

Other Related Services
Affiliates of the Adviser may, from time to time, provide certain electronic
equipment and software to institutional customers in order to facilitate the
purchase of Fund Shares offered by the Distributor.

BROKERAGE TRANSACTIONS
When selecting brokers and dealers to handle the purchase and sale of portfolio
instruments, the Adviser looks for prompt execution of the order at a favorable
price. The Adviser will generally use those who are recognized dealers in
specific portfolio instruments, except when a better price and execution of the
order can be obtained elsewhere. In selecting among firms believed to meet these
criteria, the Adviser may give consideration to those firms which have sold or
are selling Shares of the Fund and other funds distributed by the Distributor
and its affiliates. The Adviser makes decisions on portfolio transactions and
selects brokers and dealers subject to review by the Fund's Board.

ADMINISTRATOR
Federated Services Company, a subsidiary of Federated, provides administrative
personnel and services (including certain legal and financial reporting
services) necessary to operate the Fund. Federated Services Company provides
these at the following annual rate of the average aggregate daily net assets of
all Federated Funds as specified below:

Maximum Administrative Fee Average Aggregate Daily Net Assets of the
Federated Funds
0.150 of 1% on the first $250 million
0.125 of 1% on the next $250 million
0.100 of 1% on the next $250 million
0.075 of 1% on assets in excess of $750 million
The administrative fee received during any fiscal year shall be at least
$125,000 per portfolio and $30,000 per each additional class of Shares.
Federated Services Company may voluntarily waive a portion of its fee and may
reimburse the Fund for expenses.

Federated Services Company also provides certain accounting and recordkeeping
services with respect to the Fund's portfolio investments for a fee based on
Fund assets, plus out-of-pocket expenses.

CUSTODIAN
State Street Bank and Trust Company, Boston, Massachusetts, is custodian for the
securities and cash of the Fund. Foreign instruments purchased by the Fund are
held by foreign banks participating in a network coordinated by State Street
Bank.

TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
Federated Services Company, through its registered transfer agent subsidiary,
Federated Shareholder Services Company, maintains all necessary shareholder
records. The Fund pays the transfer agent a fee based on the size, type, and
number of accounts and transactions made by shareholders.

INDEPENDENT PUBLIC ACCOUNTANTS
Deloitte & Touche LLP is the independent public accountant for the Fund.

<PAGE>

fees paid by the fund for services
For the Year ended
November 30 1998 1997 1996
Advisory Fee Earned $2,105,177 $2,332,976 $2,804,812
Advisory Fee Reduction $655,273 $715,043 $876,351
Administrative Fee $396,826 $440,349 $530,087
Shareholder Services Fee $263,147
If the Fund's expenses are capped at a particular level, the cap does not
include reimbursement to the Fund of any expenses incurred by Shareholders who
use the transfer agent's subaccounting facilities.

or the fiscal years ended November 30, 1998, 1997 and 1996, fees paid by the
Fund for services are prior to the fund's reorganization as a portfolio of the
Trust on April 30, 1999.

HOW DOES THE FUND MEASURE PERFORMANCE?

The Fund may advertise Share performance by using the Securities and Exchange
Commission's (SEC) standard method for calculating performance applicable to all
mutual funds. The SEC also permits this standard performance information to be
accompanied by non-standard performance information.

Unless otherwise stated, any quoted Share performance reflects the effect of
non-recurring charges, such as maximum sales charges, which, if excluded, would
increase the total return and yield. The performance of Shares depends upon such
variables as: portfolio quality; average portfolio maturity; type and value of
portfolio securities; changes in interest rates; changes or differences in the
Fund's or any class of Shares' expenses; and various other factors.

Share performance fluctuates on a daily basis largely because net earnings
fluctuate daily. Both net earnings and offering price per Share are factors in
the computation of yield and total return.

Average Annual Total Returns and Yield
Total returns given for the one-, five- and ten-year periods ended November 30,
1998.

Yield and Effective Yield given for the 7-day period ended November 30, 1998.

Performance of the Fund shown is prior to its reorganization as a
portfolio of the Trust on April 30, 1999.

7-Day Period 1 Year 5 Years 10 Years

Total Return N/A 5.33% 5.06% 5.54%
Yield 4.93%
Effective Yield 5.05%

TOTAL RETURN
Total return represents the change (expressed as a percentage) in the value of
Shares over a specific period of time, and includes the investment of income and
capital gains distributions.

The average annual total return for Shares is the average compounded rate of
return for a given period that would equate a $1,000 initial investment to the
ending redeemable value of that investment. The ending redeemable value is
computed by multiplying the number of Shares owned at the end of the period by
the NAV per Share at the end of the period. The number of Shares owned at the
end of the period is based on the number of Shares purchased at the beginning of
the period with $1,000, less any applicable sales charge, adjusted over the
period by any additional Shares, assuming the annual reinvestment of all
dividends and distributions.

yIELD
The yield of Shares is based upon the seven days ending on the day of the
calculation, called the "base period." This yield is calculated by: determining
the net change in the value of a hypothetical account with a balance of one
Share at the beginning of the base period, with the net change excluding capital
changes but including the value of any additional Shares purchased with
dividends earned from the original one Share and all dividends declared on the
original and any purchased Shares; dividing the net change in the account's
value by the value of the account at the beginning of the base period to
determine the base period return; and multiplying the base period return by
365/7. The effective yield is calculated by compounding the unannualized
base-period return by: adding one to the base-period return, raising the sum to
the 365/7th power: and subtracting one from the result.

To the extent investment professionals and broker/dealers charge fees in
connection with services provided in conjunction with an investment in Shares,
the Share performance is lower for shareholders paying those fees.

PERFORMANCE COMPARISONS
Advertising and sales literature may include:

o references to ratings, rankings, and financial publications and/or
performance comparisons of Shares to certain indices;

o charts, graphs and illustrations using the Fund's returns, or returns in
general, that demonstrate investment concepts such as tax-deferred
compounding, dollar-cost averaging and systematic investment;

o discussions of economic, financial and political developments and their
impact on the securities market, including the portfolio manager's views on
how such developments could impact the Funds; and

o information about the mutual fund industry from sources such as the Investment
Company Institute.

The Fund may compare its performance, or performance for the types of securities
in which it invests, to a variety of other investments, including federally
insured bank products such as bank savings accounts, certificates of deposit,
and Treasury bills.

The Fund may quote information from reliable sources regarding individual
countries and regions, world stock exchanges, and economic and demographic
statistics.

You may use financial publications and/or indices to obtain a more complete view
of Share performance. When comparing performance, you should consider all
relevant factors such as the composition of the index used, prevailing market
conditions, portfolio compositions of other funds, and methods used to value
portfolio securities and compute offering price. The financial publications
and/or indices which the Fund uses in advertising may include:

Lipper Analytical Services, Inc. ranks funds in various fund categories
based on total return, which assumes the reinvestment of all income dividends
and capital gains distributions, if any.

IBC/Donoghue's Money Fund Report publishes annualized yields of money market
funds weekly. Donoghue's Money Market Insight publication reports monthly and
12-month-to-date investment results for the same money funds.

Money, a monthly magazine, regularly ranks money market funds in various
categories based on the latest available seven-day effective yield.

WHO IS FEDERATED INVESTORS, INC.?

Federated is dedicated to meeting investor needs by making structured,
straightforward and consistent investment decisions. Federated investment
products have a history of competitive performance and have gained the
confidence of thousands of financial institutions and individual investors.

Federated's disciplined investment selection process is rooted in sound
methodologies backed by fundamental and technical research. At Federated,
success in investment management does not depend solely on the skill of a single
portfolio manager. It is a fusion of individual talents and state-of-the-art
industry tools and resources. Federated's investment process involves teams of
portfolio managers and analysts, and investment decisions are executed by
traders who are dedicated to specific market sectors and who handle trillions of
dollars in annual trading volume.

federated funds overview

Municipal Funds
In the municipal sector, as of December 31, 1998, Federated managed 10 bond
funds with approximately $2.2 billion in assets and 23 money market funds with
approximately $12.5 billion in total assets. In 1976, Federated introduced one
of the first municipal bond mutual funds in the industry and is now one of the
largest institutional buyers of municipal securities. The Funds may quote
statistics from organizations including The Tax Foundation and the National
Taxpayers Union regarding the tax obligations of Americans.

Equity Funds
In the equity sector, Federated has more than 28 years' experience. As of
December 31, 1998, Federated managed 27 equity funds totaling approximately
$14.9 billion in assets across growth, value, equity income, international,
index and sector (i.e. utility) styles. Federated's value-oriented management
style combines quantitative and qualitative analysis and features a structured,
computer-assisted composite modeling system that was developed in the 1970s.

Corporate Bond Funds
In the corporate bond sector, as of December 31, 1998, Federated managed 9 money
market funds and 15 bond funds with assets approximating $22.8 billion and $7.1
billion, respectively. Federated's corporate bond decision making--based on
intensive, diligent credit analysis--is backed by over 26 years of experience in
the corporate bond sector. In 1972, Federated introduced one of the first
high-yield bond funds in the industry. In 1983, Federated was one of the first
fund managers to participate in the asset-backed securities market, a market
totaling more than $209 billion.

Government Funds
In the government sector, as of December 31, 1998, Federated manages 9
mortgage-backed, 5 government/ agency and 19 government money market mutual
funds, with assets approximating $5.3 billion, $1.8 billion and $41.6 billion,
respectively. Federated trades approximately $425 million in U.S. government and
mortgage-backed securities daily and places approximately $25 billion in
repurchase agreements each day. Federated introduced the first U.S. government
fund to invest in U.S. government bond securities in 1969. Federated has been a
major force in the short- and intermediate-term government markets since 1982
and currently manages approximately $43.2 billion in government funds within
these maturity ranges.

Money Market Funds
In the money market sector, Federated gained prominence in the mutual fund
industry in 1974 with the creation of the first institutional money market fund.
Simultaneously, the company pioneered the use of the amortized cost method of
accounting for valuing shares of money market funds, a principal means used by
money managers today to value money market fund shares. Other innovations
include the first institutional tax-free money market fund. As of December 31,
1998, Federated managed more than $76.7 billion in assets across 52 money market
funds, including 19 government, 9 prime and 23 municipal with assets
approximating $41.6 billion, $22.8 billion and $12.5 billion, respectively.

The Chief Investment Officers responsible for oversight of the various
investment sectors within Federated are: U.S. equity and high yield - J. Thomas
Madden; U.S. fixed income -William D. Dawson, III; and global equities and fixed
income - Henry A. Frantzen. The Chief Investment Officers are Executive Vice
Presidents of the Federated advisory companies.

Mutual Fund Market
Thirty-seven percent of American households are pursuing their financial goals
through mutual funds. These investors, as well as businesses and institutions,
have entrusted over $5 trillion to the more than 7,300 funds available,
according to the Investment Company Institute.

<PAGE>

federated clients overview
Federated distributes mutual funds through its subsidiaries for a variety of
investment purposes. Specific markets include:

Institutional Clients
Federated meets the needs of approximately 900 institutional clients nationwide
by managing and servicing separate accounts and mutual funds for a variety of
purposes, including defined benefit and defined contribution programs, cash
management, and asset/liability management. Institutional clients include
corporations, pension funds, tax-exempt entities, foundations/endowments,
insurance companies, and investment and financial advisers. The marketing effort
to these institutional clients is headed by John B.
Fisher, President, Institutional Sales Division, Federated Securities Corp.

Bank Marketing
Other institutional clients include more than 1,600 banks and trust
organizations. Virtually all of the trust divisions of the top 100 bank holding
companies use Federated Funds in their clients' portfolios. The marketing effort
to trust clients is headed by Timothy C. Pillion, Senior Vice President, Bank
Marketing & Sales.

Broker/Dealers and Bank Broker/Dealer Subsidiaries
Federated Funds are available to consumers through major brokerage firms
nationwide--we have over 2,200 broker/dealer and bank broker/dealer
relationships across the country--supported by more wholesalers than any other
mutual fund distributor. Federated's service to financial professionals and
institutions has earned it high ratings in several surveys performed by DALBAR,
Inc. DALBAR is recognized as the industry benchmark for service quality
measurement. The marketing effort to these firms is headed by James F. Getz,
President, Broker/Dealer Sales Division, Federated Securities Corp.

<PAGE>

ADDRESSES

federated master trust

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000

Distributor
Federated Securities Corp.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Investment Adviser
Federated Investment Management Company
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Custodian
State Street Bank and Trust Company
P.O. Box 8600
Boston, MA
02266-8600

Transfer Agent and Dividend Disbursing Agent
Federated Shareholder Services Company
P.O. Box 8600
Boston, MA
02266-8600

Independent Public Accountants
Deloitte & Touche LLP
125 Summer Street
Boston, MA
02110-1617

FMT APPENDIX

The Bar Chart and Performance Table below reflect historical performance data
for Federated Master Trust (the "Former Fund") prior to its reorganization into
the Fund, which is a newly created portfolio of Money Market Obligations Trust
(the "Trust"). On the date of the reorganization, April 30, 1999, the Former
Fund was dissolved and its net assets (inclusive of liabilities recorded on the
Former Fund's records) were transferred into the Fund.

The `y' axis reflects the "% Total Return" beginning with 0.00% and increasing
in increments of 2.00% up to 10.00%.

The `x' axis represents calculation for the last ten calendar years of the Fund
beginning with the earliest year. The light gray shaded chart features ten
distinct vertical bars, each shaded in charcoal, and each visually representing
by height the total return percentages for the calendar year stated directly at
its base. The calculated total return percentage for the Fund for each calendar
year is stated directly at the top of each respective bar for the calendar years
1989 through 1998. The percentages noted are:
9.18%, 8.11%, 5.98%, 3.61%, 2.90%, 3.99%, 5.73%, 5.15%, 5.30% and 5.28%,
respectively.

The bar chart shows the variability of the Former Fund's actual total returns on
a calendar year basis.

Historically, the Former Fund has maintained a constant $1.00 net asset value
per share.

The Former Fund's Shares are not sold subject to a sales charge (load). The
total returns displayed above are based upon the net asset value.

The Former Fund's total return from January 1, 1999 to March 31, 1999 was 1.15%.

Within the period shown in the Chart, the Former Fund's highest quarterly return
was 2.36% (quarter ended June 30, 1989). Its lowest quarterly return was 0.70%
(quarters ended June 30 and September 30, 1993).

The following table represents the Fomer Fund's Average Annual Total Return for
the calendar periods ending December 31, 1998..

Calendar Period
1 Year 5.28%
5 Years 5.09%
10 Years 5.51%

The Former Fund's 7-Day net yield as of December 31, 1998 was 4.85%.

Investors may call the Fund at 1-800-341-7400 to acquire the current Seven-Day
Net Yield.

PROSPECTUS

Federated Short-Term U.S. Government Trust

A Portfolio of Money Market Obligations Trust

A money market mutual fund seeking high current income consistent with stability
of principal and liquidity by investing primarily in a portfolio of short-term
U.S. government securities maturing in 13 months or less.

As with all mutual funds, the Securities and Exchange Commission has not
approved or disapproved these securities or passed upon the adequacy of this
prospectus, and any representation to the contrary is a criminal offense.

CONTENTS

Risk/Return Summary 1
What are the Fund's Fees and Expenses? 3
What are the Fund's Investment Strategies? 4
What are the Principal Securities in Which the Fund Invests? 4
What are the Specific Risks of Investing in the Fund? 5
What do Shares Cost? 5
How is the Fund Sold? 5
How to Purchase Shares 6
How to Redeem Shares 7
Account and Share Information 8
Who Manages the Fund? 9
Financial Information 10
Report of Independent Public Accountants 20

APRIL 28, 1999

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The Fund is a money market fund which seeks to maintain a stable net asset value
of $1.00. The Fund's investment objective is high current income consistent with
stability of principal and liquidity. While there is no assurance that the Fund
will achieve its investment objective, it endeavors to do so by following the
strategies and policies described in this prospectus.

This investment objective cannot be changed by the Fund's Trustees without
shareholder approval.

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The Fund invests at least 65% of its total assets in a portfolio of U.S.
Treasury and government agency securities maturing in 13 months or less. These
investments include repurchase agreements collateralized fully by U.S. Treasury
and government agency securities. The average maturity of the Fund's portfolio
will be 90 days or less. WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

The Bar Chart and Performance Table below reflects historical performance data
for Federated Short-Term U.S. Government Trust (the "Former Fund") prior to its
reorganization into the Fund, which is a newly created portfolio of Money Market
Obligations Trust (the "Trust"). On the date of the reorganization, April 30,
1999, the Former Fund was dissolved and its net assets (inclusive of liabilities
recorded on the Former Fund's records) were transferred into the Fund.

Graphic representation omitted. See FST Appendix.

Historically, the Former Fund has maintained a constant $1.00 net asset value
per share. The bar chart shows the variability of the Former Fund's actual total
returns on a calendar year basis.

The Former Fund's shares were not sold subject to a sales charge (load). The
total returns displayed above are based upon the net asset value. The Former
Fund's total return from January 1, 1999 to March 31, 1999 was 1.12%.

Within the period shown in the Chart, the Former Fund's highest quarterly return
was 2.34% (quarter ended June 30, 1989). Its lowest quarterly return was 0.72%
(quarter ended June 30, 1993).

Average Annual Total Return Table

The following table represents the Former Fund's Average Annual Total Return for
the calendar periods ending December 31, 1998.

Calendar Period Fund
1 Year 5.16%
5 Year 5.04%
10 Year 5.49%

The Former Fund's 7-Day Net Yield as of December 31, 1998 was 4.63%.

Investors may call the Fund at 1-800-341-7400 to acquire the current 7-Day Net
Yield.

What are the Fund's Fees and Expenses?

FEDERATED SHORT-TERM U.S. GOVERNMENT TRUST

This table describes the fees and expenses that you may pay if you buy and hold
shares of Federated Short-Term U.S. Government Trust.

<TABLE>
<CAPTION>
Shareholder Fees
<S> <C>
Fees Paid Directly From Your Investment Maximum Sales Charge (Load)
Imposed on Purchases (as a percentage of offering price) None Maximum Deferred
Sales Charge (Load) (as a percentage of original purchase price or redemption
proceeds, as applicable) None Maximum Sales Charge (Load) Imposed on Reinvested
Dividends (and other Distributions) (as a percentage of offering None
price)
Redemption Fee (as a percentage of amount redeemed, if applicable) None
Exchange Fee None

Annual Fund Operating Expenses (before waivers)/1/
Expenses That are Deducted From Fund Assets (as a percentage of average net assets)
Management Fee/2/ 0.40%
Distribution (12b-1) Fee None
Shareholder Services Fee/3/ 0.25%
Other Expenses 0.15%
Total Annual Fund Operating Expenses/4/ 0.80%

1Although not contractually obligated to do so, the adviser and shareholder
services provider expect to waive certain amounts during the fiscal year ending
December 31, 1999. These are shown below along with the net expenses the Fund
expects to actually pay for the fiscal year ending December 31, 1999.

Total Waiver of Fund Expenses 0.34%
Total Actual Annual Fund Operating Expenses (after waivers)/4/ 0.46%
</TABLE>

2The adviser expects to voluntarily waive a portion of the management fee. The
adviser can terminate this anticipated voluntary waiver at any time. The
management fee paid by the Fund (after the anticipated voluntary waiver) is
expected to be 0.26% for the fiscal year ended December 31, 1999.

3The shareholder services provider expects to voluntarily reduce a portion of
the shareholder services fee. The shareholder services provider can terminate
this anticipated voluntary reduction at any time. The shareholder services fee
paid by the Fund (after the anticipated voluntary reduction) is expected to be
0.05% for the fiscal year ended December 31, 1999.

4For the fiscal year ended December 31, 1998, prior to the reorganization of
Federated Short-Term U.S. Government Trust, the Former Fund, as a portfolio of
Money Market Obligations Trust, the Total Annual Fund Operating Expenses and
Total Actual Annual Fund Operating Expenses (after waivers) were 0.79% and
0.46%, respectively.

EXAMPLE

The following Example is intended to help you compare the cost of investing in
the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses are before waivers as shown above and remain the same.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be:

1 Year 3 Years 5 Years 10 Years
$81 $252 $439 $978

What are the Fund's Investment Strategies?

The Fund invests primarily in a portfolio of U.S. Treasury and government agency
securities maturing in 13 months or less. These investments include repurchase
agreements collateralized fully by U.S. Treasury and government agency
securities. The average maturity of the Fund's portfolio will be 90 days or
less.
The Adviser targets an average portfolio maturity range by assessing likely
movements in interest rates based upon general economic and market conditions.
The Adviser generally shortens the portfolio's average maturity when it expects
interest rates to rise and extends the maturity when it expects interest rates
to fall. The Adviser selects securities used to lengthen or shorten the
portfolio's average maturity by comparing the returns currently offered by
different investments to their historical and expected returns.

TEMPORARY DEFENSIVE INVESTMENTS

The Fund may temporarily depart from its principal investment strategies by
investing its assets in cash, cash items, and shorter-term, higher quality debt
securities and similar obligations. It may do this to minimize potential losses
and maintain liquidity to meet shareholder redemptions during adverse market
conditions. This may cause the Fund to give up greater investment returns to
maintain the safety of principal, that is, the original amount invested by
shareholders.

What are the Principal Securities in Which the Fund Invests?

U.S. Treasury and government agency securities pay interest, dividends or
distributions at a specified rate. The rate may be fixed or adjusted
periodically. The issuer must also repay the principal amount of the security,
normally within a specified time. The Fund invests primarily in the following
types of U.S. government securities.

TREASURY SECURITIES

Treasury securities are direct obligations of the federal government of the
United States.

AGENCY SECURITIES

Agency securities are issued or guaranteed by a federal agency or other
government sponsored entity acting under federal authority (a "GSE"). The United
States supports some GSEs with its full faith and credit. Other GSEs receive
support through federal subsidies, loans or other benefits. A few GSEs have no
explicit financial support, but are regarded as having implied support because
the federal government sponsors their activities.

REPURCHASE AGREEMENTS

Repurchase agreements are transactions in which the Fund buys a security from a
dealer or bank and agrees to sell the security back at a mutually agreed upon
time and price. The repurchase price exceeds the sale price, reflecting the
Fund's return for the transaction. This return is unrelated to the interest rate
on the underlying security. The Fund will enter into repurchase agreements only
with banks and other recognized financial institutions, such as securities
dealers, deemed creditworthy by the Adviser.
Repurchase agreements are subject to credit risks.

What are the Specific Risks of Investing in the Fund?

Although there are many factors which may effect an investment in the Fund, the
principal risks of investing in a U.S. government money market fund are
described below.

CREDIT RISK

MARKET RISK

Prices of fixed income securities rise and fall in response to interest rate
changes for similar securities. Generally, when interest rates rise, prices of
fixed income securities fall.

Interest rate changes have a greater effect on the price of fixed income
securities with longer maturities. Money market funds try to minimize this risk
by purchasing short-term securities.

What do Shares Cost?

You can purchase or redeem Shares any day the New York Stock Exchange (NYSE) is
open. When the Fund receives your transaction request in proper form, it is
processed at the next determined net asset value (NAV).

The required minimum initial investment for Fund Shares is $25,000. There is
no required minimum subsequent investment amount.

An account may be opened with a smaller amount as long as the $25,000 minimum
is reached within 90 days. An institutional investor's minimum is calculated by
combining all accounts it maintains with the Fund. Accounts established through
investment professionals may be subject to a smaller minimum investment amount.
Keep in mind that investment professionals may charge you fees for their
services in connection with your Share transactions.

How is the Fund Sold?

The Fund's distributor markets the Shares described in this prospectus to
institutions acting in an agency or fiduciary capacity or to individuals
directly or through investment professionals.

The Distributor and its affiliates may pay out of their assets amounts
(including items of material value) to investment professionals for marketing
and servicing Shares. The Distributor is a subsidiary of Federated Investors,
Inc. (Federated).

How to Purchase Shares

You may purchase Shares through an investment professional or directly from the
Fund. The Fund reserves the right to reject any request to purchase Shares.

THROUGH AN INVESTMENT PROFESSIONAL
. Establish an account with the investment professional; and

Investment professionals should send payments according to the instructions in
the sections "By Wire" or "By Check."

DIRECTLY FROM THE FUND

. Establish your account with the Fund by submitting a completed New Account
Form; and . Send your payment to the Fund by Federal Reserve wire or check.

You will become the owner of Shares on the day the Fund receives your wire or
your check. If your check does not clear, your purchase will be canceled and you
could be liable for any losses or fees the Fund or its transfer agent incurs.

An institution may establish an account and place an order by calling the Fund
and will become a shareholder after the Fund receives the order.

BY AUTOMATED CLEARINGHOUSE (ACH)

How to Redeem Shares

You should redeem Shares:
. through an investment professional if you purchased Shares through an
investment professional; or
. directly from the Fund if you purchased Shares directly from the Fund.

THROUGH AN INVESTMENT PROFESSIONAL

By Mail
You may redeem Shares by mailing a written request to the Fund.

Your redemption request will be processed on the day the Fund receives your
written request in proper form. Dividends are paid up to and including the day
that a redemption request is processed.

Send requests by mail to:
Federated Shareholder Services Company
P.O. Box 8600
Boston, MA 02266-8600
Send requests by private courier or overnight delivery service to:
Federated Shareholder Services Company
1099 Hingham Street
Rockland, MA 02370-3317 All requests must include:
. Fund Name and Share Class, account number and account registration;
. amount to be redeemed; and
. signatures of all Shareholders exactly as registered.
Call your investment professional or the Fund if you need special instructions.

Signature Guarantees Signatures must be guaranteed if:
. your redemption will be sent to an address other than the address of record;
. your redemption will be sent to an address of record that was changed within
the last thirty days; or
. a redemption is payable to someone other than the shareholder(s) of record.

PAYMENT METHODS FOR REDEMPTIONS

. an electronic transfer to your account at a financial institution that is an
ACH member; or
. wire payment to your account at a domestic commercial bank that is a Federal
Reserve System member.

Redemption in Kind

Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.

LIMITATIONS ON REDEMPTION PROCEEDS

Redemption proceeds normally are wired or mailed within one business day after
receiving a request in proper form. Payment may be delayed up to seven days:
. to allow your purchase to clear;
. during periods of market volatility; or
. when a shareholder's trade activity or amount adversely impacts the Fund's
ability to manage its assets. You will not accrue interest or dividends on
uncashed checks from the Fund if those checks are undeliverable and returned to
the Fund.

ADDITIONAL CONDITIONS

Telephone Transactions

The Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

Share Certificates

The Fund no longer issues share certificates. If you are redeeming Shares
represented by certificates previously issued by the Fund, you must return the
certificates with your written redemption request. For your protection, send
your certificates by registered or certified mail, but do not endorse them.

Account and Share Information

ACCOUNT ACTIVITY

You will receive periodic statements reporting all account activity, including
dividends and capital gains paid.

DIVIDENDS AND CAPITAL GAINS

The Fund does not expect to realize any capital gains or losses. If capital
gains or losses were to occur, they could result in an increase or decrease in
dividends. The Fund pays any capital gains at least annually. Your dividends and
capital gains distributions will be automatically reinvested in additional
Shares without a sales charge, unless you elect cash payments.

If you purchase Shares just before a Fund declares a dividend or capital gain
distribution, you will pay the full price for the Shares and then receive a
portion of the price back in the form of a taxable distribution, whether or not
you reinvest the distribution in Shares. Therefore, you should consider the tax
implications of purchasing Shares shortly before the Fund declares a dividend or
capital gain. Contact your investment professional or the Fund for information
concerning when dividends and capital gains will be paid.

ACCOUNTS WITH LOW BALANCES

Due to the high cost of maintaining accounts with low balances, accounts may be
closed if redemptions cause the account balance to fall below the minimum
initial investment amount. Before an account is closed, you will be notified and
allowed 30 days to purchase additional Shares to meet the minimum.

TAX INFORMATION

Fund distributions are expected to be primarily dividends. Redemptions are
taxable sales. Please consult your tax adviser regarding your federal, state,
and local tax liability.

Who Manages the Fund?

ADVISORY FEES

The Adviser receives an annual investment advisory fee of 0.40% of the Fund's
average daily net assets. The Adviser may voluntarily waive a portion of its fee
or reimburses the Fund for certain operating expenses.

YEAR 2000 READINESS

While it is impossible to determine in advance all of the risks to the Fund,
the Fund could experience interruptions in basic financial and operational
functions. Fund shareholders could experience errors or disruptions in Fund
share transactions or Fund communications.

The financial impact of these issues for the Fund is still being determined.
There can be no assurance that potential Year 2000 problems would not have a
material adverse effect on the Fund.

Financial Information

FINANCIAL HIGHLIGHTS

This information has been audited by Arthur Andersen LLP, whose report, along
with the Fund's audited financial statements, is included in this Prospectus.

Financial Highlights

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Reference is made to the Report of Independent Public Accountants on page 20.
<TABLE>
<CAPTION>
Year Ended December 31 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income 0.05 0.05 0.05 0.06 0.04
Less Distributions:
Distributions from net investment income (0.05) (0.05) (0.05) (0.06) (0.04)
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return1 5.16% 5.24% 5.10% 5.72% 3.99%

Ratios to Average Net Assets:
Expenses 0.46% 0.46% 0.46% 0.46% 0.45%
Net investment income 5.04% 5.10% 4.99% 5.57% 3.89%
Expense waiver2 0.33% 0.33% 0.33% 0.32% 0.11%
Supplemental Data:
Net assets, end of period (000omitted) $350,019 $489,292 $609,589 $773,851 $977,106
</TABLE>

1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

2 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

DECEMBER 31, 1998

<TABLE>
<CAPTION>
Principal Amount Value
SHORTTERM OBLIGATIONS55.1%
<S> <C> <C> <C>
$ 2,500,000 Federal Farm Credit Bank Note, 5.500%, 4/1/1999 $ 2,499,155
29,000,000 1 Federal Home Loan Bank System Floating Rate Notes, 4.800% - 5.133%, 1/5/1999 - 3/1/1999 28,992,113
8,200,000 Federal Home Loan Bank System Notes, 5.080% - 5.705%, 3/26/1999 - 11/9/1999 8,198,236
28,878,000 2 Federal Home Loan Mortgage Corp. Discount Notes, 4.890% - 5.090%, 1/29/1999 - 3/15/1999 28,671,388
15,000,000 1 Federal Home Loan Mortgage Corp. Floating Rate Notes, 5.182% - 5.361%, 1/19/1999 - 14,993,950
2/17/1999
6,500,000 Federal Home Loan Mortgage Corp. Notes, 5.544% - 5.605%, 3/12/1999 - 8/13/1999 6,498,376
69,700,000 2 Federal National Mortgage Association Discount Notes, 4.400% - 5.160%, 1/15/1999 - 68,647,970
7/30/1999
17,000,000 1 Federal National Mortgage Association Floating Rate Notes, 5.021% - 5.334%, 1/5/1999 - 16,996,770
2/28/1999
10,500,000 Federal National Mortgage Association Notes, 4.780% - 5.650%, 2/19/1999 - 11/30/1999 10,496,133
5,000,000 1 Student Loan Marketing Association Floating Rate Notes, 5.090% - 5.388%, 1/5/1999 4,997,860
2,000,000 Student Loan Marketing Association Notes, 5.580%, 3/11/1999 1,999,919
TOTAL SHORT-TERM OBLIGATIONS 192,991,870
REPURCHASE AGREEMENTS45.6%3
10,000,000 ABN AMRO Chicago Corp., 5.100%, dated 12/31/1998, due 1/4/1999 10,000,000
10,000,000 Bankers Trust Corp., 5.100%, dated 12/31/1998, due 1/4/1999 10,000,000
8,700,000 Deutsche Bank Government Securities, Inc., 4.875%, dated 12/31/1998, due 1/4/1999 8,700,000
9,000,000 4 Goldman Sachs Group, LP, 5.190%, dated 10/8/1998, due 1/6/1999 9,000,000
11,000,000 4 J.P. Morgan & Co., Inc., 5.150%, dated 10/15/1998, due 1/13/1999 11,000,000
5,000,000 4 J.P. Morgan & Co., Inc., 5.150%, dated 11/2/1998, due 1/6/1999 5,000,000
$ 16,000,000 4 Morgan Stanley Group, Inc., 4.860%, dated 10/15/1998, due 1/14/1999 $ 16,000,000
15,000,000 Nationsbanc Montgomery Securities, Inc., 5.100%, dated 12/31/1998, due 1/4/1999 15,000,000
75,000,000 PaineWebber Group, Inc., 5.100%, dated 12/31/1998, due 1/4/1999 75,000,000
TOTAL REPURCHASE AGREEMENTS 159,700,000
TOTAL INVESTMENTS (AT AMORTIZED COST)5 $ 352,691,870
</TABLE>

1 Current rate and next reset date shown.

2 Each issue shows the rate of discount at the time of purchase.

3 The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio. The
investments in the repurchase agreements are through participation in joint
accounts with other Federated funds.

4 Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase
agreement within seven days.

5 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of net assets
($350,018,926) at December 31, 1998.

The following acronym is used throughout this portfolio:

LP--Limited Partnership

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

DECEMBER 31, 1998

<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Investments in repurchase agreements $ 159,700,000
Investments in securities 192,991,870
Total investments in securities, at amortized cost and value $ 352,691,870
Cash 86,750
Income receivable 1,293,202
Receivable for shares sold 73,280
TOTAL ASSETS 354,145,102
Liabilities:
Payable for investments purchased 2,998,530
Payable for shares redeemed 129,665
Income distribution payable 935,837
Accrued expenses 62,144
TOTAL LIABILITIES 4,126,176
Net Assets for 350,018,926 shares outstanding $ 350,018,926
Net Asset Value, Offering Price, and Redemption Proceeds Per Share:
$350,018,926 / 350,018,926 shares outstanding $1.00
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Operations

YEAR ENDED DECEMBER 31, 1998

<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C> <C>
Interest $ 20,682,938
Expenses:
Investment advisory fee $ 1,502,252
Administrative personnel and services fee 283,175
Custodian fees 19,800
Transfer and dividend disbursing agent fees and expenses 67,846
Directors'/Trustees' fees 13,597
Auditing fees 13,192
Legal fees 10,176
Portfolio accounting fees 69,746
Shareholder services fee 938,907
Share registration costs 22,448
Printing and postage 8,707
Insurance premiums 5,479
Miscellaneous 8,704
TOTAL EXPENSES 2,964,029
Waivers
Waiver of investment advisory fee $ (468,786)
Waiver of shareholder services fee (751,126)
TOTAL WAIVERS (1,219,912)
Net expenses 1,744,117
Net investment income $ 18,938,821
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

<TABLE>
<CAPTION>
Year Ended December 31 1998 1997
Increase (Decrease) in Net Assets
Operations:
<S> <C> <C>
Net investment income $ 18,938,821 $ 26,938,415
Distributions to Shareholders:
Distributions from net investment income (18,938,821) (26,938,415)
Share Transactions:
Proceeds from sale of shares 1,340,144,670 1,781,376,018
Net asset value of shares issued to shareholders in payment of 5,415,142 7,242,227
distributions declared
Cost of shares redeemed (1,484,833,055) (1,908,915,031)
Change in net assets resulting from share transactions (139,273,243) (120,296,786)
Change in net assets (139,273,243) (120,296,786)
Net Assets:
Beginning of period 489,292,169 609,588,955
End of period $ 350,018,926 $ 489,292,169
</TABLE>

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

DECEMBER 31, 1998

Federated Short-Term U.S. Government Trust (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as an open-end
management investment company. The investment objective of the Fund is high
current income consistent with stability of principal and liquidity.

SIGNIFICANT ACCOUNTING POLICIES

Investment Valuations

The Fund uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.

Repurchase Agreements

The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Fund could receive less than
the repurchase price on the sale of collateral securities.

Investment Income, Expenses, and Distributions

Federal Taxes

When-Issued and Delayed Delivery Transactions

Other

Investment transactions are accounted for on the trade date.

SHARES OF BENEFICIAL INTEREST

The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At
December 31, 1998, capital paid-in aggregated $350,018,926. Transactions in
shares were as follows:

<TABLE>
<CAPTION>
Year Ended December 31 1998 1997
<S> <C> <C>
Shares sold 1,340,144,670 1,781,376,018
Shares issued to shareholders in payment of distributions declared 5,415,142 7,242,227
Shares redeemed (1,484,833,055) (1,908,915,031)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS (139,273,243) (120,296,786)
</TABLE>

INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fee

Federated Research, the Fund's investment adviser (the "Adviser"), receives for
its services an annual investment advisory fee equal to 0.40% of the Fund's
average daily net assets. The Adviser may voluntarily choose to waive any
portion of its fee. The Adviser can modify or terminate this voluntary waiver at
any time at its sole discretion.

Administrative Fee

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund for the period. The fee paid to FSSC is used to finance
certain services for shareholders and to maintain shareholder accounts. FSSC may
voluntarily choose to waive any portion of its fee. FSSC can modify or terminate
this voluntary waiver at any time at its sole discretion.

Transfer and Dividend Disbursing Agent Fees and Expenses

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund's average daily net assets for the period,
plus out-of-pocket expenses.

General

Certain of the Officers and Trustees of the Fund are Officers and Directors or
Trustees of the above companies.

YEAR 2000 (UNAUDITED)

TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF FEDERATED SHORT-TERM U.S.
GOVERNMENT TRUST:

WE HAVE AUDITED THE ACCOMPANYING STATEMENT OF ASSETS AND LIABILITIES OF
FEDERATED SHORT-TERM U.S. GOVERNMENT TRUST (A MASSACHUSETTS BUSINESS TRUST),
INCLUDING THE SCHEDULE OF PORTFOLIO OF INVESTMENTS, AS OF DECEMBER 31, 1998, AND
THE RELATED STATEMENT OF OPERATIONS FOR THE YEAR THEN ENDED, THE STATEMENT OF
CHANGES IN NET ASSETS, AND THE FINANCIAL HIGHLIGHTS FOR THE PERIODS PRESENTED.
THESE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS ARE THE RESPONSIBILITY OF
THE FUND'S MANAGEMENT. OUR RESPONSIBILITY IS TO EXPRESS AN OPINION ON THESE
FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS BASED ON OUR AUDITS.

WE CONDUCTED OUR AUDITS IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING
STANDARDS. THOSE STANDARDS REQUIRE THAT WE PLAN AND PERFORM OUR AUDIT TO OBTAIN
REASONABLE ASSURANCE ABOUT WHETHER THE FINANCIAL STATEMENTS AND FINANCIAL
HIGHLIGHTS ARE FREE OF MATERIAL MISSTATEMENT. AN AUDIT INCLUDES EXAMINING, ON A
TEST BASIS, EVIDENCE SUPPORTING THE AMOUNTS AND DISCLOSURES IN THE FINANCIAL
STATEMENTS. OUR PROCEDURES INCLUDED CONFIRMATION OF SECURITIES OWNED AS OF
DECEMBER 31, 1998, BY CORRESPONDENCE WITH THE CUSTODIAN AND BROKERS. AS TO
CONFIRMATION REPLIES NOT RECEIVED, WE CARRIED OUT OTHER ALTERNATIVE AUDITING
PROCEDURES. AN AUDIT ALSO INCLUDES ASSESSING THE ACCOUNTING PRINCIPLES USED AND
SIGNIFICANT ESTIMATES MADE BY MANAGEMENT, AS WELL AS EVALUATING THE OVERALL
FINANCIAL STATEMENT PRESENTATION. WE BELIEVE THAT OUR AUDITS PROVIDE A
REASONABLE BASIS FOR OUR OPINION.

IN OUR OPINION, THE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS REFERRED TO
ABOVE PRESENT FAIRLY, IN ALL MATERIAL RESPECTS, THE FINANCIAL POSITION OF
FEDERATED SHORT-TERM U.S. GOVERNMENT TRUST AS OF DECEMBER 31, 1998, THE RESULTS
OF ITS OPERATIONS FOR THE YEAR THEN ENDED, THE CHANGES IN ITS NET ASSETS, AND
ITS FINANCIAL HIGHLIGHTS FOR THE PERIODS PRESENTED, IN CONFORMITY WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES.

ARTHUR ANDERSEN LLP
Boston, Massachusetts
February 22, 1999

[Federated Logo]

Federated Short-Term U.S. Government Trust

A Portfolio of Money Market Obligations Trust

APRIL 28, 1999

A Statement of Additional Information (SAI) dated April 28, 1999, is
incorporated by reference into this prospectus. Additional information about the
Fund's investments in contained in the Fund's semi-annual report to shareholders
as it becomes available. To obtain the SAI, semi-annual report and other
information without charge, call your investment professional or the Fund at 1-
800-341-7400. You can obtain information about the Fund (including the SAI)
by visiting or writing the Public Reference Room of the Securities and Exchange
Commission in Washington, DC 20549-6009 or from the Commission's Internet site
at http://www.sec.gov. You can call 1-800-SEC-0330 for information on the Public
Reference Room's operations and copying charges.

[FEDERATED LOGO]
Federated Short-Term U.S. Government Trust
Federated Investors Fund
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com

Federated Securities Corp., Distributor

Investment Company Act File No. 811-5950
Cusip 60934N765

8020102A (4/99)

[RECYCLED PAPER LOGO]

Statement of Additional Information

FEDERATED MASTER TRUST

A Portfolio of Money Market Obligations Trust

This Statement of Additional Information (SAI) is not a prospectus. Read this
SAI in conjunction with the prospectus for Federated
Master Trust (Fund) dated April 28, 1999.

Obtain the prospectus without charge by calling 1-800-341-7400.

april 28, 1999

8010411B (4/99)

<PAGE>

HOW IS THE FUND ORGANIZED?

SECURITIES IN WHICH THE FUND INVESTS

In pursuing its investment strategy, the Fund may invest in the following
securities for any purpose that is consistent with its investment objective.

SECURITIES DESCRIPTIONS AND TECHNIQUES

The following describes the types of fixed income securities in which the Fund
invests.

Treasury Securities
Treasury securities are direct obligations of the federal government of the
United States. Investors regard treasury securities as having the lowest credit
risks.

Bank Instruments

Insurance Contracts
Insurance contracts include guaranteed investment contracts, funding agreements
and annuities. The Fund treats these contracts as fixed income securities.

Common types of credit enhancement include guarantees, letters of credit, bond
insurance and surety bonds. Credit enhancement also includes arrangements where
securities or other liquid assets secure payment of a fixed income security.
Following a default, these assets may be sold and the proceeds paid to
security's holders. Either form of credit enhancement reduces credit risks by
providing another source of payment for a fixed income security.

Foreign Securities
Foreign securities are securities of issuers based outside the United States.
The Fund considers an issuer to be based outside the United States if:

o it is organized under the laws of, or has a principal office located in,
another country;

o the principal trading market for its securities is in another country; or

Special Transactions

Repurchase agreements are subject to credit risks.

INVESTMENT RISKS
There are many factors which may affect an investment in the Fund. The Fund's
principal risks are described in its prospectus. Additional risk factors are
outlined below.

Credit Risks
Credit risk is the possibility that an issuer will default on a security by
failing to pay interest or principal when due. If an issuer defaults, the Fund
will lose money.

Due to these risk factors, foreign securities may be more volatile and less
liquid than similar securities traded in the U.S.

INVESTMENT LIMITATIONS

Investing in Commodities
The Fund will not invest in commodities or commodity contracts.

Investing in Real Estate
The Fund will not invest in real estate, except that the Fund may purchase money
market instruments issued by companies which invest in real estate or interests
therein.

Underwriting
The Fund will not engage in underwriting of securities issued by others.

Investing for Control
The Fund will not invest in securities of a company for the purpose of
exercising control or management.

Investing in Options
The Fund will not invest in puts, calls, straddles, spreads, or any combination
of them.

HOW IS THE FUND SOLD?

Under the Distributor's Contract with the Fund, the Distributor (Federated
Securities Corp.) offers Shares on a continuous,
best-efforts basis.

SUBACCOUNTING SERVICES

REDEMPTION IN KIND

MASSACHUSETTS PARTNERSHIP LAW

ACCOUNT AND SHARE INFORMATION

VOTING RIGHTS
Each share of the Fund gives the shareholder one vote in Trustee elections and
other matters submitted to shareholders for vote. All Shares of the Fund have
equal voting rights.

TAX INFORMATION

WHO MANAGES AND PROVIDES SERVICES TO THE FUND?

<PAGE>

<PAGE>

+Mr. Donahue is the father of J. Christopher Donahue, President of the Trust.

<PAGE>

INVESTMENT ADVISER
The Adviser conducts investment research and makes investment decisions for the
Fund.

The Adviser is a wholly owned subsidiary of Federated.

Maximum Administrative Fee Average Aggregate Daily Net Assets of
the Federated Funds
0.150 of 1% on the first $250 million
0.125 of 1% on the next $250 million
0.100 of 1% on the next $250 million
0.075 of 1% on assets in excess of $750 million
The administrative fee received during any fiscal year shall be at least
$125,000 per portfolio and $30,000 per each additional class of Shares.
Federated Services Company may voluntarily waive a portion of its fee and may
reimburse the Fund for expenses.

Federated Services Company also provides certain accounting and recordkeeping
services with respect to the Fund's portfolio investments for a fee based on
Fund assets, plus out-of-pocket expenses.

INDEPENDENT PUBLIC ACCOUNTANTS
Deloitte & Touche LLP is the independent public accountant for the Fund.

<PAGE>

or the fiscal years ended November 30, 1998, 1997 and 1996, fees paid by the
Fund for services are prior to the fund's reorganization as a portfolio of the
Trust on April 30, 1999.

HOW DOES THE FUND MEASURE PERFORMANCE?

Share performance fluctuates on a daily basis largely because net earnings
fluctuate daily. Both net earnings and offering price per Share are factors in
the computation of yield and total return.

Average Annual Total Returns and Yield
Total returns given for the one-, five- and ten-year periods ended November 30,
1998.

Yield and Effective Yield given for the 7-day period ended November 30, 1998.

Performance of the Fund shown is prior to its reorganization as a portfolio
of the Trust on April 30, 1999.

7-Day Period 1 Year 5 Years 10 Years

Total Return N/A 5.33% 5.06% 5.54%
Yield 4.93%
Effective Yield 5.05%

PERFORMANCE COMPARISONS
Advertising and sales literature may include:

o references to ratings, rankings, and financial publications and/or
performance comparisons of Shares to certain indices;

o discussions of economic, financial and political developments and their
impact on the securities market, including the portfolio manager's views on
how such developments could impact the Funds; and

o information about the mutual fund industry from sources such as the Investment
Company Institute.

The Fund may quote information from reliable sources regarding individual
countries and regions, world stock exchanges, and economic and demographic
statistics.

Lipper Analytical Services, Inc. ranks funds in various fund categories based on
total return, which assumes the reinvestment of all income dividends and capital
gains distributions, if any.

Money, a monthly magazine, regularly ranks money market funds in various
categories based on the latest available seven-day effective yield.

WHO IS FEDERATED INVESTORS, INC.?

federated funds overview

<PAGE>

federated clients overview
Federated distributes mutual funds through its subsidiaries for a variety of
investment purposes. Specific markets include:

<PAGE>

ADDRESSES

federated master trust

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000

Distributor
Federated Securities Corp.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Investment Adviser
Federated Investment Management Company
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Custodian
State Street Bank and Trust Company
P.O. Box 8600
Boston, MA
02266-8600

Transfer Agent and Dividend Disbursing Agent
Federated Shareholder Services Company
P.O. Box 8600
Boston, MA
02266-8600

Independent Public Accountants
Deloitte & Touche LLP
125 Summer Street
Boston, MA
02110-1617

FST APPENDIX

The Bar Chart and Performance Table below reflect historical performance data
for Federated Short-Term U.S. Government Trust (the "Former Fund") prior to its
reorganization into the Fund, which is a newly created portfolio of Money Market
Obligations Trust (the "Trust"). On the date of the reorganization, April 30,
1999, the Former Fund was dissolved and its net assets (inclusive of liabilities
recorded on the Former Fund's records) were transferred into the Fund

The `y' axis reflects the "% Total Return" beginning with 0.00% and increasing
in increments of 1.00% up to 10.00%.

The `x' axis represents calculation for the last ten calendar years of the Fund
beginning with the earliest year. The light gray shaded chart features ten
distinct vertical bars, each shaded in charcoal, and each visually representing
by height the total return percentages for the calendar year stated directly at
its base. The calculated total return percentage for the Fund for each calendar
year is stated directly at the top of each respective bar for the calendar years
1988 through 1997. The percentages noted are:
9.17%, 8.11%, 5.93%, 3.64%, 2.95%, 3.99%, 5.72%, 5.10%, 5.24% and 5.16%,
respectively.

The bar chart shows the variability of the Former Fund's actual total returns on
a yearly basis.

Historically, the Former Fund has maintained a constant $1.00 net asset value
per share.

The Former Fund's Shares are not sold subject to a sales charge (load). The
total returns displayed above are based upon the net asset value.

The Former Fund's total return from January 1, 1999 to March 31, 1999 was 1.12%.

Within the period shown in the Chart, the Former Fund's highest quarterly return
was 2.34% (quarter ended June 30, 1989). Its lowest quarterly return was 0.72%
(quarter ended June 30, 1993).

The following table represents the Former Fund's Average Annual Total Return for
the calendar periods ending December 31, 1998.

Calendar Period
1 Year 5.16%
5 Years 5.04%
10 Years 5.49%

The Former Fund's 7-Day Net Yield as of December 31, 1998 was 4.63%

Investors may call the Fund at 1-800-341-7400 to acquire the current Seven-Day
Net Yield.

PROSPECTUS

TRUST FOR GOVERNMENT CASH RESERVES

A Portfolio of Money Market Obligations Trust

A money market mutual fund seeking high current income consistent with stability
of principal and liquidity by investing primarily in a portfolio of U.S.
government securities maturing in 13 months or less.

CONTENTS

Risk/Return Summary 1
What are the Fund's Fees and Expenses? 3
What are the Fund's Investment Strategies? 4
What are the Principal Securities in Which the Fund Invests? 4
What are the Specific Risks of Investing in the Fund? 4
What do Shares Cost? 5
How is the Fund Sold? 5
How to Purchase Shares 5
How to Redeem Shares 6
Account and Share Information 8
Who Manages the Fund? 9
Financial Information 10

APRIL 28, 1999

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The Fund is a money market fund which seeks to maintain a stable net asset value
of $1.00. The Fund's investment objective is high current income consistent with
the stability of principal and liquidity. While there is no assurance that the
Fund will achieve its investment objective, it endeavors to do so by following
the strategies and policies described in this prospectus.

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The Fund invests at least 65% of its total assets in a portfolio of U.S.
Treasury and government agency securities that pay interest that is exempt from
state personal income tax. The dollar-weighted average maturity of the Fund's
portfolio will be 60 days or less; no portfolio security will have a maturity of
more than 13 months.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

Although the Fund seeks to maintain a stable net asset value, it is possible to
lose money by investing in the Fund. The shares offered by this prospectus are
not deposits or obligations of any bank, are not endorsed or guaranteed by any
bank and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Risk/Return Bar Chart and Table The Bar Chart and
Performance Table below reflect historical performance data for Trust for
Government Cash Reserves (the "Former Fund") prior to its reorganization into
the Fund, which is a newly created portfolio of Money Market Obligations Trust
(the "Trust"). On the date of the reorganization, April 30, 1999, the Former
Fund was dissolved and its net assets (inclusive of liabilities recorded on the
Former Fund's records) were transferred into the Fund.

Graphic representation omitted. See TGCR Appendix.

Historically, the Former Fund has maintained a constant $1.00 net asset value
per share. The bar chart shows the variability of the Former Fund's actual total
returns on a calendar year basis.

Within the period shown in the Chart, the Former Fund's highest quarterly return
was 1.94% (quarter ended June 30, 1990). Its lowest quarterly return was 0.70%
(quarters ended March 31, 1993 and June 30, 1993).

Average Annual Total Return Table

The following table represents the Former Fund's Average Annual Total Return for
the calendar periods ending December 31, 1998.

Calendar Period Fund

1 Year 5.11%
5 Years 4.98%
Start of Performance1 5.26%

The Former Fund's 7-Day Net Yield as of December 31, 1998 was 4.71%.

1 The Former Fund's start of performance date was March 30, 1989. Investors
may call the Fund at 1-800-341-7400 to acquire the current 7-Day Net Yield.

While past performance does not necessarily predict future performance, this
information provides you with historical performance information so that you can
analyze whether the Fund's investment risks are balanced by its potential
rewards. What are the Fund's Fees and Expenses?

TRUST FOR GOVERNMENT CASH RESERVES

FEES AND EXPENSES
This table describes the fees and expenses that you may pay if you buy and hold
shares of Trust for Government Cash Reserves.

<TABLE>
<CAPTION>
Shareholder Fees
<S> <C> Fees Paid Directly From Your Investment Maximum Sales Charge (Load)
Imposed on Purchases (as a percentage of offering price) None Maximum Deferred
Sales Charge (Load) (as a percentage of original purchase price or redemption
proceeds, as applicable) None Maximum Sales Charge (Load) Imposed on Reinvested
Dividends (and other Distributions) (as a percentage of offering price) None
Redemption Fee (as a percentage of amount redeemed, if applicable) None Exchange
Fee None

Annual Fund Operating Expenses (before waivers)1
Expenses That are Deducted From Fund Assets (as a percentage of average net assets)
Management Fee2 0.40%
Distribution (12b-1) Fee None
Shareholder Services Fee3 0.25%
Other Expenses 0.12%
Total Annual Fund Operating Expenses4 0.77%
1 Although not contractually obligated to do so, the adviser and shareholder services provider expect to waive certain
amounts during the fiscal year ending November 30, 1999. These are shown below
along with the net expenses the Fund expects to actually pay for the fiscal
year ending November30,1999.
Total Waiver of Fund Expenses 0.31%
Total Actual Annual Fund Operating Expenses (after waivers)4 0.46%
2The adviser expects to voluntarily waive a portion of the management fee. The
adviser can terminate this anticipated voluntary waiver at any time. The
management fee paid by the Fund (after the anticipated voluntary waiver) is
expected to be 0.29% for the fiscal year ended November 30, 1999.
3The shareholder services provider expects to voluntarily reduce a portion of
the shareholder services fee. The shareholder services provider can terminate
this anticipated voluntary reduction at any time. The shareholder services fee
paid by the Fund (after the anticipated voluntary reduction) is expected to be
0.05% for the fiscal year ended November 30, 1999.
4For the fiscal year ended November 30, 1998, prior to the reorganization of
Trust for Government Cash Reserves, the Former Fund, as a portfolio of Money
Market Obligations Trust, the Total Annual Fund Operating Expenses and Total
Actual Annual Fund Operating Expenses (after waivers) were 0.77% and 0.46%,
respectively.
</TABLE>

EXAMPLE
The following Example is intended to help you compare the cost of investing in
the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses are before waivers as shown above and remain the same.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be:

1 Year 3 Years 5 Years 10 Years
$79 $246 $428 $954

What are the Fund's Investment Strategies?

The Fund invests primarily in a portfolio of U.S. Treasury and government agency
securities that pay interest that is exempt from state personal income tax.
Portfolio securities will have a maturity of 397 days or less. However, in an
effort to qualify for the highest rating for money market funds issued by a
nationally recognized rating service, the Fund intends to limit the
dollar-weighted average maturity of its portfolio to 60 days or less.

The adviser targets a dollar-weighted average portfolio maturity range for the
Fund based upon its interest rate outlook. The adviser formulates its interest
rate outlook by analyzing a variety of factors, such as:

The adviser generally shortens the portfolio's dollar-weighted average maturity
when it expects interest rates to rise and extends the maturity when it expects
interest rates to fall. The adviser selects securities used to lengthen or
shorten the portfolio's dollar-weighted average maturity by comparing the
returns currently offered by different investments to their historical and
expected returns.

What are the Principal Securities in Which the Fund Invests?

TREASURY SECURITIES

Treasury securities are direct obligations of the federal government of the
United States.

AGENCY SECURITIES

What are the Specific Risks of Investing in the Fund?

Although there are many factors which may effect an investment in the Fund, the
principal risks of investing in a U.S. government money market fund are
described below.

MARKET RISK

Prices of fixed income securities rise and fall in response to interest rate
changes for similar securities. Generally, when interest rates rise, prices of
fixed income securities fall.

Interest rate changes have a greater affect on the price of fixed income
securities with longer maturities. Money market funds try to minimize this risk
by purchasing short-term securities.

What do Shares Cost?

The Fund does not charge a front-end sales charge. NAV is determined at 12:00
noon and 1:00 p.m. (Eastern time) and as of the end of regular trading (normally
4:00 p.m. Eastern time) each day the NYSE is open.

The required minimum initial investment for Fund Shares is $25,000. There is
no required minimum subsequent investment amount.

An account may be opened with a smaller minimum amount as long as the $25,000
minimum is reached within 90 days. An institutional investor's minimum is
calculated by combining all accounts it maintains with the Fund. Accounts
established through investment professionals may be subject to higher or lower
minimum investment requirements than those imposed by the Fund. Keep in mind
that investment professionals may charge you fees for their services in
connection with your Share transactions.

How is the Fund Sold?

The Fund's distributor markets the Shares described in this prospectus to
institutional investors, such as banks, fiduciaries, custodians of public funds,
corporations, unions, hospitals, insurance companies, and municipalities. The
Fund may not be a suitable investment for retirement plans. The Distributor and
its affiliates may pay out of their assets amounts (including items of material
value) to investment professionals for marketing and servicing Shares. The
Distributor is a subsidiary of Federated Investors, Inc. (Federated).

How to Purchase Shares

You may purchase Shares through an investment professional or directly from the
Fund. The Fund reserves the right to reject any request to purchase Shares.

THROUGH AN INVESTMENT PROFESSIONAL

. Establish an account with the investment professional; and

. Submit your purchase order to the investment professional before 2:00 p.m.
(Eastern time). You will receive that day's dividend if the investment
professional forwards the order to the Fund and the Fund receives payment by
2:00 p.m. (Eastern time). You will become the owner of Shares and receive
dividends when the Fund receives your payment.

Investment professionals should send payments according to the instructions in
the sections "By Wire" or "By Check."

DIRECTLY FROM THE FUND

. Establish your account with the Fund by submitting a completed New Account
Form; and . Send your payment to the Fund by Federal Reserve wire or check.

An institution may establish an account and place an order by calling the Fund
and will become a shareholder after the Fund receives the order.

By Wire

Send your wire to:
State Street Bank and Trust Company
Boston, MA
Dollar Amount of Wire
ABA Number 011000028
Attention: EDGEWIRE
Wire Order Number, Dealer Number, or
Group Number
Nominee/Institution Name
Fund Name and Number and Account Number

You cannot purchase Shares by wire on holidays when wire transfers are
restricted.

By Check

Make your check payable to The Federated Funds, note your account number on the
check, and mail it to:

Federated Shareholder Services Company
P.O. Box 8600
Boston, MA 02266-8600

If you send your check by a private courier or overnight delivery service that
requires a street address, mail it to:

Federated Shareholder Services Company
1099 Hingham Street
Rockland, MA 02370-3317

BY AUTOMATIC INVESTMENTS

BY AUTOMATED CLEARINGHOUSE (ACH)

RETIREMENT INVESTMENTS

You may purchase Shares as retirement investments (such as qualified plans and
IRAs or transfer or rollover of assets). Call your investment professional or
the Fund for information on retirement investments. We suggest that you discuss
retirement investments with your tax adviser. You may be subject to an annual
IRA account fee.

How to Redeem Shares

You should redeem Shares:

. through an investment professional if you purchased Shares through an
investment professional; or
. directly from the Fund if you purchased Shares directly from the Fund.

THROUGH AN INVESTMENT PROFESSIONAL

DIRECTLY FROM THE FUND

By Telephone

You may redeem Shares by calling the Fund once you have completed the
appropriate authorization form for telephone transactions.

If you call before 2:00 p.m. (Eastern time) your redemption will be wired to
you the same day. You will not receive that day's dividend.

If you call after 2:00 p.m. (Eastern time) your redemption will be wired to
you the following business day. You will receive that day's dividend. Under
limited circumstances, arrangements may be made with the Distributor for same-
day payment of redemption proceeds, without the day's dividend, for redemption
requests received before 2:00 p.m. (Eastern time).

By Mail

You may redeem Shares by mailing a written request to the Fund.

Your redemption request will be processed on the day the Fund receives your
written request in proper form. Dividends are paid up to and including the day
that a redemption request is processed. Send requests by mail to:

Federated Shareholder Services Company
P.O. Box 8600
Boston, MA 02266-8600

Send requests by private courier or overnight delivery service to:
Federated Shareholder Services Company
1099 Hingham Street
Rockland, MA 02370-3317

All requests must include:

. Fund Name and Share Class, account number and account registration;
. amount to be redeemed; and
. signatures of all Shareholders exactly as registered.

Call your investment professional or the Fund if you need special instructions.

Signature Guarantees

Signatures must be guaranteed if:

. your redemption will be sent to an address other than the address of
record;
. your redemption will be sent to an address of record that was changed within
the last thirty days; or
. a redemption is payable to someone other than the shareholder(s) of record.

A signature guarantee is designed to protect your account from fraud. Obtain a
signature guarantee from a bank or trust company, savings association, credit
union or broker, dealer, or securities exchange member. A notary public cannot
provide a signature guarantee.

PAYMENT METHODS FOR REDEMPTIONS

. an electronic transfer to your account at a financial institution that is an
ACH member; or
. wire payment to your account at a domestic commercial bank that is a Federal
Reserve System member.

Redemption in Kind

Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.

LIMITATIONS ON REDEMPTION PROCEEDS

Redemption proceeds normally are wired or mailed within one business day after
receiving a request in proper form. Payment may be delayed up to seven days:

. to allow your purchase to clear;
. during periods of market volatility; or
. when a shareholder's trade activity or amount adversely impacts the Fund's
ability to manage its assets.

You will not accrue interest or dividends on uncashed checks from the Fund if
those checks are undeliverable and returned to the Fund.

REDEMPTIONS FROM RETIREMENT ACCOUNTS

In the absence of your specific instructions, 10% of the value of your
redemption from a retirement account in the Fund may be withheld for taxes. This
withholding only applies to certain types of retirement accounts.

ADDITIONAL CONDITIONS

Telephone Transactions

The Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

Share Certificates

The Fund no longer issues Share certificates. If you are redeeming Shares
represented by certificates previously issued by the Fund, you must return the
certificates with your written redemption or exchange request. For your
protection, send your certificates by registered or certified mail, but do not
endorse them.

Account and Share Information

ACCOUNT ACTIVITY

You will receive periodic statements reporting all account activity, including
dividends and capital gains paid.

DIVIDENDS AND CAPITAL GAINS

The Fund declares any dividends daily and pays them monthly to shareholders. If
you purchase Shares by wire, you begin earning dividends on the day your wire is
received. If you purchase Shares by check, you begin earning dividends on the
business day after the Fund receives your check. In either case, you earn
dividends through the day your redemption request is received.

The Fund does not expect to realize any capital gains or losses. If capital
gains or losses were to occur, they could result in an increase or decrease in
dividends. The Fund pays any capital gains at least annually. Your dividends and
capital gains distributions will be automatically reinvested in additional
Shares without a sales charge, unless you elect cash payments.

ACCOUNTS WITH LOW BALANCES

TAX INFORMATION

The Fund will limit its investments to those which, if owned directly, pay
interest exempt from state personal income tax. However, under the laws of some
states, the net investment income distributed by the Fund may be taxable to
shareholders.

Fund distributions are expected to be primarily dividends. Redemptions are
taxable sales. Please consult your tax adviser regarding your federal, state,
and local tax liability.

Who Manages the Fund?

The Adviser receives an annual investment advisory fee of 0.40% of the Fund's
average daily net assets. The Adviser may voluntarily waive a portion of its fee
or reimburse the Fund for certain operating expenses.

YEAR 2000 READINESS

Year 2000 problems would also increase the risks of the Fund's investments. To
assess the potential effect of the Year 2000 problem, the Adviser is reviewing
information regarding the Year 2000 readiness of issuers of securities the Fund
may purchase. The financial impact of these issues for the Fund is still being
determined. There can be no assurance that potential Year 2000 problems would
not have a material adverse effect on the Fund.

Financial Information

FINANCIAL HIGHLIGHTS

This information has been audited by Aurthur Andersen LLP, whose report, along
with the Fund's audited financial statements, is included in this prospectus.

Financial Highlights

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Reference is made to the Independent Auditors' Report on page 18.

<TABLE>
<CAPTION>
Year Ended November 30 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income 0.05 0.05 0.05 0.05 0.04
Less Distributions:
Distributions from net investment income (0.05) (0.05) (0.05) (0.05) (0.04)
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return1 5.16% 5.15% 5.08% 5.60% 3.74%

Ratios to Average Net Assets:
Expenses 0.46% 0.46% 0.46% 0.45% 0.45%
Net investment income 5.06% 5.02% 4.99% 5.45% 3.68%
Expense waiver/reimbursement2 0.31% 0.31% 0.32% 0.32% 0.10%
Supplemental Data:
Net assets, end of period (000 omitted) $535,007 $562,704 $599,550 $739,553 $978,691
</TABLE>

1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

2 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

NOVEMBER 30, 1998

<TABLE>
<CAPTION>
Principal
Amount Value

GOVERNMENT AGENCIES--102.2%
<S> <C> <C> <C>
$110,342,000 1 Federal Farm Credit System Discount Notes, 4.690% - 5.170%, 12/7/1998 - 8/5/1999 $ 109,651,855
25,000,000 2 Federal Farm Credit System Floating Rate Notes, 4.820% - 5.354%, 12/24/1998 - 3/1/1999 24,989,332
9,000,000 Federal Farm Credit System, 5.500% - 5.550%, 4/1/1999 - 6/1/1999 9,016,317
199,861,000 1 Federal Home Loan Bank System Discount Notes, 4.610% - 5.365%, 12/1/1998 - 5/26/1999 198,565,055
102,000,000 2 Federal Home Loan Bank System Floating Rate Notes, 4.780% - 5.458%, 12/2/1998 - 3/1/1999 101,969,773
9,500,000 Federal Home Loan Bank System, 5.000% - 5.705%, 5/5/1999 - 10/27/1999 9,498,030
22,000,000 1 Student Loan Marketing Association Discount Notes, 4.770% - 5.150%, 12/1/1998 - 21,990,063
12/16/1998
30,000,000 2 Student Loan Marketing Association Floating Rate Notes, 4.770% - 5.260%, 12/2/1998 - 29,993,354
1/4/1999
27,000,000 Student Loan Marketing Association Master Notes, 5.210%, 12/8/1998 27,000,000
14,300,000 Student Loan Marketing Association, 5.400% - 5.583%, 2/10/1999 - 9/16/1999 14,298,355
TOTAL GOVERNMENT AGENCIES $ 546,972,134
TOTAL INVESTMENTS (AT AMORTIZED COST)3 $ 546,972,134
</TABLE>

1 Rates noted reflect the effective yield.

2 Denotes variable rate securities which show current rate and next demand
date.

3 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of net assets
($535,006,516) at November 30, 1998.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

NOVEMBER 30, 1998

<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Total investments in securities, at amortized cost and value $ 546,972,134
Cash 969,233
Income receivable 1,834,359
TOTAL ASSETS 549,775,726
Liabilities:
Payable for investments purchased $ 12,990,948
Income distribution payable 1,718,826
Accrued expenses 59,436
TOTAL LIABILITIES 14,769,210
Net Assets for 535,006,516 shares outstanding $ 535,006,516
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$535,006,516 / 535,006,516 shares outstanding $1.00
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Operations

YEAR ENDED NOVEMBER 30, 1998

<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C> <C>
Interest $ 30,423,637
Expenses:
Investment advisory fee $ 2,210,660
Administrative personnel and services fee 416,709
Custodian fees 34,062
Transfer and dividend disbursing agent fees and expenses 13,007
Directors'/Trustees' fees 13,719
Auditing fees 13,303
Legal fees 6,281
Portfolio accounting fees 96,616
Shareholder services fee 1,381,676
Share registration costs 20,236
Printing and postage 8,225
Insurance premiums 5,425
Miscellaneous 14,230
TOTAL EXPENSES 4,234,149
Waivers:
Waiver of investment advisory fee $ (595,406)
Waiver of shareholder services fee (1,105,341)
TOTAL WAIVERS (1,700,747)
Net expenses 2,533,402
Net investment income $ 27,890,235
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

<TABLE>
<CAPTION>
Year Ended November 30 1998 1997
Increase (Decrease) in Net Assets:
Operations:
<S> <C> <C>
Net investment income $ 27,890,235 $ 32,056,703
Distributions to Shareholders:
Distributions from net investment income (27,890,235) (32,056,703)
Share Transactions:
Proceeds from sale of shares 1,501,544,374 2,284,291,335
Net asset value of shares issued to shareholders in payment of distributions 3,374,747 3,196,694
declared
Cost of shares redeemed (1,532,616,817) (2,324,334,027)
Change in net assets resulting from share transactions (27,697,696) (36,845,998)
Change in net assets (27,697,696) (36,845,998)
Net Assets:
Beginning of period 562,704,212 599,550,210
End of period $ 535,006,516 $ 562,704,212
</TABLE>

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

NOVEMBER 30, 1998

Trust for Government Cash Reserves (the "Trust") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a non-diversified,
open-end, management investment company. The investment objective of the Trust
is high current income consistent with stability of principal and liquidity.

SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.

Investment Valuations

The Trust uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.

Investment Income, Expenses and Distributions

Federal Taxes

It is the Trust's policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of its income. Accordingly, no provisions for federal tax are
necessary.

When-Issued and Delayed Delivery Transactions

The Trust may engage in when-issued or delayed delivery transactions. The Trust
records when-issued securities on the trade date and maintains security
positions such that sufficient liquid assets will be available to make payment
for the securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.

Use of Estimates

Other

Investment transactions are accounted for on the trade date.

SHARES OF BENEFICIAL INTEREST

The Declaration of Trust permits the Board of Trustees (the "Trustees") to issue
an unlimited number of full and fractional shares of beneficial interest
(without par value). At November 30, 1998, capital paid-in aggregated
$535,006,516.

Transactions in shares were as follows:

<TABLE>
<CAPTION>
Year Ended November 30 1998 1997
<S> <C> <C>
Shares sold 1,501,544,374 2,284,291,335
Shares issued to shareholders in payment of distributions declared 3,374,747 3,196,694
Shares redeemed (1,532,616,817) (2,324,334,027)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS (27,697,696) (36,845,998)
</TABLE>

INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fee

Federated Research, the Trust's investment adviser (the "Adviser"), receives for
its services an annual investment advisory fee equal to 0.40% of the Trust's
average daily net assets. The Adviser may voluntarily choose to waive any
portion of its fee. The Adviser can modify or terminate this voluntary waiver at
any time at its sole discretion.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Trust with administrative personnel and services. The
fee paid to FServ is based on the level of average aggregate daily net assets of
all funds advised by subsidiaries of Federated Investors, Inc. for the period.
The administrative fee received during the period of the Administrative Services
Agreement shall be at least $125,000 per portfolio and $30,000 per each
additional class of shares.

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Trust will pay FSSC up to 0.25% of average daily
net assets of the Trust for the period. The fee paid to FSSC is used to finance
certain services for shareholders and to maintain shareholder accounts. FSSC may
voluntarily choose to waive any portion of its fee. FSSC can modify or terminate
this voluntary waiver at any time at its sole discretion.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary, Federated Shareholder Services Company ("FSSC"),
serves as transfer and dividend disbursing agent for the Trust. The fee paid to
FSSC is based on the size, type, and number of accounts and transactions made by
shareholders.

Portfolio Accounting Fees

FServ maintains the Trust's accounting records for which it receives a fee. The
fee is based on the level of the Trust's average daily net assets for the
period, plus out-of-pocket expenses.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.

YEAR 2000 (UNAUDITED)

Similar to other financial organizations, the Trust could be adversely affected
if the computer systems used by the Trust's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Trust's Adviser and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Trust's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Trust. Report of
Independent Public Accountants

TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF TRUST FOR GOVERNMENT CASH RESERVES:

We have audited the accompanying statement of assets and liabilities of Trust
for Government Cash Reserves (a Massachusetts business trust), including the
schedule of portfolio investments, as of November 30, 1998, the related
statement of operations for the year then ended, the statement of changes in net
assets for each of the two years in the period then ended, and the financial
highlights for the periods presented. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
November 30, 1998, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Trust
for Government Cash Reserves as of November 30, 1998 the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and its financial highlights for the
periods presented, in conformity with generally accepted accounting principles.

ARTHUR ANDERSEN LLP
Boston, Massachusetts
January 15, 1999

Trust for Government Cash Reserves

A Portfolio of Money Market Obligations Trust

APRIL 28, 1999

A Statement of Additional Information (SAI) dated April 28, 1999, is
incorporated by reference into this prospectus. Additional information about the
Fund's investments is contained in the Fund's semi-annual report to shareholders
as it becomes available. To obtain the SAI, semi-annual report and other
information without charge, call your investment professional or the Fund at 1-
800-341-7400. You can obtain information about the Fund (including the SAI)
by visiting or writing the Public Reference Room of the Securities and Exchange
Commission in Washington, DC 20549-6009 or from the Commission's Internet site
at http://www.sec.gov. You can call 1-800-SEC-0330 for information on the Public
Reference Room's operations and copying charges.

[FEDERATED LOGO]
Trust for Government Cash Reserves
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com

Investment Company Act File No. 811-5950
Cusip 60934N773

9022103A (4/99)

Federated is a registered mark of Federated Investors, Inc.
1999 (C)Federated Investors, Inc. [RECYCLED PAPER LOGO]

Statement of Additional Information

TRUST FOR GOVERNMENT CASH RESERVES

A Portfolio of Money Market Obligations Trust
This Statement of Additional Information (SAI) is not a prospectus. Read this
SAI in conjunction with the prospectus for Trust for Government Cash Reserves
(Fund), dated April 28, 1999. Obtain the prospectus without charge by calling
1-800-341-7400.

April 28, 1999

9022103B (4/99)

<PAGE>

HOW IS THE FUND ORGANIZED?

The Fund is a diversified portfolio of Money Market Obligations Trust
(Trust). The Trust is an open-end, management investment company that was
established under the laws of the Commonwealth of Massachusetts on October 3,
1988. The Trust may offer separate series of shares representing interests in
separate portfolios of securities. The Fund, which was established on January
26, 1989, was reorganized as a portfolio of the Trust on April 30, 1999. The
Fund's investment adviser is Federated Investment Management Company.

SECURITIES IN WHICH THE FUND INVESTS

In pursuing its investment strategy, the Fund may invest in the following
securities for any purpose that is consistent with its investment objective.

SECURITIES DESCRIPTIONS AND TECHNIQUES
Fixed Income Securities
Fixed income securities pay interest, dividends or distributions at a specified
rate. The rate may be a fixed percentage of the principal or adjusted
periodically. In addition, the issuer of a fixed income security must repay the
principal amount of the security, normally within a specified time. Fixed income
securities provide more regular income than equity securities. However, the
returns on fixed income securities are limited and normally do not increase with
the issuer's earnings. This limits the potential appreciation of fixed income
securities as compared to equity securities. A security's yield measures the
annual income earned on a security as a percentage of its price. A security's
yield will increase or decrease depending upon whether it costs less (a
discount) or more (a premium) than the principal amount. If the issuer may
redeem the security before its scheduled maturity, the price and yield on a
discount or premium security may change based upon the probability of an early
redemption. Securities with higher risks generally have higher yields. The
following describes the types of fixed income securities in which the Fund
invests.
Treasury Securities
Treasury securities are direct obligations of the federal government of the
United States. Investors regard treasury securities as having the lowest
credit risks. Agency Securities Agency securities are issued or guaranteed
by a federal agency or other government sponsored entity acting under
federal authority (a GSE). The United States supports some GSEs with its
full, faith and credit. Other GSEs receive support through federal
subsidies, loans or other benefits. A few GSEs have no explicit financial
support, but are regarded as having implied support because the federal
government sponsors their activities. Investors regard agency securities as
having low credit risks, but not as low as treasury securities. Zero Coupon
Securities Zero coupon securities do not pay interest or principal until
final maturity unlike debt securities that provide periodic payments of
interest (referred to as a coupon payment). Investors buy zero coupon
securities at a price below the amount payable at maturity. The difference
between the purchase price and the amount paid at maturity represents
interest on the zero coupon security. An investor must wait until maturity
to receive interest and principal, which increases the market risks of a
zero coupon security. There are many forms of zero coupon securities. Some
are issued at a discount and are referred to as zero coupon or capital
appreciation bonds. Others are created from interest bearing bonds by
separating the right to receive the bond's coupon payments from the right
to receive the bond's principal due at maturity, a process known as coupon
stripping. Treasury STRIPs are the most common forms of stripped U.S.
Treasury zero coupon securities. Investing in Securities of Other
Investment Companies The Trust may invest its assets in securities of other
investment companies as an efficient means of carrying out its investment
policies. It should be noted that investment companies incur certain
expenses, such as management fees, and, therefore, any investment by the
Trust in shares of other investment companies may be subject to such
duplicate expenses. At the present time, the Trust expects that its
investments in other investment companies will be limited to shares of
money market funds affiliated with the Trust's investment adviser.
Special Transactions
When Issued Transactions
When issued transactions are arrangements in which the Fund buys securities
for a set price, with payment and delivery of the securities scheduled for
a future time. During the period between purchase and settlement, no
payment is made by the Fund to the issuer and no interest accrues to the
Fund. The Fund records the transaction when it agrees to buy the securities
and reflects their value in determining the price of its shares. Settlement
dates may be a month or more after entering into these transactions so that
the market values of the securities bought may vary from the purchase
prices. Therefore, when issued transactions create market risks for the
Fund. When issued transactions also involve credit risks in the event of a
counterparty default.
Asset Coverage
In order to secure its obligations in connection with derivatives contracts or
special transactions, the Fund will either own the underlying assets, enter into
an offsetting transaction or set aside readily marketable securities with a
value that equals or exceeds the Fund's obligations. Unless the Fund has other
readily marketable assets to set aside, it cannot trade assets used to secure
such obligations entering into an offsetting derivative contract or terminating
a special transaction. This may cause the Fund to miss favorable trading
opportunities or to realize losses on derivative contracts or special
transactions.

INVESTMENT LIMITATIONS

Issuing Senior Securities and Borrowing Money
The Fund will not issue senior securities except that the Fund may borrow money
in amounts up to one-third of the value of its total assets, including the
amounts borrowed.

The Fund will not borrow money except as a temporary, extraordinary, or
emergency measure or to facilitate management of the portfolio by enabling the
Fund to meet redemption requests when the liquidation of portfolio securities is
deemed to be inconvenient or disadvantageous. The Fund will not purchase any
securities while borrowings in excess of 5% of the value of its total assets are
outstanding.

Pledging Assets
The Fund will not mortgage, pledge, or hypothecate any assets except as
necessary to secure permitted borrowings. In those cases, it may pledge assets
having a market value not exceeding the lesser of the dollar amounts borrowed or
10% of the value of total assets at the time of the pledge.

Lending Cash or Securities
The Fund will not lend any of its assets, except that it may purchase or hold
U.S. government securities, permitted by its investment objective, policies, and
limitations.

Investing in Commodities
The Fund will not purchase or sell commodities, commodity contracts, or
commodity futures contracts.

Investing in Real Estate
The Fund will not purchase or sell real estate.

Underwriting
The Fund will not underwrite any issue of securities, except as it may be deemed
to be an underwriter under the Securities Act of 1933 in connection with the
sale of securities in accordance with its investment objective, policies, and
limitations.

Concentration of Investments
The Fund will not invest 25% or more of the value of its total assets in any one
industry. However, the Fund may invest 25% or more of the value of its total
assets in cash, cash items, or securities issued or guaranteed by the government
of the United States or its agencies, or instrumentalities and repurchase
agreements collateralized by such U.S. government securities. The U.S.
government is not considered to be an industry.

Diversification of Investments
With respect to securities comprising 75% of the value of its total assets, the
Fund will not purchase securities of any one issuer (other than cash, cash
items, or securities issued or guaranteed by the government of the United States
or its agencies or instrumentalities and repurchase agreements collateralized by
such U.S. government securities) if as a result more than 5% of the value of its
total assets would be invested in the securities of that issuer, or if it would
own more than 10% of the outstanding voting securities of that issuer.

The above limitations cannot be changed unless authorized by the vote of a
majority of its outstanding voting securities. The following limitations,
however, may be changed by the Board without shareholder approval. Shareholders
will be notified before any material change in these limitations becomes
effective.

Investing in Illiquid Securities
The Fund will not invest more than 10% of the value of its net assets in
illiquid securities.

Investing for Control
The Fund will not invest in securities of a company for the purpose of
exercising control or management.

Regulatory Compliance
The Fund may follow non-fundamental operational policies that are more
restrictive than its fundamental investment limitations, as set forth in the
prospectus and this Statement of Additional Information, in order to comply with
applicable laws and regulations, including the provisions of and regulations
under the Investment Company Act of 1940. In particular, the Fund will comply
with the various requirements of Rule 2a-7 (the "Rule"), which regulates money
market mutual funds. The Fund will determine the effective maturity of its
investments according to the Rule. The Fund may change these operational
policies to reflect changes in the laws and regulations without the approval of
its shareholders.

The Fund's use of the amortized cost method of valuing portfolio instruments
depends on its compliance with certain conditions in the Rule. Under the Rule,
the Trustees must establish procedures reasonably designed to stabilize the net
asset value per share, as computed for purposes of distribution and redemption,
at $1.00 per share, taking into account current market conditions and the Fund's
investment objective. The procedures include monitoring the relationship between
the amortized cost value per share and the net asset value per share based upon
available indications of market value. The Trustees will decide what, if any,
steps should be taken if there is a difference of more than 0.5 of 1% between
the two values. The Trustees will take any steps they consider appropriate (such
as redemption in kind or shortening the dollar-weighted average portfolio
maturity) to minimize any material dilution or other unfair results arising from
differences between the two methods of determining net asset value.

HOW IS THE FUND SOLD?

Under the Distributor's Contract with the Fund, the Distributor (Federated
Securities Corp.) offers Shares on a continuous, best-efforts basis.

SHAREHOLDER SERVICES
The Fund may pay Federated Shareholder Services Company, a subsidiary of
Federated Investors, Inc. (Federated), for providing shareholder services and
maintaining shareholder accounts. Federated Shareholder Services Company may
select others to perform these services for their customers and may pay them
fees.

SUPPLEMENTAL PAYMENTS
Investment professionals may be paid fees out of the assets of the Distributor
and/or Federated Shareholder Services Company (but not out of Fund assets). The
Distributor and/or Federated Shareholder Services Company may be reimbursed by
the Adviser or its affiliates.

Investment professionals receive such fees for providing distribution-related or
shareholder services such as sponsoring sales, providing sales literature,
conducting training seminars for employees, and engineering sales-related
computer software programs and systems. Also, investment professionals may be
paid cash or promotional incentives, such as reimbursement of certain expenses
of qualified employees to attend informational meetings about the Fund or other
special events at recreational-type facilities, or items of material value.
These payments will be based upon the amount of Shares the investment
professional sells or may sell and/or upon the type and nature of sales or
marketing support furnished by the investment professional.

When an investment professional's customer purchases shares, the investment
professional may receive:

SUBACCOUNTING SERVICES

REDEMPTION IN KIND

Redemption in kind is not as liquid as a cash redemption. If redemption is made
in kind, shareholders receiving the portfolio securities and selling them before
their maturity could receive less than the redemption value of the securities
and could incur certain transaction costs.

MASSACHUSETTS PARTNERSHIP LAW

ACCOUNT AND SHARE INFORMATION

VOTING RIGHTS
Each share of the Fund gives the shareholder one vote in Trustee elections and
other matters submitted to shareholders for vote. All Shares of the Fund have
equal voting rights.

As of April 6, 1999, the following shareholders owned of record,
beneficially, or both, 5% or more of outstanding Shares:

NMF & Co., Boston, MA, owned approximately 115,448,142 shares (23.31%); Friedmar
& Co., Richmond, CA, owned approximately 36,021,091 shares (7.27%); Fiduciary
Tr. Co. International, New York, NY, owned approximately 36,005,000 shares
(7.27%); Acadia & Co., Boston, MA, owned approximately 35,420,537 shares
(7.15%); The Bank of the West, San Jose, CA, owned approximately 30,192,746
shares (6.10%); and City National Bank, Los Angeles, CA, owned approximately
24,833,880 shares (5.02%).

TAX INFORMATION

<PAGE>

WHO MANAGES AND PROVIDES SERVICES TO THE FUND?

BOARD OF TRUSTEES
The Board is responsible for managing the Trust's business affairs and for
exercising all the s powers except those reserved for the shareholders.
Information about each Board member is provided below and includes each
person's: name, address, birth date, present position(s) held with the Trust,
principal occupations for the past five years and positions held prior to the
past five years, total compensation received as a Trustee from the Trust for its
most recent fiscal year, and the total compensation received from the Federated
Fund Complex for the most recent calendar year. The Trust consists of 13 funds
and the Federated Fund Complex includes 56 investment companies whose investment
adviser is affiliated with the s Adviser.

As of April 6, 1999, the Fund's Board and Officers as a group owned less than
1% of the Fund's outstanding Shares.

An asterisk (*) denotes a Trustee who is deemed to be an interested person as
defined in the Investment Company Act of 1940. The following symbol (#) denotes
a Member of the Board's Executive Committee, which handles the Board's
responsibilities between its meetings.

<PAGE>

<PAGE>

Edward C. Gonzales Trustee or Director of some of the Funds in the $0 $0 for the Trust and
Birth Date: October 22, 1930 Federated Fund Complex; President, Executive Vice 1 other investment
Federated Investors Tower President and Treasurer of some of the Funds in the companies in the
1001 Liberty Avenue Federated Fund Complex; Vice Chairman, Federated Fund Complex
Pittsburgh, PA Investors, Inc.; Vice President, Federated Investment
EXECUTIVE VICE PRESIDENT Management Company, Federated Investment Counseling,
Federated Global Investment Management Corp. and
Passport Research, Ltd.; Executive Vice President and
Director, Federated Securities Corp.; Trustee,
Federated Shareholder Services Company
John W. McGonigle Executive Vice President and Secretary of the $0 $0 for the Trust
Birth Date: October 26, 1938 Federated Fund Complex; Executive Vice President, and 54 other
Federated Investors Tower Secretary, and Director, Federated Investors, Inc.; investment
1001 Liberty Avenue Trustee, Federated Investment Management Company; companies in the
Pittsburgh, PA Director, Federated Investment Counseling and Fund Complex
EXECUTIVE VICE PRESIDENT AND Federated Global Investment Management Corp.;
SECRETARY Director, Federated Services Company; Director,
Federated Securities Corp.

Richard J. Thomas Treasurer of the Federated Fund Complex; Vice $0 $0 for the Trust
Birth Date: June 17, 1954 President - Funds Financial Services Division, and 54 other
Federated Investors Tower Federated Investors, Inc.; Formerly: various investment
1001 Liberty Avenue management positions within Funds Financial Services companies in the
Pittsburgh, PA Division of Federated Investors, Inc. Fund Complex
TREASURER

+Mr. Donahue is the father of J. Christopher Donahue, President of the Trust.

INVESTMENT ADVISER
The Adviser conducts investment research and makes investment decisions for the
Fund.

The Adviser is a wholly owned subsidiary of Federated.

The Adviser shall not be liable to the Fund, or any Fund shareholder for any
losses that may be sustained in the purchase, holding, or sale of any security
or for anything done or omitted by it, except acts or omissions involving
willful misfeasance, bad faith, gross negligence, or reckless disregard of the
duties imposed upon it by its contract with the Fund.

Maximum Administrative Fee Average Aggregate Daily Net Assets of
the Federated Funds
0.150 of 1% on the first $250 million
0.125 of 1% on the next $250 million
0.100 of 1% on the next $250 million
0.075 of 1% on assets in excess of $750 million
The administrative fee received during any fiscal year shall be at least
$125,000 per portfolio and $30,000 per each additional class of Shares.
Federated Services Company may voluntarily waive a portion of its fee and may
reimburse the Fund for expenses.

Federated Services Company also provides certain accounting and recordkeeping
services with respect to the Fund's portfolio investments for a fee based on
Fund assets plus out-of-pocket expenses.

INDEPENDENT PUBLIC ACCOUNTANTS
Arthur Andersen LLP is the independent public accountant for the Fund.

FEES PAID BY THE FUND FOR SERVICES

For the Year ended November 30 1998 1997 1996
Advisory Fee Earned $2,210,660 $2,555,772 $2,436,831
Advisory Fee Reduction $595,406 $675,932 $748,431
Administrative Fee $416,709 $482,402 $460,540
Shareholder Services Fee $276,335 -- --

If the Fund's expenses are capped at a particular level, the cap does not
include reimbursement to the Fund of any expenses incurred by shareholders who
use the transfer agent's subaccounting facilities.

For the fiscal years ended November 30, 1998, 1997 and 1996, fees paid by the
Fund for services are prior to the Fund's reorganization as a portfolio of the
Trust on April 30, 1999.

HOW DOES THE FUND MEASURE PERFORMANCE?

Unless otherwise stated, any quoted Share performance reflects the effect of
non-recurring charges, such as maximum sales charges, which, if excluded, would
increase the total return and yield. The performance of Shares depends upon such
variables as: portfolio quality; dollar-weighted average portfolio maturity;
type and value of portfolio securities; changes in interest rates; changes or
differences in the Fund's or any class of Shares' expenses; and various other
factors.

Share performance fluctuates on a daily basis largely because net earnings
fluctuate daily. Both net earnings and offering price per Share are factors in
the computation of yield and total return.

Average Annual Total Returns and Yield
Total returns given for the one-, five- and since inception periods ended
November 30, 1998.

Yield, and Effective Yield given for the 7-day period ended November 30, 1998.

Performance of the Fund shown is prior to its reorganization as a portfolio of
the Trust on April 30, 1999.

7-Day Period 1 Year 5 Years Since Inception
on March 30, 1989
Total Return -- 5.16 4.94 5.27
Yield 4.71 -- -- --
Effective Yield 4.82 -- -- --

</TABLE>

<PAGE>

YIELD
The yield of Shares is based upon the seven days ending on the day of the
calculation, called the "base period." This yield is calculated by: determining
the net change in the value of a hypothetical account with a balance of one
Share at the beginning of the base period, with the net change excluding capital
changes but including the value of any additional Shares purchased with
dividends earned form the original one Share and all dividends declared on the
original and any purchased Shares; dividing the net change in the account's
value by the value of the account at the beginning of the base period to
determine the base period return; and multiplying the base period return by
365/7. The effective yield is calculated by compounding the unannualized
base-period return by: adding one to the base-period return, raising, the sum to
the 365/7th power; and subtracting one from the result.

To the extent investment professional and broker/dealers charge fees in
connection with services provided in conjunction with an investment in Shares,
the Share performance is lower for shareholders paying those fees.

PERFORMANCE COMPARISONS
Advertising and sales literature may include:

o references to ratings, rankings, and financial publications and/or
performance comparisons of Shares to certain indices;

o discussions of economic, financial and political developments and their
impact on the securities market, including the portfolio manager's views on
how such developments could impact the Funds; and

o information about the mutual fund industry from sources such as the Investment
Company Institute.

The Fund may quote information from reliable sources regarding individual
countries and regions, world stock exchanges, and economic and demographic
statistics.

Lipper Analytical Services, Inc.
Ranks funds in various fund categories by making comparative calculations using
total return. Total return assumes the reinvestment of all capital gains
distributions and income dividends and takes into account any change in net
asset value over a specified period of time.

IBC/Donoghue's Money Fund Report
Publishes annualized yields of money market funds weekly. Donoghue's Money
Market Insight publication reports monthly and 12-month-to-date investment
results for the same money funds.

Money
A monthly magazine, regularly ranks money market funds in various categories
based on the latest available seven-day effective yield.

Salomon 30-Day Treasury Bill Index
A weekly quote of the most representative yields for selected securities, issued
by the U.S. Treasury, maturing in 30 days.

Discount Corporation of New York 30-day Federal Agencies
A weekly quote of the average daily offering price for selected federated agency
issues maturing in 30 days.

WHO IS FEDERATED INVESTORS, INC.?

Federated's disciplined investment selection process is rooted in sound
methodologies backed by fundamental and technical research. At Federated,
success in investment management does not depend solely on the skill of a single
portfolio manager. It is the fusion of individual talents and state-of-the-art
industry tools and resources. Federated's investment process involves teams of
portfolio managers and analysts, and investment decisions are executed by
traders who are dedicated to specific market sectors and who handle trillions of
dollars in annual trading volume.

FEDERATED FUNDS OVERVIEW

FEDERATED CLIENTS OVERVIEW
Federated distributes mutual funds through its subsidiaries for a variety of
investment purposes. Specific markets include:

<PAGE>

ADDRESSES

trust for Government Cash Reserves

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000

Distributor
Federated Securities Corp.
Federated Investors Tower
1001 Liberty Avenue,
Pittsburgh, PA 15222-3779

Investment Adviser
Federated Investment Management Company
Federated Investors Tower
1001 Liberty Avenue,
Pittsburgh, PA 15222-3779

Custodian
State Street Bank and Trust Company
P.O. Box 8600
Boston, MA 02266-8600

Transfer Agent and Dividend Disbursing Agent
Federated Shareholder Services Company
P.O. Box 8600
Boston, MA 02266-8600

Independent Public Accountants
Arthur Andersen LLP
225 Franklin Street
Boston, MA 02110-2812

TGCR APPENDIX

The Bar Chart and Performance Table below reflect historical performance data
for Trust for Government Cash Reserves (the "Former Fund") prior to its
reorganization into the Fund, which is a newly created portfolio of Money Market
Obligations Trust (the "Trust"). On the date of the reorganization, April 30,
1999, the Former Fund was dissolved and its net assets (inclusive of liabilities
recorded on the Former Fund's records) were transferred into the Fund

The `y' axis reflects the "% Total Return" beginning with 0.00% and increasing
in increments of 2.00% up to 8.00%.

The `x' axis represents calculation for the last nine calendar years of the Fund
beginning with the earliest year. The light gray shaded chart features nine
distinct vertical bars, each shaded in charcoal, and each visually representing
by height the total return percentages for the calendar year stated directly at
its base. The calculated total return percentage for the Fund for each calendar
year is stated directly at the top of each respective bar for the calendar years
1990 through 1998. The percentages noted are:
7.87%, 5.71%, 3.45%, 2.86%, 3.96%, 5.59%, 5.05%, 5.17% and 5.11%, respectively.

The bar chart shows the variability of the Former Fund's actual total return on
a calendar year basis.

Historically, the Former Fund has maintained a constant $1.00 net asset value
per share.

The Former Fund's Shares are not sold subject to a sales charge (load). The
total returns displayed above are based upon the net asset value.

The following table represents the Former Fund's Average Annual Total Return for
the calendar periods ending December 31, 1998.

Calendar Period
1 Year 5.11%
5 Years 4.98%
Start of Performance 1. 5.26%

The Former Fund's 7-Day net yield as of December 31, 1998 was 4.71%.

1. The Former Fund's start of performance date was March 30, 1989.

Investors may call the Fund at 1-800-341-7400 to acquire the current Seven-Day
Net Yield

Prospectus

Trust forShort-Term
U.S. Government Securities

A Portfolio of Money Market Obligations Trust

A money market mutual fund seeking high current income consistent with stability
of principal and liquidity by investing only in U.S. government securities
maturing in 13 months or less and repurchase agreements.

Risk/Return Summary 1
What are the Fund's Fees and Expenses? 3
What are the Fund's Investment Strategies? 4
What are the Principal Securities in Which the Fund Invests? 4
What are the Specific Risks of Investing in the Fund? 4
What do Shares Cost? 5
How is the Fund Sold? 5
How to Purchase Shares 5
How to Redeem Shares 6
Account and Share Information 8
Who Manages the Fund? 8
Financial Information

APRIL 28, 1999

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The Fund invests only in a portfolio of U.S. Treasury and government agency
securities maturing in 13 months or less. These investments include repurchase
agreements collateralized fully by U.S. Treasury and government agency
securities. The dollar-weighted average maturity of the Fund's portfolio will be
90 days or less.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

Risk/Return Bar Chart and Table

The Bar Chart and Performance Table below reflect historical performance data
for Trust for Short-Term U.S. Government Securities (the "Former Fund") prior to
its reorganization into the Fund, which is a newly created portfolio of Money
Market Obligations Trust (the "Trust"). On the date of the reorganization, April
30, 1999, the Former Fund was dissolved and its net assets (inclusive of
liabilities recorded on the Former Fund's records) were transferred into the
Fund.

Graphic representation omitted. See TST Appendix.

Historically, the Former Fund has maintained a constant $1.00 net asset value
per share. The bar chart shows the variability of the Former Fund's actual total
returns on a calendar year basis.

Within the period shown in the Chart, the Former Fund's highest quarterly return
was 2.29% (quarter ended June 30, 1989). Its lowest quarterly return was 0.70%
(quarter ended June 30, 1993).
Average Annual Total Return Table The
following table represents the Former Fund's Average Annual Total Return for the
calendar periods ending December 31, 1998.

Calendar Period Fund
1 Year 5.15% 5 Years 4.99% 10 Years 5.41%
The
Former Fund's 7-Day Net Yield as of December 31, 1998 was 4.66%. Investors may
call the Fund at 1-800-341-7400 to acquire the current 7-Day Net Yield.

What are the Fund's Fees and Expenses?

TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of Trust for Short-Term U.S. Government Securities.

<TABLE>
<CAPTION>
<S> <C>
Shareholder Fees
Fees Paid Directly From Your Investment
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) None
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds,asapplicable) None
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (asapercentageofoffering price) None
Redemption Fee (as a percentage of amount redeemed, if applicable) None
Exchange Fee None
</TABLE>

Annual Fund Operating Expenses

Expenses That are Deducted From Fund Assets (as a percentage of average net
assets) Management Fee 0.40% Distribution (12b-1) Fee None Shareholder Services
Fee 0.25% Other Expenses 0.11% Total Annual Fund Operating Expenses (before
waivers)/1/ 0.76% Total Waiver of Fund Expenses 0.31% Total Actual Annual Fund
Operating Expenses (after waivers)/2/ 0.45% 1 Under the investment advisory
contract, the adviser will waive the amount, limited to the amount of the
management fee, by

which the Fund's aggregate annual operating expenses, including the management
fee but excluding interest, taxes, brokerage commissions, expenses of
registering and qualifying the Fund and its shares under federal and state laws
and regulations, and extraordinary expenses, exceed 0.45% of its average daily
net assets. If the Fund offers an additional class of shares in the future, the
aforementioned expense limitation would not apply to expenses arising pursuant
to a Rule 12b-1 or Shareholder Servicing plan with respect to that class of
shares.
2Total Actual Annual Fund Operating Expenses represent the net expenses the
Fund expects to actually pay for the fiscal year ended November 30, 1999. For
the fiscal year ended November 30, 1998, prior to the reorganization of Trust
for Short-Term U.S. Government Securities, the Former Fund, as a portfolio of
Money Market Obligations Trust, the Total Annual Fund Operating Expenses and
Total Actual Annual Fund Operating Expenses were 0.76% and 0.45%, respectively.

EXAMPLE
The following Example is intended to help you compare the cost of investing in
the Fund with the cost of investing in other mutual funds.

1 Year 3 Years 5 Years 10 Years
$46 $144 $252 $567

What are the Fund's Investment Strategies?

The Fund invests only in a portfolio of U.S. Treasury and government agency
securities, including repurchase agreements collateralized fully by U.S.
Treasury and government agency securities. Portfolio securities and repurchase
agreements will have a maturity of 397 days or less. The Fund intends to limit
the dollar-weighted average maturity of its portfolio to 90 days or less.

. current U.S. economic activity and the economic outlook;
. current short-term interest rates; and
. recent actions by the Federal Reserve Board regarding short-term interest
rates and market expectations regarding future actions.

The adviser generally shortens the portfolio's dollar-weighted average maturity
when it expects interest rates to rise and extends the maturity when it expects
interest rates to fall. The adviser selects securities used to lengthen or
shorten the portfolio's dollar-weighted average maturity by comparing the
returns currently offered by different investments to their historical and
expected returns.

What are the Principal Securities in Which the Fund Invests?

TREASURY SECURITIES
Treasury securities are direct obligations of the federal government of the
United States.

AGENCY SECURITIES

Agency securities are issued or guaranteed by a federal agency or other
government sponsored entity acting under federal authority (GSE). Some GSEs are
supported by the full faith and credit of the United States. Other GSEs receive
support through federal subsidies, loans or other benefits. A few GSEs have no
explicit financial support, but are regarded as having implied support because
the federal government sponsors their activities.

REPURCHASE AGREEMENTS

Repurchase agreements are transactions in which a Fund buys a security from a
dealer or bank and agrees to sell the security back at a mutually agreed upon
time and price. The repurchase price exceeds the sale price, reflecting the
Fund's return for the transaction.

What are the Specific Risks of Investing in the Fund?

Although there are many factors which may effect an investment in the Fund, the
principal risks of investing in a U.S. government money market fund are
described below.

MARKET RISK

Prices of fixed income securities rise and fall in response to interest rate
changes for similar securities. Generally, when interest rates rise, prices of
fixed income securities fall.

Interest rate changes have a greater effect on the price of fixed income
securities with longer maturities. Money market funds try to minimize this risk
by purchasing short-term securities.

CREDIT RISK

The required minimum initial investment for Fund Shares is $25,000. There is
no required minimum subsequent investment amount.

How is the Fund Sold?

The Fund's Distributor markets the Shares described in this prospectus to
institutions acting in an agency or fiduciary capacity or to individuals
directly or through investment professionals.

How to Purchase Shares

You may purchase Shares through an investment professional or directly from the
Fund. The Fund reserves the right to reject any request to purchase Shares.

THROUGH AN INVESTMENT PROFESSIONAL
. Establish an account with the investment professional; and

Investment professionals should send payments according to the instructions in
the sections "By Wire" or "By Check."

DIRECTLY FROM THE FUND
. Establish your account with the Fund by submitting a completed New Account
Form; and . Send your payment to the Fund by Federal Reserve wire or check.

An institution may establish an account and place an order by calling the Fund
and will become a shareholder after the Fund receives the order.

BY AUTOMATIC INVESTMENTS

BY AUTOMATED CLEARINGHOUSE (ACH)

How to Redeem Shares

You should redeem Shares:
. through an investment professional if you purchased Shares through an
investment professional; or
. directly from the Fund if you purchased Shares directly from the Fund.

THROUGH AN INVESTMENT PROFESSIONAL

By Mail
You may redeem Shares by mailing a written request to the Fund.

Federated Shareholder Services Company
P.O. Box 8600
Boston, MA 02266-8600
Send requests by private courier or overnight delivery service to:
Federated Shareholder Services Company
1099 Hingham Street
Rockland, MA 02370-3317 All requests must include:
. Fund Name and Share Class, account number and account registration;
. amount to be redeemed; and
. signatures of all Shareholders exactly as registered
Call your investment professional or the Fund if you need special instructions.

PAYMENT METHODS FOR REDEMPTIONS

. an electronic transfer to your account at a financial institution that is an
ACH member; or
. wire payment to your account at a domestic commercial bank that is a Federal
Reserve System member.

REDEMPTION IN KIND

Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.

LIMITATIONS ON REDEMPTION PROCEEDS
Redemption proceeds normally are wired or mailed within one business day after
receiving a request in proper form. Payment may be delayed up to seven days:
. to allow your purchase to clear;
. during periods of market volatility; or
. when a shareholder's trade activity or amount adversely impacts the Fund's
ability to manage its assets. You will not accrue interest or dividends on
uncashed checks from the Fund if those checks are undeliverable and returned to
the Fund.

ADDITIONAL CONDITIONS

Telephone Transactions

The Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

Share Certificates

The Fund no longer issues share certificates. If you are redeeming Shares
represented by certificates previously issued by the Fund, you must return the
certificates with your written redemption request. For your protection, send
your certificates by registered or certified mail, but do not endorse them.

Account and Share Information

ACCOUNT ACTIVITY
You will receive periodic statements reporting all account activity, including
dividends and capital gains paid.

DIVIDENDS AND CAPITAL GAINS

ACCOUNTS WITH LOW BALANCES

TAX INFORMATION

Fund distributions are expected to be primarily dividends. Redemptions are
taxable sales. Please consult your tax adviser regarding your federal, state,
and local tax liability.

Who Manages the Fund?

ADVISORY FEES

The Adviser receives an annual investment advisory fee of 0.40% of the Fund's
average daily net assets. Under the investment advisory contract, which is
subject to annual renewal by the Fund's Board of Trustees, the Adviser will
waive the amount, limited to the amount of the advisory fee, by which the Fund's
aggregate annual operating expenses, including the investment advisory fee, but
excluding interest, taxes, brokerage commissions, expenses of registering or
qualifying the Fund and its shares under federal and state laws and regulations,
expenses of withholding taxes, and extraordinary expenses exceed 0.45% of its
average daily net assets.

YEAR 2000 READINESS

The financial impact of these issues for the Fund is still being determined.
There can be no assurance that potential Year 2000 problems would not have a
material adverse effect on the Fund.

Financial Information

FINANCIAL HIGHLIGHTS

This information has been audited by Deloitte & Touche LLP, whose report,
along with the Fund's audited financial statements, is included in this
Prospectus.

Financial Highlights

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Reference is made to the Independent Auditors' Report on page 19.

Ratios to Average Net Assets:
Expenses 0.45% 0.45% 0.45% 0.45% 0.45%
Net investment income 5.09% 5.07% 4.98% 5.47% 3.55%
Supplemental Data:
Net assets, end of period (000 omitted) $597,685 $675,988 $844,108 $952,757 $1,184,269
</TABLE>

1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable. See Notes which are an
integral part of the Financial Statements

Portfolio of Investments

NOVEMBER 30, 1998

<TABLE>
<CAPTION>
Principal Value
Amount
GOVERNMENT AGENCIES--64.5%
<S><C> <C> <C> <C>
$ 24,761,000 /1/ Federal Farm Credit System Discount Notes, 5.160% - 5.280%, 12/11/1998 - 7/7/1999 $ 24,479,728
26,000,000 /2/ Federal Farm Credit System Floating Rate Notes, 5.019% - 5.448%, 5/3/1999 - 6/17/1999 25,989,419
4,000,000 Federal Farm Credit System, 5.500%, 4/1/1999 3,998,182
62,000,000 /1/ Federal Home Loan Bank System Discount Notes, 5.350% - 5.360%, 12/4/1998 - 2/17/1999 61,594,620
105,000,000 /2/ Federal Home Loan Bank System Floating Rate Notes, 4.780% - 5.458%, 12/2/1998 - 104,968,575
3/1/1999
16,800,000 Federal Home Loan Bank System Notes, 5.080% - 5.705%, 3/26/1999 - 11/9/1999 16,794,592
36,000,000 /1/ Federal Home Loan Mortgage Corp. Discount Notes, 4.920% - 5.890%, 1/29/1999 - 35,584,708
3/15/1999
7,000,000 /2/ Federal Home Loan Mortgage Corp. Floating Rate Notes, 5.202%, 11/17/99 6,996,028
78,800,000 /1/ Federal National Mortgage Association Discount Notes, 4.400% - 5.090%, 2/10/1999 - 77,450,191
6/21/1999
16,000,000 /2/ Student Loan Marketing Association Floating Rate Notes, 4.790% - 5.260%, 9/15/1999- 15,991,832
11/9/1999
12,000,000 Student Loan Marketing Association, 5.400% - 5.583%, 2/10/1999 - 8/11/1999 11,997,937
TOTAL GOVERNMENT AGENCIES 385,845,812
/3/ REPURCHASE AGREEMENTS--37.0%
10,000,000 ABN AMRO Chicago Corp., 5.500%, dated 11/30/1998, due 12/1/1998 10,000,000
6,000,000 /4,5/Deutsche Bank Government Securities, Inc., 5.320%, dated 11/30/1998, due 12/1/1998 6,000,000
30,000,000 /4/ Goldman Sachs Group, LP, 5.190%, dated 10/8/1998, due 1/6/1999 30,000,000
10,000,000 /4/ J.P. Morgan & Co., Inc., 5.150%, dated 10/14/1998, due 1/13/1999 10,000,000
20,000,000 /4/ J.P. Morgan & Co., Inc., 5.150%, dated 11/2/1998, due 1/6/1999 20,000,000
30,000,000 /4/ Morgan Stanley Group, Inc., 4.860%, dated 10/15/1998, due 1/14/1999 30,000,000
15,000,000 Nationsbanc Montgomery Securities, Inc., 5.500%, dated 11/30/1998, due 12/1/1998 15,000,000
REPURCHASE AGREEMENT--Scontinued3
$ 100,000,000 PaineWebber Group, Inc., 5.470%, dated 11/30/1998, due 12/1/1998 $ 100,000,000
TOTAL REPURCHASE AGREEMENTS 221,000,000
TOTAL INVESTMENTS (AT AMORTIZED COST)6 $ 606,845,812
</TABLE>

1 Rates noted reflect the effective yield.
2 Denotes variable rate securities which show current rate and next demand
date.
3 The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio. The
investments in the repurchase agreements are through participation in a joint
account with other Federated funds.
4 Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase
agreement within seven days.
5 Represents a forward commitment for the delayed delivery of securities. The
fair value of the forward commitment approximates the contract amount at
November 30, 1998. Risks may arise upon entering these contracts from the
potential inability of counterparties to meet the terms of their contracts
and from unanticipated movements in security prices.
6 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($597,684,819) at November 30, 1998.
The following acronym is used throughout this portfolio:

LP--Limited Partnership

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

NOVEMBER 30, 1998

<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Investments in repurchase agreements $1,000,000
Investments in securities 5,845,812
Total investments in securities, at amortized cost and value $606,845,812
Income receivable 2,070,274
Receivable for shares sold 1,543
TOTAL ASSETS 608,917,629
Liabilities:
Payable to bank 232,956
Payable for investments purchased 8,993,376
Income distribution payable 1,904,056
Accrued expenses 102,422
TOTAL LIABILITIES 11,232,810
Net Assets for 597,684,819 shares outstanding $ 597,684,819
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$597,684,819 / 597,684,819 shares outstanding $1.00
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Operations

YEAR ENDED NOVEMBER 30, 1998

<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C> <C>
Interest $ 36,288,610
Expenses:
Investment advisory fee $ 2,624,751
Administrative personnel and services fee 494,765
Custodian fees 55,853
Transfer and dividend disbursing agent fees and expenses 7,824
Directors'/Trustees' fees 14,266
Auditing fees 14,874
Legal fees 6,933
Portfolio accounting fees 100,685
Shareholder services fee 1,640,469
Share registration costs 15,538
Printing and postage 10,479
Insurance premiums 6,000
Miscellaneous 9,419
TOTAL EXPENSES 5,001,856
Waivers:
Waiver of investment advisory fee $ (721,130)
Waiver of shareholder services fee (1,312,375)
TOTAL WAIVERS (2,033,505)
Net expenses 2,968,351
Net investment income $ 33,320,259
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

<TABLE>
<CAPTION>
Year Ended November 30 1998 1997
Increase (Decrease) in Net Assets:
Operations:
<S> <C> <C>
Net investment income $ 33,320,259 $ 36,426,778
Distributions to Shareholders:
Distributions from net investment income (33,320,259) (36,426,778)
Share Transactions:
Proceeds from sale of shares 2,254,528,698 2,804,629,799
Net asset value of shares issued to shareholders in payment of 4,826,995 5,562,130
distributionsdeclared
Cost of shares redeemed (2,337,658,641) (2,978,312,468)
Change in net assets resulting from share transactions (78,302,948) (168,120,539)
Change in net assets (78,302,948) (168,120,539)
Net Assets:
Beginning of period 675,987,767 844,108,306
End of period $ 597,684,819 $ 675,987,767
</TABLE>

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

NOVEMBER 30, 1998

Trust For Short-Term U.S. Government Securities (the "Fund"), registered under
the Investment Company Act of 1940, as amended (the "Act"), is an open-end
management investment company. The investment objective of the Fund is high
current income consistent with stability of principal and liquidity.

SIGNIFICANT ACCOUNTING POLICIES

Investment Valuations
The Fund uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.

Repurchase Agreements

The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Fund could receive less than
the repurchase price on the sale of collateral securities.

Investment Income, Expenses, and Distributions

When-Issued and Delayed Delivery Transactions

Use of Estimates

Other
Investment transactions are accounted for on the trade date.

SHARES OF BENEFICIAL INTEREST

<TABLE>
<CAPTION>
Year Ended November 30 1998 1997
<S> <C> <C>
Shares sold 2,254,528,698 2,804,629,799
Shares issued to shareholders in payment of distributions declared 4,826,995 5,562,130
Shares redeemed (2,337,658,641) (2,978,312,468)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS (78,302,948) (168,120,539)
</TABLE>

INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fee

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee
paid to FServ is based on the level of average aggregate daily net assets of all
funds advised by subsidiaries of Federated Investors for the period. The
administrative fee received during the period of the Administrative Services
Agreement shall be at least $125,000 per portfolio and $30,000 per each
additional class of shares.

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund for the period. The fee paid is to obtain certain
services for shareholders and to maintain shareholder accounts. FSSC may
voluntarily choose to waive any portion of its fee. FSSC can modify or terminate
this voluntary waiver at any time at its sole discretion.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary Federated Shareholder Services Company ("FSSC"),
serves as transfer and dividend disbursing agent for the Fund. The fee paid to
FSSC is based on the size, type, and number of accounts and transactions made by
shareholders.

Portfolio Accounting Fees

FServ, maintains the Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund's average daily net assets for the period,
plus out-of-pocket expenses.

GENERAL
Certain of the Officers and Trustees of the Fund are Officers and Directors or
Trustees of the above companies.

YEAR 2000 (UNAUDITED)

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES:

We have audited the accompanying statement of assets and liabilities of Trust
for Short-Term U.S. Government Securities, including the schedule of
investments, as of November 30, 1998, and the related statements of operations
for the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
years in the five-year period ended November 30, 1998. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion of these financial
statements and financial highlights based on our audit.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned as of
November 30, 1998, by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other auditing procedures.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Trust
for Short-Term U.S. Government Securities as of November 30, 1998, the results
of its operations, the changes in its net assets for each of the two years in
the period then ended, and the financial highlights for the period then ended,
in conformity with generally accepted accounting principles.

Deloitte & Touche LLP
Boston, Massachusetts
January 15, 1999

[Federated logo]

Trust for Short-Term U.S. Government Securities

A Portfolio of Money Market Obligations Trust

APRIL 28, 1999

[Federated logo]

Trust for Short-Term U.S. Government Securities
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400

www.federatedinvestors.com

Investment Company Act File No. 811-5950

Cusip 60934N781

8010415A (4/99)

Statement of Additional Information

TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES

A Portfolio of Money Market Obligations Trust

This Statement of Additional Information (SAI) is not a prospectus. Read this
SAI in conjunction with the prospectus for Trust for
Short-Term U.S. Government Securities (Fund), dated April 28, 1999.

Obtain the prospectus without charge by calling 1-800-341-7400.

april 28, 1999

Cusip 60934N781

8010415B (4/99)

<PAGE>

106

HOW IS THE FUND ORGANIZED?

The Fund is a diversified portfolio of Money Market Obligations Trust
(Trust). The Trust is an open-end, management investment company that was
established under the laws of the Commonwealth of Massachusetts on October 3,
1988. The Trust May offer separate series of shares representing interests in
separate portfolios of securities. The Fund, which was established on October
30, 1975, was reorganized as a portfolio of the Trust on April 30, 1999. The
Fund's investment adviser is Federated Investment Management Company.

SECURITIES IN WHICH THE FUND INVESTS

In pursuing its investment strategy, the Fund may invest in the following
securities for any purpose that is consistent with its investment objective.

SECURITIES DESCRIPTIONS AND TECHNIQUES

The following describes the types of fixed income securities in which the Fund
invests.

Treasury Securities
Treasury securities are direct obligations of the federal government of the
United States. Investors regard treasury securities as having the lowest credit
risks.

Mortgage Backed Securities
Mortgage backed securities represent interests in pools of mortgages. The
mortgages that comprise a pool normally have similar interest rates, maturities
and other terms. Mortgages may have fixed or adjustable interest rates.
Interests in pools of adjustable rate mortgages are know as ARMs.

nvesting in Securities of Other Investment Companies
The Trust may invest its assets in securities of other investment companies as
an efficient means of carrying out its investment policies. It should be noted
that investment companies incur certain expenses, such as management fees, and,
therefore, any investment by the Trust in shares of other investment companies
may be subject to such duplicate expenses. At the present time, the Trust
expects that its investments in other investment companies will be limited to
shares of money market funds affiliated with the Trust's investment adviser.

Special Transactions

Repurchase Agreements
Repurchase agreements are transactions in which the Fund buys a security from a
dealer or bank and agrees to sell the security back at a mutually agreed upon
time and price. The repurchase price exceeds the sale price, reflecting the
Fund's return on the transaction. This return is unrelated to the interest rate
on the underlying collateral. The Fund will enter into repurchase agreements
only with banks and other recognized financial institutions, such as securities
dealers, deemed creditworthy by the Adviser.

Repurchase agreements are subject to credit risks.

Asset Coverage
In order to secure its obligations in connection with special transactions, the
Fund will either own the underlying assets, enter into an offsetting transaction
or set aside readily marketable securities with a value that equals or exceeds
the Fund's obligations. Unless the Fund has other readily marketable assets to
set aside, it cannot trade assets used to secure such obligations entering into
an offsetting derivative contract or terminating a special transaction. This may
cause the Fund to miss favorable trading opportunities or to realize losses on
derivative contracts or special transactions.

INVESTMENT RISKS
There are many factors which may affect an investment in the Fund. The Fund's
principal risks are described in its prospectus. Additional risk factors are
outlined below.

Credit Risks
o Credit risk is the possibility that an issuer will default on a security by
failing to pay interest or principal when due. If an issuer defaults, the
Fund will lose money.

o Many fixed income securities receive credit ratings from services such
as Standard & Poor's and Moody's Investor Services, Inc. These services
assign ratings to securities by assessing the likelihood of issuer default.
Lower credit ratings correspond to higher credit risk. If a security has
not received a rating, the Fund must rely entirely upon the Adviser's
credit assessment.

INVESTMENT LIMITATIONS

Selling Short and Buying on Margin
The Fund will not sell any securities short or purchase any securities on margin
but may obtain such short-term credits as may be necessary for clearance of
purchase and sales of securities. The Fund may purchase and dispose of U.S.
Government securities before the issuance thereof. The Fund may also purchase
U.S. Government securities on a delayed delivery basis. The settlement dates of
these transactions shall be determined by the mutual agreement of the parties.

Pledging Assets
The Trust will not mortgage, pledge or hypothecate these assets except as
necessary to secure permitted borrowings. In those cases, it may pledge assets
having a market value not exceeding the lesser of the dollar amounts borrowed or
10% of the value of the total assets at the time of the pledge.

Lending Cash or Securities
The Fund will not make loans to other persons provided, however, that the
purchasing or holding of bonds, debentures, notes and Certificates of
Indebtedness or other debt securities of the U.S. Government or its agencies or
instrumentalities shall not be prohibited. In addition, the Fund may enter into
repurchase agreements covering U.S. Government securities with banks and other
financial institutions as permitted by its investment objective and policies.

Acquiring Securities
The Fund will not acquire voting securities except as part of a merger,
consolidation, reorganization, or acquisition of assets.

Investing in Commodities
The Fund will not purchase or sell commodities, commodity contracts, or
commodity futures contracts.

Investing in Real Estate
The Fund will not purchase or sell real estate, including limited partnership
interests.

Diversification of Investments
With respect to securities comprising 75% of the value of its total assets, the
Fund will not purchase securities of any one issuer (other than cash, cash
items, or securities issued or guaranteed by the government of the United States
or its agencies or instrumentalities, and repurchase agreements collateralized
by such U.S. government securities) if as a result more than 5% of the value of
its total assets would be invested in the securities of that issuer, or if it
would own more than 10% of the outstanding voting securities of that issuer.

<PAGE>

Underwriting
The Fund will not engage in underwriting of securities issued by others.

The above limitations cannot be changed unless authorized by the "vote of a
majority of its outstanding voting securities, "as defined by the Investment
Company Act. The following limitations, however, may be changed by the Board
without shareholder approval. Shareholders will be notified before any material
change in these limitations becomes effective.

Investing in Illiquid Securities
The Fund will not invest more than 10% of the value of its net assets in
illiquid securities, including repurchase agreements providing for settlement in
more than seven days after notice.

Investing for Control
The Fund will not invest in securities of a company for the purpose of
exercising control or management.

Regulatory Compliance
The Fund may follow non-fundamental operational policies that are more
restrictive than its fundamental investment limitations, as set forth in the
prospectus and this Statement of Additional Information, in order to comply with
applicable laws and regulations, including the provisions of and regulations
under the Investment Company Act of 1940. In particular, the Fund will comply
with the various requirements of Rule 2a-7 (the "Rule"), which regulates money
market mutual funds. The Fund will determine the effective maturity of its
investments as well as its ability to consider a security as having received the
requisite short-term ratings by nationally recognized rating sources, according
to the Rule. The Fund may change these operational policies to reflect changes
in the laws and regulations without the approval of its shareholders.

<PAGE>

HOW IS THE FUND SOLD?

Under the Distributor's Contract with the Fund, the Distributor (Federated
Securities Corp.) offers Shares on a continuous, best-efforts basis.

Shareholder Services

The Fund may pay Federated Shareholder Services Company , a subsidiary of
Federated Investors, Inc.(Federated), for providing shareholder services and
maintaining shareholder accounts. Federated Shareholder Services Company may
select others to perform these services for their customers and may pay them
fees.

SUBACCOUNTING SERVICES

Certain investment professionals may wish to use the transfer agent's
subaccounting system to minimize their internal recordkeeping requirements. The
transfer agent may charge a fee based on the level of subaccounting services
rendered. Investment professionals holding shares in a fiduciary, agency,
custodial, or similar capacity may charge or pass through subaccounting fees as
part of or in addition to normal trust or agency account fees. They may also
charge fees for other services that may be related to the ownership of Shares.
This information should, therefore, be read together with any agreement between
the customer and the investment professional about the services provided, the
fees charged for those services, and any restrictions and limitations imposed.

REDEMPTION IN KIND

MASSACHUSETTS PARTNERSHIP LAW

ACCOUNT AND SHARE INFORMATION

VOTING RIGHTS
Each share of the Fund gives the shareholder one vote in Trustee elections and
other matters submitted to shareholders for vote. All Shares of the Fund have
equal voting rights.

As of April 6, 1999, the following shareholders owned of record,
beneficially, or both, 5% or more of outstanding Shares: Canab Company, Hammond,
IN, owned approximately 37,426,699 shares (6.38%); and Frepath Co., Fremont, NE,
owned approximately 35,717,508 shares (6.09).

TAX INFORMATION

WHO MANAGES AND PROVIDES SERVICES TO THE FUND?

BOARD OF TRUSTEES

The Board is responsible for managing the Trust's business affairs and for
exercising all the Trust's powers except those reserved for the shareholders.
Information about each Board member is provided below and includes each
person's: name, address, birth date, present position(s) held with the Trust,
principal occupations for the past five years and positions held prior to the
past five years, total compensation received as a Trustee from the Trust for its
most recent fiscal year, and the total compensation received from the Federated
Fund Complex for the most recent calendar year. The Trust is comprised of 13
funds and the Federated Fund Complex includes 56 investment companies, whose
investment adviser are affiliated with the Trust's Adviser.

As of April 6, 1999, the Fund's Board and Officers as a group owned less than
1% of the Fund's outstanding shares.

<PAGE>

<PAGE>

+Mr. Donahue is the father of J. Christopher Donahue, President of the Trust.

<PAGE>

investment ADVISER
The Adviser conducts investment research and makes investment decisions for the
Fund.

The Adviser is a wholly owned subsidiary of Federated.

The Adviser must waive the portion of its advisory fee that increases the Fund's
aggregate annual operating expenses above 0.45% of its average daily net assets.
The Fund's operating expenses include the advisory fee but exclude interest,
taxes, brokerage commissions, expenses of registering the Fund and its shares
under federal and state laws, expenses of withholding taxes, and extraordinary
expenses.

Federated Services Company also provides certain accounting and recordkeeping
services with respect to the Fund's portfolio investments for a fee based on
Fund assets plus out-of-pocket expenses.

TRANSFER AGENT AND DIVIDEND DISBURSING AGENt
Federated Services Company, through its registered transfer agent subsidiary,
Federated Shareholder Services Company, maintains all necessary shareholder
records. The Fund pays the transfer agent a fee based on the size, type, and
number of accounts and transactions made by shareholders.

INDEPENDENT PUBLIC ACCOUNTANTS
Deloitte & Touche LLP is the independent public accountant for the Fund.

FEES PAID BY THE FUND FOR SERVICES
For the Year ended

November 30 1998 1997 1996
Advisory Fee Earned $2,624,751 $2,876,062 $3,475,000
Advisory Fee Reduction $721,130 $859,298 $1,042,638
Administrative Fee $494,765 $542,857 $656,745
Shareholder Services Fee $328,094 $ $ If the Fund's expenses are capped at a
particular level, the cap does not include reimbursement to the Fund of any
expenses incurred by Shareholders who use the transfer agent's subaccounting
facilities.

For the fiscal years ended November 30, 1998, 1997 and 1996, fees paid by the
Fund for services are prior to the Fund's reorganization as a portfolio of the
Trust on April 30, 1999.

HOW DOES THE FUND MEASURE PERFORMANCE?

Share performance fluctuates on a daily basis largely because net earnings
fluctuate daily. Both net earnings and offering price per Share are factors in
the computation of yield and total return.

Average Annual Total Returns and Yield
Total returns given for the one-, five- and ten-year periods ended November 30,
1998.

Yield and Effective Yield given for the 7-day period ended November 30, 1998.

Performance of the Fund shown is prior to its reorganization as a portfolio of
the Trust on April 30, 1999.

7-Day Period 1 Year 5 Years 10 Years
Total Return 5.20% 4.96% 5.44%
Yield 4.69%
Effective Yield 4.80%

YIELD
The yield of Shares is based upon the seven days ending on the day of the
calculation, called the "base period." This yield is calculated by: determining
the net change in the value of a hypothetical account with a balance of one
Share at the beginning of the base period, with the net change excluding capital
changes but including the value of any additional Shares purchased with
dividends earned from the original one Share and all dividends declared on the
original and any purchased Shares; dividing the net change in the account's
value by the value of the account at the beginning of the base period to
determine the base period return; and multiplying the base period return by
365/7. The effective yield is calculated by compounding the unannualized
base-period return by: adding one to the base-period return, raising the sum to
the 365/7th power: and subtracting one from the result.

To the extent investment professionals and broker/dealers charge fees in
connection with services provided in conjunction with an investment is Shares,
the Share performance is lower for shareholders paying those fees.

PERFORMANCE COMPARISONS
Advertising and sales literature may include:

o references to ratings, rankings, and financial publications and/or
performance comparisons of Shares to certain indices;

o discussions of economic, financial and political developments and their
impact on the securities market, including the portfolio manager's views on
how such developments could impact the Funds; and

o information about the mutual fund industry from sources such as the Investment
Company Institute.

The Fund may quote information from reliable sources regarding individual
countries and regions, world stock exchanges, and economic and demographic
statistics.

Lipper Analytical Services, Inc.
Ranks funds in various fund categories based on total return, which assumes the
reinvestment of all income dividends and capital gains distributions, if any.

Money
A monthly magazine, regularly ranks money market funds in various categories
based on the latest available seven-day effective yield.

WHO IS FEDERATED INVESTORS, INC.?

FEDERATED FUNDS OVERVIEW

FEDERATED CLIENTS OVERVIEW
Federated distributes mutual funds through its subsidiaries for a variety of
investment purposes. Specific markets include:

Bank Marketing
Other institutional clients include more than 1,600 banks and trust
organizations. Virtually all of the trust divisions of the top 100 bank holding
companies use Federated Funds in their clients' portfolios. The marketing effort
to fund clients is headed by Timothy C. Pillion, Senior Vice President, Bank
Marketing & Sales.

<PAGE>

ADDRESSES

trust for short-term u.s. government securities

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000

Distributor
Federated Securities Corp.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Investment Adviser
Federated Investment Management Company
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Custodian
State Street Bank and Trust Company
P.O. Box 8600
Boston, MA
02266-8600

Transfer Agent and Dividend Disbursing Agent
Federated Shareholder Services Company
P.O. Box 8600
Boston, MA
02266-8600

Independent Public Accountants
Deloitte & Touche
125 Summer Street
Boston, MA
02110-1617

TST APPENDIX

The `y' axis reflects the "% Total Return" beginning with 0.00% and increasing
in increments of 2.00% up to 10.00%.

The `x' axis represents calculation for the last ten calendar years of the Fund
beginning with the earliest year. The light gray shaded chart features ten
distinct vertical bars, each shaded in charcoal, and each visually representing
by height the total return percentages for the calendar year stated directly at
its base. The calculated total return percentage for the Fund for each calendar
year is stated directly at the top of each respective bar for the calendar years
1989 through 1998. The percentages noted are:
9.00%, 8.00%, 5.86%, 3.58%, 2.86%, 3.91%, 5.64%, 5.06%, 5.22% and 5.15%,
respectively.

The bar chart shows the variability of the Former Fund's actual total returns on
a calendar year end basis.

Historically, the Former Fund has maintained a constant $1.00 net asset value
per share.

The Former Fund's Shares are not sold subject to a sales charge (load). The
total returns displayed above are based upon the net asset value.

The Former Fund's total return from January 1, 1999 to March 31, 1999 was 1.12%.

Within the period shown in the Chart, the Former Fund's highest quarterly return
was 2.29% (quarter ended June 30, 1989). Its lowest quarterly return was 0.70%
(quarter ended June 30, 1993).

The following table represents the Former Fund's Average Annual Total Return for
the calendar periods ending December 31, 1998.

Calendar Period
1 Year 5.15%
5 Years 4.99%
10 Years 5.41%

The Former Fund's 7-Day Net Yield as of December 31, 1998 was 4.66%.

Investors may call the Fund at 1-800-341-7400 to acquire the current Seven-Day
Net Yield.

PROSPECTUS

AUTOMATED GOVERNMENT MONEY TRUST

A Portfolio of Money Market Obligations Trust

A money market mutual fund seeking stability of principal and current income
consistent with stability of principal by investing primarily in U.S. Treasury
securities maturing in 13 months or less and repurchase agreements.

CONTENTS

Risk/Return Summary 1
What are the Fund's Fees and Expenses? 3
What are the Fund's Investment Strategies? 4
What are the Principal Securities in Which the Fund Invests? 4
What are the Specific Risks of Investing in the Fund? 4
What do Shares Cost? 5
How is the Fund Sold? 5
How to Purchase Shares 5
How to Redeem Shares 6
Account and Share Information 8
Who Manages the Fund? 9
Financial Information 9
Independent Auditors' Report 18

APRIL 28, 1999

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The Fund is a money market fund which seeks to maintain a stable net asset value
of $1.00. The Fund's investment objective is stability of principal and current
income consistent with stability of principal. While there is no assurance that
the Fund will achieve its investment objective, it endeavors to do so by
following the strategies and policies described in this prospectus.

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The Fund invests at least 65% of its total assets in a portfolio of U.S.
Treasury securities maturing in 13 months or less. These investments include
repurchase agreements collateralized fully by U.S. Treasury securities. The
average maturity of the Fund's portfolio will be 90 days or less.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

The bar chart and performance table below reflect historical performance data
for Automated Government Money Trust (the "Former Fund") prior to its
reorganization into the Fund, which is a newly created portfolio of Money Market
Obligations Trust (the "Trust"). On the date of the reorganization, April 30,
1999, the Former Fund was dissolved and its net assets (inclusive of liabilities
recorded on the Former Fund's records) were transferred into the Fund.

[Graph]

Historically, the Former Fund has maintained a constant $1.00 net asset value
per share. The bar chart shows the variability of the Former Fund's total
returns on a calendar year basis.

The Former Fund's shares were not sold subject to a sales charge (load). The
total returns displayed above are based upon net asset value. The Former Fund's
total return from January 1,1999 through March 31, 1999 was 1.05%

Within the period shown in the chart, the Former Fund's highest quarterly return
was 2.26% (quarter ended June 30, 1989). Its lowest quarterly return was 0.66%
(quarter ended June 30, 1993).

Average Annual Total Return Table

The following table represents the Former Fund's Average Annual Total Return for
the calendar periods ended December 31, 1998.

Calendar Period Fund
1 Year 4.96%
5 Years 4.83%
10 Years 5.25%

The Former Fund's 7-Day Net Yield as of December 31, 1998 was 4.36%. Investors
may call the Fund at 1-800-341-7400 to acquire the current 7-Day Net Yield.

AUTOMATED GOVERNMENT MONEY TRUST

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of Automated Government Money Trust.

<TABLE>
<CAPTION>
Shareholder Fees
<S> <C>
Fees Paid Directly From Your Investment Maximum Sales Charge (Load)
Imposed on Purchases (as a percentage of offering price) None Maximum Deferred
Sales Charge (Load) (as a percentage of original purchase price or
redemptionproceeds,asapplicable) None Maximum Sales Charge (Load) Imposed on
Reinvested Dividends (and other Distributions) (asapercentageofofferingprice)
None Redemption Fee (as a percentage of amount redeemed, if applicable) None
Exchange Fee None

Annual Fund Operating Expenses (Before Waivers)/1/
Expenses That are Deducted From Fund Assets (as a percentage of average net assets)
Management Fee/2/ 0.50%
Distribution (12b-1) Fee None
Shareholder Services Fee/3/ 0.25%
Other Expenses 0.10%
Total Annual Fund Operating Expenses/4/ 0.85%

1 Although not contractually obligated to do so, the adviser and shareholder
services provider expect to waive certain amounts during the fiscal year
ending July 31, 1999. These are shown below along with the net expenses the
Fund expects to actually pay for the fiscal year ending July 31, 1999.
Total Waiver of Fund Expenses 0.26%
Total Actual Annual Fund Operating Expenses (after waivers)/4/ 0.59%

2 The adviser expects to voluntarily waive a portion of the management fee. The
adviser can terminate this anticipated voluntary waiver at any time. The
management fee paid by the Fund (after the anticipated voluntary waiver) is
expected to be 0.25% for the year ending July 31, 1999.

3 The shareholder services provider expects to voluntarily reduce a portion of
the shareholder services fee. The shareholder services provider can terminate
this anticipated voluntary reduction at any time. The shareholder services fee
paid by the Fund (after the anticipated voluntary reduction) is expected to be
0.24% for the year ending July 31, 1999.

4 For the fiscal year ended July 31, 1998, prior to the reorganization of
Automated Government Money Trust, the Former Fund, as a portfolio of Money
Market Obligations Trust, the Total Annual Fund Operating Expenses and Total
Actual Annual Fund Operating Expenses (after waivers) were 0.85% and 0.59%,
respectively.
</TABLE>

EXAMPLE

The following Example is intended to help you compare the cost of investing in
the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses are before waivers as shown above and remain the same.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be:

1 Year $ 87
3 Years $ 271
5 Years $ 471
10 Years $ 1,049

What are the Fund's Investment Strategies?

The Fund invests primarily in a portfolio of U.S. Treasury securities maturing
in 13 months or less. These investments include repurchase agreements
collateralized fully by U.S. Treasury securities. The average maturity of the
Fund's portfolio will be 90 days or less.

The Adviser targets an average portfolio maturity range by assessing likely
movements in interest rates based upon general economic and market conditions.
The Adviser generally shortens the portfolio's average maturity when it expects
interest rates to rise and extends the maturity when it expects interest rates
to fall. The Adviser selects securities used to lengthen or shorten the
portfolio's average maturity by comparing the returns currently offered by
different investments to their historical and expected returns.

What are the Principal Securities in Which the Fund Invests?

U.S. TREASURY SECURITIES

U.S. Treasury securities are direct obligations of the federal government of the
United States. U.S. Treasury securities pay interest, dividends or distributions
at a specified rate. The rate may be fixed or adjusted periodically. The U.S.
Treasury must also repay the principal amount of the security, normally within a
specified time. REPURCHASE AGREEMENTS Repurchase agreements are
transactions in which the Fund buys a security from a dealer or bank and agrees
to sell the security back at a mutually agreed upon time and price. The
repurchase price exceeds the sale price, reflecting the Fund's return on the
transaction. This return is unrelated to the interest rate on the underlying
security. The Fund will enter into repurchase agreements only with banks and
other recognized financial institutions, such as securities dealers, deemed
creditworthy by the Adviser.

The Fund's custodian or subcustodian will take possession of the securities
subject to repurchase agreements. The Adviser or subcustodian will monitor the
value or the underlying security each day to ensure that the value of the
security always equals or exceeds the repurchase price.

Repurchase agreements are subject to credit risks.

What are the Specific Risks of Investing in the Fund?

Although there are many factors which may affect an investment in the Fund, the
principal risks of investing in a U.S. Treasury money market fund are described
below.

MARKET RISK

Prices of fixed income securities rise and fall in response to interest rate
changes for similar securities. Generally, when interest rates rise, prices of
fixed income securities fall.

Interest rate changes have a greater effect on the price of fixed income
securities with longer maturities. Money market funds try to minimize this risk
by purchasing short-term securities.

CREDIT RISK

What do Shares Cost?

You can purchase or redeem Shares any day the New York Stock Exchange (NYSE) is
open. When the Fund receives your transaction request in proper form, it is
processed at the next calculated net asset value (NAV). The Fund does not charge
a front-end sales charge.

NAV is determined at 5:00 p.m. (Eastern time) each day the NYSE is open.

The required minimum initial investment for Fund Shares is $25,000. There is
no required minimum subsequent investment amount.

An account may be opened with a smaller amount as long as the $25,000 minimum
is reached within 90 days. An institutional investor's minimum investment is
calculated by combining all accounts it maintains with the Fund. Accounts
established through investment professionals may be subject to a smaller minimum
investment amount. Keep in mind that investment professionals may charge you
fees for their services in connection with your Share transactions.

How is the Fund Sold?

The Fund's Distributor markets the Shares described in this prospectus to
individuals, directly or through investment professionals.

How to Purchase Shares

You may purchase Shares through an investment professional or directly from the
Fund. The Fund reserves the right to reject any request to purchase Shares.

THROUGH AN INVESTMENT PROFESSIONAL

. Establish an account with the investment professional; and

. Submit your purchase order to the investment professional before 4:00 p.m.
(Eastern time). You will receive that day's dividend if the investment
professional forwards the order to the Fund and the Fund receives payment by
5:00 p.m. (Eastern time). You will become the owner of Shares and receive
dividends when the Fund receives your payment.

Investment professionals should send payments according to the instructions in
the sections "By Wire" or "By Check."

DIRECTLY FROM THE FUND

. Establish your account with the Fund by submitting a completed New Account
Form; and . Send your payment to the Fund by Federal Reserve wire or check.

An institution may establish an account and place an order by calling the Fund
and you will become a shareholder after the Fund receives the order.

You cannot purchase Shares by wire on holidays when wire transfers are
restricted.

By Check
Make your check payable to The Federated Funds, note your account number on the
check, and mail it to:
Federated Shareholder Services Company
P.O. Box 8600
Boston, MA 02266-8600

If you send your check by a private courier or overnight delivery service that
requires a street address, mail it to:
Federated Shareholder Services Company
1099 Hingham Street
Rockland, MA 02370-3317

Payment should be made in U.S. dollars and drawn on a U.S. bank. The Fund will
not accept third-party checks (checks originally payable to someone other than
you or The Federated Funds).

Orders by mail are considered received when payment by check is converted into
federal funds (normally the business day after the check is received) and Shares
begin earning dividends the next day.

BY AUTOMATIC INVESTMENTS

You may establish an account with your financial institution to automatically
purchase Shares on pre- determined dates or when your bank account reaches a
certain level. Under this program, participating financial institutions are
responsible for prompt transmission of orders and may charge you for this
service. You should read this prospectus along with your financial institution's
agreement or materials describing this service.

BY AUTOMATED CLEARING HOUSE (ACH)

How to Redeem Shares

You should redeem Shares:

. through an investment professional if you purchased Shares through an
investment professional; or
. directly from the Fund if you purchased Shares directly from the Fund.

THROUGH AN INVESTMENT PROFESSIONAL

Submit your redemption request to your investment professional by the end of
regular trading on the NYSE (normally 4:00 p.m. Eastern time). Investment
professionals are responsible for promptly submitting redemption requests and
providing proper written redemption instructions as outlined below.

DIRECTLY FROM THE FUND

By Telephone
You may redeem Shares by calling the Fund once you have completed the
appropriate authorization form for telephone transactions.

If you call before 5:00 p.m. (Eastern time) your redemption will be wired to
you the same day. You will not receive that day's dividend.

If you call after 5:00 p.m. (Eastern time) your redemption will be wired to
you the following business day. You will receive that day's dividend.

By Mail
You may redeem Shares by mailing a written request to the Fund.

Your redemption request will be processed on the day the Fund receives your
written request in proper form. Dividends are paid up to and including the day
that a redemption request is processed.

Send requests by mail to:
Federated Shareholder Services Company
P.O. Box 8600
Boston, MA 02266-8600

Send requests by private courier or overnight delivery service to:
Federated Shareholder Services Company
1099 Hingham Street
Rockland, MA 02370-3317

All requests must include:

. Fund Name, account number and account registration;
. amount to be redeemed; and
. signatures of all Shareholders exactly as registered.

Call your investment professional or the Fund if you need special instructions.

Signature Guarantees

Signatures must be guaranteed if:

A signature guarantee is designed to protect your account from fraud. Obtain a
signature guarantee from a bank or trust company, savings association, credit
union or broker/dealer, or securities exchange member. A notary public cannot
provide a signature guarantee.

PAYMENT METHODS FOR REDEMPTIONS

. an electronic transfer to your account at a financial institution that is an
ACH member; or
. wire payment to your account at a domestic commercial bank that is a Federal
Reserve System member.

Redemption in Kind

Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.

LIMITATIONS ON REDEMPTION PROCEEDS

Redemption proceeds normally are wired or mailed within one business day after
receiving a request in proper form. Payment may be delayed up to seven days:

. to allow your purchase to clear;
. during periods of market volatility; or
. when a shareholder's trade activity or amount adversely impacts the Fund's
ability to manage its assets.

You will not accrue interest or dividends on uncashed checks from the Fund if
those checks are undeliverable and returned to the Fund.

CHECKWRITING

You may request checks to redeem your Fund Shares. Your account will continue to
receive the daily dividend declared on the Shares being redeemed until the check
is presented for payment.

DEBIT CARD

You may request a debit card account that allows you to redeem Shares. There is
an annual fee for this service that the Fund will automatically deduct from your
account.

ADDITIONAL CONDITIONS

Telephone Transactions

The Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

Share Certificates

The Fund no longer issues share certificates. If you are redeeming Shares
represented by certificates previously issued by the Fund, you must return the
certificates with your written redemption request. For your protection, send
your certificates by registered or certified mail, but do not endorse them.

Account and Share Information

ACCOUNT ACTIVITY

You will receive periodic statements reporting all account activity, including
dividends and capital gains paid.

DIVIDENDS AND CAPITAL GAINS

ACCOUNTS WITH LOW BALANCES

TAX INFORMATION

Fund distributions are expected to be primarily dividends. Redemptions are
taxable sales. Please consult your tax adviser regarding your federal, state,
and local tax liability.

Who Manages the Fund?

The Adviser and other subsidiaries of Federated advise approximately 175
mutual funds and separate accounts, which total approximately $111 billion in
assets as of December 31, 1998. Federated was established in 1955 and is one of
the largest mutual fund investment managers in the United States with
approximately 1,900 employees. More than 4,000 investment professionals make
Federated Funds available to their customers.

ADVISORY FEES

The Adviser receives an annual investment advisory fee of 0.50% of the Fund's
average daily net assets. The Adviser may voluntarily waive a portion of its fee
or reimburse the Fund for certain operating expenses.

YEAR 2000 READINESS

The financial impact of these issues for the Fund is still being determined.
There can be no assurance that potential Year 2000 problems would not have a
material adverse effect on the Fund.

Financial Information

This information has been audited by Deloitte & Touche LLP whose report, along
with the Fund's audited financial statements, is included in this prospectus.
The semi-annual report, dated January 31, 1999, which contains unaudited
financial statements, is incorporated by reference into this prospectus.

Financial Highlights

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Reference is made to the Independent Auditors' Report on page 19.

<TABLE>
<CAPTION>
Year Ended July 31 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
ofPeriod
Income from Investment Operations:
Net investment income 0.05 0.05 0.05 0.05 0.03
Less Distributions:
Distributions from net (0.05) (0.05) (0.05) (0.05) (0.03)
investmentincome
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return1 5.13% 4.97% 5.15% 5.10% 2.95%

Ratios to Average Net Assets:
Expenses 0.59% 0.59% 0.57% 0.57% 0.57%
Net investment income 5.00% 4.86% 5.03% 4.97% 2.88%
Expense/waiver reimbursement2 0.26% 0.27% 0.28% 0.29% 0.06%
Supplemental Data:
Net assets, end of period $2,367,313 $2,412,656 $2,478,477 $2,448,873 $2,640,384
(000omitted)
</TABLE>

1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

2 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

Note: The semi-annual report dated January 31, 1999 which contains unaudited
Financial Statements, is hereby incorporated by reference.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

JULY 31, 1998

<TABLE>
<CAPTION>
Principal Value
Amount
U.S. TREASURY NOTES14.0%
<S> <C> <C> <C>
$ 329,500,000 5.000% - 8.875%, 10/31/98 - 7/31/1999 $ 330,485,475
TOTAL U.S. TREASURY NOTES 330,485,475
REPURCHASE AGREEMENTS86.6%1
80,000,000 ABN AMRO Chicago Corp., 5.640%, dated 7/31/1998, due 8/3/1998 80,000,000
50,000,000 Bank of New York, New York, 5.620%, dated 7/31/1998, due 8/3/1998 50,000,000
110,000,000 Barclays de Zoete Wedd Securities, Inc., 5.650%, dated 7/31/1998, due 8/3/1998 110,000,000
214,430,000 BT Alex Brown, 5.640%, dated 7/31/1998, due 8/3/1998 214,430,000
110,000,000 CIBC Wood Gundy Securities Corp., 5.625%, dated 7/31/1998, due 8/3/1998 110,000,000
40,100,000 Deutsche Bank Government Securities, Inc., 5.640%, dated 7/31/1998, due 8/3/1998 40,100,000
110,000,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.620%, dated 7/31/1998, due 8/3/1998 110,000,000
110,000,000 First Union Capital Markets, 5.630%, dated 7/31/1998, due 8/3/1998 110,000,000
110,000,000 Greenwich Capital Markets, Inc., 5.640%, dated 7/31/1998, due 8/3/1998 110,000,000
110,000,000 Salomon Smith Barney, 5.650%, dated 7/31/1998, due 8/3/1998 110,000,000
110,000,000 Societe Generale Securities Corp., 5.625%, dated 7/31/1998, due 8/3/1998 110,000,000
110,000,000 Toronto Dominion Securities (USA) Inc., 5.620%, dated 7/31/1998, due 8/3/1998 110,000,000
242,000,000 Warburg Dillon Reed LLC, 5.640%, dated 7/31/1998, due 8/3/1998 242,000,000
290,000,000 Westdeutsche Landesbank Girozentrale, 5.640%, dated 7/31/1998, due 8/3/1998 290,000,000
114,000,000 2 Goldman Sachs Group, LP, 5.480%, dated 7/1/1998, due 10/1/1998 114,000,000
15,000,000 2 Goldman Sachs Group, LP, 5.480%, dated 7/2/1998, due 10/2/1998 15,000,000
14,000,000 2 J.P. Morgan & Co., Inc., 5.490%, dated 7/31/1998, due 9/29/1998 14,000,000
63,000,000 2 Merrill Lynch, Pierce, Fenner and Smith, 5.500%, dated 5/11/1998, due 8/10/1998 63,000,000
48,000,000 2 UBS Securities, Inc., 5.450%, dated 6/17/1998, due 9/15/1998 48,000,000
TOTAL REPURCHASE AGREEMENTS 2,050,530,000
TOTAL INVESTMENTS (AT AMORTIZED COST)3 $ 2,381,015,475
</TABLE>

1 The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.

2 Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase
agreement within seven days if the creditworthiness of the issuer is
downgraded.

3 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of net assets
($2,367,313,423) at July 31, 1998.

The following acronyms are used throughout this portfolio:

LLC--Limited Liability Corporation
LP --Limited Partnership

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

JULY 31, 1998

<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Investments in repurchase agreements $ 2,050,530,000
Investments in securities 330,485,475
Total investments at amortized cost and value 2,381,015,475
Cash 58,633
Income receivable 6,449,135
Receivable for shares sold 3,554,413
TOTAL ASSETS 2,391,077,656
Liabilities:
Payable for shares redeemed $ 17,567,516
Income distribution payable 5,653,295
Accrued expenses 543,422
TOTAL LIABILITIES 23,764,233
Net Assets for 2,367,313,423 shares outstanding $ 2,367,313,423
Net Asset Value, Offering Price, and Redemption Proceeds Per Share:
$2,367,313,423 / 2,367,313,423 shares outstanding $1.00
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Operations

YEAR ENDED JULY 31, 1998

<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C> <C>
Interest $ 130,503,038
Expenses:
Investment advisory fee $ 11,656,534
Administrative personnel and services fee 1,758,583
Custodian fees 146,246
Transfer and dividend disbursing agent fees and expenses 174,361
Directors'/Trustees' fees 30,000
Auditing fees 13,348
Legal fees 12,000
Portfolio accounting fees 157,294
Shareholder services fee 5,828,267
Share registration costs 44,418
Printing and postage 14,000
Insurance premiums 16,031
Miscellaneous 23,000
TOTAL EXPENSES 19,874,082
Waivers:
Waiver of investment advisory fee $ (5,783,663)
Waiver of shareholder services fee (233,131)
TOTAL WAIVERS (6,016,794)
Net expenses 13,857,288
Net investment income $ 116,645,750
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

<TABLE>
<CAPTION>
Year Ended July 31, 1998 1997
Increase (Decrease) in Net Assets:
Operations:
<S> <C> <C>
Net investment income $ 116,645,750 $ 119,034,104
Distributions to Shareholders:
Distributions from net investment income (116,645,750) (119,034,104)
Share Transactions:
Proceeds from sale of shares 11,944,665,534 12,580,252,469
Net asset value of shares issued to shareholders in payment of distributions 53,212,969 44,052,959
declared
Cost of shares redeemed (12,043,220,842) (12,690,126,232)
Change in net assets resulting from share transactions (45,342,339) (65,820,804)
Change in net assets (45,342,339) (65,820,804)
Net Assets:
Beginning of period 2,412,655,762 2,478,476,566
End of period $ 2,367,313,423 $ 2,412,655,762
</TABLE>

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

JULY 31, 1998

Automated Government Money Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a open-end management
investment company. The investment objective of the Trust is stability of
principal and current income consistent with stability of principal.

SIGNIFICANT ACCOUNTING POLICIES

Investment Valuations

The Trust uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.

Repurchase Agreements

It is the policy of the Trust to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System, or to have
segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been
established by the Trust to monitor, on a daily basis, the market value of each
repurchase agreement's collateral to ensure that the value of collateral at
least equals the repurchase price to be paid under the repurchase agreement
transaction.

The Trust will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Trust's adviser to be creditworthy pursuant to the guidelines and/ or
standards reviewed or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Trust could receive less
than the repurchase price on the sale of collateral securities.

Investment Income, Expenses and Distributions

Federal Taxes

When-Issued and Delayed Delivery Transactions

Use of Estimates

Other

Investment transactions are accounted for on the trade date.

SHARES OF BENEFICIAL INTEREST

The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At July
31, 1998, capital paid-in aggregated $2,367,313,423. Transactions in shares were
as follows:

<TABLE>
Year Ended July 31, 1998 1997
<S> <C> <C>
Shares sold 11,944,665,534 12,580,252,469
Shares issued to shareholders in payment of distributions declared 53,212,969 44,052,959
Shares redeemed (12,043,220,842) (12,690,126,232)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS (45,342,339) (65,820,804)
</TABLE>

INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fee

Federated Management, the Trust's investment adviser (the "Adviser"), receives
for its services an annual investment advisory fee equal to 0.50% of the Trust's
average daily net assets. The Adviser may voluntarily choose to waive any
portion of its fee. The Adviser can modify or terminate this voluntary waiver at
any time at its sole discretion.

Administrative Fee

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services ("FSS"), the Trust will pay FSS up to 0.25% of average daily net assets
of the Trust for the period. The fee paid to FSS is used to finance certain
services for shareholders and to maintain shareholder accounts. FSS may
voluntarily choose to waive any portion of its fee. FSS can modify or terminate
this voluntary waiver at any time at its sole discretion.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary Federated Shareholder Services Company ("FSSC"),
serves as transfer and dividend disbursing agent for the Trust. The fee paid to
FSSC is based on the size, type, and number of accounts and transactions made by
shareholders.

Portfolio Accounting Fees

FServ maintains the Trust's accounting records for which it receives a fee. The
fee is based on the level of the Trust's average daily net assets for the
period, plus out-of-pocket expenses.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.

YEAR 2000 (UNAUDITED)

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF AUTOMATED GOVERNMENT MONEY TRUST:

We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Automated Government Money Trust as of July 31,
1998, the related statement of operations for the year then ended, the
statements of changes in net assets for the years ended July 31, 1998 and 1997,
and the financial highlights for the periods presented. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at July 31,
1998, by correspondence with the custodian and brokers; where replies were not
received, we performed other auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Automated Government
Money Trust as of July 31, 1998, the results of its operations, the changes in
its net assets and its financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.

Deloitte & Touche LLP
Pittsburgh, Pennsylvania
September 8, 1998

[FEDERATED LOGO]

Automated Government Money Trust

A Portfolio of Money Market Obligations Trust

APRIL 28, 1999

Automated Government Money Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated Securities Corp., Distributor

Investment Company Act File No. 811-5950

Cusip 60934N815

8082201A (4/99)

The graphic presentation displayed here consists of a bar chart representing the
annual total returns of AUTOMATED GOVERNMENT MONEY TRUST as of the calendar
year-end for each of 10 years. The `y' axis reflects the "% Total Return"
beginning with "0" and increasing in increments of 1% up to 9%. The `x' axis
represents calculation periods for the last ten calendar years of the Fund,
beginning with the earliest year. The light gray shaded chart features 10
distinct vertical bars, each shaded in charcoal, and each visually representing
by height the total return percentages for the calendar year stated directly at
its base. The calculated total return percentage for the Fund for each calendar
year is stated directly at the top of each respective bar, for the calendar
years 1989 through 1998. The percentages noted are: 1989 - 8.89%, 1990 - 7.86%,
1991 - 5.67%, 1992 - 3.36%, 1993 - 2.70%, 1994 - 3.70%, 1995- 5.50%, 1996 -
4.93%, 1997 - 5.07%, 1998 - 4.96%. The Fund's Shares are not sold subject to a
sales charge (load). The total returns displayed are based upon net asset value.
The Fund's 7-day net yield as of December 31, 1998 was 4.36%. Within the period
shown in the Chart, the Fund's highest quarterly return was 2.26% (quarter ended
June 30, 1989). Its lowest quarterly return was 0.66% (quarter ended June 30,
1993.

Average Annual Total Return
1 Year 5 Years 10 Years
4.96% 4.83% 5.25%
The bar chart shows the variability of the Fund's actual total return on a
yearly basis.
Past performance does not necessarily predict future performance. This
information provides you with historical performance so that you can analyze
whether the Fund's investment risks are balanced by its potential rewards.

Statement of Additional Information

AUTOMATED GOVERNMENT MONEY TRUST

A Portfolio of Money Market Obligations Trust

This Statement of Additional Information (SAI) is not a prospectus. Read this
SAI in conjunction with the prospectus for Automated Government Money Trust
(Fund), dated April 28, 1999. Obtain the prospectus without charge by calling
1-800-341-7400.

April 28, 1999

8082201B(4/99)

<PAGE>

HOW IS THE FUND ORGANIZED?

The Fund is a diversified portfolio of Money Market Obligations Trust (Trust).
The Trust is an open-end management investment company that was established
under the laws of the Commonwealth of Massachusetts on October 3, 1988. The
Fund, which was established on June 1, 1982, was reorganized as a portfolio of
the Trust on April 30, 1999.

SECURITIES IN WHICH THE FUND INVESTS

In pursuing its investment strategy, the Fund may invest in the following
securities for any purpose that is consistent with its investment objective.

SECURITIES DESCRIPTIONS AND TECHNIQUES

Fixed income securities pay interest, dividends or distributions at a specified
rate. The rate may be fixed or adjusted periodically. The issuer must also repay
the principal amount of the security, normally within a specified time. Fixed
income securities provide more regular income than equity securities. However,
the returns on fixed income securities are limited and normally do not increase
with the issuer's earnings. This limits the potential appreciation of fixed
income securities as compared to equity securities.

A security's yield measures the annual income earned on a security as a
percentage of its price. Securities with higher credit risks generally have
higher yields. A security's yield will increase or decrease depending upon
whether it costs less (a "discount") or more (a "premium") than the principal
amount. Under normal market conditions, securities with longer maturities will
also have higher yields. If the issuer may redeem the security before its
scheduled maturity, the price and yield on a discount or premium security may
change based upon the probability of an early redemption.

The following describes the types of fixed income securities in which the Fund
invests.

Treasury securities are direct obligations of the federal government of the
United States. Investors regard treasury securities as having the lowest
credit risk.

Zero Coupon Securities do not pay interest or principal until final
maturity. Most debt securities provide periodic payments of interest
(referred to as a "coupon payment"). In contrast, investors buy zero coupon
securities at a price below the amount payable at maturity. The difference
between the price and the amount paid at maturity represents interest on
the zero coupon security. This increases the market and credit risk of a
zero coupon security, because an investor must wait until maturity before
realizing any return on the investment.

There are many forms of zero coupon securities. Some securities are
originally issued at a discount and are referred to as "zero coupon" or
"capital appreciation" bonds. Others are created by separating the right to
receive coupon payments from the principal due at maturity, a process known
as "coupon stripping." Treasury STRIPs are the most common forms of
"stripped" U.S. Treasury zero coupon securities. In addition, some
securities give the issuer the option to deliver additional securities in
place of cash interest payments, thereby increasing the amount payable at
maturity. These are referred to as "pay-in-kind" or "PIK" securities.

Investing in Securities of Other Investment Companies

The Fund may invest its assets in securities of other investment companies as an
efficient means of carrying out its investment policies. It should be noted that
investment companies incur certain expenses, such as management fees, and,
therefore, any investment by the Fund in shares of other investment companies
may be subject to such duplicate expenses. At the present time, the Fund expects
that its investment in other investment companies will be limited to shares of
money market funds, including funds affiliated with the Fund's investment
adviser.

Special Transactions

Repurchase Agreements are transactions in which a Fund buys a security from
a dealer or bank and agrees to sell the security back at a mutually agreed
upon time and price. The repurchase price exceeds the sale price,
reflecting the Fund's return for the transaction. The Fund's return is
unrelated to the interest rate on the underlying security. The Funds will
only enter into repurchase agreements with banks and other recognized
financial institutions, such as broker/dealers, which are deemed by the
Adviser to be creditworthy

A Fund's custodian or subcustodian is required to take possession of the
securities subject to repurchase agreements. The Adviser or subcustodian
will monitor the value of the underlying security each day to ensure that
the value of the security always equals or exceeds the repurchase price.

Repurchase Agreements are subject to Credit Risk.

Reverse Repurchase Agreements are repurchase agreements in which a Fund is
the seller (rather than the buyer) of the securities, and agrees to
repurchase them at an agreed upon time and price. A reverse repurchase
agreement may be viewed as a type of borrowing by the Fund. Reverse
repurchase agreements are subject to Credit Risk. In addition, reverse
repurchase agreements create leverage risk because the Fund must repurchase
the underlying security at a higher price, regardless of the market value
of the security at the time of repurchase.

When Issued Transactions are arrangements in which a Fund purchases
securities for a set price, with payment and delivery scheduled for a
future time. During the period between purchase and settlement, no payment
is made by the Fund to the issuer and no interest accrues to the Fund. The
Fund records the transaction when it agrees to purchase the securities and
reflects their value in determining the price of its shares. Settlement
dates may be a month or more after entering into these transactions, and
the market values of the securities purchased may vary from the purchase
prices. Therefore, when issued transactions create Market Risk for the
Fund. When issued transactions also involve Credit Risk in the event of a
counterparty default.

Asset Coverage. In order to secure its obligations in connection with
when-issued, and delayed-delivery transactions, the Fund will "cover" such
transactions, as required under applicable interpretations of the SEC,
either by owning the underlying securities; entering into an offsetting
transaction; or segregating, earmarking, or depositing into an escrow
account readily marketable securities in an amount at all times equal to or
exceeding the Fund's commitment with respect to these instruments or
contracts. As a result, use of these instruments will impede the Fund's
ability to freely trade the assets being used to cover them, which could
result in harm to the Fund. Borrowing. The Fund may borrow money from banks
or through reverse repurchase agreements in amounts up to one-third of
total assets and pledge some assets as collateral. The Fund will pay
interest on borrowed money and may incur other transaction costs. These
expenses could exceed the income received or capital appreciation realized
by the Fund from any securities purchased with borrowed money. With respect
to borrowings, the Fund is required to maintain continuous asset coverage
to 300% of the amount borrowed. If the coverage declines to less than 300%,
the Fund must sell sufficient portfolio securities to restore the coverage
even if it must sell the securities at a loss.

INVESTMENT RISKS

Although there are many factors which may effect an investment in the Fund, the
principal risks of investing in a U.S. Treasury money market fund are described
below. Market Risks

o Prices of fixed income securities rise and fall in response to interest
rate changes for similar securities. Generally, when interest rates rise,
prices of fixed income securities fall.

o Interest rate changes have a greater effect on the price of fixed income
securities with longer maturities. Money market funds try to minimize this
risk by purchasing short-term securities.
Credit Risk
o Credit risk includes the possibility that a party to a transaction
involving the Fund will fail to meet its obligations. This could cause the
Fund to lose the benefit of the transaction or prevent the Fund from
selling or buying other securities to implement its investment strategy.

fundamental investment policies
The Fund pursues its investment objective by investing in a portfolio of
short-term U.S. Treasury obligations. The Fund will invest only in short-term
U.S. Treasury obligations and the securities of other investment companies.
"U.S. Treasury obligations" refers to instruments which are issued or guaranteed
as to principal and interest by the U.S. Treasury and therefore constitute
obligations of the United States of America. U.S. Treasury obligations include
such instruments as (i) U.S. Treasury bills, notes and bonds and (ii)
instruments of the Export-Import Bank of the U.S., the General Services
administration, the Small Business Administration and the Washington
Metropolitan Area Transit Authority, maturing in one year or less from the date
of acquisition or purchased pursuant to repurchase agreements which provide for
repurchase by the seller within one year from the date of acquisition. The Fund
may also purchase U.S. Treasury obligations on a when-issued or delayed delivery
basis. The Fund may attempt to increase yield by trading portfolio instruments
to take advantage of short-term market variations.

INVESTMENT LIMITATIONS

Selling Short and Buying on Margin
The Fund will not purchase any portfolio instruments on margin or sell any
portfolio instruments short but it may obtain such short-term credits as may be
necessary for clearance of purchases and sales of money market instruments.

Interest paid on borrowed funds will not be available for investment. The Fund
will liquidate any such borrowings as soon as possible.

Pledging Assets
The Fund will not mortgage, pledge, or hypothecate any assets except as
necessary to secure permitted borrowings. In those cases, it may mortgage,
pledge, or hypothecate assets having a market value not exceeding the lesser of
the dollar amounts borrowed or 10% of the value of Fund assets at the time of
the borrowing.

Lending Cash or Securities
The Fund will not lend any of its assets, except that it may purchase or hold
U.S. government obligations, including repurchase agreements, permitted by its
investment objective and policies.

Issuing Senior Securities
The Fund will not issue senior securities, except as permitted by the investment
objective and policies.

The above limitations cannot be changed unless authorized by the "vote of a
majority of its outstanding voting securities," as defined by the Investment
Company Act of 1940. The following limitations, however, may be changed by the
Board of Trustees (Board) without shareholder approval. Shareholders will be
notified before any material change in these limitations becomes effective.

Investing in Illiquid Securities
The Fund will not invest more than 10% of the value of its net assets in
illiquid securities.

Investing for Control
The Fund will not invest in securities of a company for the purpose of
exercising control or management.

Regulatory Compliance

DETERMINING MARKET VALUE OF SECURITIES
The Board has decided that the best method for determining the value of
portfolio instruments is amortized cost. Under this method, portfolio
instruments are valued at the acquisition cost as adjusted for amortization of
premium or accumulation of discount rather than at current market value.
Accordingly, neither the amount of daily income nor the net asset value (NAV) is
affected by any unrealized appreciation or depreciation of the portfolio. In
periods of declining interest rates, the indicated daily yield on Shares of the
Fund computed by dividing the annualized daily income on the Fund's portfolio by
the NAV computed as above may tend to be higher than a similar computation made
by using a method of valuation based upon market prices and estimates. In
periods of rising interest rates, the opposite may be true.

The Fund's use of the amortized cost method of valuing portfolio instruments
depends on its compliance with certain conditions in the Rule . Under the Rule,
the Fund must establish procedures reasonably designed to stabilize the NAV per
Share, as computed for purposes of distribution and redemption, at $1.00 per
Share, taking into account current market conditions and the Fund's investment
objective. The procedures include monitoring the relationship between the
amortized cost value per Share and the NAV per Share based upon available
indications of market value. The Board will decide what, if any, steps should be
taken if there is a difference of more than 0.5 of 1% between the two values.
The Board will take any steps they consider appropriate (such as redemption in
kind or shortening the average portfolio maturity) to minimize any material
dilution or other unfair results arising from differences between the two
methods of determining NAV.

HOW IS THE FUND SOLD?

Under the Distributor's Contract with the Fund, the Distributor (Federated
Securities Corp.) offers Shares on a continuous, best-efforts basis.

SUBACCOUNTING SERVICES

REDEMPTION IN KIND

MASSACHUSETTS PARTNERSHIP LAW

Under certain circumstances, shareholders may be held personally liable as
partners under Massachusetts law for obligations of the Trust. To protect its
shareholders, the Trust has filed legal documents with Massachusetts that
expressly disclaim the liability of its shareholders for acts or obligations of
the Trust.

In the unlikely event a shareholder is held personally liable for the Trust's
obligations, the Trust is required by the Declaration of Trust to use its
property to protect or compensate the shareholder. On request, the Trust will
defend any claim made and pay any judgment against a shareholder for any act or
obligation of the Trust. Therefore, financial loss resulting from liability as a
shareholder will occur only if the Trust itself cannot meet its obligations to
indemnify shareholders and pay judgments against them.

ACCOUNT AND SHARE INFORMATION

VOTING RIGHTS
Each share of the Fund gives the shareholder one vote in Trustee elections and
other matters submitted to shareholders for vote. All Shares of the Trust have
equal voting rights, except that in matters affecting only a particular Fund,
only Shares of that Fund are entitled to vote.

Trustees may be removed by the Board or by shareholders at a special meeting. A
special meeting of shareholders will be called by the Board upon the written
request of shareholders who own at least 10% of the Trust's outstanding shares
of all series entitled to vote.

As of April 7, 1999, the following shareholders owned of record, beneficially,
or both, 5% or more of outstanding Shares: EGAP & Co., Burlington, VT, owned
approximately 189,542,935 (8.59%) Shares; VAR & Co., St Paul, MN, owned
approximately 159,821,874 (7.24%) Shares; and Hare & Co., New York, NY, owned
approximately 151, 572,025 (6.87%) Shares.

TAX INFORMATION

FEDERAL INCOME TAX
The Fund intends to meet requirements of Subchapter M of the Internal Revenue
Code applicable to regulated investment companies. If these requirements are not
met, it will not receive special tax treatment and will pay federal income tax.
The Fund will be treated as a single, separate entity for federal income tax
purposes so that income earned and capital gains and losses realized by the
Trust's other portfolios will be separate from those realized by the Fund.

<PAGE>

WHO MANAGES AND PROVIDES SERVICES TO THE FUND?

BOARD OF TRUSTEES
The Board is responsible for managing the Trust's business affairs and for
exercising all the Trust's powers except those reserved for the shareholders.
Information about each Board member is provided below and includes each
person's: name, address, birthdate, present position(s) held with the Trust,
principal occupations for the past five years and positions held prior to the
past five years, total compensation received as a Trustee from the Trust for its
most recent fiscal year, and the total compensation received from the Federated
Fund Complex for the most recent calendar year. The Trust is comprised of 13
funds and the Federated Fund Complex is comprised of 54 investment companies,
whose investment advisers are affiliated with the Fund's Adviser.

As of April 7, 1999, the Fund's Board and Officers as a group owned less than 1%
of the Fund's outstanding Shares.

Total
Aggregate Compensation From
Principal Occupations Compensation Trust and Fund
for Past Five Years From Trust Complex
John F. Donahue*+ Chief Executive Officer and Director or Trustee of $0 $0 for the
Birth Date: July 28, 1924 the Federated Fund Complex; Chairman and Director, Trust and
Federated Investors Tower Federated Investors, Inc.; Chairman and Trustee, 54 other investment
1001 Liberty Avenue Federated Investment Management Company; Chairman and companies
Pittsburgh, PA Director, Federated Investment Counseling and in the Fund Complex
CHAIRMAN AND TRUSTEE Federated Global Investment Management Corp.;
Chairman, Passport Research, Ltd.
Thomas G. Bigley Director or Trustee of the Federated Fund Complex; $18,351 $113,860.22 for the
Birth Date: February 3, 1934 Director, Member of Executive Committee, Children's Trust and 54 other
15 Old Timber Trail Hospital of Pittsburgh; formerly: Senior Partner, investment
Pittsburgh, PA Ernst & Young LLP; Director, MED 3000 Group, Inc.; companies
TRUSTEE Director, Member of Executive Committee, University in the Fund Complex
of Pittsburgh.

John F. Cunningham++ Director or Trustee of some of the Federated Funds $0 $0 for the Trust
Birth Date: March 5, 1943 Complex; Chairman, President and Chief Executive and 43 other
353 El Brillo Way Officer, Cunningham & Co., Inc. ; Trustee Associate, investment
Palm Beach, FL Boston College; Director, EMC Corporation; formerly: companies in the
TRUSTEE Director, Redgate Communications. Fund Complex

Charles F. Mansfield, Jr.++ Director or Trustee of some of the Federated Funds $0 $0 for the Trust
Birth Date: April 10, 1945 Complex; Management Consultant. and 43 other
80 South Road investment
Westhampton Beach, NY TRUSTEE Retired: Chief Executive Officer, PBTC International companies in the
Bank; Chief Financial Officer of Retail Banking Fund Complex
Sector, Chase Manhattan Bank; Senior Vice President,
Marine Midland Bank; Vice President, Citibank;
Assistant Professor of Banking and Finance, Frank G.
Zarb School of Business, Hofstra University.

John S. Walsh++ Director or Trustee of some of the Federated Funds $0 $0 for the Trust
Birth Date: November 28, 1957 Complex; President and Director, Heat Wagon, Inc.; and 40 other
2007 Sherwood Drive President and Director, Manufacturers Products, Inc.; investment
Valparaiso, IN President, Portable Heater Parts, a division of companies in the
TRUSTEE Manufacturers Products, Inc.; Director, Walsh & Fund Complex
Kelly, Inc.; formerly, Vice President, Walsh & Kelly,
Inc.

J. Christopher Donahue+ President or Executive Vice President of the $0 $0 for the Trust
Birth Date: April 11, 1949 Federated Fund Complex; Director or Trustee of some and 22 other
Federated Investors Tower of the Funds in the Federated Fund Complex; President investment
1001 Liberty Avenue and Director, Federated Investors, Inc.; President companies in the
Pittsburgh, PA and Trustee, Federated Investment Management Company; Fund Complex
PRESIDENT President and Director, Federated Investment
Counseling, and Federated Global Investment
Management Corp.; President, Passport
Research, Ltd.; Trustee, Federated
Shareholder Services Company; Director,
Federated Services Company.

<PAGE>

William D. Dawson, III Chief Investment Officer of this Fund and various $0 $0 for the Trust
Birth Date: March 3, 1949 other Funds in the Federated Fund Complex; Executive and 41 other
Federated Investors Tower Vice President, Federated Investment Counseling, investment
1001 Liberty Avenue Federated Global Investment Management Corp., companies in the
Pittsburgh, PA Federated Investment Management Company and Passport Fund Complex
CHIEF INVESTMENT OFFICER Research, Ltd.; Registered Representative, Federated
Securities Corp.; Portfolio Manager,
Federated Administrative Services; Vice
President, Federated Investors, Inc.;
Formerly: Executive Vice President and Senior
Vice President, Federated Investment
Counseling Institutional Portfolio Management
Services Division; Senior Vice President,
Federated Research Corp., Federated Advisers,
Federated Management, Federated Research, and
Passport Research, Ltd.

Deborah A. Cunningham Deborah A. Cunningham is Vice President of the $0 $0 for the Trust
Birth Date: September 15, 1959 Trust. Ms. Cunningham joined Federated Investors in and 6 other
Federated Investors Tower 1981 and has been a Senior Portfolio Manager and a investment
1001 Liberty Avenue Senior Vice President of the Fund's investment companies in the
Pittsburgh, PA adviser since 1997. Ms. Cunningham served as a Fund Complex
VICE PRESIDENT Portfolio Manager and a Vice President of the
investment adviser from 1993 until 1996. Ms.
Cunningham is a Chartered Financial Analyst and
received her M.S.B.A. in Finance from Robert Morris
College.

Susan R. Hill Susan R. Hill is Vice President of the Trust. Ms. $0 $0 for the Trust
Birth Date: June 20, 1963 Hill joined Federated Investors in 1990 and has been and __ other
Federated Investors Tower a Portfolio Manager since 1993 and a Vice President investment
1001 Liberty Avenue of the Fund's investment adviser since 1997. Ms. companies in the
Pittsburgh, PA Hill was a Portfolio Manager and an Assistant Vice Fund Complex
VICE PRESIDENT President of the investment adviser from 1994 until
1997. Ms. Hill is a Chartered Financial Analyst and
received an M.S. in Industrial Administration from
Carnegie Mellon University.
</TABLE>

+Mr. Donahue is the father of J. Christopher Donahue, President of the Trust.

INVESTMENT ADVISER
The Adviser conducts investment research and makes investment decisions for the
Fund. The Adviser is a wholly-owned subsidiary of Federated.

The Adviser shall not be liable to the Trust or any Fund shareholder for any
losses that may be sustained in the purchase, holding, or sale of any security
or for anything done or omitted by it, except acts or omissions involving
willful misfeasance, bad faith, gross negligence, or reckless disregard of the
duties imposed upon it by its contract with the Trust.

Research Services
Investment decisions for the Fund are made independently from those of other
accounts managed by the Adviser. When the Fund and one or more of those accounts
invests in, or disposes of, the same security, available investments or
opportunities for sales will be allocated among the Fund and the account(s) in a
manner believed by the Adviser to be equitable. While the coordination and
ability to participate in volume transactions may benefit the Fund, it is
possible that this procedure could adversely impact the price paid or received
and/or the position obtained or disposed of by the Fund.

Maximum Administrative Fee Average Aggregate Daily Net Assets of
the Federated Funds
0.150 of 1% on the first $250 million
0.125 of 1% on the next $250 million
0.100 of 1% on the next $250 million
0.075 of 1% on assets in excess of $750 million
The administrative fee received during any fiscal year shall be at least
$125,000 per portfolio. Federated Services Company may voluntarily waive a
portion of its fee and may reimburse the Fund for expenses.

Federated Services Company also provides certain accounting and recordkeeping
services with respect to the Fund's portfolio investments for a fee based on
Fund assets, plus out-of-pocket expenses.

CUSTODIAN
State Street Bank and Trust Company, Boston, Massachusetts, is custodian for the
securities and cash of the Fund.

INDEPENDENT PUBLIC ACCOUNTANTs

Deloitte & Touche LLP is the independent public accountant for the Fund.

FEES PAID BY THE FUND FOR SERVICES

For the Year ended July 31 1998 1997 1996
Advisory Fee Earned $11,656,534 $12,237,712 $12,247,317
Advisory Fee Reduction $5,783,663 $6,473,371 $6,710,475
Brokerage Commissions $0 $0 $0
Administrative Fee $1,758,583 $1,848,619 $1,852,627
Shareholder Services Fee $5,828,267 N/A N/A

For the fiscal years ended July 31, 1998, 1997 and 1996, fees paid by the
Fund for services are prior to the Fund's reorganization as a portfolio of the
Trust on April 30, 1999.

HOW DOES THE FUND MEASURE PERFORMANCE?

The Fund may advertise Share performance by using the SEC's standard method for
calculating performance applicable to all mutual funds. The SEC also permits
this standard performance information to be accompanied by non-standard
performance information.

Share performance fluctuates on a daily basis largely because net earnings
fluctuate daily. Both net earnings and offering price per Share are factors in
the computation of yield and total return.

Average Annual Total Returns and Yield
Total returns given for the one-, five- and ten-year periods ended July 31,
1998.

Yield and Effective Yield given for the seven-day period ended July 31, 1998.

Performance of the Fund shown is prior to its reorganization as a portfolio of
the Trust on April 30, 1999.

7 Day Period 1 Year 5 Years 10 Years
Total Return N/A 5.13% 4.66% 5.38%
Yield 5.04% N/A N/A N/A
Effective Yield 5.17% N/A N/A N/A

YIELD
The yield of Shares is based upon the seven days ending on the day of the
calculation, called the "base period." This yield is calculated by: determining
the net change in the value of a hypothetical account with a balance of one
Share at the beginning of the base period, with the net change excluding capital
changes but including the value of any additional Shares purchased with
dividends earned from the original one Share and all dividends declared on the
original and any purchased Shares; dividing the net change in the account's
value by the value of the account at the beginning of the base period to
determine the base period return; and multiplying the base period return by
365/7. The effective yield is calculated by compounding the unannualized
base-period return by: adding 1 to the base-period return, raising the sum to
the 365/7th power; and subtracting 1 from the result. The tax- equivalent yield
of Shares is calculated similarly to the yield, but is adjusted to reflect the
taxable yield that Shares would have had to earn to equal the actual yield,
assuming a specific tax rate.

PERFORMANCE COMPARISONS
Advertising and sales literature may include:

o references to ratings, rankings, and financial publications and/or
performance comparisons of Shares to certain indices;

o discussions of economic, financial and political developments and their
impact on the securities market, including the portfolio manager's views on
how such developments could impact the Funds; and

o information about the mutual fund industry from sources such as the Investment
Company Institute.

The Fund may quote information from reliable sources regarding individual
countries and regions, world stock exchanges, and economic and demographic
statistics.

oLipper Analytical Services, Inc., ranks funds in various fund categories based
on total return, which assumes the reinvestment of all income dividends and
capital gains distributions, if any.

oIBC/Donoghue's Money Fund Report publishes annualized yields of money market
funds weekly. Donoghue's Money Market Insight publication reports monthly and
12-month-to-date investment results for the same money funds.

oMoney, a monthly magazine, regularly ranks money market funds in various
categories based on the latest available seven-day effective yield.

o Salomon 30-Day Treasury Bill Index is a weekly quote of the most
representative yields for selected securities, issued by the U.S. Treasury,
maturing in 30 days.

<PAGE>

WHO IS FEDERATED INVESTORS, INC.?

Federated Funds overview

Equity Funds

In the equity sector, Federated has more than 28 years' of experience. As of
December 31, 1998, Federated managed 27 equity funds totaling approximately
$14.9 billion in assets across growth, value, equity income, international,
index and sector (i.e. utility) styles. Federated's value-oriented management
style combines quantitative and qualitative analysis and features a structured,
computer-assisted composite modeling system that was developed in the 1970s.

Government Funds
In the government sector, as of December 31, 1998, Federated manages 9
mortgage-backed, 5 government/agency and 19 government money market mutual
funds, with assets approximating $5.3 billion, $1.8 billion and $41.6 billion,
respectively. Federated trades approximately $425 million in U.S. government and
mortgage-backed securities daily and places approximately $25 billion in
repurchase agreements each day. Federated introduced the first U.S. government
fund to invest in U.S. government bond securities in 1969. Federated has been a
major force in the short- and intermediate-term government markets since 1982
and currently manages approximately $43.2 billion in government funds within
these maturity ranges.

<PAGE>

Federated Clients Overview

Federated distributes mutual funds through its subsidiaries for a variety of
investment purposes. Specific markets include:

<PAGE>

155

ADDRESSES

aUTOMATED GOVERNMENT MONEY TRUST

A Portfolio of Money Market Obligations Trust

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000

Distributor
Federated Securities Corp.
Federated Investors Tower
1001 Liberty Avenue,
Pittsburgh, PA 15222-3779

Investment Adviser

Federated Investment Management Company
Federated Investors Tower
1001 Liberty Avenue

Pittsburgh, PA 15222-3779

Custodian
State Street Bank and Trust Company
P.O. Box 8600
Boston, MA 02266-8600

Transfer Agent and Dividend Disbursing Agent
Federated Shareholder Services Company
P.O. Box 8600
Boston, MA 02266-8600

Independent Public Accountants

Deloitte & Touche LLP
125 Summer Street
Boston, MA 02110-1617

Prospectus

LIQUID CASH TRUST

A Portfolio of Money Market Obligations Trust

A money market fund seeking stability of principal and current income consistent
with stability of principal by investing primarily in a portfolio of U.S.
Treasury and government agency securities, repurchase agreements and loans of
federal funds. This Fund is available only to federally insured depository
institutions including:
. banks; . savings associations; and . credit
unions.

CONTENTS

Risk/Return Summary 1
What are the Fund's Fees and Expenses 3
What are the Fund's Investment Strategies 4
What are the Principal Securities in Which the Fund Invests 4
What are the Specific Risks of Investing in the Fund 5
What do Shares Cost 6
How is the Fund Sold 6
How to Purchase Shares 6
How to Redeem Shares 7
Account and Share Information 9
Who Manages the Fund 9
Financial Information 10
Independent Auditors' Report 18

APRIL 28, 1999

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The Fund invests primarily in a portfolio of U.S. Treasury and government agency
securities maturing in 13 months or less. These investments include repurchase
agreements collateralized fully by U.S. Treasury and government agency
securities. The Fund also makes loans of federal funds to federally insured
depository institutions. By operating policy, the Fund limits depository
institutions receiving the loans to those the Adviser deems to be adequately
capitalized with a short term rating of Prime-1 by Moody's Investors Services,
Inc. Ordinarily, the Fund has a dollar weighted average maturity of between one
and seven days.
The Fund limits its investments to those that would enable it to qualify as a
permissible investment for national banks, federal savings associations and
federal credit unions. In addition, the Fund seeks to qualify as a liquid
investment under the rules of the Office of Thrift Supervision.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

The Bar Chart and Performance Table below reflect historical performance data
for Liquid Cash Trust (the "Former Fund") prior to its reorganization into the
Fund, which is a newly created portfolio of Money Market Obligations Trust (the
"Trust"). On the date of the reorganization, April 30, 1999, the Former Fund was
dissolved and its net assets (inclusive of liabilities recorded on the Former
Fund's records) were transferred into the Fund.

[Graph]

Historically, the Former Fund has maintained a constant $1.00 net asset value
per share. The bar chart shows the variability of the Former Fund's total
returns on a calendar year basis.

The Former Fund's shares were not sold subject to a sales charge (load). The
total returns displayed above are based upon net asset value.

Within the period shown in the Chart, the Former Fund's highest quarterly return
was 2.44% (quarter ended June 30, 1989). Its lowest quarterly return was 0.74%
(quarter ended June 30, 1993).

The Former Fund's total return from January 1, 1999 through March 31, 1999 was
1.16%.
Average Annual Total Return Table
The following table represents the Former Fund's Average Annual Total Return for
the calendar year ended December 31, 1998.

<TABLE>
<CAPTION>
Calendar Period Fund
<S> <C>
1 Year 5.46%
5 Years 5.30%
10 Years 5.69%
</TABLE>

The Former Fund's 7-Day Net Yield as of December 31, 1998 was 4.81%.
Investors may call the Fund at 1-800-341-7400 to acquire the current 7-Day Net
Yield.

What are the Fund's Fees and Expenses?

LIQUID CASH TRUST

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of Liquid Cash Trust.

Shareholder Fees
Fees Paid Directly From Your Investment Maximum Sales Charge (Load)
Imposed on Purchases (as a percentage of offering price) None Maximum Deferred
Sales Charge (Load) (as a percentage of original purchase price or redemption
proceeds,as applicable) None Maximum Sales Charge (Load) Imposed on Reinvested
Dividends (and other Distributions) (as a percentage of offering None
price)

<S> <C>

Redemption Fee (as a percentage of amount redeemed, if applicable) None
Exchange Fee None

Annual Fund Operating Expenses
Expenses That are Deducted From Fund Assets (as a percentage of average net assets)
Management Fee 0.40%
Distribution (12b-1) Fee None
Shareholder Services Fee 0.25%
Other Expenses 0.12%
Total Annual Fund Operating Expenses (before waivers)/1/ 0.77%
</TABLE>

1 Under the investment advisory contract, the Adviser will waive the amount,
limited to the amount of the management fee, by which the Fund's aggregate
annual operating expenses, including the management fee but excluding
interest, taxes, brokerage commissions, expenses of registering and qualifying
the Fund and its shares under federal and state laws and regulations, and
extraordinary expenses, exceed 0.45% of its average daily net assets. If the
Fund offers an additional class of shares in the future, the expense
limitation disclosed above would not apply to expenses arising pursuant to a
Rule 12b-1 or Shareholder Servicing plan with respect to that class of shares.
Total Waiver of Fund Expenses (contractual and voluntary)/2/ 0.62% Total
Actual Annual Fund Operating Expenses (after waivers)/3/ 0.15%
2 Pursuant to the investment advisory contract disclosed above, the Adviser
expects to waive 0.32% of its Management Fee for the fiscal year ending March
31, 2000. In addition, the Adviser expects to voluntarily waive 0.05% of its
Management Fee. The Adviser may terminate this anticipated voluntary waiver at
any time at its sole discretion. The Management Fee paid by the Fund (after
the contractual and voluntary waivers) is anticipated to be 0.03% for the
fiscal year ending March 31, 2000. The Shareholder Services Provider does not
expect to pay or accrue the 0.25% Shareholder Services Fee during the fiscal
year ending March 31, 2000. The Shareholder Services Provider may terminate
this voluntary waiver at any time at its sole discretion. The Shareholder
Services Fee paid by the Fund (after the voluntary waiver) is anticipated to
be 0.00% for the fiscal year ending March 31, 2000.
3 Total Actual Annual Fund Operating Expenses represent the net expenses the
Fund expects to actually pay for the fiscal year ending March 31, 2000. For
the fiscal year ended March 31, 1999, prior to the reorganization of Liquid
Cash Trust, the Former Fund, as a portfolio of Money Market Obligations Trust,
the Total Annual Fund Operating Expenses (before waivers) and Total Actual
Annual Fund Operating Expenses (after contractual and voluntary waivers) were
0.77% and 0.15%, respectively.

EXAMPLE
The following Example is intended to help you compare the cost of investing in
the Fund with the cost of investing in other mutual funds.

1 Year $ 46
3 Years $144
5 Years $252
10 Years $567

What are the Fund's Investment Strategies?

The Fund invests in a portfolio of U.S. Treasury and government agency
securities maturing in 13 months or less. These investments include repurchase
agreements collateralized fully by U.S. Treasury and government agency
securities. The Fund also makes loans of federal funds to federally insured
depository institutions. By operating policy, the Fund limits depository
institutions receiving the loans to those the Adviser deems to be adequately
capitalized with a short-term rating of Prime-1 by Moody's Investors Services,
Inc. Ordinarily, the Fund has a dollar weighted average maturity of between one
and seven days.

The Fund limits its investments to those that would enable it to qualify as a
permissible investment for national banks, federal savings associations and
federal credit unions. In addition, the Fund seeks to qualify as a liquid
investment under the rules of the Office of Thrift Supervision.

What are the Principal Securities in Which the Fund Invests?

Treasury and Agency Securities

. Treasury securities are direct obligations of the federal government of the
United States.

. Agency securities are issued or guaranteed by a federal agency or other
government sponsored entity acting under federal authority (a "GSE"). The United
States supports some GSEs with its full faith and credit. Other GSEs receive
support through federal subsidies, loans or other benefits. A few GSEs have no
explicit financial support, but are regarded as having implied support because
the federal government sponsors their activities. Repurchase Agreements
Repurchase agreements are transactions in which the Fund buys a security from a
dealer or bank and agrees to sell the security back at a mutually agreed upon
time and price. The repurchase price exceeds the sale price, reflecting the
Fund's return on the transaction. This return is unrelated to the interest rate
on the underlying security. The Fund will enter into repurchase agreements only
with banks and other recognized financial institutions, such as securities
dealers, deemed creditworthy by the Adviser.

Repurchase agreements are subject to credit risks.

Loans of Federal Funds

Loans of federal funds are unsecured loans of money held in the Federal Reserve
System to federally insured depository institutions. Typically, the term of
these loans is one day. INVESTMENT RATINGS Prime-1--Depository
institutions (or related supporting institutions) receiving Prime-1 commercial
paper ratings by Moody's Investors Services Inc. have a superior capacity for
repayment of short- term promissory obligations. Prime-1 repayment capacity will
normally be evidenced by the following characteristics: . Leading market
positions in well established industries; . High rates of return on funds
employed; . Conservative capitalization structure with moderate reliance on debt
and ample asset protection; . Broad margins in earning coverage of fixed
financial charges and high internal cash generation; and . Well established
access to a range of financial markets and assured sources of alternate
liquidity.

What are the Specific Risks of Investing in the Fund?

Although there are many factors which may effect an investment in the Fund, the
principal risks of investing in a U.S. government money market fund are
described below.

Market Risk

. Prices of fixed income securities rise and fall in response to interest rate
changes for similar securities. Generally, when interest rates rise, prices of
fixed income securities fall.

. Interest rate changes have a greater effect on the price of fixed income
securities with longer maturities. Money market funds try to minimize this risk
by purchasing short-term securities. Sector Risk . A substantial part
of the Fund's portfolio may be comprised of fixed income securities and loans by
companies in the banking industry. As a result, the Fund will be more
susceptible to any economic, business, political, or other developments which
generally affect these issuers.

Credit Risk

. Credit risk is the possibility that an issuer will default on a security or
transaction by failing to pay interest or principal when due. If an issuer
defaults, the Fund will lose money. Money market funds try to minimize this risk
by purchasing higher quality securities.

. Many fixed income securities and issuers receive credit ratings from services
such as Standard & Poor's and Moody's Investors Services, Inc. These services
assign ratings to securities by assessing the likelihood of issuer default.
Lower credit ratings correspond to higher credit risk. If a security or issuer
has not received a rating, the Fund must rely entirely upon the Adviser's credit
assessment. . Credit risk includes the possibility that a party to a
transaction involving the Fund will fail to meet its obligations. This could
cause the Fund to lose the benefit of the transaction or prevent the Fund from
selling or buying other securities to implement its investment strategy.

What do Shares Cost?

The required minimum initial investment for Fund Shares is $25,000. There is
no required minimum subsequent investment amount.

How is the Fund Sold?

The Fund's Distributor markets the Shares described in this prospectus to
federally insured depository institutions including banks, saving associations
and credit unions. The Distributor and its affiliates may pay out of their
assets other amounts (including items of material value) to investment
professionals for marketing and servicing Shares. The Distributor is a
subsidiary of Federated Investors, Inc. (Federated).

How to Purchase Shares

You may purchase Shares through an investment professional or directly from the
Fund. The Fund reserves the right to reject any request to purchase Shares.

THROUGH AN INVESTMENT PROFESSIONAL
. Establish an account with the investment professional; and

. Submit your purchase order to the investment professional. You will receive
that day's dividend if the investment professional forwards the order to the
Fund and the Fund receives payment by 3:00 p.m. (Eastern time). You will become
the owner of Shares and receive dividends when the Fund receives your payment.

Investment professionals should send payments according to the instructions in
the sections "By Wire" or "By Check."

DIRECTLY FROM THE FUND
. Establish your account with the Fund by submitting a completed New Account
Form; and . Send your payment to the Fund by Federal Reserve wire or check.

An institution may establish an account and place an order by calling the Fund
and will become a shareholder after the Fund receives the order.

Payment should be made in U.S. dollars and drawn on a U.S. bank. The Fund will
not accept third- party checks (checks originally payable to someone other than
you or The Federated Funds).

Orders by mail are considered received when payment by check is converted into
federal funds (normally the business day after the check is received) and Shares
begin earning dividends the next day.

BY AUTOMATED CLEARING HOUSE (ACH)

How to Redeem Shares

You should redeem Shares:
. through an investment professional if you purchased Shares through an
investment professional; or
. directly from the Fund if you purchased Shares directly from the Fund.
Shareholders of the Fund will not be permitted to make third party payments from
their accounts with the Trust.

THROUGH AN INVESTMENT PROFESSIONAL

Submit your redemption request to your investment professional by the end of
regular trading on the NYSE (normally 4 p.m. Eastern time). The redemption
amount you will receive is based upon the next calculated NAV after the Fund
receives the order from your investment professional.

Investment professionals are responsible for promptly submitting redemption
requests and providing proper written redemption instructions as outlined below.

DIRECTLY FROM THE FUND

By Telephone
You may redeem Shares by calling the Fund once you have completed the
appropriate authorization form for telephone transactions.
If you call before 3:00 p.m. (Eastern time) your redemption will be wired to
you the same day. You will not receive that day's dividend.
If you call after 3:00 p.m.(Eastern time) your redemption will be wired to you
the following business day. You will receive that day's dividend.

By Mail
You may redeem Shares by mailing a written request to the Fund.

Your redemption request will be processed on the day the Fund receives your
written request in proper form. Dividends are paid up to and including the day
that a redemption request is processed.

Signature Guarantees Signatures must be guaranteed if:
. your redemption will be sent to an address other than the address of record;
or
. your redemption will be sent to an address of record that was changed within
the last thirty days.

PAYMENT METHODS FOR REDEMPTIONS

. an electronic transfer to your account at a financial institution that is an
ACH member; or
. wire payment to your account at a domestic commercial bank that is a Federal
Reserve System member.

Redemption in Kind

Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.

ADDITIONAL CONDITIONS

Telephone Transactions

The Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

Share Certificates

The Fund no longer issues share certificates. If you are redeeming Shares
represented by certificates previously issued by the Fund, you must return the
certificates with your written redemption request. For your protection, send
your certificates by registered or certified mail, but do not endorse them.

Account and Share Information

ACCOUNT ACTIVITY

You will receive periodic statements reporting all account activity, including
dividends and capital gains paid.

DIVIDENDS AND CAPITAL GAINS

The Fund does not expect to realize any capital gains or losses. If capital
gains or losses were to occur, they could result in an increase or decrease in
dividends. The Fund pays any capital gains at least annually. Your dividends and
capital gains distributions will be automatically reinvested in additional
Shares without a sales charge, unless you elect cash payments.

ACCOUNTS WITH LOW BALANCES

TAX INFORMATION

Fund distributions are expected to be primarily dividends. Redemptions are
taxable sales. Please consult your tax adviser regarding your federal, state,
and local tax liability.

Who Manages the Fund?

ADVISORY FEES

The Adviser receives an annual investment advisory fee of 0.40% of the Fund's
average daily net assets. Under the investment advisory contract, the Adviser
will reimburse the Fund the amount, limited to the amount of the advisory fee,
by which the Fund's aggregate annual operating expenses, including its
investment advisory fee but excluding interest, taxes, brokerage commissions,
expenses of registering and qualifying the Fund and its shares under federal and
state laws, expenses of withholding taxes, and extraordinary expenses, exceed
0.45% of its average daily net assets. This does not include reimbursement to
the Fund of any expenses incurred by shareholders who use the transfer agent's
subaccounting facilities. YEAR 2000 READINESS The "Year 2000" problem
is the potential for computer errors or failures because certain computer
systems may be unable to interpret dates after December 31, 1999 or experience
other date-related problems. The Year 2000 problem may cause systems to process
information incorrectly and could disrupt businesses, such as the Fund, that
rely on computers.
While it is impossible to determine in advance all of the risks to the Fund,
the Fund could experience interruptions in basic financial and operational
functions. Fund shareholders could experience errors or disruptions in Fund
share transactions or Fund communications.

The financial impact of these issues for the Fund is still being determined.
There can be no assurance that potential Year 2000 problems would not have a
material adverse effect on the Fund.

Financial Information

The following Financial Highlights will help you understand the Fund's financial
performance for its past five fiscal years, or since inception, if the life of
the Fund is shorter. Some of the information is presented on a per share basis.
Total returns represent the rate an investor would have earned (or lost) on an
investment in the Fund, assuming reinvestment of any dividends and capital
gains.
This information has been audited by Deloitte & Touche LLP whose report, along
with the Fund's audited financial statements, is included in this prospectus.
The semi-annual report, dated September 30, 1998, which contains unaudited
financial statements, is incorporated by reference into this prospectus.

Financial Highlights

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Reference is made to the Independent Auditors' Report on page 18.
<TABLE>
<CAPTION>
Year Ended March 31 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income From Investment Operations:
Net investment income 0.06 0.05 0.06 0.05 0.03
Less Distributions:
Distributions from net investment income (0.06) (0.05) (0.06) (0.05) (0.03)
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return/1/ 5.59% 5.35% 5.84% 4.88% 3.09%

Ratios to Average Net Assets:
Expenses 0.15% 0.15% 0.16% 0.16% 0.16%
Net investment income 5.48% 5.27% 5.72% 4.64% 3.05%
Expense waiver/reimbursement/2/ 0.37% 0.39% 0.38% 0.39% 0.39%
Supplemental Data:
Net assets, end of period (000omitted) $508,795 $489,363 $595,471 $313,679 $464,941
</TABLE>

1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

2 This contractual and voluntary expense decrease is reflected in both the
expense and net investment income ratios shown above.

Note: The semi-annual report dated September 30, 1998, which contains unaudited
Financial Statements, is hereby incorporated by reference.
See Notes which are an integral part of the Financial Statements

Portfolio of Investments

MARCH 31, 1998

<TABLE>
<CAPTION>
Principal Value
Amount

REPURCHASE AGREEMENTS--100.0%/1/
<S> <C> <C> <C>
$ 20,000,000 ABN AMRO Chicago Corp., 6.100%, dated 3/31/1998, due 4/1/1998 $ 20,000,000
48,600,000 Barclays de Zoete Wedd Securities, Inc., 5.950%, dated 3/31/1998, due 4/1/1998 48,600,000
100,000,000 Bear, Stearns and Co., 6.050%, dated 3/31/1998, due 4/1/1998 100,000,000
20,000,000 CIBC Wood Gundy Securities Corp., 6.050%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 Deutsche Morgan Grenfell, 6.050%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.930%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 First Union Capital Markets, 5.950%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 Fuji Government Securities, Inc., 6.050%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 Goldman Sachs Group, LP, 6.100%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 Greenwich Capital Markets, Inc., 6.050%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 HSBC Securities, Inc., 6.050%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 Morgan Stanley & Co., 5.950%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 Harris-Nesbitt Thomson Securities, Inc., 5.970%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 PaineWebber Group, Inc., 6.050%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 Prudential Securities, Inc., 6.100%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 Salomon Smith Barney Holdings, Inc., 6.050%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 Societe Generale Securities, 5.950%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 Toronto Dominion Securities (USA) Inc., 6.100%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 UBS Securities, Inc., 6.050%, dated 3/31/1998, due 4/1/1998 20,000,000
20,000,000 Westdeutsche Landesbank Girozentrale, 5.930%, dated 3/31/1998, due 4/1/1998 20,000,000
TOTAL REPURCHASE AGREEMENTS 508,600,000
TOTAL INVESTMENTS (AT AMORTIZED COST)/2/ $ 508,600,000
</TABLE>

1 The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio. The
investments in the repurchase agreements are through participation in joint
accounts with other Federated funds.
2 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($508,795,072) at March 31, 1998.

The following acronym is used throughout this portfolio:

LP--Limited Partnership

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

MARCH 31, 1998

<TABLE>
<CAPTION>
<S> <C> <C>
Assets:
Investments in repurchase agreements, at amortized cost and value $ 508,600,000
Cash 87,389
Income receivable 85,105
Receivable for shares sold 443,239
TOTAL ASSETS 509,215,733
Liabilities:
Income distribution payable $ 395,761
Accrued expenses 24,900
TOTAL LIABILITIES 420,661
Net Assets for 508,795,072 shares outstanding $ 508,795,072
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$508,795,072 / 508,795,072 shares outstanding $1.00
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Operations

YEAR ENDED MARCH 31, 1998

<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C>
Interest $ 24,835,646
Expenses:
Investment advisory fee $ 1,762,293
Administrative personnel and services fee 332,474
Custodian fees 25,100
Transfer and dividend disbursing agent fees and expenses 26,112
Directors'/Trustees' fees 15,980
Auditing fees 13,140
Legal fees 7,034
Portfolio accounting fees 98,802
Share registration costs 19,242
Printing and postage 7,975
Insurance premiums 4,493
Taxes 1,643
Miscellaneous 6,013
TOTAL EXPENSES 2,320,301
Waivers of investment advisory fee (1,638,556)
Net expenses 681,745
Net investment income $ 24,153,901
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

<TABLE>
<CAPTION>
Year Ended March 31, 1998 1997
Increase (Decrease) in Net Assets:
Operations:
<S> <C> <C>
Net investment income $ 24,153,901 $ 25,871,252
Distributions to Shareholders:
Distributions from net investment income (24,153,901) (25,871,252)
Share Transactions:
Proceeds from sale of shares 4,455,297,994 5,971,788,908
Net asset value of shares issued to shareholders in payment of distributions 17,495,927 17,450,892
declared
Cost of shares redeemed (4,453,362,197) (6,095,347,685)
Change in net assets resulting from share transactions 19,431,724 (106,107,885)
Change in net assets 19,431,724 (106,107,885)
Net Assets:
Beginning of period 489,363,348 595,471,233
End of period $ 508,795,072 $ 489,363,348
</TABLE>

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

MARCH 31, 1998

Liquid Cash Trust (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "Act"), as an open-end management investment company.
The investment objective of the Trust is stability of principal and current
income consistent with stability of principal.

SIGNIFICANT ACCOUNTING POLICIES

Investment Valuations
The Trust's use of the amortized cost method to value its portfolio securities
is in accordance with Rule 2a-7 under the Act.

Repurchase Agreements

The Trust will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/ dealers, which are deemed by
the Trust's adviser to be creditworthy pursuant to the guidelines and/ or
standards reviewed or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Trust could receive less
than the repurchase price on the sale of collateral securities.

Investment Income, Expenses, and Distributions

Federal Taxes

When-Issued and Delayed Delivery Transactions

Use of Estimates

Other
Investment transactions are accounted for on the trade date.

SHARES OF BENEFICIAL INTEREST

The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At March
31, 1998, capital paid-in aggregated $508,795,072. Transactions in shares were
as follows:

<TABLE>
<CAPTION>
Year Ended March 31, 1998 1997
<S> <C> <C>
Shares sold 4,455,297,994 5,971,788,908
Shares issued to shareholders in payment of distributions declared 17,495,927 17,450,892
Shares redeemed (4,453,362,197) (6,095,347,685)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS 19,431,724 (106,107,885)
</TABLE>

INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fee

Federated Research Corp., the Trust's investment adviser (the "Adviser"),
receives for its services an annual investment advisory fee equal to 0.40% of
the Trust's average daily net assets. The Adviser may voluntarily choose to
waive any portion of its fee. The Adviser can modify or terminate this voluntary
waiver at any time at its sole discretion.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Trust with administrative personnel and services. The
fee paid to FServ is based on the level of average aggregate daily net assets of
all funds advised by subsidiaries of Federated Investors for the period. The
administrative fee received during the period of the Administrative Services
Agreement shall be at least $125,000 per portfolio and $30,000 per each
additional class of shares.

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services ("FSS"), the Trust will pay FSS up to 0.25% of average daily net assets
of the Trust for the period. The fee paid to FSS is used to finance certain
services for shareholders and to maintain shareholder accounts. For the period
ended March 31, 1998, the Trust shares did not incur a shareholder services fee.

Transfer and Dividend Disbursing Agent Fees and Expenses

Portfolio Accounting Fee

FServ maintains the Trust's accounting records for which it receives a fee. The
fee is based on the level of the Trust's average daily net assets for the
period, plus out-of-pocket expenses.

General
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.

YEAR 2000 ISSUE (UNAUDITED)

Similar to other financial organizations, the Trust could be adversely affected
if the computer systems used by the Trust's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Trust's Adviser and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and obtain reasonable assurances that comparable
steps are being taken by each of the Fund's other service providers. At this
time, however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact to the Trust. Independent Auditors' Report

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF

LIQUID CASH TRUST:

We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Liquid Cash Trust as of March 31, 1998, the
related statement of operations for the year then ended, the statements of
changes in net assets for the years ended March 31, 1998 and 1997, and the
financial highlights for the periods presented. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at March
31, 1998, by correspondence with the custodian and brokers; where replies were
not received, we performed other auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Liquid Cash Trust as
of March 31, 1998, the results of its operations, the changes in its net assets,
and its financial highlights for the respective stated periods in conformity
with generally accepted accounting principles.

Deloitte & Touche Llp
Pittsburgh, Pennsylvania
May 8, 1998

[Federated logo]

Liquid Cash Trust

A Portfolio of Money Market Obligations Trust

APRIL 28, 1999

[Federated logo]

Liquid Cash Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com

Federated Securities Corp., Distributor

Investment Company Act File No. 811-5950

Cusip 60934N757

8050206A (4/99)

The graphic presentation displayed here consists of a bar chart representing the
annual total returns of LIQUID CASH TRUST as of the calendar year-end for each
of 10 years. The `y' axis reflects the "% Total Return" beginning with "0" and
increasing in increments of 1% up to 10%. The `x' axis represents calculation
periods for the last ten calendar years of the Fund, beginning with the earliest
year. The light gray shaded chart features 10 distinct vertical bars, each
shaded in charcoal, and each visually representing by height the total return
percentages for the calendar year stated directly at its base. The calculated
total return percentage for the Fund for each calendar year is stated directly
at the top of each respective bar, for the calendar years 1989 through 1998. The
percentages noted are: 1989 - 9.59%, 1990 - 8.36%, 1991 - 5.90%, 1992 - 3.61%,
1993 - 3.06%, 1994 - 4.21%, 1995- 5.94%, 1996 - 5.38%, 1997 - 5.52%, 1998 -
5.48%. The Fund's Shares are not sold subject to a sales charge (load). The
total returns displayed are based upon net asset value. The Fund's 7-day net
yield as of December 31, 1998 was 4.81%. Within the period shown in the Chart,
the Fund's highest quarterly return was 2.44% (quarter ended June 30, 1989). Its
lowest quarterly return was 0.74% (quarter ended June 30, 1993.

Average Annual Total Return
1 Year 5 Years 10 Years
5.48% 5.30% 5.69%
The bar chart shows the variability of the Fund's actual total return on a
yearly basis.
Past performance does not necessarily predict future performance. This
information provides you with historical performance so that you can analyze
whether the Fund's investment risks are balanced by its potential rewards.

Statement of Additional Information

LIQUID CASH TRUST

A Portfolio of Money Market Obligations Trust

This Statement of Additional Information (SAI) is not a prospectus. Read this
SAI in conjunction with the prospectus for Liquid Cash Trust (Fund), dated April
28, 1999.

Obtain the prospectus without charge by calling 1-800-341-7400.

April 28, 1999

Contents
How is the Fund Organized
Securities in Which the Fund Invests
How is the Fund Sold
Subaccounting Services
Redemption in Kind
Massachusetts Partnership Law
Account and Share Information
Tax Information
Who Manages and Provides Services to the Fund
How Does the Fund Measure Performance
Who is Federated Investors, Inc.
Addresses
Cusip 60934N815

8050206B(4/99)

<PAGE>

HOW IS THE FUND ORGANIZED?

The Fund is a diversified portfolio of Money Market Obligations Trust (Trust).
The Trust is an open-end, management investment company that was established
under the laws of the Commonwealth of Massachusetts on October 3, 1988. The
Trust may offer separate series of shares representing interests in separate
portfolios of securities. The Fund, which was established on April 11, 1980, was
reorganized as a portfolio of the Trust on April 30, 1999.

SECURITIES IN WHICH THE FUND INVESTS

In pursuing its investment strategy, the Fund may invest in the following
securities for any purpose that is consistent with its investment objective.

SECURITIES DESCRIPTIONS AND TECHNIQUES

Fixed Income Securities
Fixed income securities pay interest, dividends or distributions at a specified
rate. The rate may be fixed or adjusted periodically. The issuer must also repay
the principal amount of the security, normally within a specified time. Fixed
income securities provide more regular income than equity securities. However,
the returns on fixed income securities are limited and normally do not increase
with the issuer's earnings. This limits the potential appreciation of fixed
income securities as compared to equity securities.

The following describes the types of fixed income securities in which the Fund
invests.

Treasury Securities
Treasury securities are direct obligations of the federal government of the
United States. Investors regard treasury securities as having the lowest
credit risk.

Agency Securities
Agency securities are issued or guaranteed by a federal agency or other
government sponsored entity acting under federal authority (a "GSE"). Some
GSEs are supported by the full, faith and credit of the United States.
Other GSEs receive support through federal subsidiaries, loans or other
benefits. A few GSEs have no explicit financial support, but are regarded
as having implied support because the federal government sponsors their
activities. Investors regard agency securities as having low credit risks,
but not as low as Treasury securities.

For purposes of repurchase agreements, the Fund treats mortgage backed
securities guaranteed by GSEs as agency securities.

Mortgage Backed Securities
Mortgage backed securities represent interests in pools of mortgages. The
mortgages that comprise a pool normally have similar interest rates,
maturities and other terms. Mortgages may have fixed or adjustable interest
rates. Interests in pools of adjustable rate mortgages are known as ARMs.

Mortgage backed securities come in a variety of forms. Many have extremely
complicated terms. The simplest form of mortgage backed securities are
pass-through certificates. An issuer of pass-through certificates gathers
monthly payments from an underlying pool of mortgages. Then, the issuer
deducts its fees and expenses and passes the balance of the payments onto
the certificate holders once a month. Holders of pass-through certificates
receive a pro rata share of all payments and pre-payments from the
underlying mortgages. As a result, the holders assume all the prepayment
risks of the underlying mortgages. The Fund uses mortgage backed securities
as collateral for repurchase agreements.

Bank Instruments

Zero Coupon Securities
Zero coupon securities do not pay interest or principal until final
maturity unlike debt securities that provide periodic payments of interest
(referred to as a coupon payment). Investors buy zero coupon securities at
a price below the amount payable at maturity. The difference between the
purchase price and the amount paid at maturity represents interest on the
zero coupon security. Investors must wait until maturity to receive
interest and principal, which increases the market and credit risks of a
zero coupon security.

There are many forms of zero coupon securities. Some are issued at a
discount and are referred to as zero coupon or capital appreciation bonds.
Others are created from interest bearing bonds by separating the right to
receive the bonds' coupon payments from the right to receive the bonds'
principal due at maturity, a process known as coupon stripping. Treasury
STRIPs are the most common forms of stripped zero coupon securities.

Investing in Securities of Other Investment Companies
The Fund may invest its assets in securities of other investment companies as an
efficient means of carrying out its investment policies. It should be noted that
investment companies incur certain expenses, such as management fees, and,
therefore, any investment by the Fund in shares of other investment companies
may be subject to such duplicate expenses. At the present time, the Fund expects
that its investments in other investment companies will be limited to shares of
money market funds, including funds affiliated with the Fund's investment
adviser.

Special Transactions

Repurchase Agreements
Repurchase agreements are transactions in which the Fund buys a security
from a dealer or bank and agrees to sell the security back at a mutually
agreed upon time and price. The repurchase price exceeds the sale price,
reflecting the Fund's return on the transaction. This return is unrelated
to the interest rate on the underlying security. The Fund will enter into
repurchase agreements only with banks and other recognized financial
institutions, such as securities dealers, deemed creditworthy by the
Adviser.

The Fund's custodian or subcustodian will take possession of the securities
subject to repurchase agreements. The Adviser or subcustodian will monitor
the value of the underlying security each day to ensure that the value of
the security always equals or exceeds the repurchase price.

Repurchase agreements are subject to credit risks.

Reverse Repurchase Agreements
Reverse repurchase agreements are repurchase agreements in which the Fund
is the seller (rather than the buyer) of the securities, and agrees to
repurchase them at an agreed upon time and price. A reverse repurchase
agreement may be viewed as a type of borrowing by the Fund. Reverse
repurchase agreements are subject to credit risks. In addition, reverse
repurchase agreements create leverage risks because the Fund must
repurchase the underlying security at a higher price, regardless of the
market value of the security at the time of repurchase.

Delayed Delivery Transactions
Delayed delivery transactions, including when issued transactions, are
arrangements in which the Fund buys securities for a set price, with
payment and delivery of the securities scheduled for a future time. During
the period between purchase and settlement, no payment is made by the Fund
to the issuer and no interest accrues to the Fund. The Fund records the
transaction when it agrees to buy the securities and reflects their value
in determining the price of its shares. Settlement dates may be a month or
more after entering into these transactions so that the market values of
the securities bought may vary from the purchase prices. Therefore, delayed
delivery transactions create market risks for the Fund. Delayed delivery
transactions also involve credit risks in the event of a counterparty
default.

Asset Coverage
In order to secure its obligations in connection with derivatives contracts or
special transactions, the Fund will either own the underlying assets, enter into
an offsetting transaction or set aside readily marketable securities with a
value that equals or exceeds the Fund's obligations. Unless the Fund has other
readily marketable assets to set aside, it cannot trade assets used to secure
such obligations entering into an offsetting contract or terminating a special
transaction. This may cause the Fund to miss favorable trading opportunities or
to realize losses on derivative contracts or special transactions.

INVESTMENT RISKS
There are many factors which may effect an investment in the Fund. The Fund's
principal risks are described in its prospectus. Additional risk factors are
outlined below.

Bond Market Risks
o Prices of fixed income securities rise and fall in response to interest
rate changes for similar securities. Generally, when interest rates
rise, prices of fixed income securities fall.

o Interest rate changes have a greater effect on the price of fixed
income securities with longer durations. Duration measures the price
sensitivity of a fixed income security to changes in interest rates.

Credit Risks
o Credit risk is the possibility that an issuer will default on a
security by failing to pay interest or principal when due. If an issuer
defaults, the Fund will lose money. Money market funds try to minimize
this risk by purchasing higher quality securities.

o Many fixed income securities receive credit ratings from services such
as Standard & Poor's and Moody's Investor Services. These services
assign ratings to securities by assessing the likelihood of issuer
default. Lower credit ratings correspond to higher credit risk. If a
security has not received a rating, the Fund must rely entirely upon
the Adviser's credit assessment.

o Credit risk includes the possibility that a party to a transaction
involving the Fund will fail to meet its obligations. This could cause
the Fund to lose the benefit of the transaction or prevent the Fund
from selling or buying other securities to implement its investment
strategy.

Sector Risks

o A substantial part of the Fund's portfolio may be comprised of fixed
income securities and loans by companies in the banking industry. As a
result, the Fund will be more susceptible to any economic, business
political, or other developments which generally affect these issuers.

INVESTMENT policies
The Fund pursues its investment objective by investing in a portfolio of money
market instruments maturing in thirteen months or less. It is the policy of the
Fund to invest only in certain securities which qualify as short-term liquid
assets under Section 566.1 (12 CFR 566.1) of the Regulations of the Office of
Thrift Supervision. The types of securities which currently qualify as
short-term liquid assets consist of the following: (1) Time deposits in a
Federal Home Loan Bank, the Bank for Savings and Loan Association, Chicago,
Illinois, or the Savings
Banks Trust Company, New York, New York;

(2) Except as the Office may otherwise direct in a specific case, obligations
of the United States;

(3) Obligations issued or fully guaranteed as to principal and interest by
a Federal Home Loan Bank, the Federal National Mortgage Association,
the Government National Mortgage Association, a Bank for Cooperatives
(including the National Bank for Cooperatives or the United Bank for
Cooperatives), a Farm Credit Bank, The Tennessee Valley Authority, The
Export-Import Bank of the United States, The Commodity Credit
Corporation, the Federal Financing Bank, the Student Loan Marketing
Association, the Federal Home Loan Mortgage Association, or The
National Credit Union Association;

(4) Savings accounts of an insured financial institution, including loans
of unsecured day(s) funds to an insured financial institution (i.e.,
federal funds or similar unsecured loans if such accounts are: (a)
negotiable and have remaining maturities of one year or less, (b) not
negotiable and have remaining maturities of ninety days or less, ( c )
not withdrawable without notice and the notice periods do not exceed
ninety days; loans of unsecured day(s) funds maturing in six months or
less; and the priority of claims of a lender of unsecured day(s) funds
is not subordinated to claims of depositors in the borrower thereof;

(5) Bankers acceptances of an insured financial institution if (a) the
total of all such acceptances held by the same financial institution
does not exceed 0.25 of one percent of the total deposits of such
financial institution (as shown by its last published statement of
condition preceding the date of acceptance), and (b) such acceptances
have remaining maturities of nine months or less;

(6) Shares or certificates in certain open-end management investment
companies registered with the Securities and Exchange Commission under
the Investment Company Act of 1940; and

(7) Certain mortgage-related securities.

The Fund may attempt to increase yield by trading portfolio instruments to take
advantage of short-term market variations. The Fund may also enter into
repurchase agreements or reverse repurchase agreements which are secured by
those U.S. government obligations which qualify as short-term liquid assets or
bank instruments which qualify as short-term liquid assets. If existing statutes
and/or regulations are changed to delete investments from or add investments to
the list of portfolio instruments that the Fund may own, it will be the policy
of the Fund, as and when permitted by such statutes or regulations, to dispose
of securities that are no longer permitted investments and to consider
purchasing securities that become permitted investments, all as may be deemed
prudent by the Board of Trustees of the Fund.

INVESTMENT LIMITATIONS

Selling Short and Buying on Margin
The Fund will not sell any money market instruments short or purchase
any money market instruments on margin but may obtain such short-term
credits as may be necessary for clearance of purchases and sales of
money market instruments.

Industry Concentration
o The Fund will not invest 25% or more of its total assets in any one
industry. However, investing in U.S. government securities and domestic
bank instruments shall not be considered investments in any one
industry.

Borrowing Money
The Fund will not borrow money except as a temporary measure for
extraordinary or emergency purposes and then only in amounts not in
excess of 5% of the value of its total assets. In addition, the Fund
may enter into reverse repurchase agreements and otherwise borrow up to
one-third of the value of its total assets, including the amount
borrowed, in order to meet redemption requests without immediately
selling portfolio instruments. This latter practice is not for
investment leverage but solely to facilitate management of the
portfolio by enabling the Fund to meet redemption requests when the
liquidation of portfolio instruments would be inconvenient or
disadvantageous. Interest paid on borrowed funds will not be available
for investment. The Fund will liquidate any such borrowings as soon as
possible. However, during the period any reverse repurchase agreements
are outstanding, but only to the extent necessary to assure completion
of the reverse repurchase agreements, the Fund will restrict the
purchase of portfolio instruments to money market instruments maturing
on or before the expiration date of the reverse repurchase agreements.

Pledging Assets
The Fund will not mortgage, pledge, or hypothecate any assets except to
secure permitted borrowings. In those cases, it may mortgage, pledge,
or hypothecate assets having a market value not exceeding the lesser of
the dollar amounts borrowed or 10% of the value of total assets at the
time of the borrowing.

Underwriting
The Fund will not engage in underwriting of securities issued by
others.

Lending Cash or Securities
The Fund will not lend any of its assets, except that it may
participate in the federal funds market and purchase or hold money
market instruments, including repurchase agreements, permitted by its
investment objective and policies.

Issuing Senior Securities
The Fund will not issue senior securities, except as permitted by the
investment objective and policies and investment limitations of the
Trust. Except with respect to borrowing money, if a percentage
limitation is adhered to at the time of investment, a later increase or
decrease in percentage resulting from any change in value or net assets
will not result in a violation of such restriction. The Fund did not
borrow money, pledge securities, or invest in reverse repurchase
agreements in excess of 5% of the value of its net assets during the
last fiscal year and has no present intent to do so in the coming
fiscal year.

The above limitations cannot be changed unless authorized by the "vote of a
majority of its outstanding voting securities," as defined by the Investment
Company Act of 1940. The following limitations, however, may be changed by the
Board without shareholder approval. Shareholders will be notified before any
material change in these limitations becomes effective.

As a matter of operating policy, which may be changed without shareholder
approval, the Fund limits its dollar weighted average maturity to 90 days.

Investing For Control

The Fund will not invest in securities of a company for the purpose of
exercising control or management.

Investing in Restricted Securities
The Fund may invest in restricted securities. Restricted securities are
any securities which are subject to restrictions on resale under
federal securities law. The Fund may invest without limitation in
restricted securities which are determined to be liquid under criteria
established by the Trustees. To the extent that restricted securities
are not determined to be liquid, the Fund will limit their purchase,
together with other illiquid securities, to not more than 10% of its
net assets.

Regulatory Compliance

The Fund may follow non-fundamental operational policies that are more
restrictive than its fundamental investment limitations, as set forth in the
prospectus and this Statement of Additional Information, in order to comply with
applicable laws and regulations, including the provisions of and regulations
under the Investment Company Act of 1940. In particular, the Fund will comply
with the various requirements of Rule 2a-7 (the "Rule") which regulates money
market mutual funds. For example, with limited exceptions, the Rule prohibits
the investment of more than 5% of the Fund's total assets in the securities of
any one issuer, although the Fund's investment limitation only requires such 5%
diversification with respect to 75% of its assets. The Fund will invest more
than 5% of its assets in any one issuer only under the circumstances permitted
by the Rule. The Fund will also determine the effective maturity of its
investments, as well as its ability to consider a security as having received
the requisite short-term ratings by NRSROs, according to the Rule. The Fund may
change these operational policies to reflect changes in the laws and regulations
without the approval of its shareholders.

HOW IS THE FUND SOLD?

Under the Distributor's Contract with the Fund, the Distributor (Federated
Securities Corp.), located at Federated Investors Tower, 1001 Liberty Avenue,
Pittsburgh, PA 15222-3779, offers Shares on a continuous, best-efforts basis.

SHAREHOLDER SERVICES
The Fund may pay Federated Shareholder Services Company, a subsidiary of
Federated Investors, Inc. (Federated) for providing shareholder services and
maintaining shareholder accounts. Federated Shareholder Services Company may
select others to perform these services for their customers and may pay them
fees.

SUBACCOUNTING SERVICES

REDEMPTION IN KIND

MASSACHUSETTS PARTNERSHIP LAW

ACCOUNT AND SHARE INFORMATION

Trustees may be removed by the Board or by shareholders at a special meeting. A
special meeting of shareholders will be called by the Board upon the written
request of shareholders who own at least 10% of the Trust's outstanding shares
of all series entitled to vote.

As of April 7, 1999, the following shareholders owned of record, beneficially,
or both, 5% or more of outstanding Shares: Athens Federal S&L Assn., Athens, TN,
owned approximately 31,276,839 (5.97%) Shares and Central Bank & Trust Co.,
Lexington, KY, owned approximately 70,500,000 (13.45%) Shares.

TAX INFORMATION

The Fund will be treated as a single, separate entity for federal income tax
purposes so that income earned and capital gains and losses realized by the
Trust's other portfolios will be separate from those realized by the Fund.

WHO MANAGES AND PROVIDES SERVICES TO THE FUND?

BOARD OF TRUSTEES
The Board is responsible for managing the Trust's business affairs and for
exercising all the Trust's powers except those reserved for the shareholders.
Information about each Board member is provided below and includes each
person's: name, address, birthdate, present position(s) held with the Trust,
principal occupations for the past five years and other notable positions held,
total compensation received as a Trustee from the Trust for its most recent
fiscal year, and the total compensation received from the Federated Fund Complex
for the most recent calendar year. The Trust is comprised of 13 funds and the
Federated Fund Complex is comprised of 54 investment companies, whose investment
advisers are affiliated with the Fund's Adviser.

As of April 7, 1999, the Fund's Board and Officers as a group owned less than 1%
of the Fund's outstanding Shares.

<PAGE>

Name Total
Birth Date Aggregate Compensation From
Address Principal Occupations Compensation Trust and Fund
Position With Trust for Past Five Years From Trust Complex
John F. Donahue*+ Chief Executive Officer and Director or Trustee of $0 $0 for the
Birth Date: July 28, 1924 the Federated Fund Complex; Chairman and Director, Trust and
Federated Investors Tower Federated Investors, Inc.; Chairman and Trustee, 54 other investment
1001 Liberty Avenue Federated Investment Management Company; Chairman and companies
Pittsburgh, PA Director, Federated Investment Counseling and in the Fund Complex
CHAIRMAN AND TRUSTEE Federated Global Investment Management Corp.;
Chairman, Passport Research, Ltd.
Thomas G. Bigley Director or Trustee of the Federated Fund Complex; $18,351 $113,860.22 for the
Birth Date: February 3, 1934 Director, Member of Executive Committee, Children's Trust and 54 other
15 Old Timber Trail Hospital of Pittsburgh; formerly: Senior Partner, investment
Pittsburgh, PA Ernst & Young LLP; Director, MED 3000 Group, Inc.; companies
TRUSTEE Director, Member of Executive Committee, University in the Fund Complex
of Pittsburgh.

J. Christopher Donahue+ President or Executive Vice President of the $0 $0 for the Trust
Birth Date: April 11, 1949 Federated Fund Complex; Director or Trustee of some and 22 other
Federated Investors Tower of the Funds in the Federated Fund Complex; President investment
1001 Liberty Avenue and Director, Federated Investors, Inc.; President companies in the
Pittsburgh, PA and Trustee, Federated Investment Management Company; Fund Complex
PRESIDENT President and Director, Federated Investment
Counseling and Federated Global Investment
Management Corp.; President, Passport
Research, Ltd.; Trustee, Federated
Shareholder Services Company; Director,
Federated Services Company.

<PAGE>

William D. Dawson, III Chief Investment Officer of this Fund and various $0 $0 for the Trust
Birth Date: March 3, 1949 other Funds in the Federated Fund Complex; Executive and 41 other
Federated Investors Tower Vice President, Federated Investment Counseling, investment
1001 Liberty Avenue Federated Global Investment Management Corp., companies in the
Pittsburgh, PA Federated Investment Management Company and Passport Fund Complex
CHIEF INVESTMENT OFFICER Research, Ltd.; Registered Representative, Federated
Securities Corp.; Portfolio Manager,
Federated Administrative Services; Vice
President, Federated Investors, Inc.;
Formerly: Executive Vice President and Senior
Vice President, Federated Investment
Counseling Institutional Portfolio Management
Services Division; Senior Vice President,
Federated Research Corp., Federated Advisers,
Federated Management, Federated Research, and
Passport Research, Ltd.

</TABLE>

+Mr. Donahue is the father of J. Christopher Donahue, President of the Trust.

INVESTMENT ADVISER
The Adviser conducts investment research and makes investment decisions for the
Fund.

The Adviser is a wholly-owned subsidiary of Federated.

The Adviser must waive the portion of its advisory fee that increases the Fund's
aggregate annual operating expenses above .45% of its average daily net assets.
The Fund's operating expenses include the advisory fee but exclude interest,
taxes, brokerage commissions, expenses of registering the Fund and its shares
under federal and state laws, expenses of withholding taxes, and extraordinary
expenses.

Maximum Administrative Fee Average Aggregate Daily Net Assets of
the Federated Funds
0.150 of 1% on the first $250 million
0.125 of 1% on the next $250 million
0.100 of 1% on the next $250 million
0.075 of 1% on assets in excess of $750 million
The administrative fee received during any fiscal year shall be at least
$125,000 per portfolio. Federated Services Company may voluntarily waive a
portion of its fee and may reimburse the Fund for expenses.

Federated Services Company also provides certain accounting and recordkeeping
services with respect to the Fund's portfolio investments for a fee based on
Fund assets, plus out-of-pocket expenses.

INDEPENDENT PUBLIC ACCOUNTANTs
Deloitte & Touche LLP is the independent public accountant for the Fund.

<PAGE>

FEES PAID BY THE FUND FOR SERVICES

For the Year ended July 31: 1998 1997 1996
Advisory Fee Earned $1,762,293 1,964,969 2,415,000
Advisory Fee Reduction $1,638,556 1,896,759 1,913,606
Administrative Fee $332,474 371, 211 378,389
Shareholder Services Fee None

For the fiscal years ended July 31, 1998, 1997 and 1996, fees paid by the
Fund for services are prior to the Fund's reorganization as a portfolio of the
Trust on April 30, 1999.

HOW DOES THE FUND MEASURE PERFORMANCE?

Share performance fluctuates on a daily basis largely because net earnings
fluctuate daily. Both net earnings and offering price per Share are factors in
the computation of yield and total return.

Average Annual Total Returns and Yield

Total returns given for the one, five and ten-year periods ended July 31, 1998.

Yield and Effective Yield are given for the 7-day period ended July 31, 1998.

7 -Day Period 1 Year 5 Years 10 Years

Total Return N/A 5.13% 4.66% 5.38%
Yield 5.04% N/A N/A
Effective Yield 5.17% N/A N/A N/A

Performance of the Fund shown is prior to its reorganization as a portfolio
of the Trust on April 30, 1999.

YIELD
The yield of Shares is based upon the seven days ending on the day of the
calculation, called the "base period." This yield is calculated by: determining
the net change in the value of a hypothetical account with a balance of one
Share at the beginning of the base period, with the net change excluding capital
changes but including the value of any additional Shares purchased with
dividends earned from the original one Share and all dividends declared on the
original and any purchased Shares; dividing the net change in the account's
value by the value of the account at the beginning of the base period to
determine the base period return; and multiplying the base period return by
365/7. The effective yield is calculated by compounding the unannualized
base-period return by: adding 1 to the base-period return, raising the sum to
the 365/7th power; and subtracting 1 from the result.

PERFORMANCE COMPARISONS
Advertising and sales literature may include:

o references to ratings, rankings, and financial publications and/or
performance comparisons of Shares to certain indices;

o charts, graphs and illustrations using the Fund's returns, or returns
in general, that demonstrate investment concepts such as tax-deferred
compounding, dollar-cost averaging and systematic investment;

o discussions of economic, financial and political developments and their
impact on the securities market, including the portfolio manager's
views on how such developments could impact the Funds; and

o information about the mutual fund industry from sources such as the Investment
Company Institute.

The Fund may quote information from reliable sources regarding individual
countries and regions, world stock exchanges, and economic and demographic
statistics.

Lipper Analytical Services, Inc. ranks funds in various fund
categories based on total return, which assumes the reinvestment of
all income dividends and capital gains distributions, if any.

IBC/Donoghue's Money Fund Report publishes annualized yields of money
market funds weekly. Donoghue's Money Market Insight publication
reports monthly and 12-month-to-date investment results for the same
money funds.

Money, a monthly magazine, regularly ranks money market funds in
various categories based on the latest available seven-day effective
yield.

WHO IS FEDERATED INVESTORS, INC.?

Federated Funds overview

Equity Funds
In the equity sector, Federated has more than 28 years of experience. As of
December 31, 1998, Federated managed 27 equity funds totaling approximately
$14.9 billion in assets across growth, value, equity income, international,
index and sector (i.e. utility) styles. Federated's value-oriented management
style combines quantitative and qualitative analysis and features a structured,
computer-assisted composite modeling system that was developed in the 1970s.

Government Funds
In the government sector, as of December 31, 1998, Federated manages 9
mortgage-backed, 5 government/agency and 19 government money market mutual
funds, with assets approximating $5.3 billion, $1.8 billion and $41.6 billion,
respectively. Federated trades approximately $425 million in U.S. government and
mortgage-backed securities daily and places approximately $25 billion in
repurchase agreements each day. Federated introduced the first U.S. government
fund to invest in U.S. government bond securities in 1969. Federated has been a
major force in the short- and intermediate-term government markets since 1982
and currently manages approximately $43.2 billion in government funds within
these maturity ranges.

Federated Clients Overview

Federated distributes mutual funds through its subsidiaries for a variety of
investment purposes. Specific markets include Institutional Clients Federated
meets the needs of approximately 900 institutional clients nationwide by
managing and servicing separate accounts and mutual funds for a variety of
purposes, including defined benefit and defined contribution programs, cash
management, and asset/liability management. Institutional clients include
corporations, pension funds, tax-exempt entities, foundations/endowments,
insurance companies, and investment and financial advisers. The marketing effort
to these institutional clients is headed by John B.
Fisher, President, Institutional Sales Division, Federated Securities Corp.

<PAGE>

200

ADDRESSES

Liquid Cash Trust

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000

Distributor
Federated Securities Corp.
Federated Investors Tower
1001 Liberty Avenue,
Pittsburgh, PA 15222-3779

Investment Adviser
Federated Investment Management Company.
Federated Investors Tower
1001 Liberty Avenue,
Pittsburgh, PA 15222-3779

Custodian
State Street Bank and Trust Company
P.O. Box 8600
Boston, MA 02266-8600

Transfer Agent and Dividend Disbursing Agent
Federated Shareholder Services Company
P.O. Box 8600
Boston, MA 02266-8600

Independent Public Accountants
Deloitte & Touche LLP
125 Summer Street
Boston, MA 02110-1617

Prospectus

Trust for U.S. Treasury Obligations

A Portfolio of Money Market Obligations Trust

A money market mutual fund seeking stability of principal and current income
consistent with stability of principal by investing only in U.S. Treasury
securities maturing in 13 months or less and repurchase agreements.

CONTENTS

Risk/Return Summary 1
What are the Fund's Fees and Expenses? 3
What are the Fund's Investment Strategies? 4
What are the Principal Securities in Which the Fund Invests? 4
What are the Specific Risks of Investing in the Fund? 5
What do Shares Cost? 5
How is the Fund Sold? 5
How to Purchase Shares 6
How to Redeem Shares 6
Account and Share Information 7
Who Manages the Fund? 9
Financial Information 11
Report of Independent Public Accountants 20

APRIL 28, 1999

RISK/RETURN SUMMARY

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The Fund invests only in a portfolio of U.S. Treasury securities maturing in 13
months or less. These investments include repurchase agreements collateralized
fully by U.S. Treasury securities. The average maturity of the Fund's portfolio
will be 90 days or less.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

The Bar Chart and Performance Table below reflect historical performance data
for Trust for U.S. Treasury Obligations (the "Former Fund") prior to its
reorganization into the Fund, which is a newly created portfolio of Money Market
Obligations Trust (the "Trust"). On the date of the reorganization, April 30,
1999, the Former Fund was dissolved and its net assets (inclusive of liabilities
recorded on the Former Fund's records) were transferred into the Fund.

[Graph appears here]

Historically, the Former Fund has maintained a constant $1.00 net asset value
per share. The bar chart shows the variability of the Former Fund's total
returns on a calendar year basis.

Within the period shown in the Chart, the Former Fund's highest quarterly return
was 2.29% (quarter ended June 30, 1989). Its lowest quarterly return was 0.68%
(quarter ended June 30, 1993).

Average Annual Total Return Table
The following table represents the Former Fund's Average Annual Total Return for
the calendar year ended December 31, 1998.

Calendar Period Fund
1 Year 5.11%
5 Years 4.97%
10 Years 5.37%

The Former Fund's 7-Day Net Yield as of December 31, 1998 was 4.49%.

Investors may call the Fund at 1-800-341-7400 to acquire the current 7-Day Net
Yield.

TRUST FOR U.S. TREASURY OBLIGATIONS

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of Trust for U.S. Treasury Obligations.

Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other
Distributions) (asapercentageofoffering price) None Redemption Fee (as a
percentage of amount redeemed, if applicable) None Exchange Fee None

Annual Fund Operating Expenses
Expenses That are Deducted From Fund Assets (as a percentage of average net
assets)
Management Fee 0.40%
Distribution (12b-1) Fee None
Shareholder Services Fee 0.25%
Other Expenses 0.15%
Total Annual Fund Operating Expenses (before waivers)/1/ 0.80%
Total Waiver of Fund Expenses 0.35%
Total Actual Annual Fund Operating Expenses (after waivers)/2/ 0.45%

1Under the investment advisory contract, the adviser will waive the amount,
limited to the amount of the management fee, by which the Fund's aggregate
annual operating expenses, including the management fee but excluding interest,
taxes, brokerage commissions, expenses of registering and qualifying the Fund
and its shares under federal and state laws and regulations, expenses of
withholding taxes, and extraordinary expenses, exceed 0.45% of its average
daily net assets. If the Fund offers an additional class of shares in the
future, the aforementioned expense limitation would not apply to expenses
arising pursuant to a Rule 12b-1 or Shareholder Serving plan with respect to
that class of shares.

2Total Actual Annual Fund Operating Expenses represent the net expenses the
Fund expects to actually pay for the fiscal year ending September 30, 1999. For
the fiscal year ended September 30, 1998, prior to the reorganization of Trust
for U.S. Treasury Obligations, the Former Fund, as a portfolio of Money Market
Obligations Trust, the Total Annual Fund Operating Expenses and Total Actual
Annual Fund Operating Expenses (after waivers) were 0.80% and 0.45%,
respectively
</TABLE>

EXAMPLE
The following Example is intended to help you compare the cost of investing in
the Fund with the cost of investing in other mutual funds.

1 Year $ 46
3 Years $144
5 Years $252
10 Years $567

What are the Fund's Investment Strategies?

What are the Principal Securities in Which the Fund Invests?

U.S. TREASURY SECURITIES

REPURCHASE AGREEMENTS

Repurchase agreements are transactions in which the Fund buys a security from a
dealer or bank and agrees to sell the security back at a mutually agreed upon
time and price. The repurchase price exceeds the sale price, reflecting the
Fund's return on the transaction. This return is unrelated to the interest rate
on the underlying security. The Fund will enter into repurchase agreements only
with banks and other recognized financial institutions, such as securities
dealers, deemed creditworthy by the Adviser.

Repurchase agreements are subject to credit risks.

What are the Specific Risks of Investing in the Fund?

Although there are many factors which may affect an investment in the Fund, the
principal risks of investing in a U.S. Treasury money market fund are described
below.

MARKET RISK

Prices of fixed income securities rise and fall in response to interest rate
changes for similar securities. Generally, when interest rates rise, prices of
fixed income securities fall.

Interest rate changes have a greater effect on the price of fixed income
securities with longer maturities. Money market funds try to minimize this risk
by purchasing short-term securities.

CREDIT RISK

NAV is determined at 12:00 noon and 3:00 p.m. (Eastern time), and as of the
close of trading (normally 4:00 p.m., Eastern time).

The required minimum initial investment for Fund Shares is $25,000. There is
no required minimum subsequent investment amount.

How is the Fund Sold?

The Fund's Distributor markets the Shares described in this prospectus to
individuals, directly or through investment professionals.

How to Purchase Shares

You may purchase Shares through an investment professional or directly from the
Fund. The Fund reserves the right to reject any request to purchase Shares.

THROUGH AN INVESTMENT PROFESSIONAL

. Establish an account with the investment professional; and

. Submit your purchase order to the investment professional before 3:00 p.m.
(Eastern time). You will receive that day's dividend if the investment
professional forwards the order to the Fund and the Fund receives payment by
3:00 p.m. (Eastern time). You will become the owner of Shares and receive
dividends when the Fund receives your payment. Investment professionals
should send payments according to the instructions in the sections "By Wire" or
"By Check."

DIRECTLY FROM THE FUND

. Establish your account with the Fund by submitting a completed New Account
Form; and . Send your payment to the Fund by Federal Reserve wire or check.

An institution may establish an account and place an order by calling the Fund
and you will become a shareholder after the Fund receives the order.

Payment should be made in U.S. dollars and drawn on a U.S. bank. The Fund will
not accept third- party checks (checks originally payable to someone other than
you or The Federated Funds).

Orders by mail are considered received when payment by check is converted into
federal funds (normally the business day after the check is received) and Shares
begin earning dividends the next day.

BY AUTOMATIC INVESTMENTS

You may establish an account with your financial institution to automatically
purchase Shares on pre- determined dates or when your bank account reaches a
certain level. Under this program, participating financial institutions are
responsible for prompt transmission of orders and may charge you for this
service. You should read this prospectus along with your financial institution's
agreement or materials describing this service.

BY AUTOMATED CLEARING HOUSE (ACH)

How to Redeem Shares

You should redeem Shares:

. through an investment professional if you purchased Shares through an
investment professional; or
. directly from the Fund if you purchased Shares directly from the Fund.

THROUGH AN INVESTMENT PROFESSIONAL

DIRECTLY FROM THE FUND

By Telephone
You may redeem Shares by calling the Fund once you have completed the
appropriate authorization form for telephone transactions.

If you call before 3:00 p.m. (Eastern time) your redemption will be wired to
you the same day. You will not receive that day's dividend.

If you call after 3:00 p.m. (Eastern time) your redemption will be wired to
you the following business day. You will receive that day's dividend.

By Mail
You may redeem Shares by mailing a written request to the Fund.

Your redemption request will be processed on the day the Fund receives your
written request in proper form. Dividends are paid up to and including the day
that a redemption request is processed.

All requests must include:

. Fund name, account number and
account registration;
. amount to be redeemed; and
. signatures of all Shareholders exactly as registered.

Call your investment professional or the Fund if you need special instructions.

Signature Guarantees

Signatures must be guaranteed if:

PAYMENT METHODS FOR REDEMPTIONS

. an electronic transfer to your account at a financial institution that is an
ACH member; or
. wire payment to your account at a domestic commercial bank that is a Federal
Reserve System member.

Redemption in Kind

Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.

LIMITATIONS ON REDEMPTION PROCEEDS

Redemption proceeds normally are wired or mailed within one business day after
receiving a request in proper form. Payment may be delayed up to seven days:

. to allow your purchase to clear;
. during periods of market volatility; or
. when a shareholder's trade activity or amount adversely impacts the Fund's
ability to manage its assets.

You will not accrue interest or dividends on uncashed checks from the Fund if
those checks are undeliverable and returned to the Fund.

ADDITIONAL CONDITIONS

Telephone Transactions

The Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

Share Certificates

The Fund no longer issues share certificates. If you are redeeming Shares
represented by certificates previously issued by the Fund, you must return the
certificates with your written redemption request. For your protection, send
your certificates by registered or certified mail, but do not endorse them.

Account and Share Information

ACCOUNT ACTIVITY

You will receive periodic statements reporting all account activity, including
dividends and capital gains paid.

DIVIDENDS AND CAPITAL GAINS

ACCOUNTS WITH LOW BALANCES

TAX INFORMATION

Fund distributions are expected to be primarily dividends. Redemptions are
taxable sales. Please consult your tax adviser regarding your federal, state,
and local tax liability.

Who Manages the Fund?

The Adviser receives an annual investment advisory fee of 0.40% of the Fund's
average daily net assets Under the investment advisory contract, which is
subject to annual review by the Fund's Board, the Adviser will waive the amount,
limited to the amount of the advisory fee, by which the Fund's aggregate annual
operating expenses, including the investment advisory fee but excluding
interest, taxes, brokerage commissions, expenses of registering or qualifying
the fund and its Shares under federal and state laws and regulations, expenses
of withholding taxes, and extraordinary expenses, exceed 0.45% of its average
daily net assets.

YEAR 2000 READINESS

The financial impact of these issues for the Fund is still being determined.
There can be no assurance that potential Year 2000 problems would not have a
material adverse effect on the Fund.

Financial Information

FINANCIAL HIGHLIGHTS

This information has been audited by Arthur Andersen LLP, whose report, along
with the Fund's audited financial statements, is included in this prospectus.

Financial Highlights

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Reference is made to the Report of Independent Public Accountants on page 20.

<TABLE>
<CAPTION>
Year Ended September 30, 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
ofPeriod
Income from InvestmentOperations:
Net investment income 0.05 0.05 0.05 0.05 0.03
Less Distributions:
Distributions from net (0.05) (0.05) (0.05) (0.05) (0.03)
investmentincome
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return1 5.28% 5.16% 5.18% 5.45% 3.31%

Ratios to Average Net Assets:
Expenses 0.45% 0.45% 0.45% 0.45% 0.45%
Net investment income 5.17% 5.04% 5.06% 5.28% 3.21%
Supplemental Data:
Net assets, end of period $2,358,709 $1,797,163 $2,660,939 $3,031,247 $4,651,657
(000omitted)
</TABLE>

1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

SEPTEMBER 30, 1998

<TABLE>
<CAPTION>
Principal Value
Amount
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS8.4%
<S> <C> <C> <C>
$ 197,000,000 U.S. Treasury Notes, 5.000% - 8.875%, 11/30/1998-7/31/1999 $ 197,617,691
TOTAL SHORT-TERM U.S. GOVERNMENT OBLIGATIONS 197,617,691
REPURCHASE AGREEMENTS91.9%1
110,000,000 ABN AMRO Chicago Corp., 5.550%, dated 9/30/1998, due 10/1/1998 110,000,000
70,000,000 Barclays de Zoete Wedd Securities, Inc., 5.250%, dated 9/30/1998, due 10/1/1998 70,000,000
290,000,000 Bear, Stearns and Co., 5.580%, dated 9/30/1998, due 10/1/1998 290,000,000
110,000,000 CIBC Wood Gundy Securities Corp., 5.550%, dated 9/30/1998, due 10/1/1998 110,000,000
96,090,000 Credit Suisse First Boston, Inc., 5.500%, dated 9/30/1998, due 10/1/1998 96,090,000
42,600,000 Deutsche Bank Government Securities, Inc., 5.550%, dated 9/30/1998, due 10/1/1998 42,600,000
110,000,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.500%, dated 9/30/1998, due 10/1/1998 110,000,000
81,000,000 Goldman Sachs Group, LP, 5.480%, dated 6/30/1998, due 10/1/1998 81,000,000
13,000,000 Goldman Sachs Group, LP, 5.480%, dated 7/1/1998, due 10/2/1998 13,000,000
110,000,000 Greenwich Capital Markets, Inc., 5.550%, dated 9/30/1998, due 10/1/1998 110,000,000
110,000,000 J.P. Morgan & Co., Inc., 5.500%, dated 9/30/1998, due 10/1/1998 110,000,000
67,000,000 2 Merrill Lynch, Pierce, Fenner and Smith, 5.470%, dated 8/12/1998, due 11/10/1998 67,000,000
45,000,000 Merrill Lynch, Pierce, Fenner and Smith, 5.500%, dated 9/30/1998, due 10/1/1998 45,000,000
110,000,000 Societe Generale, New York, 5.580%, dated 9/30/1998, due 10/1/1998 110,000,000
110,000,000 Toronto Dominion Securities (USA) Inc., 5.600%, dated 9/30/1998, due 10/1/1998 110,000,000
150,000,000 Warburg Dillon Reed LLC, 5.250%, dated 9/30/1998, due 10/1/1998 150,000,000
208,000,000 Warburg Dillon Reed LLC, 5.570%, dated 9/30/1998, due 10/1/1998 208,000,000
335,000,000 Westdeutsche Landesbank Girozentrale, 5.580%, dated 9/30/1998, due 10/1/1998 335,000,000
TOTAL REPURCHASE AGREEMENTS 2,167,690,000
TOTAL INVESTMENTS (AT AMORTIZED COST)3 $ 2,365,307,691
</TABLE>

1 The repurchase agreements are fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.

2 Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase
agreement within seven days.

3 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of net assets
($2,358,708,706) at September 30, 1998.

The following acronyms are used throughout this portfolio:

LLC--Limited Liability Corporation
LP --Limited Partnership

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

SEPTEMBER 30, 1998

<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Investments in repurchase agreements $ 2,167,690,000
Investments in securities 197,617,691
Total investments in securities, at amortized cost and value $ 2,365,307,691
Cash 618,093
Income receivable 4,139,900
Receivable for shares sold 108,316
TOTAL ASSETS 2,370,174,000
Liabilities:
Payable for shares redeemed 2,404,089
Income distribution payable 8,220,957
Accrued expenses 840,248
TOTAL LIABILITIES 11,465,294
Net Assets for 2,358,708,706 shares outstanding $ 2,358,708,706
Net Asset Value, Offering Price, and Redemption Proceeds Per Share:
$2,358,708,706 / 2,358,708,706 shares outstanding $1.00
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Operations

YEAR ENDED SEPTEMBER 30, 1998

<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C> <C>
Interest $ 106,802,926
Expenses:
Investment advisory fee $ 7,602,02
Administrative personnel and services fee 1,433,29
Custodian fees 111,489
Transfer and dividend disbursing agent fees and expenses 88,803
Directors'/Trustees' fees 23,578
Auditing fees 13,192
Legal fees 16,036
Portfolio accounting fees 155,565
Shareholder services fee 4,751,26
Share registration costs 21,900
Printing and postage 9,518
Insurance premiums 16,069
Taxes 535
Miscellaneous 19,854
TOTAL EXPENSES 14,263,11
Reimbursements:
Reimbursement of investment advisory fee $ (1,886,024)
Reimbursement of shareholder services fee (3,801,010)
TOTAL REIMBURSEMENTS (5,687,034)
Net expenses 8,576,081
Net investment income $ 98,226,845
</TABLE>

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

<TABLE>
<CAPTION>
1998 1997
Year Ended September 30
Increase (Decrease) in Net Assets:
Operations:
<S> <C> <C>
Net investment income $ 98,226,845 $ 122,829,265
Distributions to Shareholders:
Distributions from net investment income (98,226,845) (122,829,265)
Share Transactions:
Proceeds from sale of shares 8,814,750,379 10,154,245,628
Net asset value of shares issued to shareholders in payment of 11,702,911 13,230,871
distributions declared
Cost of shares redeemed (8,264,907,672) (11,031,251,972)
Change in net assets resulting from share transactions 561,545,618 (863,775,473)
Change in net assets 561,545,618 (863,775,473)
Net Assets:
Beginning of period 1,797,163,088 2,660,938,561
End of period $ 2,358,708,706 $ 1,797,163,088
</TABLE>

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

Trust for U.S. Treasury Obligations (the "Trust") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as an open-end,
management investment company. The investment objective of the Trust is
stability of principal and current income consistent with stability of
principal.

SIGNIFICANT ACCOUNTING POLICIES

Investment Valuations

The Trust uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.

Repurchase Agreements

Investment Income, Expenses, and Distributions

Federal Taxes

When-Issued and Delayed Delivery Transactions

Use of Estimates

Other

Investment transactions are accounted for on the trade date.

Shares of Beneficial Interest

The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At
September 30, 1998, capital paid-in aggregated $2,358,708,706. Transactions in
shares were as follows: <TABLE> <CAPTION>
1998 1997
Year Ended September 30
<S> <C> <C>
Shares sold 8,814,750,379 10,154,245,628
Shares issued to shareholders in payment of distributions declared 11,702,911 13,230,871
Shares redeemed (8,264,907,672) (11,031,251,972)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS 561,545,618 (863,775,473)
</TABLE>

INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fee

Federated Research, the Trust's investment adviser (the "Adviser"), receives for
its services an annual investment advisory fee equal to 0.40% of the Trust's
average daily net assets. The adviser will waive to the extent of its advisory
fee, the amount, if any, by which the Trust's aggregate annual operating
expenses, exceed 0.45% of its average daily net assets of the Trust.

Administrative Fee

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services ("FSS"), the Trust will pay FSS up to 0.25% of average daily net assets
of the Trust shares for the period. The fee paid to FSS is used to finance
certain services for shareholders and to maintain shareholder accounts. FSS may
voluntarily choose to waive any portion of its fee. FSS can modify or terminate
this voluntary waiver at any time at its sole discretion.

Transfer and Dividend Disbursing Agent Fees and Expenses

Portfolio Accounting Fees

FServ maintains the Trust's accounting records for which it receives a fee. The
fee is based on the level of the Trust's average daily net assets for the
period, plus out-of- pocket expenses.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.

YEAR 2000 (UNAUDITED)

TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF TRUST FOR U.S. TREASURY
OBLIGATIONS:

We have audited the accompanying statement of assets and liabilities of Trust
for U.S. Treasury Obligations (a Massachusetts business trust), including the
schedule of portfolio investments, as of September 30, 1998, the related
statement of operations for the year then ended, the statement of changes in net
assets for each of the two years in the period then ended, and the financial
highlights for the periods presented. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1998, by correspondence with the custodian and with brokers. As to
confirmation replies not received, we carried out alternate auditing procedures.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Trust
for U.S. Treasury Obligations as of September 30, 1998, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and its financial highlights for the
periods presented, in conformity with generally accepted accounting principles.

Arthur Andersen LLP
Pittsburgh, Pennsylvania
November 20, 1998

[Federated logo]

Trust For U.S. Treasury Obligations

A Portfolio of Money Market Obligations Trust

APRIL 28, 1999

[Federated logo]

Investment Company Act File No. 811-5950
Cusip 60934N799

8110114A (4/99)

[RECYCLED PAPER LOGO]

The graphic presentation displayed here consists of a bar chart representing the
annual total returns of TRUST FOR U.S. TREASURY OBLIGATIONS as of the calendar
year-end for each of 10 years. The `y' axis reflects the "% Total Return"
beginning with "0" and increasing in increments of 1% up to 9%. The `x' axis
represents calculation periods for the last ten calendar years of the Fund,
beginning with the earliest year. The light gray shaded chart features 10
distinct vertical bars, each shaded in charcoal, and each visually representing
by height the total return percentages for the calendar year stated directly at
its base. The calculated total return percentage for the Fund for each calendar
year is stated directly at the top of each respective bar, for the calendar
years 1989 through 1998. The percentages noted are: 1989 - 9.00%, 1990 - 7.97%,
1991 - 5.79%, 1992 - 3.49%, 1993 - 2.80%, 1994 - 3.62%, 1995- 5.63%, 1996 -
5.06%, 1997 - 5.22%, 1998 - 5.11%. The Fund's Shares are not sold subject to a
sales charge (load). The total returns displayed are based upon net asset value.
The Fund's 7-day net yield as of December 31, 1998 was 4.49%. Within the period
shown in the Chart, the Fund's highest quarterly return was 2.29% (quarter ended
June 30, 1989). Its lowest quarterly return was 0.68% (quarter ended June 30,
1993.

Average Annual Total Return
1 Year 5 Years 10 Years
5.11% 4.97% 5.37%
The bar chart shows the variability of the Fund's actual total return on a
yearly basis.
Past performance does not necessarily predict future performance. This
information provides you with historical performance so that you can analyze
whether the Fund's investment risks are balanced by its potential rewards.

Statement of Additional Information

TRUST FOR U.S. TREASURY OBLIGATIONS

A Portfolio of Money Market Obligations Trust

This Statement of Additional Information (SAI) is not a prospectus. Read this
SAI in conjunction with the prospectus for Trust for U.S. Treasury Obligations
(Fund), dated April 28, 1999. Obtain the prospectus without charge by calling
1-800-341-7400.

April 28, 1999

88110114B(4/99)

<PAGE>

HOW IS THE FUND ORGANIZED?

The Fund is a diversified portfolio of Money Market Obligations Trust (Trust).
The Trust is an open-end management investment company that was established
under the laws of the Commonwealth of Massachusetts on October 3, 1988. The
Fund, which was established on July 24, 1979, was reorganized as a portfolio of
the Trust on April 30, 1999.

SECURITIES IN WHICH THE FUND INVESTS

In pursuing its investment strategy, the Fund may invest in the following
securities for any purpose that is consistent with its investment objective.

SECURITIES DESCRIPTIONS AND TECHNIQUES

The following describes the types of fixed income securities in which the Fund
invests.

Treasury securities are direct obligations of the federal government of the
United States. Investors regard treasury securities as having the lowest
credit risk.

Special Transactions

Repurchase Agreements are subject to Credit Risk.

INVESTMENT RISKS

Although there are many factors which may effect an investment in the Fund,
the principal risks of investing in a U.S. Treasury money market fund are
described below.

Market Risks
o Prices of fixed income securities rise and fall in response to
interest rate changes for similar securities. Generally,
when interest rates rise, prices of fixed income securities fall.
o Interest rate changes have a greater effect on the price of fixed income
securities with longer maturities. Money market funds try to minimize this
risk by purchasing short-term securities.
Credit Risk
o Credit risk includes the possibility that a party to a transaction
involving the Fund will fail to meet its obligations. This could cause the
Fund to lose the benefit of the transaction or prevent the Fund from
selling or buying other securities to implement its investment strategy.

fundamental investment policies
The Fund pursues its investment objective by investing in a portfolio of
short-term U.S. Treasury obligations. The Fund will invest only in short-term
U.S. Treasury obligations. "U.S. Treasury obligations" refers to instruments
which are issued or guaranteed as to principal and interest by the U.S. Treasury
and therefore constitute obligations of the United States of America. U.S.
Treasury obligations include such instruments as (i) U.S. Treasury bills, notes
and bonds and (ii) instruments of the Export-Import Bank of the U.S., the
General Services administration, the Small Business Administration and the
Washington Metropolitan Area Transit Authority, maturing in one year or less
from the date of acquisition or purchased pursuant to repurchase agreements
which provide for repurchase by the seller within one year from the date of
acquisition. The Fund may also purchase U.S. Treasury obligations on a
when-issued or delayed delivery basis. The Fund may attempt to increase yield by
trading portfolio instruments to take advantage of short-term market variations.

INVESTMENT LIMITATIONS

Selling Short and Buying on Margin
The Fund will not sell any portfolio instruments short or purchase any portfolio
instruments on margin but may obtain such short-term credits as may be necessary
for clearance of purchases and sales of portfolio instruments.

Borrowing Money
The Fund will not borrow money except as a temporary measure for extraordinary
or emergency purposes and then only in amounts not in excess of 5% of the value
of its total assets or in an amount up to one-third of the value of its total
assets including the amount borrowed, in order to meet redemption requests
without immediately selling any portfolio instruments (any such borrowings under
this section will not be collateralized.) This borrowing provision is not for
investment leverage but solely to facilitate management of the portfolio by
enabling the Fund to meet redemption requests where liquidation of portfolio
instruments is deemed to be inconvenient or disadvantageous. Interest paid by
the Fund on borrowed funds will not be available for investment.

Lending Cash or Securities
The Fund will not lend any of its assets, except that it may purchase or hold
U.S. Treasury obligations including repurchase agreements as permitted by its
investment objective and policies.

Investing in Commodities
The Fund will not purchase or sell commodities, commodity contracts, or
commodity futures contracts.

Investing in Real Estate
The Fund will not purchase or sell real estate, including limited partnership
interests.

Investing in Restricted Securities
The Fund will not invest in securities subject to restrictions on resale under
federal securities law.

Investing in Illiquid Securities
The Fund will not invest more than 10% of the value of its net assets in
illiquid securities.

Investing for Control
The Fund will not invest in securities of a company for the purpose of
exercising control or management.

Investing in Options
The Fund will not invest in puts, calls, straddles, spreads, or any combination
of them.

Regulatory Compliance

The Fund's use of the amortized cost method of valuing portfolio instruments
depends on its compliance with certain conditions in the Rule. Under the Rule,
the Fund must establish procedures reasonably designed to stabilize the NAV per
Share, as computed for purposes of distribution and redemption, at $1.00 per
Share, taking into account current market conditions and the Fund's investment
objective. The procedures include monitoring the relationship between the
amortized cost value per Share and the NAV per Share based upon available
indications of market value. The Board will decide what, if any, steps should be
taken if there is a difference of more than 0.5 of 1% between the two values.
The Board will take any steps they consider appropriate (such as redemption in
kind or shortening the average portfolio maturity) to minimize any material
dilution or other unfair results arising from differences between the two
methods of determining NAV.

HOW IS THE FUND SOLD?

Under the Distributor's Contract with the Fund, the Distributor (Federated
Securities Corp.) offers Shares on a continuous, best-efforts basis.

SUBACCOUNTING SERVICES

REDEMPTION IN KIND

MASSACHUSETTS PARTNERSHIP LAW

ACCOUNT AND SHARE INFORMATION

VOTING RIGHTS
Each Share of the Fund gives the shareholder one vote in Trustee elections and
other matters submitted to shareholders for vote. All Shares of the Trust have
equal voting rights, except that in matters affecting only a particular Fund,
only Shares of that Fund are entitled to vote.

Trustees may be removed by the Board or by shareholders at a special meeting. A
special meeting of shareholders will be called by the Board upon the written
request of shareholders who own at least 10% of the Trust's outstanding shares
of all series entitled to vote.

As of April 7, 1999, the following shareholders owned of record, beneficially,
or both, 5% or more of outstanding Shares: Pierson & Co., Farmington Hill, MI,
owned approximately 85,123,665 (5.20%) Shares; Fleet Securities, Rochester, NY,
owned approximately 85,944,584 (5.25%) Shares; and First Union National Bank,
Charlotte, NC, on behalf of certain underlying accounts, owned approximately
241,135,257 (14.72%) Shares

TAX INFORMATION

WHO MANAGES AND PROVIDES SERVICES TO THE FUND?

BOARD OF TRUSTEES
The Board is responsible for managing the Trust's business affairs and for
exercising all the Trust's powers except those reserved for the shareholders.
Information about each Board member is provided below and includes each
person's: name, address, birthdate, present position(s) held with the Trust,
principal occupations for the past five years and positions held prior to the
past five years, total compensation received as a Trustee from the Trust for its
most recent fiscal year, and the total compensation received from the Federated
Fund Complex for the most recent calendar year. The Trust is comprised of 13
funds and the Federated Fund Complex is comprised of 54 investment companies,
whose investment advisers are affiliated with the Fund's Adviser.

As of April 7, 1999, the Fund's Board and Officers as a group owned less than 1%
of the Fund's outstanding Shares.

<PAGE>

Name Total
Birth Date Aggregate Compensation From
Address Principal Occupations Compensation Trust and Fund
Position With Trust for Past Five Years From Trust Complex
John F. Donahue*+ Chief Executive Officer and Director or Trustee of $0 $0 for the
Birth Date: July 28, 1924 the Federated Fund Complex; Chairman and Director, Trust and
Federated Investors Tower Federated Investors, Inc.; Chairman and Trustee, 54 other investment
1001 Liberty Avenue Federated Investment Management Company; Chairman and companies
Pittsburgh, PA Director, Federated Investment Counseling and in the Fund Complex
CHAIRMAN AND TRUSTEE Federated Global Investment Management Corp.;
Chairman, Passport Research, Ltd.
Thomas G. Bigley Director or Trustee of the Federated Fund Complex; $18,351 $113,860.22 for the
Birth Date: February 3, 1934 Director, Member of Executive Committee, Children's Trust and 54 other
15 Old Timber Trail Hospital of Pittsburgh; formerly: Senior Partner, investment
Pittsburgh, PA Ernst & Young LLP; Director, MED 3000 Group, Inc.; companies
TRUSTEE Director, Member of Executive Committee, University in the Fund Complex
of Pittsburgh.

J. Christopher Donahue+ President or Executive Vice President of the $0 $0 for the Trust
Birth Date: April 11, 1949 Federated Fund Complex; Director or Trustee of some and 22 other
Federated Investors Tower of the Funds in the Federated Fund Complex; President investment
1001 Liberty Avenue and Director, Federated Investors, Inc.; President companies in the
Pittsburgh, PA and Trustee, Federated Investment Management Company, Fund Complex
PRESIDENT President and Director, Federated Investment
Counseling and Federated Global Investment
Management Corp.; President, Passport
Research, Ltd.; Trustee, Federated
Shareholder Services Company; Director,
Federated Services Company.

<PAGE>

William D. Dawson, III Chief Investment Officer of this Fund and various $0 $0 for the Trust
Birth Date: March 3, 1949 other Funds in the Federated Fund Complex; Executive and 41 other
Federated Investors Tower Vice President, Federated Investment Counseling, investment
1001 Liberty Avenue Federated Global Investment Management Corp., companies in the
Pittsburgh, PA Federated Investment Management Company and Passport Fund Complex
CHIEF INVESTMENT OFFICER Research, Ltd.; Registered Representative, Federated
Securities Corp.; Portfolio Manager,
Federated Administrative Services; Vice
President, Federated Investors, Inc.;
Formerly: Executive Vice President and Senior
Vice President, Federated Investment
Counseling Institutional Portfolio Management
Services Division; Senior Vice President,
Federated Research Corp., Federated Advisers,
Federated Management, Federated Research, and
Passport Research, Ltd.

+Mr. Donahue is the father of J. Christopher Donahue, President of the Trust.

INVESTMENT ADVISER
The Adviser conducts investment research and makes investment decisions for the
Fund. The Adviser is a wholly-owned subsidiary of Federated.

Maximum Administrative Fee Average Aggregate Daily Net Assets of
the Federated Funds
0.150 of 1% on the first $250 million
0.125 of 1% on the next $250 million
0.100 of 1% on the next $250 million
0.075 of 1% on assets in excess of $750 million
The administrative fee received during any fiscal year shall be at least
$125,000 per portfolio. Federated Services Company may voluntarily waive a
portion of its fee and may reimburse the Fund for expenses.

Federated Services Company also provides certain accounting and recordkeeping
services with respect to the Fund's portfolio investments for a fee based on
Fund assets, plus out-of-pocket expenses.

CUSTODIAN
State Street Bank and Trust Company, Boston, Massachusetts, is custodian for the
securities and cash of the Fund.

INDEPENDENT PUBLIC ACCOUNTANTs

Arthur Andersen LLP is the independent public accountant for the Fund.

FEES PAID BY THE FUND FOR SERVICES

For the Year ended September 30 1998 1997 1996
Advisory Fee Earned $7,602,021 $9,753,169 $11,252,925
Advisory Fee Reduction $1,886,024 $2,452,468 $2,913,538
Brokerage Commissions $0 $0 $0
Administrative Fee $1,433,292 $1,841,240 $2,127,329
Shareholder Services Fee $4,751,263 N/A N/A

For the fiscal years ended September 30, 1998, 1997 and 1996, fees paid by the
Fund for services are prior to the Fund's reorganization as a portfolio of the
Trust on April 30, 1999.

HOW DOES THE FUND MEASURE PERFORMANCE?

Share performance fluctuates on a daily basis largely because net earnings
fluctuate daily. Both net earnings and offering price per Share are factors in
the computation of yield and total return.

Average Annual Total Returns and Yield
Total returns given for the one-, five- and ten-year periods ended September 30,
1998.

Yield and Effective Yield given for the seven-day period ended September 30,
1998.

Performance of the Fund shown is prior to its reorganization as a portfolio of
the Trust on April 30, 1999.

7 Day Period 1 Year 5 Years 10 Years
Total Return N/A 5.28% 4.87% 5.46%
Yield 4.98% N/A N/A N/A
Effective Yield 5.10% N/A N/A N/A

YIELD
The yield of Shares is based upon the seven days ending on the day of the
calculation, called the "base period." This yield is calculated by: determining
the net change in the value of a hypothetical account with a balance of one
Share at the beginning of the base period, with the net change excluding capital
changes but including the value of any additional Shares purchased with
dividends earned from the original one Share and all dividends declared on the
original and any purchased Shares; dividing the net change in the account's
value by the value of the account at the beginning of the base period to
determine the base period return; and multiplying the base period return by
365/7. The effective yield is calculated by compounding the unannualized
base-period return by: adding 1 to the base-period return, raising the sum to
the 365/7th power; and subtracting 1 from the result. The tax- equivalent yield
of Shares is calculated similarly to the yield, but is adjusted to reflect the
taxable yield that Shares would have had to earn to equal the actual yield,
assuming a specific tax rate.

PERFORMANCE COMPARISONS
Advertising and sales literature may include:

o references to ratings, rankings, and financial publications and/or
performance comparisons of Shares to certain indices;

o discussions of economic, financial and political developments and their
impact on the securities market, including the portfolio manager's views on
how such developments could impact the Funds; and

o information about the mutual fund industry from sources such as the Investment
Company Institute.

The Fund may quote information from reliable sources regarding individual
countries and regions, world stock exchanges, and economic and demographic
statistics.

oLipper Analytical Services, Inc. ranks funds in various fund categories
based on total return, which assumes the reinvestment of all income dividends
and capital gains distributions, if any.

oMoney, a monthly magazine, regularly ranks money market funds in various
categories based on the latest available seven-day effective yield.

o Salomon 30-Day Treasury Bill Index is a weekly quote of the most
representative yields for selected securities, issued by the U.S. Treasury,
maturing in 30 days.

<PAGE>

WHO IS FEDERATED INVESTORS, INC.?

Federated Funds overview

Equity Funds

Government Funds
In the government sector, as of December 31, 1998, Federated manages 9
mortgage-backed, 5 government/agency and 19 government money market mutual
funds, with assets approximating $5.3 billion, $1.8 billion and $41.6 billion,
respectively. Federated trades approximately $425 million in U.S. government and
mortgage-backed securities daily and places approximately $25 billion in
repurchase agreements each day. Federated introduced the first U.S. government
fund to invest in U.S. government bond securities in 1969. Federated has been a
major force in the short- and intermediate-term government markets since 1982
and currently manages approximately $43.2 billion in government funds within
these maturity ranges.

<PAGE>

Federated Clients Overview

Federated distributes mutual funds through its subsidiaries for a variety of
investment purposes. Specific markets include:

<PAGE>

ADDRESSES

Trust for u.s. treasury obligations

A Portfolio of Money Market Obligations Trust

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000

Distributor
Federated Securities Corp.
Federated Investors Tower
1001 Liberty Avenue,
Pittsburgh, PA 15222-3779

Investment Adviser

Federated Investment Management Company
Federated Investors Tower
1001 Liberty Avenue

Pittsburgh, PA 15222-3779

Custodian
State Street Bank and Trust Company
P.O. Box 8600
Boston, MA 02266-8600

Transfer Agent and Dividend Disbursing Agent
Federated Shareholder Services Company
P.O. Box 8600
Boston, MA 02266-8600

Independent Public Accountants
Arthur Andersen LLP
225 Franklin Street
Boston, MA 02110-2812

PART C. OTHER INFORMATION.
Item 23 Exhibits:

(a) (i) Conformed copy of Declaration of Trust of the Registrant; (12)
(ii) Conformed copy of Amendment to the Declaration of Trust
of the Registrant;; (12)
(iii) Conformed copy of Amendment No. 2 to Declaration of Trust
of the Registrant; (17)
(iv) Conformed copy of Amendment No. 3 to Declaration of Trust
of the Registrant; (17)
(v) Conformed copy of Amendment No. 4 to Declaration of Trust
of the Registrant; (17)
(vi) Conformed copy of Amendment No. 5 to Declaration of Trust
of the Registrant; (17)
(vii) Conformed copy of Amendment No. 6 to Declaration of Trust
of the Registrant; (17)
(viii) Conformed copy of Amendment No. 8 to Declaration of Trust
of the Registrant; (10)
(ix) Conformed copy of Amendment No. 9 to Declaration of Trust
of the Registrant; (15)
(x) Conformed copy of Amendment No. 10 to Declaration of Trust
of the Registrant; (16)
(b) (i) Copy of By-Laws of the Registrant; (12)
(ii) Copy of Amendment No. 1 to By-Laws of the
Registrant; (17)
(iii) Copy of Amendment No. 2 to By-Laws of the Registrant; (17)
(iv) Copy of Amendment No. 3 to By-Laws of the Registrant; (17)
(v) Copy of Amendment No. 4 to By-Laws of the Registrant; (17)

(c) (i) Copy of Specimen Certificate for Shares of Beneficial
Interest of the Registrant; (8)
- -------------------
+ All exhibits are being filed electronically

8. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 8 on Form N-1A filed June 1, 1994. (File Nos. 33-31602 and
811-5950)

10. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 12 filed February 21, 1995. (File Nos. 33-31602 and 811-5950)

12. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 16 filed September 29, 1995. (File Nos. 33-31602 and
811-5950)

15. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 20 filed September 23, 1996. (File Nos. 33-31602 and
811-5950)

16. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 22 filed September 23, 1997. (File Nos. 33-31602 and
811-5950)

17. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 24 filed September 28, 1998. (File Nos. 33-31602 and
811-5950)

<PAGE>

(ii)Copies of Specimen Certificates for Shares of Beneficial Interest of
Automated Cash Management Trust-Cash II Shares and Institutional Service
Shares and Treasury Obligations Fund- Institutional Capital Shares; (16)

(d) (i) Conformed copy of Investment Advisory Contract of the
Registrant; (12)
(ii) Conformed copies of Exhibits A through
G to Investment Advisory Contract of the
Registrant; (12) (iii) Conformed copy of
Investment Advisory Contract of the
Registrant (Government Obligations Tax
Managed Fund only); (11)
(iv) Conformed copy of Exhibit A to
Investment Advisory Contract of the
Registrant(Government Obligations
Tax Managed Fund only); (11)
(e) (i) Conformed copy of Distributor's Contract of the
Registrant; (7)
(ii) Conformed copy of Exhibit B to the Distributor's
Contract; (15)
(iii) Conformed copy of Exhibit D to the Distributor's Contract of
the Registrant;
(15)
(iv) Conformed copy of Exhibit E to the Distributor's Contract of
the Registrant; (16)
(v) Conformed copy of Exhibit F to the Distributor's Contract of
the Registrant; (16)
(v) The Registrant hereby incorporates the conformed copy of the
specimen Mutual Funds Sales and Service Agreement;
Mutual Funds
Service Agreement; and Plan Trustee/ Mutual Funds Service
Agreement from Item 24(b)(6) of the
Cash Trust Series II Registration Statement filed with the
Commission on July 24, 1995. (File
Nos. 33-38550 and 811-6269).
(f) Not applicable;

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

+ All exhibits are being filed electronically.

7. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 7 on Form N-1A filed May 6, 1994. (File Nos. 33-31602 and
811-5950)

11. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 13 filed May 7, 1995. (File Nos. 33-31602 and 811-5950)

12. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 16 filed September 29, 1995. (File Nos. 33-31602 and
811-5950)

15. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 20 filed September 23, 1996. (File Nos. 33-31602 and
811-5950)

16. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 22 filed September 23, 1997. (File Nos. 33-31602 and
811-5950)

<PAGE>

(g) (i)Conformed copy of Custodian Agreement of
the Registrant; (8) (ii) Conformed copy of
Custodian Fee Schedule; (17)
(h) (i) Conformed copy of Amended and Restated Agreement for
Fund Accounting Services, Administrative Services,
Transfer Agency Services and Custody Services
Procurement;(17)
(ii) The responses described in Item
24(b)(vi) are hereby incorporated by
reference. (iii) Conformed copy of Amended
and Restated Shareholder Services Agreement
of the Registrant; (17) (iv) The Registrant
hereby incorporates by reference the
conformed copy of the Shareholder Services
Sub-Contract between Fidelity and
Federated Shareholder Services from
Item 24(b)(9)(iii) of the Federated
GNMA Trust Registration Statement
on Form N-1A, filed with the
Commission on March 25, 1996 (File
Nos. 2-75670 and 811-3375).
(i) Conformed copy of Opinion and Consent of Counsel
as to legality of shares being registered; (12) (j)
(i) Conformed copy of Consents of Deloitte & Touche
LLP, Independent Auditors for:
(a) Federated Master Trust; +
(b) Liquid Cash Trust; +
(c) Automated Government Money Trust;+ and
(d) Trust for Short-Term U.S.
Government Securities + (ii) Conformed copy
of Consents of Arthur Andersen LLP for:
(a)Trust for Government Cash Reserves +
(b)Trust for U.S. Treasury Obligations +
(c)Federated Short-Term U.S. Government Trust +
(k) Not applicable;
(l) Conformed copy of Initial Capital Understanding; (12)
(m) (i) Conformed copy of Distribution Plan of the Registrant;(16)
(ii) Conformed copy of Exhibit A to the
Distribution Plan of the Registrant; (16)
(iii) The responses described in Item
24(b)(vi) are hereby incorporated by
reference.

+ All exhibits are being filed electronically

8. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 8 on Form N-1A filed June 1, 1994. (File Nos. 33-31602 and
811-5950)

12. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 16 filed September 29, 1995. (File Nos. 33-31602 and
811-5950)

16. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 22 filed September 23, 1997. (File Nos. 33-31602 and 811-
5950)

17. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 24 filed September 28, 1998. (File Nos. 33-31602 and
811-5950)

<PAGE>

(n) Copies of Financial Data Schedules;(17)
(o) The Registrant hereby incorporates the
conformed copy of the specimen Multiple
Class Plan from Item 24(b)(18) of the World
Investment Series, Inc. Registration
Statement on Form N-1A, filed with the
Commission on January 26, 1996. (File Nos.
33-52149 and 811-07141).
(p) Conformed copy of Power of Attorney; (18)
(i) Conformed copy of Power of Attorney of
Chief Investment Officer of the Registrant;
(18) (ii) Conformed copy of Power of
Attorney of Treasurer of the Registrant;
(18)

Item 24. Persons Controlled by or Under Common Control with Registrant:

None

Item 25. Indemnification: (1)

Item 26. Business and Other Connections of Investment Adviser:

(a) For a description of the other business of the investment adviser,
see the section entitled "Who Manages the Fund" in Part A. The
affiliations with the Registrant of four of the Trustees and one
of the Officers of the investment adviser are included in Part B
of this Registration Statement under "Who Manages and Provides
Services to the Fund." The remaining Trustee of the investment
adviser, his position with the investment adviser, and, in
parentheses, his principal occupation is: Mark D. Olson (Partner,
Wilson, Halbrook & Bayard), 107 W. Market Street, Georgetown,
Delaware 19947.

17. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 24 filed September 28, 1998. (File Nos. 33-31602 and
811-5950)

18. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 25 filed February 12, 1999. (File Nos. 33-31602 and 811-5950)

<PAGE>

The remaining Officers of the investment adviser are:

Executive Vice Presidents: William D. Dawson, III
Henry A. Frantzen
J. Thomas Madden

Senior Vice Presidents: Joseph M. Balestrino
Drew J. Collins
Jonathan C. Conley
Deborah A. Cunningham
Mark E. Durbiano
Sandra L. McInerney
Susan M. Nason
Mary Jo Ochson
Robert J. Ostrowski

Vice Presidents: Todd A. Abraham
J. Scott Albrecht
Arthur J. Barry
Randall S. Bauer
David A. Briggs
Micheal W. Casey
Kenneth J. Cody
Alexandre de Bethmann
Michael P. Donnelly
Linda A. Duessel
Donald T. Ellenberger
Kathleen M. Foody-Malus
Thomas M. Franks
Edward C. Gonzales
James E. Grefenstette
Susan R. Hill
Stephen A. Keen
Robert K. Kinsey
Robert M. Kowit
Jeff A. Kozemchak
Richard J. Lazarchic
Steven Lehman
Marian R. Marinack
Charles A. Ritter
Keith J. Sabol
Frank Semack
Aash M. Shah
Christopher Smith
Tracy P. Stouffer
Edward J. Tiedge
Paige M. Wilhelm
Jolanta M. Wysocka
Marc Halperin

Assistant Vice Presidents: Nancy J. Belz
Robert E. Cauley
Lee R. Cunningham, II
B. Anthony Delserone, Jr.
Paul S. Drotch
Salvatore A. Esposito
Donna M. Fabiano
John T. Gentry
William R. Jamison
Constantine Kartsonsas
John C. Kerber
Grant K. McKay
Natalie F. Metz
Joseph M. Natoli
John Sheehy
Michael W. Sirianni
Leonardo A. Vila
Lori A. Wolff
Gary Farwell

Secretary: Stephen A. Keen

Treasurer: Thomas R. Donahue

Assistant Secretaries: Thomas R. Donahue
Richard B. Fisher
Christine I. Newcamp

Assistant Treasurer: Richard B. Fisher

The business address of each of the Officers of the investment
adviser is Federated Investors Tower, 1001 Liberty Avenue,
Pittsburgh, Pennsylvania 15222-3779. These individuals are also
officers of a majority of the investment advisers to the
investment companies in the Federated Fund Complex described in
Part B of this Registration Statement.

For a description of the other business of Federated
Administrative Services, the investment adviser for Government
Obligations Tax-Managed Fund, see the section entitled "Fund
Information - Management of the Fund" in Part A. The affiliations
with the Registrant of two of the Trustees of Federated
Administrative Services are included in Part B of this
Registration Statement under "Money Market Obligations Trust
Management." The remaining Trustees of Federated Administrative
Services, their principal occupations and business addresses are:
Mark D. Olson (Partner, Wilson, Halbrook & Bayard), 107 W. Market
Street, Georgetown, Delaware 19947, and Arthur L. Cherry
(President, Chief Executive Officer, and Trustee, Federated
Services Company; Director, Edgewood Services, Inc.; Trustee,
Advanced Information Systems; President and Director, Federated
Administrative Services, Inc.; President, Federated Administrative
Services; Trustee, Federated Bank and Trust; President and
Trustee, Federated Shareholder Services Company; President and
Director, FS Holdings, Inc.; Chairman and Trustee, Retirement Plan
Service Company of America), Federated Investors Tower,
Pittsburgh, Pennsylvania, 15222-3779. From 1994 to January 27,
1997, Mr. Cherry was Managing Partner, AT&T Solutions.

The remaining Officers of Federated Administrative Services are:

President: Arthur L. Cherry

Senior Vice Presidents: Emily H. Emigh
Ronald M. Petnuch

Vice Presidents: Debbie Adams-Marshall
C. Grant Anderson
Keith A. Antle
Gail Cagney
Charles L. Davis, Jr.
Michael L. Guzzi
Matthew S. Hardin
J. Crilley Kelly
Dennis M. Laffey
Joseph S. Machi
Diane M. Marzula
Jay S. Neuman
J. David Richter
Thomas P. Sholes
Victor R. Siclari
Jeffrey W. Sterling
Richard J. Thomas
C. Christine Thomson
Assistant Vice Presidents: Anthony R. Bosch
Karen M. Brownlee
Mark Crowley
Gerald P. DiMarco
C. Todd Gibson
Timothy S. Johnson
Deborah M. Molini
Donna J. Padezan
Leslie C. Petrone
James R. Risbon

Assistant Secretary: Amanda J. Reed

Treasurer: Lawrence Caracciolo

The business address of each of the Officers of Federated
Administrative Services is Federated Investors Tower, 1001 Liberty
Avenue, Pittsburgh, Pennsylvania 15222-3779.

Item 27. Principal Underwriters:

(a)......Federated Securities Corp. the Distributor for shares of the
Registrant, acts as principal underwriter for the following .... open-end
investment companies, including the Registrant:

Automated Government Money Trust; Cash Trust Series II; Cash Trust Series, Inc.;
CCB Funds; DG Investor Series; Edward D. Jones & Co. Daily Passport Cash Trust;
Federated Adjustable Rate U.S. Government Fund, Inc.; Federated American Leaders
Fund, Inc.; Federated ARMs Fund; Federated Core Trust; Federated Equity Funds;
Federated Equity Income Fund, Inc.; Federated Fund for U.S. Government
Securities, Inc.; Federated GNMA Trust; Federated Government Income Securities,
Inc.; Federated Government Trust; Federated High Income Bond Fund, Inc.;
Federated High Yield Trust; Federated Income Securities Trust; Federated Income
Trust; Federated Index Trust; Federated Institutional Trust; Federated Insurance
Series; Federated Master Trust; Federated Municipal Opportunities Fund, Inc.;
Federated Municipal Securities Fund, Inc.; Federated Municipal Trust; Federated
Short-Term Municipal Trust; Federated Short-Term U.S. Government Trust;
Federated Stock and Bond Fund, Inc.; Federated Stock Trust; Federated Tax-Free
Trust; Federated Total Return Series, Inc.; Federated U.S. Government Bond Fund;
Federated U.S. Government Securities Fund: 1-3 Years; Federated U.S. Government
Securities Fund: 2-5 Years; Federated U.S. Government Securities Fund: 5-10
Years; Federated Utility Fund, Inc.; Fixed Income Securities, Inc.; ; Hibernia
Funds; Independence One Mutual Funds; Intermediate Municipal Trust;
International Series, Inc.; Investment Series Funds, Inc.; Liberty U.S.
Government Money Market Trust; Liquid Cash Trust; Managed Series Trust; Marshall
Funds, Inc.; Money Market Management, Inc.; Money Market Obligations Trust;
Money Market Obligations Trust II; Money Market Trust; Municipal Securities
Income Trust; Newpoint Funds; Regions Funds; RIGGS Funds; SouthTrust Funds;
Tax-Free Instruments Trust; The Planters Funds; The Wachovia Funds; The Wachovia
Municipal Funds; Trust for Government Cash Reserves; Trust for Short-Term U.S.
Government Securities; Trust for U.S. Treasury Obligations; Vision Group of
Funds, Inc.; World Investment Series, Inc.; Blanchard Funds; Blanchard Precious
Metals Fund, Inc.; High Yield Cash Trust; Investment Series Trust; Star Funds;
Targeted Duration Trust; The Virtus Funds; Trust for Financial Institutions;

Federated Securities Corp. also acts as principal underwriter for the
following closed-end investment company: Liberty Term Trust, Inc.- 1999.

(b)

(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address With Distributor With Registrant

Richard B. Fisher Director, Chairman, Chief Vice President
Federated Investors Tower Executive Officer, Chief
1001 Liberty Avenue Operating Officer, Asst.
Pittsburgh, PA 15222-3779 Secretary and Asst.
Treasurer, Federated
Securities Corp.

Edward C. Gonzales Director, Executive Vice Exec. Vice Pres.
Federated Investors Tower President,
1001 Liberty Avenue Federated Securities Corp.
Pittsburgh, PA 15222-3779

Thomas R. Donahue Director, Assistant Secretary
Federated Investors Tower and Assistant Treasurer
1001 Liberty Avenue Federated Securities Corp.
Pittsburgh, PA 15222-3779

James F. Getz President-Broker/Dealer, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

John B. Fisher President-Institutional Sales, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

David M. Taylor Executive Vice President --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Mark W. Bloss Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Richard W. Boyd Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Laura M. Deger Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Theodore Fadool, Jr. Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Bryant R. Fisher Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Christopher T. Fives Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

James S. Hamilton Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

James M. Heaton Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Keith Nixon Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

<PAGE>

Solon A. Person, IV Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Timothy C. Pillion Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Thomas E. Territ Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Ernest G. Anderson Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Teresa M. Antoszyk Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

John B. Bohnet Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Jane E. Broeren-Lambesis Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

David J. Callahan Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Mary J. Combs Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

R. Edmond Connell, Jr. Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

R. Leonard Corton, Jr. Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

<PAGE>

Kevin J. Crenny Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Daniel T. Culbertson Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

G. Michael Cullen Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Marc C. Danile Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

William C. Doyle Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Jill Ehrenfeld Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Mark D. Fisher Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Joseph D. Gibbons Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

John K. Goettlicher Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Craig S. Gonzales Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Raymond Hanley Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

<PAGE>

Bruce E. Hastings Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Beth A. Hetzel Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

James E. Hickey Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Charlene H. Jennings Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

H. Joseph Kennedy Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Michael W. Koenig Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Michael R. Manning Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Mark J. Miehl Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Richard C. Mihm Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

J. Michael Miller Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Alec H. Neilly Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

<PAGE>

Thomas A. Peters III Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Robert F. Phillips Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Richard A. Recker Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Eugene B. Reed Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Paul V. Riordan Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

John Rogers Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Brian S. Ronayne Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Thomas S. Schinabeck Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Edward L. Smith Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

David W. Spears Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

John A. Staley Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

<PAGE>

Colin B. Starks Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Jeffrey A. Stewart Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

William C. Tustin Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Paul A. Uhlman Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Miles J. Wallace Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

John F. Wallin Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Richard B. Watts Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Edward J. Wojnarowski Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Michael P. Wolff Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Edward R. Bozek Assistant Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Terri E. Bush Assistant Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

<PAGE>

Beth C. Dell Assistant Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

David L. Immonen Assistant Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Renee L. Martin Assistant Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Robert M. Rossi Assistant Vice President, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Matthew S. Hardin Secretary, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Denis McAuley Treasurer, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Leslie K. Ross Assistant Secretary, --
Federated Investors Tower Federated Securities Corp.
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

</TABLE>

<PAGE>

Item 28. Location of Accounts and Records:

All accounts and records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and Rules 31a-1 through 31a-3 promulgated
thereunder are maintained at one of the following locations:

<S> <C>

Registrant Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
(Notices should be
sent to the Agent for Service at the above address.)

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000

Federated Shareholder Services Company P.O. Box 8600
("Transfer Agent and Dividend Boston, MA 02266-8600
Disbursing Agent")

Federated Services Company Federated Investors Tower
("Administrator") 1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Federated Management Federated Investors Tower
Federated Administrative Services 1001 Liberty Avenue
Federated Investment Management Company. Pittsburgh, PA 15222-3779
("Advisers")

State Street Bank and Trust Company P.O. Box 8600
("Custodian") Boston, MA 02266-8600
</TABLE>

Item 29. Management Services: Not applicable.

Item 30. Undertakings:

Registrant hereby undertakes to comply with the provisions of
Section 16(c) of the 1940 Act with respect to the removal of
Trustees and the calling of special shareholder meetings by
shareholders.

<PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, MONEY MARKET OBLIGATIONS TRUST,
has duly caused this Amendment to its Registration Statement to be signed on its
behalf by the undersigned, thereto duly authorized, in the City of Pittsburgh
and Commonwealth of Pennsylvania, on the 26th day of April, 1999.

MONEY MARKET OBLIGATIONS TRUST

BY: /s/ Gail Cagney
Gail Cagney, Assistant Secretary
Attorney in Fact for John F. Donahue
April 26, 1999

Pursuant to the requirements of the Securities Act of 1933, this Amendment
to its Registration Statement has been signed below
by the following person in the capacity and on the date indicated:

NAME TITLE DATE

By: /s/ Gail Cagney
Gail Cagney Attorney In Fact April 26, 1999
ASSISTANT SECRETARY For the Persons
Listed Below

NAME TITLE

John F. Donahue* Chairman and Trustee
(Chief Executive Officer)

J. Christopher Donahue* President and Trustee

Richard J. Thomas* Treasurer(Principal Financial and
Accounting Officer)

William D. Dawson, III* Chief Investment Officer

Thomas G. Bigley* Trustee

John T. Conroy, Jr.* Trustee

John F. Cunningham* Trustee

William J. Copeland* Trustee

Lawrence D. Ellis, M.D.* Trustee

Peter E. Madden* Trustee

Charles F. Mansfield, Jr.* Trustee

John E. Murray, Jr., J.D., S.J.D.* Trustee

Marjorie P. Smuts* Trustee

John S. Walsh* Trustee
* By Power of Attorney

Exhibit j (i) (a) under Form N-1A
Exhibit 23 under Item 601/Reg. S-K

INDEPENDENT AUDITORS' CONSENT

To the Board of Trustees and Shareholders of
Federated Master Trust

We consent to the use in Post-Effective Amendment No. 26 to Registration
Statement 33-31602 of Federated Master Trust of our report dated January 15,
1999 appearing in the Prospectus, which is a part of such Registration
Statement, and to the reference to us under the heading "Financial Highlights"
in such Prospectus.

/s/ Deloitte & Touche LLP
Boston, Massachusetts
April 26, 1999

<PAGE>

Exhibit j (i) (b) under Form N-1A
Exhibit 23 under Item 601/Reg. S-K

INDEPENDENT AUDITORS' CONSENT

To the Board of Trustees and Shareholders of
Liquid Cash Trust

We consent to the use in Post-Effective Amendment No. 26 to Registration
Statement 33-31602 of Liquid Cash Trust of our report dated January 15, 1999
appearing in the Prospectus, which is a part of such Registration Statement, and
to the reference to us under the heading "Financial Highlights" in such
Prospectus.

/s/ Deloitte & Touche LLP
Boston, Massachusetts
April 26, 1999

<PAGE>

Exhibit j (i) (c) under Form N-1A
Exhibit 23 under Item 601/Reg. S-K

INDEPENDENT AUDITORS' CONSENT

To the Board of Trustees and Shareholders of
Automated Government Money Trust

We consent to the use in Post-Effective Amendment No. 26 to Registration
Statement 33-31602 of Automated Government Money Trust of our report dated
January 15, 1999 appearing in the Prospectus, which is a part of such
Registration Statement, and to the reference to us under the heading "Financial
Highlights" in such Prospectus.

/s/ Deloitte & Touche LLP
Boston, Massachusetts
April 26, 1999

<PAGE>

Exhibit j (i) (d) under Form N-1A
Exhibit 23 under Item 601/Reg. S-K

INDEPENDENT AUDITORS' CONSENT

To the Board of Trustees and Shareholders of
Trust for Short-Term U.S. Government Securities

We consent to the use in Post-Effective Amendment No. 26 to Registration
Statement 33-31602 of Trust for Short-Term U.S. Government Securities of our
report dated January 15, 1999 appearing in the Prospectus, which is a part of
such Registration Statement, and to the reference to us under the heading
"Financial Highlights" in such Prospectus.

/s/ Deloitte & Touche LLP
Boston, Massachusetts
April 26, 1999

Exhibit j (ii) (a) under Form N-1A
Exhibit 23 under Item 601/Reg. S-K

CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS

As independent public accountants, we hereby consent to the use in
Post-Effective Amendment No. 26 to Form N-1A Registration Statement of Trust for
Government Cash Reserves of our report dated January 15, 1999, on the financial
statements as of November 30, 1998, of Trust for Government Cash Reserves,
included in or made a part of this registration statement.

........ Arthur Andersen LLP

Boston, Massachusetts
April 26, 1999

<PAGE>

Exhibit j (ii) (b) under Form N-1A
Exhibit 23 under Item 601/Reg. S-K

CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS

As independent public accountants, we hereby consent to the use in
Post-Effective Amendment No. 26 to Form N-1A Registration Statement of Trust for
U.S. Treasury Obligations of our report dated January 15, 1999, on the financial
statements as of November 30, 1998, of Trust for U.S. Treasury Obligations,
included in or made a part of this registration statement.

........ Arthur Andersen LLP

Boston, Massachusetts
April 26, 1999

<PAGE>

Exhibit j (ii) (c) under Form N-1A
Exhibit 23 under Item 601/Reg. S-K

CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS

As independent public accountants, we hereby consent to the use in
Post-Effective Amendment No. 26 to Form N-1A Registration Statement of Federated
Short-Term U.S. Government Trust of our report dated January 15, 1999, on the
financial statements as of November 30, 1998, of Federated Short-Term U.S.
Government Trust, included in or made a part of this registration statement.

........ Arthur Andersen LLP

Boston, Massachusetts
April 26, 1999