Unassociated Document

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United States

Securities and Exchange Commission

Washington, D.C. 20549

Form N-Q

Quarterly Schedule of Portfolio Holdings of Registered Management Investment Companies

811-3387

(Investment Company Act File Number)

Federated U.S. Government Securities Fund: 2-5 Years_

(Exact Name of Registrant as Specified in Charter)

Federated Investors Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

(Address of Principal Executive Offices)

(412) 288-1900

(Registrant's Telephone Number)

John W. McGonigle, Esquire

Federated Investors Tower

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

(Notices should be sent to the Agent for Service)

Date of Fiscal Year End: 1/31/11

Date of Reporting Period: Quarter ended 4/30/10

Item 1. Schedule of Investments

Federated U.S. Government Securities Fund: 2-5 Years

Portfolio of Investments

April 30, 2010 (unaudited)

Principal Amount or Shares			Value
		U.S. Treasury – 51.7%
		U.S. Treasury Bonds – 9.3%
$35,000,000		8.875%, 8/15/2017	48,172,943
20,000,000		9.875%, 11/15/2015	27,535,414
		TOTAL	75,708,357
		U.S. Treasury Notes – 42.4%
20,000,000		1.750%, 4/15/2013	20,150,000
10,150,900		1.875%, 7/15/2019	10,758,764
39,900,000		2.625%, 12/31/2014	40,492,268
45,000,000	¹	2.750%, 10/31/2013	46,511,721
14,465,400		3.000%, 7/15/2012	15,666,141
30,000,000		3.125%, 4/30/2013	31,457,814
24,200,000		3.250%, 7/31/2016	24,690,844
10,000,000		3.250%, 3/31/2017	10,093,756
10,000,000		3.500%, 5/31/2013	10,596,875
15,000,000	²	3.625%, 2/15/2020	14,955,468
37,000,000		4.000%, 11/15/2012	39,597,374
25,000,000		4.125%, 8/31/2012	26,746,262
40,000,000		4.250%, 11/15/2014	43,585,936
10,000,000	²	4.750%, 5/31/2012	10,775,000
		TOTAL	346,078,223
		TOTAL U.S. TREASURY (IDENTIFIED COST $402,172,884)	421,786,580
		FDIC Guaranteed Debt – 34.4%
30,000,000		GMAC LLC, 1.750%, 10/30/2012	30,253,733
35,000,000		GMAC LLC, 2.200%, 12/19/2012	35,676,847
40,000,000		Citigroup, Inc., 1.375%, 5/5/2011	40,357,656
20,000,000		Citigroup Funding, Inc., 2.000%, 3/30/2012	20,311,103
38,000,000		J.P. Morgan Chase & Co., 2.200%, 6/15/2012	38,826,116
30,760,000		General Electric Capital Corp., 1.800%, 3/11/2011	31,112,650
20,000,000		General Electric Capital Corp., 2.000%, 9/28/2012	20,314,528
37,000,000		General Electric Capital Corp., 3.000%, 12/9/2011	38,256,213
25,000,000		Morgan Stanley, 2.250%, 3/13/2012	25,577,543
		TOTAL FDIC GUARANTEED DEBT (IDENTIFIED COST $276,441,804)	280,686,389
		GOVERNMENT AGENCIES – 12.2%
5,000,000	³	Federal National Mortgage Association Floating Rate Note, 0.160%, 5/11/2010	4,999,967
25,000,000		Federal Home Loan Bank System, 0.500%, 5/10/2011	25,003,337
10,000,000		Federal Home Loan Bank System, 0.500%, 8/11/2011	9,988,044
10,000,000		Federal National Mortgage Association, 4.000%, 1/18/2013	10,237,745
15,000,000		Federal Farm Credit System, 3.875%, 10/7/2013	15,987,807
30,125,000		Federal Home Loan Bank System, 4.875%, 12/13/2013	33,127,508
		TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $95,804,669)	99,344,408

Principal Amount or Shares			Value
		MUTUAL FUND – 1.2%
9,667,435	^4,5	Government Obligations Fund, Institutional Shares, 0.02% (AT NET ASSET VALUE)	9,667,435
		REPURCHASE AGREEMENT – 3.2%
$26,560,000		Interest in $2,000,000,000 joint repurchase agreement 0.21%, dated 4/30/2010 under which RBS Securities, Inc. will repurchase securities provided as collateral for $2,000,035,000 on 5/3/2010. The securities provided as collateral at the end of the period were U.S. Government Agency securities with various maturities to 2/25/2045 and the market value of those underlying securities was $2,060,002,898 (purchased with proceeds from securities lending collateral). (AT COST)	26,560,000
		TOTAL INVESTMENTS — 102.7% (IDENTIFIED COST $810,646,792)⁶	838,044,812
		OTHER ASSETS AND LIABILITIES - NET — (2.7)%⁷	(22,209,187)
		TOTAL NET ASSETS — 100%	$815,835,625

At April 30, 2010, the Fund had the following outstanding futures contracts:

Description	Number of Contracts	Notional Value	Expiration Date	Unrealized Appreciation
⁸United States Treasury Notes 10-Year Long Futures	600	$70,743,750	June 2010	$761,290

	Unrealized Appreciation on Futures Contracts is included in “Other Assets and Liabilities — Net”.
1	Pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding futures contracts.
2	Certain principal amount or shares are temporarily on loan to unaffiliated broker/dealers.As of April 30, 2010, the securities subject to this type of arrangement and related collateral were as follows:

Market Value of Securities Loaned	Market Value of Collateral
$25,730,468	$26,560,000

3	Floating rate note with current rate and next reset date shown.
4	Affiliated company.
5	7-Day net yield.
6	At April 30, 2010, the cost of investments for federal tax purposes was $810,646,792. The net unrealized appreciation of investments for federal tax purposes excluding any unrealized appreciation resulting from futures contracts was $27,398,020. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $27,405,701 and net unrealized depreciation from investments for those securities having an excess of cost over value of $7,681.
7	Assets, other than investments in securities, less liabilities.
8	Non-income producing security.

Note: The categories of investments are shown as a percentage of total net assets at April 30, 2010.

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the Trustees“).
Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
Shares of other mutual funds are valued based upon their reported NAVs.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1 — quoted prices in active markets for identical securities

Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of April 30, 2010, in valuing the Fund's assets carried at fair value:

Valuation Inputs
	Level 1 - Quoted Prices and Investments in Mutual Funds	Level 2 - Other Significant Observable Inputs	Level 3 - Significant Unobservable Inputs	Total
Debt Securities:
U.S. Treasury	$ —	$421,786,580	$ —	$421,786,580
FDIC Guaranteed Debt	—	280,686,389	—	280,686,389
Government Agencies	—	99,344,408	—	99,344,408
Mutual Fund	9,667,435	—	—	9,667,435
Repurchase Agreement	—	26,560,000	—	26,560,000
TOTAL SECURITIES	$9,667,435	$828,377,377	$ —	$838,044,812
OTHER FINANCIAL INSTRUMENTS*	$761,290	$ —	$ —	$761,290

*	Other financial instruments include futures contracts.

Item 2. Controls and Procedures

(a) The registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-Q.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant	Federated U.S. Government Securities Fund: 2-5 Years

By	/S/ Richard A. Novak
	Richard A. Novak, Principal Financial Officer
Date	June 22, 2010


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By	/S/ J. Christopher Donahue
	J. Christopher Donahue
	Principal Executive Officer
Date	June 22, 2010

By	/S/ Richard A. Novak
	Richard A. Novak
	Principal Financial Officer
Date	June 22, 2010