FEDERATED INSTITUTIONAL TRUST SEMI-ANNUAL

N-CSR 1 finst.htm FEDERATED INSTITUTIONAL TRUST SEMI-ANNUAL




                                  United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form N-CSR
   Certified Shareholder Report of Registered Management Investment Companies




                                    811-7193

                      (Investment Company Act File Number)


                          Federated Institutional Trust
         _______________________________________________________________

               (Exact Name of Registrant as Specified in Charter)


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


                                 (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: 10/31/03


                     Date of Reporting Period: Six months ended 4/30/03










Item 1.     Reports to Stockholders

Federated Investors
World-Class Investment Manager

Federated Institutional High Yield Bond Fund

A Portfolio of Federated Institutional Trust

SEMI-ANNUAL SHAREHOLDER REPORT

April 30, 2003

FINANCIAL HIGHLIGHTS

FINANCIAL STATEMENTS

NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE

Financial Highlights

(For a Share Outstanding Throughout the Period)

	Period Ended (unaudited) 4/30/2003	¹
Net Asset Value, Beginning of Period	$10.00
Income From Investment Operations:
Net investment income	0.44
Net realized and unrealized gain on investments	1.19

TOTAL FROM INVESTMENT OPERATIONS	1.63

Less Distributions:
Distributions from net investment income	(0.44	)

Net Asset Value, End of Period	$11.19

Total Return²	16.56	%


Ratios to Average Net Assets:

Expenses	0.34	%³

Net investment income	8.93	%³

Expense waiver/reimbursement⁴	1.28	%³

Supplemental Data:

Net assets, end of period (000 omitted)	$32,259

Portfolio turnover	10	%

1 Reflects operations for the period from November 1, 2002 (date of initial public investment) to April 30, 2003.

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

3 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

April 30, 2003 (unaudited)

Principal Amount					Value
			CORPORATE BONDS--44.7%
			Automotive--1.9%
$	100,000		American Axle & Manufacturing, Inc., Company Guarantee, 9.75%, 3/1/2009	$	109,750
	100,000		ArvinMeritor, Inc., Note, 8.75%, 3/1/2012		107,750
	150,000		Lear Corp., Company Guarantee, 7.96%, 5/15/2005		162,000
	100,000		Stoneridge, Inc., Company Guarantee, 11.50%, 5/1/2012		108,500
	100,000	¹	TRW Automotive, Inc., Sr. Sub. Note, 11.00%, 2/15/2013		108,500

			TOTAL		596,500

			Broadcast Radio & TV--2.2%
	200,000		Chancellor Media Corp., Company Guarantee, 8.00%, 11/1/2008		228,250
	100,000	¹	Lamar Media Corp., Sr. Sub. Note, 7.25%, 1/1/2013		105,500
	100,000		PanAmSat Corp., Sr. Note, 8.50%, 2/1/2012		108,500
	100,000		Sinclair Broadcast Group, Inc., Company Guarantee, 8.75%, 12/15/2011		109,000
	100,000	¹	Vivendi Universal SA, Sr. Note, 9.25%, 4/15/2010		112,678
	75,000	²	XM Satellite Radio, Inc., Sec. Fac. Bond, 0/14.00%, 12/31/2009		53,438

			TOTAL		717,366

			Building & Development--1.1%
	100,000	¹	Brand Services, Inc., Sr. Sub. Note, 12.00%, 10/15/2012		110,500
	100,000		Collins & Aikman Floorcoverings, Inc., Company Guarantee, 9.75%, 2/15/2010		101,500
	50,000	¹	Legrand SA, Sr. Note, 10.50%, 2/15/2013		54,189
	100,000	¹	Shaw Group, Inc., Sr. Note, 10.75%, 3/15/2010		100,500

			TOTAL		366,689

			Business Equipment & Services--1.0%
	100,000		Buhrmann US, Inc., Company Guarantee, 12.25%, 11/1/2009		93,500
	200,000	¹	Xerox Corp., Sr. Note, 9.75%, 1/15/2009		228,000

			TOTAL		321,500

			Cable Television--1.4%
	150,000		CSC Holdings, Inc., Sr. Sub. Deb., 9.875%, 2/15/2013		158,250
	100,000	¹	DIRECTV Holdings LLC, Sr. Note, 8.375%, 3/15/2013		111,750
	100,000		Echostar DBS Corp., Sr. Note, 10.375%, 10/1/2007		112,500
	100,000	²	Quebecor Media Inc., Sr. Disc. Note, 0/13.75%, 7/15/2011		81,000

			TOTAL		463,500

Principal Amount					Value
			CORPORATE BONDS--continued
			Chemicals & Plastics--1.7%
$	100,000		Equistar Chemicals LP, Sr. Note, 10.125%, 9/1/2008	$	105,500
	50,000		FMC Corp., Sr. Secd. Note, 10.25%, 11/1/2009		55,750
	50,000	^1,2	HMP Equity Holdings Corp., 0/0.00%, 5/15/2008		23,718
	100,000		Huntsman ICI Chemicals LLC, Sr. Sub. Note, 10.125%, 7/1/2009		103,500
	150,000		Lyondell Chemical Co., Sr. Secd. Note, 9.875%, 5/1/2007		155,250
	50,000	¹	Polyone Corp., Sr. Note, 10.625%, 5/15/2010		51,193
	100,000	^1,2	Salt Holdings Corp., Sr. Disc. Note, 0/12.75%, 12/15/2012		67,000

			TOTAL		561,911

			Clothing & Textiles--0.4%
	75,000		Levi Strauss & Co., Sr. Note, 11.625%, 1/15/2008		64,125
	50,000	¹	Phillips Van Heusen Corp., Sr. Note, 8.125%, 5/1/2013		51,875

			TOTAL		116,000

			Consumer Products--3.2%
	75,000		Alltrista Corp., Unsecd. Note, 9.75%, 5/1/2012		80,812
	100,000		American Achievement Corp., Sr. Note, (Series W.I.), 11.625%, 1/1/2007		108,000
	100,000		American Greetings Corp., Sr. Sub. Note, 11.75%, 7/15/2008		114,500
	100,000		Armkel Finance, Inc., Sr. Sub. Note, 9.50%, 8/15/2009		112,500
	100,000		Chattem, Inc., Sr. Sub. Note, 8.875%, 4/1/2008		103,500
	50,000		Commemorative Brands, Inc., Sr. Sub. Note, 11.00%, 1/15/2007		47,750
	100,000		PCA International, Inc., Sr. Note, 11.875%, 8/1/2009		105,500
	100,000	¹	Remington Arms Co., Inc., Sr. Note, 10.50%, 2/1/2011		108,500
	100,000		Sealy Mattress Co., Sr. Sub. Note, 9.875%, 12/15/2007		104,000
	50,000		True Temper Sports, Inc., Sr. Sub. Note, (Series B), 10.875%, 12/1/2008		53,250
	100,000		United Industries Corp., Sr. Sub. Note, (Series B), 9.875%, 4/1/2009		106,250

			TOTAL		1,044,562

			Container & Glass Products--2.3%
	50,000		Berry Plastics Corp., Company Guarantee, 10.75%, 7/15/2012		54,750
	100,000		Graham Packaging Co., Sr. Sub. Note, 8.75%, 1/15/2008		101,000
	50,000		Greif Brothers Corp., Sr. Sub. Note, 8.875%, 8/1/2012		53,375
	100,000	¹	Owens-Brockway Glass Container, Inc., Company Guarantee, Sr. Secd. Note, 7.75%, 5/15/2011		104,250
	50,000	¹	Owens-Brockway Glass Container, Inc., Company Guarantee, Sr. Note, 8.25%, 5/15/2013		51,562
	100,000		Owens-Brockway Glass Container, Inc., Sr. Secd. Note, 8.875%, 2/15/2009		108,000
	100,000		Owens-Illinois, Inc., Sr. Note, 7.35%, 5/15/2008		99,750
	100,000		Plastipak Holdings, Company Guarantee, 10.75%, 9/1/2011		108,500
	75,000		Tekni-Plex, Inc., Company Guarantee, (Series B), 12.75%, 6/15/2010		72,375

			TOTAL		753,562

Principal Amount					Value
			CORPORATE BONDS--continued
			Ecological Services & Equipment--1.0%
$	100,000		Allied Waste North America, Inc., Company Guarantee, 7.625%, 1/1/2006	$	104,250
	100,000		Allied Waste North America, Inc., Company Guarantee, 7.875%, 1/1/2009		103,500
	100,000		Allied Waste North America, Inc., Sr. Sub. Note, 10.00%, 8/1/2009		107,625

			TOTAL		315,375

			Food & Drug Retailers--0.1%
	50,000		Ahold Finance USA, Inc., Company Guarantee, 6.875%, 5/1/2029		37,250

			Food Products--2.4%
	100,000		American Seafoods Group LLC, Company Guarantee, 10.125%, 4/15/2010		108,000
	100,000		B&G Foods, Inc., Company Guarantee, (Series D), 9.625%, 8/1/2007		104,000
	100,000	¹	Del Monte Corp., Sr. Sub. Note, 8.625%, 12/15/2012		108,000
	50,000		Dole Food, Inc., Sr. Note, 8.625%, 5/1/2009		54,250
	50,000	¹	Dole Food, Inc., Sr. Note, 8.875%, 3/15/2011		54,375
	50,000		Michael Foods, Inc., Sr. Sub. Note, (Series B), 11.75%, 4/1/2011		57,000
	75,000		Pilgrim's Pride Corp., Sr. Note, 9.625%, 9/15/2011		73,875
	100,000		Smithfield Foods, Inc., Sr. Note, (Series B), 8.00%, 10/15/2009		103,500
	50,000	¹	Swift & Co., Sr. Note, 10.125%, 10/1/2009		51,000
	50,000	¹	Swift & Co., Sr. Sub. Note, 12.50%, 1/1/2010		50,000

			TOTAL		764,000

			Food Services--0.2%
	50,000		Carrols Corp., Company Guarantee, 9.50%, 12/1/2008		49,750

			Forest Products--1.5%
	100,000		Georgia-Pacific Corp., Note, 7.50%, 5/15/2006		100,000
	150,000	¹	Georgia-Pacific Corp., Sr. Note, 9.375%, 2/1/2013		165,750
	100,000	¹	MDP Acquisitions PLC, Sr. Note, 9.625%, 10/1/2012		109,500
	100,000		Stone Container Corp., Sr. Note, 9.75%, 2/1/2011		112,500

			TOTAL		487,750

			Gaming--4.7%
	100,000	¹	Boyd Gaming Corp., Sr. Sub. Note, 7.75%, 12/15/2012		104,000
	100,000		Coast Hotels & Casinos, Inc., Company Guarantee, 9.50%, 4/1/2009		108,000
	100,000		Harrah's Operations, Inc., Company Guarantee, 7.875%, 12/15/2005		108,250
	100,000		Isle of Capri Casinos, Inc., Sr. Sub. Note, 8.75%, 4/15/2009		105,750
	200,000		MGM Grand, Inc., Sr. Sub. Note, 8.375%, 2/1/2011		219,000
	75,000	¹	MTR Gaming Group, Inc., Sr. Note, 9.75%, 4/1/2010		78,563
	50,000		Mandalay Resort Group, Sr. Note, 9.50%, 8/1/2008		55,375
Principal Amount					Value
			CORPORATE BONDS--continued
			Gaming--continued
$	100,000		Mandalay Resort Group, Sr. Sub. Note, 9.375%, 2/15/2010	$	108,875
	100,000		Mohegan Tribal Gaming Authority, Sr. Sub. Note, 8.75%, 1/1/2009		106,750
	100,000		Park Place Entertainment Corp., Sr. Sub. Note, 8.125%, 5/15/2011		106,000
	50,000		Park Place Entertainment Corp., Sr. Sub. Note, 9.375%, 2/15/2007		54,500
	75,000		Penn National Gaming, Inc., Company Guarantee, 11.125%, 3/1/2008		82,875
	100,000		Sun International Hotels Ltd., Sr. Sub. Note, 8.875%, 8/15/2011		106,750
	100,000		Venetian Casino/LV Sands, Company Guarantee, 11.00%, 6/15/2010		110,250
	50,000		Wynn Las Vegas LLC, Second Mortgage Notes, 12.00%, 11/1/2010		54,125

			TOTAL		1,509,063

			Healthcare--1.6%
	100,000		Advanced Medical Optics, Inc., Sr. Sub. Note, 9.25%, 7/15/2010		106,500
	75,000	¹	AmeriPath, Inc., Sr. Sub. Note, 10.50%, 4/1/2013		79,875
	150,000		HCA - The Healthcare Corp., Sr. Note, 6.91%, 6/15/2005		158,838
	75,000		Hanger Orthopedic Group, Inc., Sr. Sub. Note, 11.25%, 6/15/2009		82,125
	100,000		Vanguard Health Systems, Company Guarantee, 9.75%, 8/1/2011		99,250

			TOTAL		526,588

			Hotels, Motels & Inns--1.6%
	100,000		Florida Panthers Holdings, Inc., Company Guarantee, 9.875%, 4/15/2009		105,500
	100,000		HMH Properties, Inc., Sr. Note, (Series B), 7.875%, 8/1/2008		101,500
	150,000		Hilton Hotels Corp., Sr. Note, 8.25%, 2/15/2011		159,375
	50,000		MeriStar Hospitality Corp., Company Guarantee, 9.125%, 1/15/2011		47,250
	100,000		Starwood Hotels & Resorts Worldwide, Inc., Company Guarantee, 7.875%, 5/1/2012		104,250

			TOTAL		517,875

			Industrial Products & Equipment--1.7%
	50,000	¹	Hexcel Corp., Sr. Secd. Note, 9.875%, 10/1/2008		53,750
	100,000		Hexcel Corp., Sr. Sub. Note, (Series B), 9.75%, 1/15/2009		99,000
	100,000	¹	Rexnord Corp., Sr. Sub. Note, 10.125%, 12/15/2012		107,500
	100,000		Tyco International Group, Company Guarantee, 6.375%, 2/15/2006		100,125
	200,000		Tyco International Group, Sr. Note, 6.375%, 6/15/2005		201,250

			TOTAL		561,625

Principal Amount					Value
			CORPORATE BONDS--continued
			Leisure & Entertainment--1.8%
$	100,000		AMC Entertainment, Inc., Sr. Sub. Note, 9.875%, 2/1/2012	$	105,000
	50,000	¹	Cinemark USA, Sr. Sub. Note, 9.00%, 2/1/2013		54,250
	100,000		Intrawest Corp., Company Guarantee, 10.50%, 2/1/2010		109,000
	100,000		Regal Cinemas, Inc., Company Guarantee, (Series B), 9.375%, 2/1/2012		110,500
	50,000	¹	Six Flags, Inc., Sr. Note, 9.75%, 4/15/2013		52,125
	125,000	¹	Universal City Development Partners Ltd., Sr. Note, 11.75%, 4/1/2010		135,000

			TOTAL		565,875

			Machinery & Equipment--0.3%
	100,000		United Rentals, Inc., Company Guarantee, (Series B), 10.75%, 4/15/2008		108,250

			Oil & Gas--1.9%
	50,000	¹	CITGO Petroleum Corp., Sr. Note, 11.375%, 2/1/2011		55,750
	75,000		Compton Petroleum Corp., Sr. Note, 9.90%, 5/15/2009		81,375
	100,000		Lone Star Technologies, Inc., Company Guarantee, (Series B), 9.00%, 6/1/2011		104,000
	100,000		Petroleum Helicopters, Inc., Company Guarantee, (Series B), 9.375%, 5/1/2009		110,000
	100,000		Pogo Producing Co., Sr. Sub. Note, (Series B), 10.375%, 2/15/2009		109,500
	50,000		Swift Energy Co., Sr. Sub. Note, 9.375%, 5/1/2012		52,500
	50,000		Tesoro Petroleum Corp., Company Guarantee, (Series B), 9.625%, 11/1/2008		48,250
	50,000	¹	Tesoro Petroleum Corp., Sr. Secd. Note, 8.00%, 4/15/2008		51,750

			TOTAL		613,125

			Printing & Publishing--2.4%
	75,000		Advanstar Communications, Company Guarantee, (Series B), 12.00%, 2/15/2011		64,125
	100,000	¹	American Media Operations, Inc., Sr. Sub. Note, 8.875%, 1/15/2011		109,000
	100,000		Block Communications, Inc., Company Guarantee, 9.25%, 4/15/2009		108,750
	100,000	¹	Dex Media East LLC, Sr. Sub. Note, 12.125%, 11/15/2012		119,000
	50,000	¹	Moore North America Finance, Inc., Sr. Note, 7.875%, 1/15/2011		53,250
	100,000	¹	R.H. Donnelly Finance Corp., Sr. Sub. Note, 10.875%, 12/15/2012		116,000
	100,000	¹	Sun Media Corp., Sr. Note, 7.625%, 2/15/2013		107,016
	100,000		Vertis, Inc., Sr. Note, 10.875%, 6/15/2009		105,000

			TOTAL		782,141

			Retailers--1.3%
	50,000		Mothers Work, Inc., Sr. Note, 11.25%, 8/1/2010		55,250
	100,000		Penney (J.C.) Co., Inc., Note, 7.60%, 4/1/2007		105,125
	50,000		Rite Aid Corp., Sr. Deb., 6.875%, 8/15/2013		44,000
	100,000	¹	Rite Aid Corp., Sr. Secd. Note, 8.125%, 5/1/2010		102,750
	100,000		United Auto Group, Inc., Company Guarantee, 9.625%, 3/15/2012		105,000

			TOTAL		412,125

Principal Amount					Value
			CORPORATE BONDS--continued
			Services--0.6%
$	100,000		SITEL Corp., Sr. Sub. Note, 9.25%, 3/15/2006	$	95,500
	75,000	¹	The Brickman Group Ltd., Sr. Sub. Note, 11.75%, 12/15/2009		84,375

			TOTAL		179,875

			Surface Transportation--0.4%
	50,000		Allied Holdings, Inc., Sr. Note, 8.625%, 10/1/2007		37,750
	100,000		Stena AB, Sr. Note, 8.75%, 6/15/2007		103,875

			TOTAL		141,625

			Technology--0.8%
	50,000	¹	AMI Semiconductor, Inc., Sr. Sub. Note, 10.75%, 2/1/2013		55,250
	125,000		Ingram Micro, Inc., Sr. Sub. Note, 9.875%, 8/15/2008		135,000
	50,000		Unisys Corp., Sr. Note, 6.875%, 3/15/2010		51,500

			TOTAL		241,750

			Telecommunications & Cellular--2.7%
	200,000		NEXTEL Communications, Inc., Sr. Note, 9.375%, 11/15/2009		217,000
	100,000		Nextel Partners, Inc., Sr. Note, 12.50%, 11/15/2009		110,500
	175,000	¹	Qwest Communications International, Inc., Note, 8.875%, 3/15/2012		193,375
	100,000		Qwest Communications International, Inc., Sr. Note, (Series B), 7.50%, 11/1/2008		91,000
	200,000	¹	Qwest Communications International, Inc., Sr. Sub. Note, 13.50%, 12/15/2010		223,500
	50,000	²	Triton PCS, Inc., Sr. Disc. Note, 0/11.00%, 5/1/2008		50,375

			TOTAL		885,750

			Utilities--2.5%
	50,000	¹	ANR Pipeline Co., Sr. Note, 8.875%, 3/15/2010		56,000
	150,000		El Paso Corp., 6.75%, 5/15/2009		129,750
	100,000		El Paso Corp., Sr. Note, 7.80%, 8/1/2031		77,500
	50,000		El Paso Corp., Sr. Note, 8.05%, 10/15/2030		40,250
	125,000	¹	Illinois Power Co., Mtg. Bond, 11.50%, 12/15/2010		140,000
	100,000		PSEG Energy Holdings, Sr. Note, 10.00%, 10/1/2009		112,250
	50,000		PSEG Energy Holdings, Sr. Note, 8.625%, 2/15/2008		53,563
	25,000		Tennessee Gas Pipeline, Sr. Deb., 7.50%, 4/1/2017		24,250
	150,000		Williams Cos., Inc. (The), Note, 7.625%, 7/15/2019		135,000
	25,000		Williams Cos., Inc. (The), Note, 7.875%, 9/1/2021		22,625

			TOTAL		791,188

			TOTAL CORPORATE BONDS (IDENTIFIED COST $13,716,560)		14,432,570

Shares					Value
			MUTUAL FUNDS--53.7%
	2,383,587		High Yield Bond Portfolio	$	15,564,824
	1,739,509		Prime Value Obligations Fund, Class IS		1,739,509

			TOTAL MUTUAL FUNDS (IDENTIFIED COST $16,332,676)		17,304,333

			TOTAL INVESTMENTS--98.4% IDENTIFIED COST $30,049,236)³		31,736,903

			OTHER ASSETS AND LIABILITIES - NET--1.6%		522,508

			TOTAL NET ASSETS--100%	$	32,259,411

1 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the Fund's Board of Trustees. At April 30, 2003, these securities amounted to $4,060,419 which represents 12.6% of total net assets.

2 Denotes a zero coupon bond with effective rate at time of purchase.

3 The cost of investments for federal tax purposes amounts to $30,050,928.

Note: The categories of investments are shown as a percentage of total net assets at April 30, 2003.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

April 30, 2003 (unaudited)

Assets:
Total investments in securities, at value (identified cost $30,049,236)			$	31,736,903
Income receivable				340,041
Receivable for investments sold				179,244
Receivable for shares sold				557,013

TOTAL ASSETS				32,813,201

Liabilities:
Payable for investments purchased	$	350,114
Payable for shares redeemed		13,160
Income distribution payable		170,054
Accrued expenses		20,462

TOTAL LIABILITIES				553,790

Net assets for 2,881,610 shares outstanding			$	32,259,411

Net Assets Consist of:
Paid in capital			$	30,518,043
Net unrealized appreciation of investments				1,687,667
Accumulated net realized gain on investments				54,397
Distributions in excess of net investment income				(696	)

TOTAL NET ASSETS			$	32,259,411

Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Net asset value per share ($32,259,411 ÷ 2,881,610 shares outstanding)				$11.19

Offering price per share				$11.19

Redemption proceeds per share (98.00/100 of $11.19)¹				$10.97

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Period Ended April 30, 2003 (unaudited)¹

Investment Income:
Dividends							$	526,765
Interest								267,612

TOTAL INCOME								794,377

Expenses:
Investment adviser fee				$	34,278
Administrative personnel and services fee					59,658
Custodian fees					1,774
Transfer and dividend disbursing agent fees and expenses					5,399
Auditing fees					15,985
Legal fees					546
Portfolio accounting fees					8,099
Share registration costs					6,830
Printing and postage					2,948
Miscellaneous					3,165

TOTAL EXPENSES					138,682

Waivers and Reimbursements:
Waiver of investment adviser fee	$	(34,241	)
Waiver of administrative personnel and services fee		(49,715	)
Waiver of transfer and dividend disbursing agent fees and expenses		(454	)
Reimbursement of investment adviser fee		(37	)
Reimbursement of other operating expenses		(25,493	)

TOTAL WAIVERS AND REIMBURSEMENTS					(109,940	)

Net expenses								28,742

Net investment income								765,635

Realized and Unrealized Gain on Investments:
Net realized gain on investments								54,397
Net change in unrealized appreciation of investments								1,687,667

Net realized and unrealized gain on investments								1,742,064

Change in net assets resulting from operations							$	2,507,699

1 Reflects operations for the period from November 1, 2002 (date of initial public investment) to April 30, 2003.

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Period Ended (unaudited) 4/30/2003	¹
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	765,635
Net realized gain on investments		54,397
Net change in unrealized appreciation		1,687,667

CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		2,507,699

Distributions to Shareholders:
Distributions from net investment income		(766,331	)

Share Transactions:
Proceeds from sale of shares		31,362,723
Net asset value of shares issued to shareholders in payment of distributions declared		62,744
Cost of shares redeemed		(907,424	)

CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		30,518,043

Change in net assets		32,259,411

Net Assets:
Beginning of period		--

End of period (including distributions in excess of net investment income of $(696) at April 30, 2003)	$	32,259,411

1 Reflects operations for the period from November 1, 2002 (date of initial public investment) to April 30, 2003.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

April 30, 2003 (unaudited)

ORGANIZATION

Federated Institutional Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end, management investment company. The Trust consists of two portfolios. The financial statements included herein are only those of Federated Institutional High Yield Bond Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolio are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The investment objective of the Fund is to seek high current income.

SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

Listed corporate bonds, other fixed income and asset-backed securities, and unlisted securities and private placement securities are generally valued at the mean of the latest bid and asked price as furnished by an independent pricing service. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value. Investments in other open-end regulated investment companies are valued at net asset value. Securities for which no quotations are readily available are valued at fair value as determined in good faith using methods approved by the Board of Trustees (the "Trustees").

Repurchase Agreements

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

The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Trustees. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.

Investment Income, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair value.

Premium and Discount Amortization

All premiums and discounts on fixed income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined in good faith using methods approved by the Trustees.

Use of Estimates

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

Other

Investment transactions are accounted for on a trade date basis.

SHARES OF BENEFICIAL INTEREST

The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value).

Transactions in shares were as follows:

	Period Ended 4/30/2003	¹
Shares sold	2,960,770
Shares issued to shareholders in payment of distributions declared	5,722
Shares redeemed	(84,882	)

NET CHANGE RESULTING FROM SHARE TRANSACTIONS	2,881,610

1 Reflects operations for the period from November 1, 2002 (date of initial public investment) to April 30, 2003.

FEDERAL TAX INFORMATION

At April 30, 2003, the cost of investments for federal tax purposes was $30,050,928. The net unrealized appreciation of investments for federal tax purposes was $1,685,975. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $1,697,225 and net unrealized depreciation from investments for those securities having an excess of cost over value of $11,250.

The difference between book-basis and tax-basis unrealized appreciation/depreciation is attributable to the amortization/accretion tax elections on fixed income securities.

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

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

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund may invest in Prime Value Obligations Fund, which is managed by the Fund's Adviser. The Adviser has agreed to reimburse certain investment adviser fees as a result of these transactions.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on a scale that ranges from 0.150% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class. FServ may voluntarily choose to waive any portion of its fee. FServ can modify or terminate this voluntary waiver at any time.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Portfolio Accounting Fees

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

General

Certain of the Officers and Trustees of the Corporation are Officers and Trustees or Trustees of the above companies.

INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations (and in-kind contributions), for the period ended April 30, 2003, were as follows:

Purchases		$30,035,047

Sales		$ 1,928,311

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal

This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the householding program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of householding. Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of householding at any time by calling 1-800-341-7400.

Federated Investors
World-Class Investment Manager

Federated Institutional High Yield Bond Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
www.federatedinvestors.com

Contact us at 1-800-341-7400 or
www.federatedinvestors.com/contact

Federated Securities Corp., Distributor

Cusip 31420B300

28539 (6/03)


Item 2.     Code of Ethics

            Not Applicable

Item 3.     Audit Committee Financial Expert

            Not Applicable

Item 4.     Principal Accountant Fees and Services

            Not Applicable

Items 5-6   [Reserved]

Item 7.     Disclosure of Proxy Voting Policies and Procedures for Closed-End
            Management Investment Companies

            Not Applicable

Item 8.     [Reserved]

Item 9.     Controls and Procedures

(a)  The   registrant's   President  and  Treasurer   have  concluded  that  the
     registrant's  disclosure  controls and procedures (as defined in rule 30a-2
     under the  Investment  Company Act of 1940 (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-CSR.

(b)  There were no significant changes in the registrant's internal controls, or
     the internal  controls of its service  providers,  or in other factors that
     could  significantly  affect these controls subsequent to the date of their
     evaluation,  including any  corrective  actions with regard to  significant
     deficiencies and material weaknesses.

Item 10.    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 Institutional Trust

By          /S/ Richard J. Thomas, Principal Financial Officer
Date        June 24, 2003

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, Principal Executive Officer


Date        June 25, 2003


By          /S/ Richard J. Thomas, Principal Financial Officer


Date        June 24, 2003