Unassociated Document

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

Form N-Q
Quarterly Schedule of Portfolio Holdings of Registered Management Investment Companies


(Investment Company Act File Number)

_Federated Enhanced Treasury Income Fund_

(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:  11/30/10

Date of Reporting Period:  Quarter ended 2/28/10

Item 1.                      Schedule of Investments

Federated Enhanced Treasury Income Fund

Portfolio of Investments

February 28, 2010 (unaudited)

U.S. TREASURY – 95.3%
$3,500,000U.S. Treasury Inflation-Protected Note, 1.750%, 1/15/20283,420,894
8,000,000United States Treasury Bond, 4.250%, 5/15/20397,611,875
10,000,000United States Treasury Bond, 5.500%, 8/15/202811,400,781
10,000,000United States Treasury Bond, 6.250%, 8/15/202312,194,531
30,000,000United States Treasury Note, 0.875%, 1/31/201230,055,971
26,000,000United States Treasury Note, 1.000%, 10/31/201126,158,054
35,000,000United States Treasury Note, 3.125%, 9/30/201336,812,891
24,000,000United States Treasury Note, 3.250%, 7/31/201624,555,000
10,000,000United States Treasury Note, 3.375%, 11/15/20199,810,547
TOTAL U.S. TREASURY (IDENTIFIED COST $161,451,545)162,020,544
7,836,000Interest in $5,895,000,000 joint repurchase agreement 0.12%, dated 2/26/2010 under which Bank of America N.A. will repurchase securities provided as collateral for $5,895,058,950 on 3/1/2010. The securities provided as collateral at the end of the period were U.S. Government Agency securities with various maturities to 10/20/2039 and the market value of those underlying securities was $6,014,978,711. (AT COST)7,836,000
(IDENTIFIED COST $169,287,545)1
TOTAL NET ASSETS — 100%$170,079,303
DescriptionNumber of
3U.S. Treasury Notes 10-Year Long Futures, 6/21/2010975$114,547,266June 2010$577,020
3U.S. Treasury Notes 5-Year Short Calls on Futures, 3/26/2010March 2010$115639$718,875
3U.S. Treasury Notes 2-Year Short Calls on Futures, 3/26/2010March 2010$109124$81,375
3U.S. Treasury Bond Short Calls on Futures, 3/26/2010March 2010$116438$978,656
(PREMIUMS RECEIVED $1,515,013)$1,778,906

Investment Valuation

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


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:

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, 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.

Valuation Inputs
Level 1 — 
Prices And
Investments In
Mutual Funds
Level 2 — 
Level 3 — 
Debt Securities:
U.S. Treasury$ — $162,020,544$ — $162,020,544
Repurchase Agreement — 7,836,000 — 7,836,000
TOTAL SECURITIES — 169,856,544 — 169,856,544
OTHER FINANCIAL INSTRUMENTS*$313,127$ — $ — $313,127
*Other financial instruments include futures contracts and written call options.
TIPS — Treasury Inflation Protected Security


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


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.

Federated Enhanced Treasury Income Fund
/S/ Richard A. Novak
Richard A. Novak
Principal Financial Officer
April 21, 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.
/S/ J. Christopher Donahue
J. Christopher Donahue
Principal Executive Officer
April 21, 2010
/S/ Richard A. Novak
Richard A. Novak
Principal Financial Officer
April 21, 2010