FIDELITY HEREFORD STREET TRUST, N-30D, 1997-12-18

FIDELITY HEREFORD STREET TRUST
N-30D, 1997-12-18

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SPARTAN
(REGISTERED TRADEMARK)

(REGISTERED TRADEMARK)

U.S. GOVERNMENT
MONEY MARKET
FUND
SEMIANNUAL REPORT
OCTOBER 31, 1997
CONTENTS

PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.

PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.

FUND TALK 6 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.

INVESTMENT CHANGES 8 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS
AND ONE YEAR.

INVESTMENTS 9 A COMPLETE LIST OF THE FUND'S INVESTMENTS.

FINANCIAL STATEMENTS 12 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.

NOTES 16 NOTES TO THE FINANCIAL STATEMENTS.

To reduce expenses and demonstrate respect for our environment, we
have initiated a project through which we will begin eliminating
duplicate copies of most financial reports and prospectuses to most
households, even if they have more than one account in the fund. If
additional copies of financial reports, prospectuses or historical
account information are needed, please call 1-800-544-6666.

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT
AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY
THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE
SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL
AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND
MONEY.
PRESIDENT'S MESSAGE

(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Although financial turmoil in Pacific Basin countries was a catalyst
for significant volatility in U.S. markets in late October, the
Standard & Poor's 500 Index remained up more than 25% year-to-date,
twice its historical annual average. Meanwhile, bond markets -
primarily influenced by a relatively steady flow of positive news on
the inflation front - continued to post moderate returns through the
first 10 months of 1997.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. You should also keep money you'll need in the near future in a
more stable investment.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are
available 24 hours a day, seven days a week to provide you the
information you need to make the investments that are right for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE

To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income and the effect of the fund's $5 account closeout fee
on an average-sized account. Yield measures the income paid by a fund.
Since a money market fund tries to maintain a $1 share price, yield is
an important measure of performance. If Fidelity had not reimbursed
certain fund expenses, the past five year and life of fund total
returns and dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1997 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

SPARTAN U.S. GOVERNMENT 2.66% 5.25% 24.57% 46.83%
MONEY MARKET FUND

GOVERNMENT MONEY MARKET 2.53% 5.00% 23.18% 42.47%
FUNDS AVERAGE

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on February 5, 1990. For example, if
you had invested $1,000 in a fund that had a 5% return over the past
year, the value of your investment would be $1,050. To measure how the
fund's performance stacked up against its peers, you can compare it to
the government money market funds average, which reflects the
performance of government money market funds with similar objectives
tracked by IBC Financial Data, Inc. The past six months average
represents a peer group of 425 mutual funds. (The periods covered by
IBC Financial Data, Inc. numbers are the closest available match to
those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1997 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

SPARTAN U.S. GOVERNMENT 5.25% 4.49% 5.09%
MONEY MARKET FUND

GOVERNMENT MONEY MARKET 5.00% 4.25% 4.72%
FUNDS AVERAGE

AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
10/28/97 7/29/97 4/29/97 1/28/97 10/29/96

SPARTAN U.S. GOVERNMENT 5.25% 5.23% 5.18% 5.00% 5.04%
MONEY MARKET FUND

GOVERNMENT MONEY 4.85% 4.83% 4.75% 4.63% 4.66%
MARKET FUNDS AVERAGE

10/29/97 7/30/97 4/30/97 1/29/97 10/30/96

2.65% 2.64% 2.64% 2.62% 2.66%
MMDA

Row: 1, Col: 1, Value: 5.18
Row: 1, Col: 2, Value: 4.75
Row: 1, Col: 3, Value: 2.64
Row: 2, Col: 1, Value: 5.0
Row: 2, Col: 2, Value: 4.63
Row: 2, Col: 3, Value: 2.62
Row: 3, Col: 1, Value: 5.04
Row: 3, Col: 2, Value: 4.659999999999999
Row: 3, Col: 3, Value: 2.66
Row: 4, Col: 1, Value: 5.04
Row: 4, Col: 2, Value: 4.65
Row: 4, Col: 3, Value: 2.69
Row: 5, Col: 1, Value: 5.03
Row: 5, Col: 2, Value: 4.57
Row: 5, Col: 3, Value: 2.67
Spartan U.S.
Government
Money Market
Government Money
Market Funds
Average
MMDA
6% -
5% -
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
chart above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the
government money market funds average and the bank money market
deposit account (MMDA) average. Figures for the government money
market funds average are from IBC Financial Data, Inc. The MMDA
average is supplied by BANK RATE MONITOR.(Trademark)
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.

COMPARING
PERFORMANCE
THERE ARE SOME IMPORTANT
DIFFERENCES BETWEEN A BANK
MONEY MARKET DEPOSIT ACCOUNT
(MMDA) AND A MONEY MARKET
FUND. FIRST, THE U.S. GOVERNMENT
NEITHER INSURES NOR GUARANTEES
A MONEY MARKET FUND. IN FACT,
THERE IS NO ASSURANCE THAT A
MONEY MARKET FUND WILL
MAINTAIN A $1 SHARE PRICE.
SECOND, A MONEY MARKET FUND
RETURNS TO ITS SHAREHOLDERS
INCOME EARNED BY THE FUND'S
INVESTMENTS AFTER EXPENSES. THIS
IS IN CONTRAST TO BANKS, WHICH
SET THEIR MMDA RATES
PERIODICALLY BASED ON CURRENT
INTEREST RATES, COMPETITORS'
RATES, AND INTERNAL CRITERIA.
(CHECKMARK)
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Robert Litterst, Portfolio Manager of Spartan U.S.
Government Money Market Fund
Q. BOB, WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST SIX
MONTHS?
A. At the end of March, the Federal Reserve Board raised the rates
bank charge each other for overnight loans - known as the fed funds
rate - from 5.25% to 5.50%. The Fed did so in order to slow growth and
head off any inflationary pressures that may have been building in the
economy. As we entered the summer, short-term interest rates rose as
most in the market expected the Fed to continue raising rates.
However, the Fed held off because inflation was well contained and it
expected economic activity to slow. Contrary to the Fed's forecast,
however, the economy continued on a solid pace in the third quarter,
with real GDP - gross domestic product adjusted for inflation -
growing at a 3.5% annual rate. Over each of the past four quarters,
real GDP has grown at about a 4% annual rate, clearly above estimates
of the economy's non-inflationary potential. Despite subdued inflation
currently, many feel that growth at this rate will result in a rise in
inflation at some point. Nonetheless, the Fed has been patient, and
appears willing to tolerate strong growth until clear signs of rising
inflation emerge.
Q. WERE THERE OTHER FACTORS THAT DROVE THE MARKET FOR SHORT-TERM U.S.
GOVERNMENT SECURITIES?
A. Yes, there were some developments in the U.S. Treasury market that
tended to affect government money market securities, because there is
a correlation between how the two markets behave. As the budget
deficit has declined, so have the financing needs of the U.S.
Treasury. As a result of reduced issuance and a large pay-down of
Treasury debt in the second quarter, the supply of Treasuries has
fallen. Combined with strong demand from both foreign and domestic
investors during the period, this situation pushed yields on
Treasuries - and associated government money market securities -
lower.
Q. WHAT SORT OF STRATEGY DID YOU PURSUE?
A. I've used a barbell strategy - concentrating the fund on either end
of the maturity spectrum - investing in overnight to one-month
securities on the one hand and on issues with maturities of one year
on the other. I've been purchasing longer-term securities at moments
of market weakness when the short-term yield curve steepens and longer
investments present attractive values. The very short-term securities
help to balance the portfolio and serve a defensive purpose that will
help the fund if the Fed raises rates again. Overall, the fund's
average maturity tended to be longer than the average of its peers.
Q. HOW DID THE FUND PERFORM OVER THE SIX-MONTH PERIOD?
A. On October, 31, 1997, the fund's seven-day yield was 5.26%,
compared to 5.18% six months ago. The fund's total return for the six
months was 2.66% compared to the 2.53% total return for the government
money market funds average tracked by IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. Although broad measures of inflation are well controlled, the
economy is strong and wage pressures appear to be building. Fed
Chairman Alan Greenspan is concerned that increased costs due to
continued tightness in the labor market eventually will be passed on
to the consumer. If the economy continues to expand rapidly and pushes
the unemployment rate lower, then higher inflation is likely to
materialize and further Fed rate increases are probably in the offing.
One factor that may keep the Fed on the sidelines a bit longer than
anticipated is the recent market turmoil in Southeast Asia and its
influence on domestic markets. Any market instability probably will
influence the Fed to act in a more cautious manner, unless we see
clear signs of inflation. In addition, a slowdown in Southeast Asia
would tend to dampen U.S. economic growth and to moderate inflation
pressures. Nonetheless, while the turmoil in global financial markets
may affect the timing of future Fed interest-rate changes, it is
unlikely to alter the Fed's ultimate policy decisions, which are
driven by domestic economic considerations.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.

FUND FACTS
GOAL: high current income,
preservation of capital
START DATE: February 5, 1990
FUND NUMBER: 458
TRADING SYMBOL: SPAXX
SIZE: as of October 31, 1997,
more than $781 million
MANAGER: Robert Litterst, since
April 1997; manager, several
Fidelity and Spartan taxable
money market funds; joined
Fidelity in 1991
(checkmark)
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
10/31/97 4/30/97 10/31/96

0 - 30 60 66 71

31 - 90 9 18 13

91 - 180 19 0 9

181 - 397 12 16 7

WEIGHTED AVERAGE MATURITY
10/31/97 4/30/97 10/31/96

SPARTAN U.S. GOVERNMENT 69 DAYS 63 DAYS 42 DAYS
MONEY MARKET FUND

GOVERNMENT MONEY MARKET 50 DAYS 47 DAYS 49 DAYS
FUNDS AVERAGE*

*SOURCE: IBC'S MONEY FUND REPORT (registered trademark)
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF OCTOBER 31, 1997 AS OF APRIL 30, 1997
ROW: 1, COL: 1, VALUE: 51.0
ROW: 1, COL: 2, VALUE: 0.0
ROW: 1, COL: 3, VALUE: 49.0
FEDERAL AGENCY
ISSUES 52%
U.S. TREASURY
OBLIGATIONS 4%
REPURCHASE
AGREEMENTS 44%
FEDERAL AGENCY
ISSUES 49%
U.S. TREASURY
OBLIGATIONS 0%
REPURCHASE
AGREEMENTS 51%
ROW: 1, COL: 1, VALUE: 44.0
ROW: 1, COL: 2, VALUE: 0.0
ROW: 1, COL: 3, VALUE: 4.0
ROW: 1, COL: 4, VALUE: 52.0
INVESTMENTS OCTOBER 31, 1997 (UNAUDITED)

SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS IN SECURITIES

FEDERAL AGENCIES - 49.3%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE
FEDERAL FARM CREDIT BANK - DISCOUNT NOTES - 3.7%
4/1/98 5.09% $ 20,000,000 $ 19,982,229
9/2/98 5.76 9,000,000 8,990,374
28,972,603
FEDERAL HOME LOAN BANK - AGENCY COUPONS - 14.5%
11/2/97 5.53 (a) 12,000,000 11,992,614
12/19/97 5.59 (a) 15,000,000 14,995,865
12/23/97 5.51 1,000,000 1,000,366
12/30/97 5.60 (a) 8,000,000 8,090,585
3/18/98 5.88 (a) 25,000,000 25,000,000
6/9/98 5.89 9,000,000 8,999,287
6/11/98 5.88 3,500,000 3,498,914
6/12/98 5.81 5,000,000 4,997,251
9/18/98 5.76 13,000,000 12,996,170
9/24/98 5.71 6,000,000 5,994,840
10/23/98 5.70 16,000,000 15,985,721
113,551,613
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 1.3%
12/31/97 5.59 5,000,000 4,954,709
3/11/98 5.57 5,290,000 5,186,463
10,141,172
FEDERAL HOME LOAN MORTGAGE CORP. - AGENCY COUPONS - 2.0%
3/17/98 5.79 8,000,000 7,995,588
4/8/98 6.04 8,000,000 7,990,882
15,986,470
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS - 20.3%
11/3/97 5.58 21,000,000 21,039,762
11/4/97 5.57 (a) 21,000,000 20,999,849
11/15/97 5.50 (a) 22,000,000 21,985,735
12/9/97 5.56 (a) 15,000,000 14,998,641
12/13/97 5.62 (a) 10,000,000 9,997,048
3/17/98 5.60 11,000,000 11,047,072
3/18/98 5.91 7,000,000 6,992,794
4/15/98 6.06 10,000,000 9,994,801
4/17/98 6.11 9,000,000 8,992,600
5/21/98 5.96 9,000,000 8,992,789
8/14/98 5.80 16,000,000 15,976,321
9/9/98 5.71 8,000,000 7,990,009
159,007,421
FEDERAL AGENCIES - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 7.5%
1/28/98 5.58% $ 4,000,000 $ 3,946,222
1/29/98 5.58 9,000,000 8,877,625
1/30/98 5.59 8,000,000 7,890,000
3/4/98 5.57 16,779,000 16,467,708
3/5/98 5.57 3,905,000 3,831,963
3/30/98 5.58 8,000,000 7,820,538
4/2/98 5.58 10,000,000 9,770,733
58,604,789
TOTAL FEDERAL AGENCIES 386,264,068
MEDIUM-TERM NOTES (A) - 0.2%
Export-Import Bank, U.S. (as guarantor for K.A. Leasing, Ltd.) (b)
11/15/97 5.67 1,338,520 1,338,520
REPURCHASE AGREEMENTS - 50.5%
MATURITY AMOUNT
In a joint trading account
(Notes 2 and 3)
(U.S. Government Obligations):
dated 8/4/97 due 11/3/97
At 5.58% $ 50,705,250 50,000,000
dated 10/1/97 due 11/3/97
At 5.56% 36,183,480 36,000,000
dated 10/31/97 due 11/3/97:
At 5.70% 25,011,873 25,000,000
At 5.77% 216,770,207 216,666,000
dated 9/5/97 due 11/5/97
At 5.56% 7,065,948 7,000,000
dated 10/8/97 due 11/5/97
At 5.53% 34,146,238 34,000,000
dated 8/19/97 due 11/6/97
At 5.58% 13,159,185 13,000,000
dated 10/14/97 due 11/13/97
At 5.55% 8,037,000 8,000,000
dated 10/22/97 due 1/20/98
At 5.66% 5,070,750 5,000,000
TOTAL REPURCHASE AGREEMENTS 394,666,000
TOTAL INVESTMENTS - 100% $ 782,268,588
Total Cost for Income Tax Purposes $ 782,268,588
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
2. Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Export-Import Bank U.S.
(as guarantor for
K.A. Leasing, Ltd.) 7/8/94 $1,338,520
INCOME TAX INFORMATION
At April 30, 1997, the fund had a capital loss carryforward of
approximately $162,000 of which $11,000, $10,000, $52,000, $53,000 and
$36,000 will expire on April 30, 1999, 2001, 2002, 2003 and 2004,
respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1997 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE (INCLUDING REPURCHASE $ 782,268,588
AGREEMENTS OF $394,666,000) - SEE ACCOMPANYING
SCHEDULE

INTEREST RECEIVABLE 4,816,953

TOTAL ASSETS 787,085,541

LIABILITIES

SHARE TRANSACTIONS IN PROCESS $ 4,975,293

DISTRIBUTIONS PAYABLE 113,760

ACCRUED MANAGEMENT FEE 313,898

TOTAL LIABILITIES 5,402,951

NET ASSETS $ 781,682,590

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 781,835,809

ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (153,219)

NET ASSETS, FOR 781,835,809 SHARES OUTSTANDING $ 781,682,590

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($781,682,590 (DIVIDED BY) 781,835,809 SHARES)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED)

INTEREST INCOME $ 22,764,358

EXPENSES

MANAGEMENT FEE $ 1,802,178

NON-INTERESTED TRUSTEES' COMPENSATION 2,256

TOTAL EXPENSES BEFORE REDUCTIONS 1,804,434

EXPENSE REDUCTIONS (4,871) 1,799,563

NET INTEREST INCOME 20,964,795

NET REALIZED GAIN (LOSS) ON INVESTMENTS 9,268

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 20,974,063

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, 1997 APRIL 30,
(UNAUDITED) 1997

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 20,964,795 $ 42,049,636
NET INTEREST INCOME

NET REALIZED GAIN (LOSS) 9,268 8,871

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 20,974,063 42,058,507
FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (20,964,795) (42,049,636)

SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 539,235,621 995,343,307
PROCEEDS FROM SALES OF SHARES

REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 20,149,265 40,493,872

COST OF SHARES REDEEMED (593,462,497) (981,570,366)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (34,077,611) 54,266,813
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (34,068,343) 54,275,684

NET ASSETS

BEGINNING OF PERIOD 815,750,933 761,475,249

END OF PERIOD $ 781,682,590 $ 815,750,933

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED APRIL 30,
OCTOBER 31, 1997

(UNAUDITED) 1997 1996 1995 1994 1993

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF PERIOD

INCOME FROM INVESTMENT .026 .050 .054 .047 .029 .032
OPERATIONS
NET INTEREST INCOME

LESS DISTRIBUTIONS

FROM NET (.026) (.050) (.054) (.047) (.029) (.032)
INTEREST INCOME

NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD

TOTAL RETURN B 2.66% 5.16% 5.52% 4.79% 2.89% 3.24%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD $ 781,683 $ 815,751 $ 761,475 $ 707,194 $ 780,295 $ 897,792
(000 OMITTED)

RATIO OF EXPENSES TO .45% .45% .45% .45% .45% .45%
AVERAGE NET ASSETS A C C

RATIO OF EXPENSES TO .45% .45% .41% .45% .45% .45%
AVERAGE NET ASSETS A D
AFTER EXPENSE
REDUCTIONS

RATIO OF NET INTEREST 5.23% 5.02% 5.42% 4.67% 2.85% 3.25%
INCOME TO AVERAGE A
NET ASSETS

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS
WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE
PERIODS SHOWN.
C FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1997 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan U.S. Government Money Market Fund (the fund) is a fund of
Fidelity Hereford Street Trust (the trust) and is authorized to issue
an unlimited number of shares. The trust is registered under the
Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Delaware
business trust. The financial statements have been prepared in
conformity with generally accepted accounting principles which permit
management to make certain estimates and assumptions at the date of
the financial statements. The following summarizes the significant
accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for its fiscal year. The schedule of investments
includes information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
between the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS.
Dividends are declared daily and paid monthly from net interest
income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other
affiliated entities of Fidelity Management & Research Company (FMR),
may transfer uninvested cash balances into one or more joint trading
accounts. These balances are invested in one or more repurchase
agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
2. OPERATING POLICIES - CONTINUED
RESTRICTED SECURITIES. The fund is permitted to invest in securities
that are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from
registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations
and expense, and prompt sale at an acceptable price may be difficult.
At the end of the period, restricted securities (excluding 144A
issues) amounted to $1,338,520 or .17% of net assets.
3. JOINT TRADING ACCOUNT.
At the end of the period, the fund had 20% or more of its total
investments in repurchase agreements through a joint trading account.
These repurchase agreements were with entities whose creditworthiness
has been reviewed and found satisfactory by FMR. The maturity values
of the joint trading account investments are shown in the schedule of
investments. The investments in repurchase agreements through the
joint trading account are summarized as follows:
SUMMARY OF JOINT TRADING
Dated August 4, 1997, due November 3, 1997 at 5.58%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $600,000,000
Aggregate maturity amount of agreements $608,463,000
Aggregate market value of transferred assets $620,445,792
Coupon rates of transferred assets 0% to 8.63%
Maturity dates of transferred assets 11/7/97 to 11/15/29
Dated October 1, 1997, due November 3, 1997 at 5.56%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $225,000,000
Aggregate maturity amount of agreements $226,146,750
Aggregate market value of transferred assets $234,019,491
Coupon rates of transferred assets 5% to 12.5%
Maturity dates of transferred assets 12/1/97 to 11/1/27
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
Dated October 31, 1997, due November 3, 1997 at 5.70%
Number of dealers or banks 11
Maximum amount with one dealer or bank 27%
Aggregate principal amount of agreements $6,961,411,000
Aggregate maturity amount of agreements $6,964,717,087
Aggregate market value of transferred assets $7,109,125,676
Coupon rates of transferred assets 0% to 15.75%
Maturity dates of transferred assets 11/6/97 to 10/1/27
Dated October 31, 1997, due November 3, 1997 at 5.77%
Number of dealers or banks 4
Maximum amount with one dealer or bank 41.6%
Aggregate principal amount of agreements $1,369,912,000
Aggregate maturity amount of agreements $1,370,570,866
Aggregate market value of transferred assets $1,410,399,145
Coupon rates of transferred assets 0% to 10%
Maturity dates of transferred assets 10/1/98 to 12/1/34
Dated September 5, 1997, due November 5, 1997 at 5.56%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $150,000,000
Aggregate maturity amount of agreements $150,693,750
Aggregate market value of transferred assets $154,500,001
Coupon rates of transferred assets 6.13% to 8.15%
Maturity dates of transferred assets 3/1/04 to 8/1/33
Dated October 8, 1997, due November 5, 1997 at 5.53%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $200,860,222
Aggregate market value of transferred assets $207,443,384
Coupon rates of transferred assets 0%
Maturity dates of transferred assets 5/1/19 to 5/1/34
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
Dated August 19, 1997, due November 6, 1997 at 5.58%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $202,449,000
Aggregate market value of transferred assets $206,340,802
Coupon rates of transferred assets 5.45% to 8.25%
Maturity dates of transferred assets 5/21/98 to 12/15/22
Dated October 14, 1997, due November 13, 1997 at 5.55%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $150,000,000
Aggregate maturity amount of agreements $151,413,167
Aggregate market value of transferred assets $155,326,645
Coupon rates of transferred assets 0% to 12.50%
Maturity dates of transferred assets 11/1/97 to 11/1/27
Dated October 22, 1997, due January 20, 1998 at 5.66%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $55,000,000
Aggregate maturity amount of agreements $55,778,250
Aggregate market value of transferred assets $56,650,000
Coupon rates of transferred assets 5.53% to 9.50%
Maturity dates of transferred assets 6/1/18 to 2/1/37
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR pays all
expenses, except the compensation of the non-interested Trustees and
certain exceptions such as interest, taxes, brokerage commissions and
extraordinary expenses. FMR receives a fee that is computed daily at
an annual rate of .45% of the fund's average net assets.
FMR also bears the cost of providing shareholder services to the fund.
To offset the cost of providing these services,
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
MANAGEMENT FEE - CONTINUED
FMR or its affiliates collect certain transaction fees from the fund's
shareholders which amounted to $8,783 for the period.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc.,
a wholly owned subsidiary of FMR, receives a fee from FMR of 50% of
the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect.
5. EXPENSE REDUCTIONS.
The fund has entered into arrangements with its custodian and transfer
agent whereby credits realized as a result of uninvested cash balances
were used to reduce a portion of the fund's expenses. During the
period, the fund's custodian and transfer agent fees were reduced by
$44 and $4,827, respectively, under these arrangements.
MANAGING YOUR INVESTMENTS

Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity TouchTone Xpressprovides a single toll-free number to access
account balances, positions, quotes and trading. It's easy to navigate
the service, and on your first call, the system will help you create a
personal identification number (PIN) for security.
SM
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.

For quotes.*

For account balances and holdings.

To review orders and mutual
fund activity.

To change your PIN.

To speak to a Fidelity representative.
0
*
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(PHONE_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at
1-800-544-7272 for significant savings on Web access from internetMCI.
SM
(PHONE_GRAPHIC)
FIDELITY ON-LINE XPRESS+
TM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity
at 1-800-544-7272 or visit our Web site for more information on how to
manage your investments via your PC.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD
AND RETURN WILL VARY AND,
EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS MEANS
THAT YOU MAY HAVE A GAIN
OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO ASSURANCE THAT MONEY
MARKET FUNDS WILL BE ABLE TO
MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY MARKET FUND
IS NOT INSURED OR
GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF ANY
SALES CHARGES.
TO VISIT FIDELITY

For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
815 East Birch Street
Brea, CA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
950 Northgate Drive
San Rafael, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
4001 Tamiami Trail, North
Naples, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
GEORGIA
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
One North Franklin Street
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
INDIANA
4729 East 82nd Street
Indianapolis, IN
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
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MASSACHUSETTS
470 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
NEW YORK
1055 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
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OREGON
16850 SW 72 Avenue
Tigard, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
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TENNESSEE
6150 Poplar Road
Memphis, TN
TEXAS
10000 Research Boulevard
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4017 Northwest Parkway
Dallas, TX
1155 Dairy Ashford Street
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2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
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19740 IH 45 North
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UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
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VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1900 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI

INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Boyce I. Greer, Vice President
Fred L. Henning, Jr., Vice President
Robert Litterst, Vice President
Arthur S. Loring, Secretary
Richard A. Silver, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
* INDEPENDENT TRUSTEES
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
FIDELITY'S TAXABLE
MONEY MARKET FUNDS
Fidelity Cash Reserves
Fidelity Daily Income Trust
Fidelity U.S. Government Reserves
Spartan Money Market Fund
Spartan U.S. Government
Money Market Fund
Spartan U.S. Treasury
Money Market Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
TouchTone Xpress 1-800-544-5555
SM
AUTOMATED LINE FOR QUICKEST SERVICE

SPARTAN(registered trademark)

(REGISTERED TRADEMARK)

MONEY MARKET
FUND

SEMIANNUAL REPORT
OCTOBER 31, 1997
CONTENTS

PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.

PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.

FUND TALK 6 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.

INVESTMENT CHANGES 8 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS.

INVESTMENTS 9 A COMPLETE LIST OF THE FUND'S INVESTMENTS.

FINANCIAL STATEMENTS 21 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.

NOTES 25 NOTES TO THE FINANCIAL STATEMENTS.

(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Although financial turmoil in Pacific Basin countries was a catalyst
for significant volatility in U.S. markets in late October, the
Standard & Poor's 500 Index remained up more than 25% year-to-date,
twice its historical annual average. Meanwhile, bond markets -
primarily influenced by a relatively steady flow of positive news on
the inflation front- continued to post moderate returns through the
first 10 months of 1997.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. You should also keep money you'll need in the near future in a
more stable investment.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are
available 24 hours a day, seven days a week to provide you the
information you need to make the investments that are right for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE

To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income and the effect of the fund's $5 account closeout fee
on an average-sized account. Yield measures the income paid by a fund.
Since a money market fund tries to maintain a $1 share price, yield is
an important measure of performance. If Fidelity had not reimbursed
certain fund expenses, the past five year and life of fund total
returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1997 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

SPARTAN MONEY MARKET FUND 2.69% 5.33% 25.51% 62.96%

ALL TAXABLE MONEY MARKET FUNDS AVERAGE 2.56% 5.06% 23.43% 56.49%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on January 23, 1989. For example, if
you had invested $1,000 in a fund that had a 5% return over the past
year, the value of your investment would be $1,050. To measure how the
fund's performance stacked up against its peers, you can compare it to
the all taxable money market funds average, which reflects the
performance of taxable money market funds with similar objectives
tracked by IBC Financial Data, Inc. The past six months average
represents a peer group of 878 mutual funds. (The periods covered by
IBC Financial Data, Inc. numbers are the closest available match to
those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1997 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

SPARTAN MONEY MARKET FUND 5.33% 4.65% 5.72%

ALL TAXABLE MONEY MARKET FUNDS AVERAGE 5.06% 4.30% 5.25%

5.30% 5.30% 5.22% 5.10% 5.12%
SPARTAN MONEY MARKET FUND

ALL TAXABLE MONEY MARKET 5.03% 5.02% 4.96% 4.82% 4.82%
FUNDS AVERAGE

10/29/97 7/30/97 4/30/97 1/29/97 10/30/96

2.65% 2.64% 2.64% 2.62% 2.66%
MMDA

Row: 1, Col: 1, Value: 5.3
Row: 1, Col: 2, Value: 5.03
Row: 1, Col: 3, Value: 2.65
Row: 2, Col: 1, Value: 5.3
Row: 2, Col: 2, Value: 5.02
Row: 2, Col: 3, Value: 2.64
Row: 3, Col: 1, Value: 5.22
Row: 3, Col: 2, Value: 4.96
Row: 3, Col: 3, Value: 2.64
Row: 4, Col: 1, Value: 5.1
Row: 4, Col: 2, Value: 4.819999999999999
Row: 4, Col: 3, Value: 2.62
Row: 5, Col: 1, Value: 5.119999999999999
Row: 5, Col: 2, Value: 4.819999999999999
Row: 5, Col: 3, Value: 2.66
6% -
5% -
4% -
3% -
2% -
1% -
0%
Spartan
Money Market Fund
All Taxable Money
Market Funds Average
MMDA
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
chart above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the all
taxable money market funds average and the bank money market deposit
account (MMDA) average. Figures for the all taxable money market funds
average are from IBC Financial Data, Inc. The MMDA average is supplied
by BANK RATE MONITOR.(Trademark)
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.

COMPARING
PERFORMANCE
There are some important
differences between a bank
money market deposit account
(MMDA) and a money market
fund. First, the U.S.
government neither insures nor
guarantees a money market
fund. In fact, there is no
assurance that a money
market fund will maintain a
$1 share price. Second, a
money market fund returns
to its shareholders income
earned by the fund's
investments after expenses.
This is in contrast to banks,
which set their MMDA rates
periodically based on current
interest rates, competitors'
rates, and internal criteria.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

An interview with John Todd, Portfolio Manager of Spartan Money Market
Fund
Q. JOHN, WHAT HAS THE INVESTMENT ENVIRONMENT BEEN LIKE OVER THE PAST
SIX MONTHS?
A. The central theme was robust economic growth with no noticeable
threats posed by inflation. Just before the beginning of the period,
the Federal Reserve Board raised the rate banks charge each other for
overnight loans - known as the fed funds rate - by 0.25 percentage
points to 5.50%. The Fed was attempting to slow the momentum in the
economy that it feared might translate into a build-up of inflationary
pressures. Since then, real economic growth - as measured by real
gross domestic product, or GDP, adjusted for inflation - has slowed
from a 4.9% annual rate in the first quarter of 1997 to 3.3% in the
second and third quarters. While a growth rate this strong is
believed to be above the economy's capacity to expand without
generating inflation, pressure from political and business leaders has
kept the Fed on the sidelines. The Fed appears to be waiting to see
actual signs of inflation before raising rates again, instead of
taking pre-emptive steps to slow growth to head off inflation before
it emerges.
Q. DID ANY INDICATIONS OF IMMINENT INFLATION EMERGE?
A. No. As a matter of fact, the GDP deflator, which is the broadest
measure of inflation in the economy, showed that inflation in the
third quarter of 1997 increased at its lowest quarterly rate since
1967. However, job and income growth remained strong, and consumer
confidence was at or near record highs. One of the main drivers of
economic growth was personal consumption, which was very strong in the
first quarter, backed off in the second quarter and surged again in
the third quarter. If this pattern holds, consumption should slow
somewhat in the fourth quarter. In fact, personal savings rates hit
an all-time low in September, suggesting that consumers may slow down
their spending and, hence, dampen overall economic growth. The recent
financial market difficulties in Southeast Asia also could affect the
economy. Economic slowdowns there could have a ripple effect on the
U.S. economy, because U.S. companies usually export a fair amount to
the region. In addition, since the currencies of those countries
weakened relative to the dollar, their products should become cheaper,
diminishing U.S. inflation in the coming months. Most market
participants feel this situation will push the Fed to wait even longer
before taking action on interest rates.
Q. WHAT WAS YOUR STRATEGY OVER THE PAST SIX MONTHS?
A. As we entered the period, prices in the market reflected the
sentiment that the Fed would continue with a series of interest-rate
increases that it appeared to begin in March. I felt that the market
was jumping the gun and that the resulting yields offered by
longer-term securities were particularly attractive. As a result, I
extended the fund's average maturity to the low 70-day range. Moving
into the summer, the markets reversed course, with prices and yields
indicating that the Fed would hold off making any moves for the
foreseeable future. So, I let the fund's maturity slip back to the
low 60s. When the economy didn't slow as expected in late summer and
early autumn, the market once again changed direction and started to
price near-term Fed interest-rate increases back into the market. As
a consequence, yields for securities with longer-term maturities
became attractive, so I lengthened the maturity so that at the end of
the period it stood at 75 days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on October 31, 1997, was 5.31%, compared
to 5.23% six months ago. For the six months that ended October 31,
1997, the fund had a total return of 2.69%, compared to 2.56% for the
all taxable money market funds average, according to IBC Financial
Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. As I said, it appears consumption - and therefore, growth - will
slow in the fourth quarter. Nevertheless, I still believe real GDP in
the fourth quarter will grow at about 3%. In the past, that level
would have signaled very strong growth. Compared to the past four
quarters, however, GDP at that level would indicate a slowdown. As we
head toward the new year, the Fed may wait until the beginning of 1998
to act on interest rates to determine whether or not the slowdown
materializes. But as we move through 1998, increasing wage and
benefits costs may spark inflation, which would probably trigger some
sort of Fed action.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
FUND FACTS
GOAL: SEEKS HIGH CURRENT
INCOME WITH SHARE PRICE
STABILITY BY INVESTING IN
HIGH-QUALITY, SHORT-TERM MONEY
MARKET SECURITIES OF ALL TYPES
START DATE: JANUARY 23, 1989
FUND NUMBER: 454
TRADING SYMBOL: SPRXX
SIZE: AS OF OCTOBER 31, 1997,
MORE THAN $8.8 BILLION
MANAGER: JOHN TODD, SINCE
1989; MANAGER, FIDELITY SELECT
MONEY MARKET PORTFOLIO, SINCE
1991; SHORT-TERM AND MONEY
MARKET INVESTMENTS FOR THE
FIDELITY ASSET MANAGER FUNDS,
SINCE 1996; FIDELITY CASH
RESERVES, SINCE APRIL 1997;
JOINED FIDELITY IN 1981
(CHECKMARK)
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
10/31/97 4/30/97 10/31/96

0 - 30 45 57 45

31 - 90 26 20 26

91 - 180 20 11 25

181 - 397 9 12 4

WEIGHTED AVERAGE MATURITY
10/31/97 4/30/97 10/31/96

SPARTAN MONEY MARKET 75 DAYS 69 DAYS 60 DAYS

ALL TAXABLE MONEY 55 DAYS 52 DAYS 53 DAYS
MARKET FUNDS AVERAGE*

ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF OCTOBER 31, 1997 AS OF APRIL 30,1997
ROW: 1, COL: 1, VALUE: 2.0
ROW: 1, COL: 2, VALUE: 3.0
ROW: 1, COL: 3, VALUE: 28.0
ROW: 1, COL: 4, VALUE: 67.0
ROW: 1, COL: 1, VALUE: 0.0
ROW: 1, COL: 2, VALUE: 7.0
ROW: 1, COL: 3, VALUE: 27.0
ROW: 1, COL: 4, VALUE: 66.0
BANK CD'S,
BAS, TDS,
AND NOTES 68%
COMMERCIAL PAPER 28%
GOVERNMENT
SECURITIES 3%
OTHER 1%

BANK CD'S,
BAS, TDS,
AND NOTES 66%
COMMERCIAL PAPER 27%
GOVERNMENT
SECURITIES 7%
OTHER 0%
* SOURCE: IBC'S MONEY FUND SOURCE (registered trademark)
INVESTMENTS OCTOBER 31, 1997 (UNAUDITED)

SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS IN SECURITIES

CERTIFICATES OF DEPOSIT - 46.1%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
DOMESTIC CERTIFICATES OF DEPOSIT - 2.9%
Bank of America National Trust & Savings Assoc.
11/24/97 5.55% $ 77,000 $ 77,000
Chase Manhattan Bank (USA) Delaware
2/9/98 5.75 56,000 56,000
CoreStates Capital Corp.
11/4/97 5.61 (a) 12,000 12,000
11/28/97 5.62 (a) 5,000 5,000
Morgan Guaranty Trust Co., NY
3/19/98 5.95 50,000 49,992
8/6/98 5.90 36,995 36,987
Wachovia Bank NA
9/17/98 5.55 (a) 15,000 14,990
251,969
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 29.3%
ABN-AMRO Bank NV
1/22/98 5.65 30,000 29,998
3/2/98 5.68 48,000 48,000
3/2/98 5.71 45,000 44,998
3/19/98 6.00 45,000 44,997
8/14/98 5.90 27,000 27,003
Australia & New Zealand Banking
3/2/98 5.71 7,000 7,001
Bank of Montreal, Canada
11/17/97 5.54 65,000 65,000
Bank of Nova Scotia
7/21/98 5.97 12,000 11,987
8/31/98 5.97 30,000 29,985
Bank of Tokyo - Mitsubishi Ltd.
1/22/98 5.75 20,000 20,000
Banque Nationale de Paris
11/3/97 5.57 45,000 45,000
2/3/98 5.65 19,000 19,000
Barclays Bank, PLC
11/3/97 5.54 21,000 21,000
11/17/97 5.53 170,000 170,000
1/16/98 5.80 58,000 57,994
Bayerische Hypotheken-und Wechsel
11/3/97 5.54 50,000 50,000
11/24/97 5.54 16,000 16,000
Bayerische Landesbank Girozentrale
2/10/98 5.93 40,000 39,967
7/17/98 5.90 55,000 54,985
Caisse Nationale de Credit Agricole
11/13/97 5.86 17,000 17,000
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - CONTINUED
Canadian Imperial Bank of Commerce
11/17/97 5.54% $ 34,000 $ 34,000
12/1/97 5.58 22,000 22,000
8/28/98 5.97 55,000 54,974
Credit Agricole Indosuez
10/14/98 5.90 50,000 49,977
10/19/98 5.97 25,000 24,984
10/21/98 6.00 30,000 29,986
Credit Suisse First Boston (BK)
1/5/98 5.63 50,000 50,000
Deutsche Bank AG
4/10/98 6.25 50,000 49,990
4/15/98 6.30 30,000 29,995
8/10/98 5.91 55,000 54,976
8/10/98 5.92 27,000 26,990
10/26/98 6.00 20,000 19,989
Hongkong & Shanghai Banking Corp.
12/22/97 5.60 51,000 51,000
Landesbank Hessen - Thuringen
4/1/98 6.25 30,000 29,986
National Westminster Bank, PLC
12/19/97 5.92 20,000 19,998
3/3/98 5.80 60,000 59,994
8/10/98 6.00 13,000 12,986
9/25/98 5.88 18,000 17,986
Norddeutsche Landesbank Girozentrale
12/8/97 5.56 30,000 30,000
12/8/97 5.57 24,000 24,000
Rabobank Nederland, N.V.
3/16/98 5.75 30,000 30,000
3/20/98 6.00 55,000 54,994
3/24/98 6.05 30,000 29,993
4/10/98 6.25 25,000 24,995
4/10/98 6.26 30,000 29,992
Royal Bank of Canada
3/3/98 5.82 75,000 74,995
8/7/98 5.90 37,000 36,992
8/13/98 6.00 25,000 24,990
Royal Bank of Scotland, PLC
6/15/98 5.85 12,000 12,000
Sanwa Bank Ltd. Japan
11/26/97 5.63 27,000 27,000
1/29/98 5.79 40,000 40,001
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - CONTINUED
Societe Generale, France
11/12/97 5.90% $ 46,000 $ 46,000
11/18/97 5.58 84,000 84,000
12/1/97 5.90 13,500 13,500
4/14/98 5.75 50,000 50,000
4/15/98 5.75 50,000 50,000
Sumitomo Bank, Ltd., Japan
11/25/97 5.68 34,000 34,000
Swiss Bank Corp.
12/22/97 5.96 55,000 55,000
12/22/97 5.99 65,000 65,000
12/30/97 6.04 50,000 50,000
1/20/98 5.70 100,000 100,000
2/2/98 5.65 21,000 21,000
2/27/98 5.88 20,000 20,000
8/19/98 5.91 25,000 24,992
8/28/98 5.97 55,000 54,978
Westdeutsche Landesbank Girozentrale
12/22/97 5.62 26,000 26,000
2,594,148
PORTLAND BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.8%
Bank of Nova Scotia
4/1/98 6.20 50,000 49,988
National Westminster Bank, PLC
2/12/98 5.75 17,000 17,000
66,988
SAN FRANCISCO BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.4%
Banque Nationale de Paris
11/17/97 5.61 12,000 12,000
12/22/97 5.60 25,000 25,000
37,000
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 12.5%
Abbey National, Treasury Services
12/3/97 5.60 30,000 30,000
12/26/97 5.60 82,000 82,000
3/4/98 5.87 44,000 44,000
3/18/98 5.70 85,000 85,000
Australia & New Zealand Banking Group
2/20/98 5.70 8,000 8,000
Banco Bilbao Vizcaya, S.A.
1/21/98 5.70 8,000 8,000
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - CONTINUED
Bank of Scotland Treasury Services
12/29/97 5.75% $ 20,000 $ 20,000
Barclays Bank, PLC
1/7/98 5.64 85,000 84,993
4/23/98 5.80 65,000 65,000
Bayerische Landesbank Girozentrale
12/31/97 5.75 14,000 14,000
1/20/98 5.70 36,000 36,001
Bayerische Vereinsbank AG
12/29/97 5.75 70,000 70,001
1/26/98 5.70 29,000 29,000
3/16/98 5.72 36,000 36,004
Credit Agricole Indosuez
11/3/97 5.55 20,000 20,000
2/9/98 5.66 36,000 35,997
Den Danske Bank Group AS
12/2/97 5.57 50,000 50,000
Kredietbank, NV
12/2/97 5.54 25,000 25,001
12/2/97 5.57 25,000 25,000
12/8/97 5.55 15,000 15,000
Lloyds Bank, PLC
1/26/98 5.80 19,000 18,996
2/2/98 5.65 64,000 64,000
Norddeutsche Landesbank Girozentrale
3/16/98 5.73 9,000 9,000
Royal Bank of Scotland, PLC
12/29/97 5.75 10,000 10,000
Sanwa Bank, Ltd., Japan
1/30/98 5.75 25,000 25,001
Toronto-Dominion Bank
11/24/97 5.85 60,000 60,000
3/3/98 5.87 40,000 40,000
4/9/98 5.75 15,000 14,996
10/14/98 5.93 30,000 30,000
Westdeutsche Landesbank Girozentrale
11/24/97 5.56 25,000 25,002
3/25/98 5.75 20,000 20,013
1,100,005
LONDON BRANCH, EURODOLLAR, DOMESTIC BANKS - 0.2%
Bankers Trust Co.
11/20/97 5.60 16,000 16,000
TOTAL CERTIFICATES OF DEPOSIT 4,066,110
COMMERCIAL PAPER - 27.9%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Abbey National, North America
3/11/98 5.72% $ 52,000 $ 50,956
ABN-AMRO North America, Inc.
7/2/98 5.84 30,077 28,940
7/13/98 5.84 20,000 19,210
AC Acquisition Holding Co.
11/5/97 5.58 5,000 4,997
11/7/97 5.58 30,000 29,972
12/1/97 5.60 13,650 13,587
12/8/97 5.60 10,000 9,943
American Express Credit Corp.
11/25/97 5.55 35,000 34,871
American Home Products Corp.
12/17/97 5.60 30,000 29,788
Asset Securitization Coop. Corp.
11/6/97 5.54 20,000 19,985
11/17/97 5.55 7,000 6,983
12/11/97 5.60 37,800 37,568
1/21/98 5.70 10,000 9,874
Associates Corp. of North America
11/18/97 5.54 20,000 19,948
Bank of Nova Scotia
11/13/97 5.55 10,000 9,982
12/15/97 5.60 27,000 26,818
Bear Stearns Cos., Inc.
11/17/97 5.55 12,000 11,970
11/17/97 5.60 10,000 9,975
1/21/98 5.72 18,000 17,775
Bell Atlantic Financial Services
11/7/97 5.57 35,000 34,968
BMW US Capital Corp.
11/10/97 5.62 18,000 17,975
12/1/97 5.57 25,000 24,885
12/22/97 5.61 11,000 10,914
Bradford & Bingley Building Society
12/29/97 5.77 35,000 34,684
3/16/98 5.72 10,000 9,791
Caisse des Depots et Consigns
11/14/97 5.54 9,032 9,014
Chase Manhattan Corp.
12/1/97 5.85 45,000 44,787
CIESCO, L.P.
11/24/97 5.55 15,000 14,947
Citibank Credit Card Master Trust I (Dakota Certificate Program)
11/10/97 5.62 5,000 4,993
11/13/97 5.62 6,000 5,989
11/17/97 5.55 10,000 9,975
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Commonwealth Bank of Australia
3/16/98 5.70% $ 18,000 $ 17,626
CoreStates Capital Corp.
11/3/97 5.61 (a) 13,000 13,000
Delaware Funding Corporation
11/26/97 5.58 10,000 9,962
Den Danske Corp., Inc.
11/26/97 5.58 30,000 29,884
12/16/97 5.59 50,000 49,656
Deutsche Bank Financial Inc.
11/12/97 5.53 100,000 99,832
Dresdner U.S. Finance Inc.
11/4/97 5.54 42,000 41,981
Eiger Capital Corp.
11/12/97 5.54 7,000 6,988
11/12/97 5.55 6,000 5,990
Enterprise Funding Corp.
11/13/97 5.54 37,321 37,252
11/17/97 5.55 5,053 5,041
11/17/97 5.56 10,481 10,455
11/19/97 5.55 5,000 4,986
11/20/97 5.57 10,000 9,971
11/26/97 5.60 3,660 3,646
12/4/97 5.57 10,000 9,949
Ford Motor Credit Corp.
11/18/97 5.55 50,000 49,869
12/19/97 5.58 12,800 12,706
General Electric Capital Corp.
11/17/97 5.58 45,000 44,889
11/17/97 5.82 55,000 54,862
12/1/97 5.85 45,000 44,787
1/22/98 6.12 35,000 34,534
1/28/98 5.95 45,000 44,371
3/30/98 5.71 40,000 39,081
4/6/98 5.79 60,000 58,544
General Electric Capital Services Inc.
11/20/97 5.58 50,000 49,854
General Electric Co.
11/13/97 5.53 5,000 4,991
General Motors Acceptance Corp.
11/3/97 5.78 11,000 10,996
11/3/97 6.02 26,000 25,992
11/10/97 6.02 50,000 49,927
11/12/97 6.02 17,000 16,970
11/17/97 5.56 95,000 94,767
11/17/97 5.61 35,000 34,914
11/19/97 5.58 20,000 19,944
11/19/97 5.59 44,000 43,878
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
General Motors Acceptance Corp. - continued
12/9/97 5.68% $ 11,000 $ 10,934
3/9/98 5.76 60,000 58,807
Generale de Banque, S.A.
3/3/98 5.72 14,000 13,736
Goldman Sachs Group, L.P. (The)
11/13/97 5.57 31,000 30,943
11/18/97 5.57 23,000 22,940
1/23/98 6.09 10,000 9,866
1/26/98 6.10 45,000 44,373
Grand Met Capital Corp.
1/7/98 5.70 10,000 9,897
Halifax Building Society
12/11/97 5.61 23,900 23,753
Matterhorn Capital Corp. (LOC Union Bank of Switzerland)
12/1/97 5.56 5,000 4,977
Merrill Lynch & Co., Inc.
11/4/97 5.54 7,186 7,183
1/14/98 5.71 15,000 14,829
3/16/98 5.73 29,000 28,394
Morgan Stanley, Dean Witter, Discover & Co.
11/24/97 5.55 13,000 12,954
2/23/98 5.60 (a) 62,000 62,000
NationsBank Corp.
11/19/97 5.54 15,000 14,959
Nationwide Building Society
11/4/97 5.61 18,000 17,992
New Center Asset Trust
11/7/97 5.89 8,000 7,992
11/19/97 5.58 9,000 8,975
Norfolk Southern Corp.
11/4/97 5.74 13,428 13,422
11/6/97 5.75 3,500 3,497
11/19/97 5.70 6,000 5,983
11/20/97 5.71 10,000 9,970
11/24/97 5.71 11,000 10,960
Preferred Receivables Funding Corp.
11/4/97 5.54 32,000 31,985
11/12/97 5.54 6,000 5,990
11/12/97 5.59 21,000 20,964
11/17/97 5.56 5,000 4,988
11/18/97 5.56 6,040 6,024
11/25/97 5.57 8,000 7,970
Rabobank U.S.A. Financial Corp.
4/1/98 5.70 24,000 23,442
Sears Roebuck Acceptance Corp.
11/12/97 5.58 14,000 13,976
11/24/97 5.58 15,000 14,947
1/27/98 5.67 16,000 15,784
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Societe Generale North America, Inc.
11/19/97 5.55% $ 40,000 $ 39,890
12/10/97 5.57 8,000 7,952
Textron, Inc.
11/3/97 5.80 5,000 4,998
11/4/97 5.71 10,000 9,995
11/5/97 5.68 3,000 2,998
11/13/97 5.66 2,000 1,996
11/13/97 5.68 3,000 2,994
Toronto Dominion Holdings USA, Inc.
12/23/97 5.75 22,000 21,822
Triple A One Funding Corp.
11/5/97 5.59 6,464 6,460
11/17/97 5.57 7,000 6,983
11/18/97 5.56 12,000 11,969
11/20/97 5.57 26,195 26,119
Westpac Capital Corp.
12/1/97 5.87 15,000 14,929
TOTAL COMMERCIAL PAPER 2,462,670
FEDERAL AGENCIES (A) - 2.8%
FEDERAL HOME LOAN BANK - AGENCY COUPONS - 0.4%
12/4/97 5.62 35,000 34,997
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS - 2.4%
12/9/97 5.56 130,000 129,988
6/12/98 5.62 85,000 84,975
214,963
TOTAL FEDERAL AGENCIES 249,960
BANK NOTES - 7.2%
BankBoston NA
11/12/97 5.55 40,000 40,000
11/17/97 5.53 10,000 10,000
BankOne, Columbus, NA
11/4/97 5.68 (a) 66,000 65,972
Comerica Bank, Detroit
3/27/98 6.20 40,000 39,970
11/17/97 5.59 (a) 20,000 19,990
BANK NOTES - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
First Bank NA - Minnesota
11/19/97 5.59% (a) $ 25,000 $ 24,990
First of America Bank - Illinois
11/13/97 5.91 23,000 22,998
Key Bank National Association
6/12/98 5.59 (a) 30,000 29,989
7/24/98 5.51 (a) 32,000 31,985
8/28/98 5.55 (a) 25,000 24,986
8/28/98 5.61 (a) 39,000 38,978
9/23/98 5.60 (a) 12,000 11,992
Morgan Guaranty Trust Co., NY
8/31/98 5.85 30,710 30,722
8/31/98 5.97 38,000 37,988
National City Bank - Pennsylvania
11/3/97 5.62 27,000 26,986
NBD Bank, NA - Detroit, Michigan
3/2/98 5.82 40,000 39,996
Northern Trust Co., Chicago
11/3/97 5.61 (a) 25,000 24,989
PNC Bank NA
11/3/97 5.57 (a) 12,000 11,993
11/12/97 5.58 (a) 37,000 36,998
11/28/97 5.62 (a) 26,000 25,991
9/25/98 5.60 (a) 9,000 9,006
SouthTrust Bank - Alabama
11/12/97 5.59 (a) 16,000 15,992
U.S. Bank NA
11/19/97 5.58 (a) 16,000 15,990
TOTAL BANK NOTES 638,501
MASTER NOTES (A) - 3.4%
Goldman Sachs Group, L.P. (The) (c)
11/7/97 5.72 18,000 18,000
12/16/97 5.72 85,000 85,000
J.P. Morgan Securities, Inc.
11/3/97 5.88 133,000 133,000
Norwest Corp.
11/3/97 5.65 51,000 51,000
Suntrust Banks Inc.
11/3/97 5.60 15,000 15,000
TOTAL MASTER NOTES 302,000
MEDIUM-TERM NOTES (A) - 3.7%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Beneficial Corp.
11/5/97 5.61% $ 17,000 $ 16,996
12/25/97 5.77 18,000 17,991
Commonwealth Life Insurance Co. (c)
11/28/97 5.83 35,000 35,000
General Motors Acceptance Corp.
11/1/97 5.71 47,000 47,000
11/3/97 5.71 18,000 17,999
Merrill Lynch & Co., Inc.
11/3/97 5.67 38,000 37,997
11/4/97 5.63 17,000 16,998
Norwest Corp.
1/22/98 5.83 50,000 50,000
Pacific Mutual Life Insurance Co. (b)
12/9/97 5.76 35,000 35,000
Transamerica Life Insurance and Annuity Co.
11/3/97 (c) 5.69 20,000 20,000
12/16/97 5.75 30,000 30,000
TOTAL MEDIUM-TERM NOTES 324,981
SHORT-TERM NOTES (A) - 5.0%
Capital One Funding Corp. (1994-E)
11/7/97 5.61 7,573 7,573
Capital One Funding Corp. (1995-D)
11/7/97 5.61 7,530 7,530
Capital One Funding Corp. (1995-E)
11/7/97 5.61 5,800 5,800
Capital One Funding Corp. (1996-H)
11/7/97 5.67 8,120 8,120
Capital One Funding Corp. (1996-I)
11/7/97 5.61 11,337 11,337
Capital One Funding Corp. (1997-F)
11/7/97 5.61 10,000 10,000
Liquid Asset Backed Securities Trust (1997-5) (b)
11/17/97 5.61 82,000 82,000
Liquid Asset Backed Securities Trust (1996-1) (b)
10/15/98 5.61 41,000 41,000
Liquid Asset Backed Securities Trust (1996-2) (b)
11/3/97 5.69 57,000 57,000
SMM Trust (1996-P) (b)
11/17/97 5.66 57,000 57,000
SMM Trust (1997-I) (b)
11/28/97 5.66 37,000 37,000
SMM Trust (1997-V) (b)
11/26/97 5.66 60,000 60,000
SMM Trust (1997-W) (b)
11/17/97 5.63 53,000 53,000
TOTAL SHORT-TERM NOTES 437,360
TIME DEPOSITS - 3.1%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Bank of Tokyo - Mitsubishi Ltd.
11/3/97 5.63% $ 83,000 $ 83,000
11/14/97 5.60 80,000 80,000
Sumitomo Bank, Ltd., Japan
11/4/97 5.69 20,000 20,000
11/5/97 5.66 17,000 17,000
11/12/97 5.63 54,000 54,000
11/24/97 5.63 20,000 20,000
TOTAL TIME DEPOSITS 274,000
REPURCHASE AGREEMENTS - 0.8%
MATURITY AMOUNT
(000S)
In a joint trading account
(U.S. Government Obligations)
dated 10/31/97 due 11/3/97
At 5.73% $ 73,087 73,052
TOTAL INVESTMENTS - 100% $ 8,828,634
Total Cost for Income Tax Purposes $ 8,828,634
LEGEND
3. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
4. Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At the
period end, the value of these securities amounted to $422,000,000 or
4.8% of net assets.
5. Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST (000S)
Goldman Sachs
Group, L.P. (The):
5.72%, 12/16/97 6/11/97 $ 85,000
5.72%, 11/7/97 8/5/97 $ 18,000
Commonwealth Life
Insurance Co.
5.83%, 11/28/97 7/1/97 $ 35,000
Transamerica Life Insurance
and Annuity Co.
5.69%, 11/3/97 5/7/97 $ 20,000
INCOME TAX INFORMATION
At April 30, 1997, the fund had a capital loss carryforward of
approximately $2,742,000 of which $211,000, $1,893,000, $476,000 and
$162,000 will expire on April 30, 2001, 2002, 2003 and 2004,
respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
(EXCEPT PER-SHARE AMOUNTS) OCTOBER 31, 1997 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE (INCLUDING REPURCHASE $ 8,828,634
AGREEMENTS OF $73,052) - SEE ACCOMPANYING SCHEDULE

INTEREST RECEIVABLE 78,725

TOTAL ASSETS 8,907,359

LIABILITIES

PAYABLE TO CUSTODIAN BANK $ 10

SHARE TRANSACTIONS IN PROCESS 72,492

DISTRIBUTIONS PAYABLE 946

ACCRUED MANAGEMENT FEE 3,533

TOTAL LIABILITIES 76,981

NET ASSETS $ 8,830,378

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 8,833,016

ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (2,638)

NET ASSETS, FOR 8,832,505 SHARES OUTSTANDING $ 8,830,378

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($8,830,378 (DIVIDED BY) 8,832,505 SHARES)

</TABLE>

STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED)

INTEREST INCOME $ 259,750

EXPENSES

MANAGEMENT FEE $ 20,339

NON-INTERESTED TRUSTEES' COMPENSATION 16

TOTAL EXPENSES BEFORE REDUCTIONS 20,355

EXPENSE REDUCTIONS (92) 20,263

NET INTEREST INCOME 239,487

NET REALIZED GAIN (LOSS) ON INVESTMENTS 103

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 239,590

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, 1997 APRIL 30,
(UNAUDITED) 1997

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 239,487 $ 453,728
NET INTEREST INCOME

NET REALIZED GAIN (LOSS) 103 90

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 239,590 453,818
FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (239,487) (453,728)

SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 7,357,704 13,164,275
PROCEEDS FROM SALES OF SHARES

REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 233,149 441,878

COST OF SHARES REDEEMED (8,060,224) (12,757,142)

NET INCREASE (DECREASE) IN NET ASSETS AND SHARES (469,371) 849,011
RESULTING FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (469,268) 849,101

NET ASSETS

BEGINNING OF PERIOD 9,299,646 8,450,545

END OF PERIOD $ 8,830,378 $ 9,299,646

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED APRIL 30,
OCTOBER 31, 1997

(UNAUDITED) 1997 1996 1995 1994 1993

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF PERIOD

INCOME FROM INVESTMENT .027 .051 .054 .049 .031 .035
OPERATIONS
NET INTEREST INCOME

LESS DISTRIBUTIONS

FROM NET (.027) (.051) (.054) (.049) (.031) (.035)
INTEREST INCOME

NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD

TOTAL RETURN B 2.69% 5.21% 5.57% 4.97% 3.14% 3.51%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF $ 8,830 $ 9,300 $ 8,451 $ 7,635 $ 6,453 $ 4,542
PERIOD (IN MILLIONS)

RATIO OF EXPENSES TO .45% .45% .45% .44% .31% .30%
AVERAGE NET ASSETS A C C

RATIO OF EXPENSES TO .45% .45% .42% .44% .31% .30%
AVERAGE NET ASSETS A D
AFTER EXPENSE
REDUCTIONS

RATIO OF NET INTEREST 5.29% 5.09% 5.45% 4.89% 3.12% 3.46%
INCOME TO AVERAGE A
NET ASSETS

</TABLE>

6. SIGNIFICANT ACCOUNTING POLICIES.
Spartan Money Market Fund (the fund) is a fund of Fidelity Hereford
Street Trust (the trust) and is authorized to issue an unlimited
number of shares. The trust is registered under the Investment Company
Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Delaware business trust. The
financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for its fiscal year. The schedule of investments
includes information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
between the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
7. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other
affiliated entities of Fidelity Management & Research Company (FMR),
may transfer uninvested cash balances into one or more joint trading
accounts. These balances are invested in one or more repurchase
agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
2. OPERATING POLICIES -
CONTINUED
RESTRICTED SECURITIES. The fund is permitted to invest in securities
that are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from
registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations
and expense, and prompt sale at an acceptable price may be difficult.
At the end of the period, restricted securities (excluding 144A
issues) amounted to $158,000,000 or 1.8% of net assets.
8. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR pays all
expenses, except the compensation of the non-interested Trustees and
certain exceptions such as interest, taxes, brokerage commissions and
extraordinary expenses. FMR receives a fee that is computed daily at
an annual rate of .45% of the fund's average net assets.
FMR also bears the cost of providing shareholder services to the fund.
To offset the cost of providing shareholder services, FMR or its
affiliates collect certain account fees from the fund's shareholders.
For the period, fees collected from shareholders amounted to $115,000.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc.,
a wholly owned subsidiary of FMR, receives a fee from FMR of 50% of
the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect.
9. EXPENSE REDUCTIONS.
FMR has entered into an arrangement on behalf of the fund with the
fund's transfer agent whereby credits realized as a result of
uninvested cash balances were used to reduce a portion of the fund's
expenses. During the period, the fund's expenses were reduced by
$92,000 under this arrangement.
MANAGING YOUR INVESTMENTS

For quotes.*

For account balances and holdings.

To review orders and mutual
fund activity.

To change your PIN.

TO WRITE FIDELITY

If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and
send you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
2300 Litton Lane - KH1A
Hebron, KY 41048
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Boyce I. Greer, Vice President
Fred L. Henning, Jr., Vice President
John Todd, Vice President
Arthur S. Loring, Secretary
Richard A. Silver, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
* INDEPENDENT TRUSTEES
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
FIDELITY'S TAXABLE MONEY MARKET FUNDS
Fidelity Cash Reserves
Fidelity Daily Income Trust
Fidelity U.S. Government Reserves
Spartan Money Market Fund
Spartan U.S. Government
Money Market Fund
Spartan U.S. Treasury
Money Market Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
TouchTone Xpress 1-800-544-5555
SM
AUTOMATED LINE FOR QUICKEST SERVICE

SPARTAN
(REGISTERED TRADEMARK)

(REGISTERED TRADEMARK)

U.S. TREASURY
MONEY MARKET
FUND
SEMIANNUAL REPORT
OCTOBER 31, 1997
CONTENTS

PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.

PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.

FUND TALK 6 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.

INVESTMENT CHANGES 8 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS
AND ONE YEAR.

INVESTMENTS 9 A COMPLETE LIST OF THE FUND'S INVESTMENTS.

FINANCIAL STATEMENTS 11 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.

NOTES 15 NOTES TO THE FINANCIAL STATEMENTS.

To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income and the effect of the fund's $5 account closeout fee
on an average-sized account. Yield measures the income paid by a fund.
Since a money market fund tries to maintain a $1 share price, yield is
an important measure of performance. If Fidelity had not reimbursed
certain fund expenses, the past five year and the life of fund total
returns and dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1997 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

SPARTAN U.S. TREASURY MONEY MARKET 2.53% 5.01% 23.36% 68.67%

100% U.S. TREASURY MONEY MARKET 2.40% 4.77% 22.29% 65.33%
FUNDS AVERAGE

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on January 5, 1988. For example, if
you had invested $1,000 in a fund that had a 5% return over the past
year, the value of your investment would be $1,050. To measure how the
fund's performance stacked up against its peers, you can compare it to
the 100% U.S. Treasury money market funds average, which reflects the
performance of 100% U.S. Treasury money market funds with similar
objectives tracked by IBC Financial Data, Inc. The past six months
average represents a peer group of 36 mutual funds. (The periods
covered by IBC Financial Data, Inc. numbers are the closest available
match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1997 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

SPARTAN U.S. TREASURY MONEY MARKET 5.01% 4.29% 5.46%

100% U.S. TREASURY MONEY MARKET 4.77% 4.10% 5.29%
FUNDS AVERAGE

SPARTAN U.S. TREASURY 4.92% 4.96% 4.95% 4.84% 4.82%
MONEY MARKET

100% U.S. TREASURY MONEY 4.68% 4.74% 4.72% 4.56% 4.60%
MARKET FUNDS AVERAGE

10/29/97 7/30/97 4/30/97 1/29/97 10/30/96

2.65% 2.64% 2.64% 2.62% 2.66%
MMDA

Row: 1, Col: 1, Value: 4.95
Row: 1, Col: 2, Value: 4.72
Row: 1, Col: 3, Value: 2.64
Row: 2, Col: 1, Value: 4.84
Row: 2, Col: 2, Value: 4.56
Row: 2, Col: 3, Value: 2.62
Row: 3, Col: 1, Value: 4.819999999999999
Row: 3, Col: 2, Value: 4.6
Row: 3, Col: 3, Value: 2.66
Row: 4, Col: 1, Value: 4.770000000000001
Row: 4, Col: 2, Value: 4.58
Row: 4, Col: 3, Value: 2.69
Row: 5, Col: 1, Value: 4.770000000000001
Row: 5, Col: 2, Value: 4.51
Row: 5, Col: 3, Value: 2.67
Spartan
U.S. Treasury
Money Market
100% U.S.
Treasury Money
Market Funds
Average
MMDA
6% -
5% -
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
chart above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the 100%
U.S. Treasury money market funds average and the bank money market
deposit account (MMDA) average. Figures for the 100% U.S. Treasury
money market funds average are from IBC Financial Data, Inc. The MMDA
average is supplied by BANK RATE MONITOR(Trademark).
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.

COMPARING
PERFORMANCE
There are some important
differences between a bank
money market deposit account
(MMDA) and a money market
fund. First, the U.S. government
neither insures nor guarantees
a money market fund. In fact,
there is no assurance that a
money market fund will
maintain a $1 share price.
Second, a money market fund
returns to its shareholders
income earned by the fund's
investments after expenses. This
is in contrast to banks, which
set their MMDA rates
periodically based on current
interest rates, competitors' rates,
and internal criteria.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Robert Litterst, Portfolio Manager of Spartan
U.S. Treasury Money Market Fund
Q. BOB, WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST SIX
MONTHS?
A. At the end of March, the Federal Reserve Board raised the rate
banks charge each other for overnight loans - known as the fed funds
rate - from 5.25% to 5.50%. The Fed did so in order to slow growth and
head off any inflationary pressures that may have been building in the
economy. As we entered the summer, short-term interest rates rose as
most in the market expected the Fed to continue raising rates.
However, the Fed held off because inflation was well contained and it
expected economic activity to slow. Contrary to the Fed's forecast,
the economy continued on a solid pace in the third quarter, with real
GDP - gross domestic product adjusted for inflation - growing at a
3.5% annual rate. Over each of the past four quarters, real GDP has
grown at about a 4% annual rate, clearly above estimates of the
economy's non-inflationary potential. Despite subdued inflation
currently, many feel that growth at this rate will result in a rise in
inflation at some point. Nonetheless, the Fed has been patient, and
appears willing to tolerate strong growth until clear signs of rising
inflation emerge.
Q. WERE THERE OTHER FACTORS THAT DROVE THE MARKET FOR SHORT-TERM U.S.
TREASURY SECURITIES?
A. Yes, there were. As the budget deficit has declined, so have the
financing needs of the U.S. Treasury. As a result of reduced issuance
and a large pay-down of Treasury debt in the second quarter, the
supply of Treasuries has fallen. Combined with strong demand from both
foreign and domestic investors during the period, this situation
pushed yields on Treasuries lower and prices on them higher .
Q. WHAT SORT OF STRATEGY DID YOU PURSUE?
A. I've used a barbell strategy - concentrating the fund on either end
of the maturity spectrum - investing in one- or two-month Treasury
securities on the one hand and in issues with longer maturities on
the other. I've been purchasing longer-term securities at moments of
market weakness when the short-term yield curve steepens and longer
investments present attractive values. The very short-term securities
help to balance the portfolio and serve a defensive purpose that will
help the fund if the Fed raises rates again. Overall, the fund's
average maturity tended to be longer than the average of its peers.
Q. HOW DID THE FUND PERFORM OVER THE SIX-MONTH PERIOD?
A. On October 31, 1997, the fund's seven-day yield was 4.93%, compared
to 4.95% six months ago. The fund's total return for the six months
was 2.53%, compared to the 2.40% total return for the 100% U.S.
Treasury money market funds average tracked by IBC Financial Data,
Inc.
Q. WHAT'S YOUR OUTLOOK?
A. Although broad measures of inflation are well controlled, the
economy is strong and wage pressures appear to be building. Fed
Chairman Alan Greenspan is concerned that increased costs due to
continued tightness in the labor market eventually will be passed on
to the consumer. If the economy continues to expand rapidly and pushes
the unemployment rate lower, then higher inflation is likely to
materialize and further Fed rate increases are probably in the offing.
One factor that may keep the Fed on the sidelines a bit longer than
anticipated is the recent market turmoil in Southeast Asia and its
influence on domestic markets. Any market instability probably will
influence the Fed to act in a more cautious manner, unless we see
clear signs of inflation. In addition, a slowdown in Southeast Asia
would tend to dampen U.S. economic growth and to moderate inflation
pressures. Nonetheless, while the turmoil in global financial markets
may affect the timing of future Fed interest-rate changes, it is
unlikely to alter the Fed's ultimate policy decisions, which are
driven by domestic economic considerations.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.

FUND FACTS
GOAL: income while
maintaining a stable $1
share price by investing in
U.S. Treasury money market
securities whose interest is free
from state and local taxes
START DATE: January 5, 1988
FUND NUMBER: 415
TRADING SYMBOL: FDLXX
SIZE: as of October 31, 1997,
more than $1.8 billion
MANAGER: Robert Litterst, since
April 1997; manager, several
Fidelity and Spartan taxable
money market funds; joined
Fidelity in 1991
(checkmark)
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
10/31/97 4/30/97 10/31/96

0 - 30 26 21 25

31 - 90 37 42 39

91 - 180 33 27 33

181 - 397 4 10 3

WEIGHTED AVERAGE MATURITY
10/31/97 4/30/97 10/31/96

SPARTAN U.S. TREASURY
MONEY MARKET FUND 78 DAYS 80 DAYS 73 DAYS

100% U.S. TREASURY
MONEY MARKET FUNDS
AVERAGE* 65 DAYS 62 DAYS 63 DAYS

ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF OCTOBER 31, 1997 AS OF APRIL 30, 1997

4
Row: 1, Col: 1, Value: 77.0
Row: 1, Col: 2, Value: 23.0
U.S. Treasury
bills 17%
U.S. Treasury
notes 83%

U.S. Treasury
bills 23%
U.S. Treasury
notes 77%

Row: 1, Col: 1, Value: 83.0
Row: 1, Col: 2, Value: 17.0
*SOURCE: IBC'S MONEY FUND REPORT (registered trademark)
INVESTMENTS OCTOBER 31, 1997 (UNAUDITED)

Showing Percentage of Total Value of Investments in Securities

U.S. TREASURY OBLIGATIONS - 100%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE
U.S. TREASURY BILLS - 22.7%
11/13/97 5.40% $ 4,532 $ 4,524
1/22/98 5.21 160,000 158,167
1/22/98 5.22 33,000 32,622
1/22/98 5.24 130,000 128,504
4/2/98 6.00 35,000 34,164
4/30/98 6.01 30,000 29,140
4/30/98 6.04 20,000 19,435
4/30/98 6.07 11,000 10,689
417,245
U.S. TREASURY NOTES - 77.3%
11/15/97 5.10 96,000 96,060
11/15/97 5.30 10,000 10,006
11/15/97 5.36 50,000 50,028
11/15/97 5.38 72,660 72,700
11/30/97 5.14 64,000 63,976
11/30/97 5.18 140,000 139,996
11/30/97 5.30 3,577 3,577
11/30/97 5.36 30,000 29,997
11/30/97 5.37 12,000 11,999
11/30/97 5.39 1,258 1,258
12/31/97 5.15 57,105 57,099
12/31/97 5.16 6,900 6,899
12/31/97 5.18 35,000 34,992
12/31/97 5.19 60,000 59,990
12/31/97 5.22 75,000 74,923
12/31/97 5.30 65,000 64,978
12/31/97 5.31 59,151 59,200
1/31/98 5.35 65,000 64,912
1/31/98 5.40 180,000 179,726
1/31/98 5.41 30,000 29,958
2/15/98 5.31 15,000 15,110
2/15/98 5.32 50,000 50,249
2/15/98 5.35 14,330 14,392
2/15/98 5.50 30,000 30,130
2/15/98 5.54 25,000 25,107
2/28/98 5.72 15,000 14,966
2/28/98 5.75 30,000 29,932
3/31/98 5.33 30,000 30,088
3/31/98 5.60 15,000 15,017
3/31/98 5.73 19,000 19,012
3/31/98 5.93 20,000 19,931
4/15/98 5.41 30,000 30,318
1,406,526
U.S. TREASURY OBLIGATIONS - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE
U.S. TREASURY NOTES - CONTINUED
Principal Only STRIPS: 8/15/98 5.77% $ 10,000 $ 9,560
8/15/98 5.80 10,000 9,558
19,118
TOTAL U.S. TREASURY NOTES 1,425,644
TOTAL INVESTMENTS - 100% $ 1,842,889
Total Cost for Income Tax Purposes $ 1,842,889
INCOME TAX INFORMATION
At April 30, 1997, the fund had a capital loss carryforward of
approximately $242,000 of which $195,000 and $47,000 will expire on
April 30, 2002 and 2004, respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
(EXCEPT PER-SHARE AMOUNT) OCTOBER 31, 1997 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE - $ 1,842,889
SEE ACCOMPANYING SCHEDULE

RECEIVABLE FOR INVESTMENTS SOLD 341,911

INTEREST RECEIVABLE 26,429

TOTAL ASSETS 2,211,229

LIABILITIES

PAYABLE TO CUSTODIAN BANK $ 13

PAYABLE FOR INVESTMENTS PURCHASED 319,292

SHARE TRANSACTIONS IN PROCESS 1,535

DISTRIBUTIONS PAYABLE 208

ACCRUED MANAGEMENT FEE 711

OTHER PAYABLES AND ACCRUED EXPENSES 28

TOTAL LIABILITIES 321,787

NET ASSETS $ 1,889,442

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 1,889,430

ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS 12

NET ASSETS, FOR 1,889,430 SHARES OUTSTANDING $ 1,889,442

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($1,889,442 (DIVIDED BY) 1,889,430 SHARES)

</TABLE>

STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED)

INTEREST INCOME $ 50,761

EXPENSES

MANAGEMENT FEE $ 4,226

NON-INTERESTED TRUSTEES' COMPENSATION 5

TOTAL EXPENSES BEFORE REDUCTIONS 4,231

EXPENSE REDUCTIONS (38) 4,193

NET INTEREST INCOME 46,568

NET REALIZED GAIN (LOSS) ON INVESTMENTS 123

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 46,691

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, 1997 APRIL 30,
(UNAUDITED) 1997

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 46,568 $ 90,435
NET INTEREST INCOME

NET REALIZED GAIN (LOSS) 123 24

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 46,691 90,459
FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (46,568) (90,435)

SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 750,427 2,044,938
PROCEEDS FROM SALES OF SHARES

REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 45,149 87,196

COST OF SHARES REDEEMED (817,189) (2,015,989)

NET INCREASE (DECREASE) IN NET ASSETS AND SHARES (21,613) 116,145
RESULTING FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (21,490) 116,169

NET ASSETS

BEGINNING OF PERIOD 1,910,932 1,794,763

END OF PERIOD $ 1,889,442 $ 1,910,932

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
<C>
FINANCIAL HIGHLIGHTS SIX MONTHS ENDED YEARS ENDED APRIL 30, NINE MONTHS ENDED YEARS ENDED JULY 31,

OCTOBER 31, 1997 APRIL 30,

(UNAUDITED) 1997 1996 1995 1994 1993
1992

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000

INCOME FROM INVESTMENT OPERATIONS .025 .048 .051 .036 .030 .028 .046
NET INTEREST INCOME

LESS DISTRIBUTIONS

FROM NET INTEREST INCOME (.025) (.048) (.051) (.036) (.030) (.028) (.046)

NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000

TOTAL RETURN B 2.53% 4.92% 5.25% 3.66% 2.99% 2.87% 4.70%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (IN MILLIONS) $ 1,889 $ 1,911 $ 1,795 $ 1,678 $ 1,556 $ 1,749 $ 2,475

RATIO OF EXPENSES TO AVERAGE NET ASSETS .45% A .45% .45% .45% A, C .45% .42% .25%
C C C

RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER .45% A .45% .43% D .45% A .45% .42% .25%
EXPENSE REDUCTIONS

RATIO OF NET INTEREST INCOME TO AVERAGE 4.95% A 4.82% 5.14% 4.85% A 2.94% 2.85% 4.61%
NET ASSETS

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS
WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING
THE PERIODS SHOWN.
C FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1997 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan U.S. Treasury Money Market Fund (the fund) is a fund of
Fidelity Hereford Street Trust (the trust) and is authorized to issue
an unlimited number of shares. The trust is registered under the
Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Delaware
business trust. The financial statements have been prepared in
conformity with generally accepted accounting principles which permit
management to make certain estimates and assumptions at the date of
the financial statements. The following summarizes the significant
accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for its fiscal year. The schedule of investments
includes information regarding income taxes under the caption
"Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
between the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management
& Research Company (FMR) pays all expenses, except the compensation of
the non-interested Trustees and certain exceptions such as interest,
taxes, brokerage commissions and extraordinary expenses. FMR receives
a fee that is computed daily at an annualized rate of .45% of the
fund's average net assets.
FMR also bears the cost of providing shareholder services to the fund.
To offset the cost of providing these services, FMR or its affiliates
collect certain transaction fees from the fund's shareholders which
amounted to $17,000 for the period.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas,
Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of 50%
of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect.
3. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of the fund with the
fund's custodian and transfer agent whereby credits realized as a
result of uninvested cash balances were used to reduce a portion of
the fund's expenses. During the period, the fund's expenses were
reduced by $38,000 under these arrangements.
MANAGING YOUR INVESTMENTS

For quotes.*

For account balances and holdings.

To review orders and mutual
fund activity.

To change your PIN.

TO WRITE FIDELITY

INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas, Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Boyce I. Greer, Vice President
Fred L. Henning, Jr., Vice President
Robert Litterst, Vice President
Arthur S. Loring, Secretary
Richard A. Silver, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
* INDEPENDENT TRUSTEES
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
FIDELITY'S TAXABLE
MONEY MARKET FUNDS
Fidelity Cash Reserves
Fidelity Daily Income Trust
Fidelity U.S. Government Reserves
Spartan Money Market Fund
Spartan U.S. Government
Money Market Fund
Spartan U.S. Treasury
Money Market Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
TouchTone Xpress 1-800-544-5555
SM
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