Federated Institutional Trust N-CSRS Certified semi-annual shareholder report (management investment company)

                                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: 10/31/04


              Date of Reporting Period: Six months ended 4/30/04







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, 2004

FINANCIAL HIGHLIGHTS

FINANCIAL STATEMENTS

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE

Financial Highlights

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)		Year Ended
	4/30/2004		10/31/2003
Net Asset Value, Beginning of Period	$11.64		$10.00
Income From Investment Operations:
Net investment income	0.45		0.90
Net realized and unrealized gain on investments	0.20		1.63
TOTAL FROM INVESTMENT OPERATIONS	0.65		2.53
Less Distributions:
Distributions from net investment income	(0.47	)	(0.89	)
Distributions from net realized gain on investments	(0.07	)	--
TOTAL DISTRIBUTIONS	(0.54	)	(0.89	)
Net Asset Value, End of Period	$11.75		$11.64
Total Return1	5.73	%	26.19	%
Ratios to Average Net Assets:
Expenses	0.50	%2	0.46	%
Net investment income	7.81	%2	8.20	%
Expense waiver/reimbursement3	0.51	%2	0.84	%
Supplemental Data:
Net assets, end of period (000 omitted)	$35,343		$48,437
Portfolio turnover	25	%	22	%
Redemption fees consisted of the following per share amounts	$0.00	4	$0.00	4

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

2 Computed on an annualized basis.

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

4 Represents less than $0.01.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

April 30, 2004 (unaudited)

Principal Amount				Value
			CORPORATE BONDS--93.6%
			Aerospace & Defense--1.2%
$	100,000		Alliant Techsystems, Inc., Sr. Sub. Note, 8.50%, 5/15/2011	$	110,500
	50,000		Hexcel Corp., Sr. Secd. Note, 9.875%, 10/1/2008		55,875
	100,000		Hexcel Corp., Sr. Sub. Note, Series B, 9.75%, 1/15/2009		105,750
	50,000	1,2	L-3 Communications Corp., Sr. Sub. Note, 6.125%, 1/15/2014		50,000
	100,000		TransDigm, Inc., Sr. Sub. Note, 8.375%, 7/15/2011		105,500
			TOTAL		427,625
			Automotive--2.8%
	200,000		Advanced Accessory Systems LLC, Sr. Note, 10.75%, 6/15/2011		211,000
	150,000		ArvinMeritor, Inc., Note, 8.75%, 3/1/2012		165,000
	50,000		Dana Corp., Note, 9.00%, 8/15/2011		59,250
	125,000		General Motors Corp., Note, 7.125%, 7/15/2013		131,795
	100,000		Stoneridge, Inc., Company Guarantee, 11.50%, 5/1/2012		120,500
	162,000		TRW Automotive, Inc., Sr. Sub. Note, 11.00%, 2/15/2013		192,780
	100,000		United Components, Inc., Sr. Sub. Note, 9.375%, 6/15/2013		107,000
			TOTAL		987,325
			Building Materials--3.2%
	250,000	1,2,4	AMH Holdings, Inc., Sr. Disc. Note, 0/11.25%, 3/1/2014		162,500
	100,000		Collins & Aikman Floorcoverings, Inc., Company Guarantee, 9.75%, 2/15/2010		106,000
	150,000	1,2	ERICO International Corp., Sr. Sub. Note, 8.875%, 3/1/2012		154,500
	100,000		Euramax International PLC, Sr. Sub. Note, 8.50%, 8/15/2011		107,000
	125,000		MMI Products, Inc., Sr. Sub. Note, 11.25%, 4/15/2007		111,250
	75,000	1,2	Mueller Group, Inc., Sr. Sub. Note, 10.00%, 5/1/2012		79,125
	125,000	1,2	Norcraft Cos. LLC, Sr. Sub. Note, 9.00%, 11/1/2011		132,812
	150,000	1,2,4	Nortek Holdings, Inc., Sr. Disc. Note, 0/10.00%, 5/15/2011		112,500
	125,000	1,2	Ply Gem Industries, Inc., Sr. Sub. Note, 9.00%, 2/15/2012		128,125
	50,000	1,2	U.S. Concrete, Inc., Sr. Sub. Note, 8.375%, 4/1/2014		50,875
			TOTAL		1,144,687
			Chemicals--4.8%
	150,000		Compass Minerals Group, Inc., Sr. Sub. Note, 10.00%, 8/15/2011		171,750
	150,000	4	Compass Minerals International, Sr. Disc. Note, 0/12.00%, 6/1/2013		116,250
	100,000	4	Compass Minerals International, Sr. Disc. Note, 0/12.75%, 12/15/2012		81,500
	100,000		Equistar Chemicals LP, Sr. Note, 10.125%, 9/1/2008		111,750
	50,000		FMC Corp., Sr. Secd. Note, 10.25%, 11/1/2009		59,250
	75,000	1,2	Huntsman Advanced Materials, Inc., Sr. Secd. Note, 11.00%, 7/15/2010		84,375
Principal Amount				Value
			CORPORATE BONDS--continued
			Chemicals--continued
$	175,000		Huntsman ICI Chemicals LLC, Sr. Sub. Note, 10.125%, 7/1/2009	$	184,625
	75,000	1,2	Invista, Unit, 9.25%, 5/1/2012		75,750
	100,000	1,2	Koppers, Inc., Sr. Secd. Note, 9.875%, 10/15/2013		110,000
	200,000		Lyondell Chemical Co., Sr. Secd. Note, 9.50%, 12/15/2008		210,000
	100,000		Lyondell Chemical Co., Sr. Secd. Note, 9.875%, 5/1/2007		105,500
	125,000	1,2,4	Nalco Co., Sr. Disc. Note, 0/9.00%, 2/1/2014		80,625
	75,000	1,2	Nalco Co., Sr. Sub. Note, 8.875%, 11/15/2013		79,687
	100,000	1,2	Rhodia SA, Sr. Sub. Note, 8.875%, 6/1/2011		85,500
	75,000		Union Carbide Corp., Deb., 7.50%, 6/1/2025		70,031
	75,000		Union Carbide Corp., Sr. Deb., 8.75%, 8/1/2022		75,562
			TOTAL		1,702,155
			Construction Machinery--2.1%
	150,000		AGCO Corp., Sr. Note, 9.50%, 5/1/2008		165,375
	100,000		Case Corp., Unsecd. Note, 7.25%, 8/1/2005		103,250
	75,000	1,2	Case New Holland, Sr. Note, 9.25%, 8/1/2011		84,750
	50,000		Columbus McKinnon Corp., Sr. Secd. Note, 10.00%, 8/1/2010		53,500
	100,000		Columbus McKinnon Corp., Sr. Sub. Note, 8.50%, 4/1/2008		92,500
	150,000	1,2	NationsRent Cos., Inc., Sr. Secd. Note, 9.50%, 10/15/2010		161,250
	75,000	1,2	United Rentals, Inc., Sr. Note, 6.50%, 2/15/2012		73,500
			TOTAL		734,125
			Consumer Products--5.4%
	150,000		Alltrista Corp., Unsecd. Note, 9.75%, 5/1/2012		169,500
	50,000	1,2	American Achievement Corp., Sr. Sub. Note, 8.25%, 4/1/2012		51,250
	200,000		American Greetings Corp., Sr. Sub. Note, 11.75%, 7/15/2008		236,000
	50,000	1,2	Amscan Holdings, Inc., Sr. Sub. Note, 8.75%, 5/1/2014		50,750
	100,000		Armkel Finance, Inc., Sr. Sub. Note, 9.50%, 8/15/2009		109,625
	75,000	1,2	Chattem, Inc., Sr. Sub. Note, 7.00%, 3/1/2014		74,250
	100,000		ICON Health & Fitness, Inc., Company Guarantee, 11.25%, 4/1/2012		113,000
	500,000	4	Jostens Holding Corp., Discount Bond, 0/10.25%, 12/1/2013		336,250
	100,000	1,2,4	NBC Acqusition Corp., Sr. Disc. Note, 0/11.00%, 3/15/2013		64,750
	75,000	1,2	Nebraska Book Co., Inc., Sr. Sub. Note, 8.625%, 3/15/2012		76,125
	100,000		Playtex Products, Inc., Company Guarantee, 9.375%, 6/1/2011		99,750
	100,000	1,2	Sealy Mattress Co., Sr. Sub. Note, 8.25%, 6/15/2014		98,500
	50,000	1,2	Simmons Co., Sr. Sub. Note, 7.875%, 1/15/2014		50,125
	131,000	1,2	Tempur World, Sr. Sub. Note, 10.25%, 8/15/2010		149,995
Principal Amount				Value
			CORPORATE BONDS--continued
			Consumer Products--continued
$	50,000	1,2	True Temper Sports, Inc., Sr. Sub. Note, 8.375%, 9/15/2011	$	51,500
	100,000		United Industries Corp., Sr. Sub. Note, Series D, 9.875%, 4/1/2009		104,750
	75,000	1,2	WH Holdings Ltd., Sr. Note, 9.50%, 4/1/2011		80,250
			TOTAL		1,916,370
			Diversified Manufacturing--0.8%
	125,000	1,2	Amsted Industries, Inc., Sr. Note, 10.25%, 10/15/2011		141,875
	50,000	1,2	Communications & Power Industries, Inc., Sr. Sub. Note, 8.00%, 2/1/2012		51,250
	100,000	1,2	Thermadyne Holdings Corp., Sr. Secd. Note, 9.25%, 2/1/2014		103,000
			TOTAL		296,125
			Energy--1.9%
	125,000		CITGO Petroleum Corp., Sr. Note, 11.375%, 2/1/2011		145,000
	125,000		Compton Petroleum Corp., Sr. Note, 9.90%, 5/15/2009		139,375
	50,000	1,2	Evergreen Resources, Inc., Sr. Sub. Note, 5.875%, 3/15/2012		50,125
	50,000	1,2	Ferrellgas Escrow LLC, Sr. Note, 6.75%, 5/1/2014		50,125
	100,000		Petroleum Helicopters, Inc., Company Guarantee, Series B, 9.375%, 5/1/2009		107,000
	50,000		Swift Energy Co., Sr. Sub. Note, 9.375%, 5/1/2012		56,000
	50,000		Tesoro Petroleum Corp., Company Guarantee, Series B, 9.625%, 11/1/2008		55,000
	50,000		Tesoro Petroleum Corp., Sr. Secd. Note, 8.00%, 4/15/2008		54,250
			TOTAL		656,875
			Entertainment--3.0%
	50,000	1,2	AMC Entertainment, Inc., Sr. Sub. Note, 8.00%, 3/1/2014		49,250
	150,000		AMC Entertainment, Inc., Sr. Sub. Note, 9.875%, 2/1/2012		161,250
	100,000		Cinemark USA, Sr. Sub. Note, 9.00%, 2/1/2013		109,750
	100,000	1,2,4	Cinemark, Inc., Sr. Disc. Note, 0/9.75%, 3/15/2014		62,500
	150,000		Intrawest Corp., Company Guarantee, 10.50%, 2/1/2010		164,250
	100,000		Regal Cinemas, Inc., Company Guarantee, Series B, 9.375%, 2/1/2012		119,250
	75,000	1,2	Six Flags, Inc., Sr. Note, 9.625%, 6/1/2014		78,750
	175,000		Universal City Development Partners Ltd., Sr. Note, 11.75%, 4/1/2010		204,094
	100,000		Vivendi Universal SA, Sr. Note, 6.25%, 7/15/2008		105,500
			TOTAL		1,054,594
			Environmental--1.3%
	300,000		Allied Waste North America, Inc., Company Guarantee, Series B, 8.50%, 12/1/2008		336,000
	100,000		Synagro Technologies, Inc., Sr. Sub. Note, 9.50%, 4/1/2009		108,500
			TOTAL		444,500
			Financial Institutions--0.4%
	125,000		Dollar Financial Group, Inc., Company Guarantee, 9.75%, 11/15/2011		134,687
Principal Amount				Value
			CORPORATE BONDS--continued
			Food & Beverage--6.6%
$	125,000		American Seafoods Group LLC, Company Guarantee, 10.125%, 4/15/2010	$	150,625
	100,000		B&G Foods, Inc., Company Guarantee, Series D, 9.625%, 8/1/2007		103,500
	100,000		Constellation Brands, Inc., Company Guarantee, Series B, 8.00%, 2/15/2008		110,500
	50,000		Del Monte Corp., Company Guarantee, Series B, 9.25%, 5/15/2011		55,750
	200,000		Del Monte Corp., Sr. Sub. Note, 8.625%, 12/15/2012		222,750
	75,000		Dole Food, Inc., Company Guarantee, 7.25%, 6/15/2010		75,750
	100,000		Dole Food, Inc., Sr. Note, 8.625%, 5/1/2009		107,750
	50,000		Dole Food, Inc., Sr. Note, 8.875%, 3/15/2011		53,750
	125,000	1,2	Gold Kist, Inc., Sr. Note, 10.25%, 3/15/2014		131,875
	125,000		Land O'Lakes, Inc., Sr. Note, 8.75%, 11/15/2011		120,000
	75,000	1,2	Michael Foods, Inc., Sr. Sub. Note, 8.00%, 11/15/2013		79,687
	50,000	1,2	National Beef Packaging Co. LLC, Sr. Note, 10.50%, 8/1/2011		54,000
	200,000		Pilgrim's Pride Corp., Sr. Note, 9.625%, 9/15/2011		217,500
	125,000		Pilgrim's Pride Corp., Sr. Sub. Note, 9.25%, 11/15/2013		133,750
	125,000		Reddy Ice Group, Inc., Sr. Sub. Note, 8.875%, 8/1/2011		135,000
	250,000		Smithfield Foods, Inc., Sr. Note, Series B, 8.00%, 10/15/2009		276,250
	50,000		Swift & Co., Sr. Note, 10.125%, 10/1/2009		53,750
	50,000		Swift & Co., Sr. Sub. Note, 12.50%, 1/1/2010		53,500
	200,000	1,2,4	UAP Holding Corp., Sr. Disc. Note, 0/10.75%, 7/15/2012		159,000
	50,000	1,2	United Agri Products, Inc., Sr. Note, 8.25%, 12/15/2011		55,750
			TOTAL		2,350,437
			Gaming--7.3%
	50,000	1,2	American Casino & Entertainment, Sr. Secd. Note, 7.85%, 2/1/2012		52,125
	50,000		Boyd Gaming Corp., Company Guarantee, 9.25%, 8/1/2009		56,125
	100,000		Boyd Gaming Corp., Sr. Sub. Note, 7.75%, 12/15/2012		106,000
	100,000		Coast Hotels & Casinos, Inc., Company Guarantee, 9.50%, 4/1/2009		105,625
	125,000	1,2	Global Cash Access LLC, Sr. Sub. Note, 8.75%, 3/15/2012		131,562
	75,000		Isle of Capri Casinos, Inc., Company Guarantee, 9.00%, 3/15/2012		84,375
	275,000		MGM Grand, Inc., Sr. Sub. Note, 8.375%, 2/1/2011		305,250
	175,000		MGM Grand, Inc., Sr. Sub. Note, 9.75%, 6/1/2007		199,500
	100,000		MTR Gaming Group, Inc., Company Guarantee, Series B, 9.75%, 4/1/2010		107,500
	100,000		Majestic Star Casino LLC, Company Guarantee, 9.50%, 10/15/2010		104,250
	50,000		Mandalay Resort Group, Sr. Note, 9.50%, 8/1/2008		58,875
	200,000		Mandalay Resort Group, Sr. Sub. Note, 9.375%, 2/15/2010		235,000
	100,000		Mohegan Tribal Gaming Authority, Sr. Sub. Note, 6.375%, 7/15/2009		103,000
	175,000		Park Place Entertainment Corp., Sr. Sub. Note, 7.875%, 3/15/2010		192,281
	100,000		Park Place Entertainment Corp., Sr. Sub. Note, 8.125%, 5/15/2011		112,125
Principal Amount				Value
			CORPORATE BONDS--continued
			Gaming--continued
$	125,000		Penn National Gaming, Inc., Company Guarantee, 11.125%, 3/1/2008	$	140,312
	50,000	1,2	River Rock Entertainment Authority, Sr. Note, 9.75%, 11/1/2011		53,500
	100,000	1,2	Station Casinos, Inc., Sr. Sub. Note, 6.50%, 2/1/2014		99,750
	100,000		Sun International Hotels Ltd., Sr. Sub. Note, 8.875%, 8/15/2011		111,250
	100,000		Venetian Casino/LV Sands, Company Guarantee, 11.00%, 6/15/2010		116,750
	75,000		Wynn Las Vegas LLC, Second Mortgage Notes, 12.00%, 11/1/2010		89,625
			TOTAL		2,564,780
			Healthcare--4.1%
	50,000		Alaris Medical Systems, Sr. Sub. Note, 7.25%, 7/1/2011		52,000
	200,000		AmeriPath, Inc., Company Guarantee, 10.50%, 4/1/2013		206,000
	100,000		Ardent Health Services, Sr. Sub. Note, 10.00%, 8/15/2013		109,500
	100,000		Concentra Operating Corp., Sr. Sub. Note, 9.50%, 8/15/2010		111,500
	150,000		Fisher Scientific International, Inc., Sr. Sub. Note, 8.00%, 9/1/2013		166,125
	350,000		HCA - The Healthcare Corp., Sr. Note, 6.91%, 6/15/2005		365,610
	75,000		Hanger Orthopedic Group, Inc., Company Guarantee, 10.375%, 2/15/2009		84,187
	65,000		Kinetic Concepts, Inc., Sr. Sub. Note, 7.375%, 5/15/2013		69,306
	50,000		Magellan Health Services, Inc., Sr. Note, Series A, 9.375%, 11/15/2008		54,125
	50,000	1,2	VWR International, Inc., Sr. Sub. Note, 8.00%, 4/15/2014		52,375
	175,000		Vanguard Health Systems, Company Guarantee, 9.75%, 8/1/2011		190,312
			TOTAL		1,461,040
			Industrial - Other--4.8%
	50,000	1,2	Aearo Co. I, Sr. Sub. Note, 8.25%, 4/15/2012		51,250
	175,000		Brand Services, Inc., Company Guarantee, 12.00%, 10/15/2012		203,875
	100,000		Briggs & Stratton Corp., Company Guarantee, 8.875%, 3/15/2011		119,500
	150,000		Eagle Picher Industries, Inc., Sr. Note, 9.75%, 9/1/2013		165,000
	100,000		Greif Brothers Corp., Sr. Sub. Note, 8.875%, 8/1/2012		110,500
	100,000		Hines Nurseries, Inc., Company Guarantee, 10.25%, 10/1/2011		110,000
	150,000		Interline Brands, Inc., Sr. Sub. Note, 11.50%, 5/15/2011		163,500
	146,000	1,2	Neenah Corp., Sr. Secd. Note, 11.00%, 9/30/2010		158,410
	129,786	1,2	Neenah Corp., Sr. Sub. Note, 13.00%, 9/30/2013		132,057
	125,000		Norcross Safety Products, Sr. Sub. Note, Series B, 9.875%, 8/15/2011		136,250
	100,000		Rexnord Corp., Company Guarantee, 10.125%, 12/15/2012		109,500
	150,000	1,2	Sensus Metering Systems, Inc., Sr. Sub. Note, 8.625%, 12/15/2013		148,875
	50,000	1,2	Superior Essex Communications LLC, Sr. Note, 9.00%, 4/15/2012		48,750
	50,000	1,2	Valmont Industries, Inc., Sr. Sub. Note, 6.875%, 5/1/2014		50,375
			TOTAL		1,707,842
Principal Amount				Value
			CORPORATE BONDS--continued
			Lodging--1.7%
$	150,000		Florida Panthers Holdings, Inc., Company Guarantee, 9.875%, 4/15/2009	$	158,625
	59,000		HMH Properties, Inc., Sr. Note, Series B, 7.875%, 8/1/2008		61,212
	150,000		Hilton Hotels Corp., Sr. Note, 8.25%, 2/15/2011		174,750
	75,000		Royal Caribbean Cruises Ltd., Sr. Note, 8.00%, 5/15/2010		83,250
	100,000		Starwood Hotels & Resorts Worldwide, Inc., Company Guarantee, 7.875%, 5/1/2012		111,125
			TOTAL		588,962
			Media - Cable--1.0%
	300,000	1,2	Charter Communications Holdings II, Sr. Note, 10.25%, 9/15/2010		313,125
	50,000	1,2	NTL Cable PLC, Sr. Note, 8.75%, 4/15/2014		52,250
			TOTAL		365,375
			Media - Non-Cable--8.7%
	125,000		Advanstar Communications, Company Guarantee, Series B, 12.00%, 2/15/2011		134,062
	100,000		Advanstar Communications, Sr. Secd. Note, 10.75%, 8/15/2010		110,500
	75,000	4	Advanstar, Inc., Company Guarantee, Series B, 0/15.00%, 10/15/2011		61,312
	100,000	1,2	Affinity Group, Inc., Sr. Sub. Note, 9.00%, 2/15/2012		107,000
	100,000		American Media Operations, Inc., Sr. Sub. Note, 8.875%, 1/15/2011		100,500
	100,000		Block Communications, Inc., Company Guarantee, 9.25%, 4/15/2009		106,000
	175,000		DIRECTV Holdings LLC, Sr. Note, 8.375%, 3/15/2013		198,625
	175,000		Dex Media East LLC, Company Guarantee, 12.125%, 11/15/2012		203,875
	250,000	1,2	Dex Media West LLC, Sr. Sub. Note, 9.875%, 8/15/2013		272,500
	150,000	1,2,4	Dex Media, Inc., Discount Note, 0/9.00%, 11/15/2013		92,250
	75,000	1,2,4	Houghton Mifflin Co., Sr. Disc. Note, 0/11.50%, 10/15/2013		36,375
	50,000	1,2	Inmarsat Finance PLC, Sr. Note, 7.625%, 6/30/2012		51,000
	100,000		Lamar Media Corp., Sr. Sub. Note, 7.25%, 1/1/2013		108,250
	50,000		Liberty Group Ltd., Sr. Sub. Note, 9.375%, 2/1/2008		50,625
	125,000		Lodgenet Entertainment, Sr. Sub. Note, 9.50%, 6/15/2013		138,125
	50,000		Muzak LLC, Sr. Note, 10.00%, 2/15/2009		51,750
	200,000		PanAmSat Corp., Sr. Note, 8.50%, 2/1/2012		227,000
	100,000	4	Quebecor Media Inc., Sr. Disc. Note, 0/13.75%, 7/15/2011		92,500
	100,000	1,2	R.H. Donnelly Finance Corp., Sr. Sub. Note, 10.875%, 12/15/2012		119,500
	50,000	1,2	Readers Digest Association, Inc., Sr. Note, 6.50%, 3/1/2011		50,750
	200,000		Sinclair Broadcast Group, Inc., Company Guarantee, 8.75%, 12/15/2011		220,000
	100,000		Sun Media Corp., Company Guarantee, 7.625%, 2/15/2013		109,000
	200,000		Vertis, Inc., Sr. Note, Series B, 10.875%, 6/15/2009		212,000
Principal Amount				Value
			CORPORATE BONDS--continued
			Media - Non-Cable--continued
$	75,000		Vertis, Inc., Sr. Secd. 2nd Priority Note, 9.75%, 4/1/2009	$	81,938
	50,000	4	XM Satellite Radio, Inc., Sec. Fac. Bond, 0/14.00%, 12/31/2009		48,000
	91,000		XM Satellite Radio, Inc., Sr. Secd. Note, 12.00%, 6/15/2010		106,015
			TOTAL		3,089,452
			Metals & Mining--2.0%
	50,000	1,2	California Steel Industries, Inc., Sr. Note, 6.125%, 3/15/2014		49,750
	50,000		Commonwealth Aluminum Corp., Sr. Sub. Note, 10.75%, 10/1/2006		50,500
	175,000		Imco Recycling, Inc., Sr. Secd. Note, 10.375%, 10/15/2010		189,000
	100,000	1,2	Ispat Inland ULC, Sr. Secd. Note, 9.75%, 4/1/2014		104,750
	100,000		Ryerson Tull, Inc., Sr. Note, 9.125%, 7/15/2006		103,000
	126,000		United States Steel Corp., Sr. Note, 9.75%, 5/15/2010		145,530
	50,000	1,2	Wise Metals Group LLC, Sr. Secd. Note, 10.25%, 5/15/2012		50,000
			TOTAL		692,530
			Packaging--3.1%
	50,000		Berry Plastics Corp., Company Guarantee, 10.75%, 7/15/2012		57,000
	75,000	1,2	Berry Plastics Corp., Sr. Sub. Note, 10.75%, 7/15/2012		85,500
	250,000		Graham Packaging Co., Sr. Sub. Note, 8.75%, 1/15/2008		255,000
	100,000		Huntsman Packaging Corp., Company Guarantee, 13.00%, 6/1/2010		91,500
	100,000		Owens-Brockway Glass Container, Inc., Company Guarantee, 7.75%, 5/15/2011		104,750
	50,000		Owens-Brockway Glass Container, Inc., Company Guarantee, 8.25%, 5/15/2013		51,875
	100,000		Owens-Brockway Glass Container, Inc., Sr. Secd. Note, 8.875%, 2/15/2009		108,750
	100,000		Owens-Illinois, Inc., Sr. Note, 7.35%, 5/15/2008		98,500
	50,000		Pliant Corp., Sr. Secd. Note, 11.125%, 9/1/2009		54,125
	175,000		Tekni-Plex, Inc., Company Guarantee, Series B, 12.75%, 6/15/2010		181,563
			TOTAL		1,088,563
			Paper--3.9%
	50,000		Boise Cascade Corp., Sr. Note, 7.00%, 11/1/2013		52,625
	100,000		Georgia-Pacific Corp., Note, 7.50%, 5/15/2006		107,250
	225,000		Georgia-Pacific Corp., Sr. Note, 8.125%, 5/15/2011		254,813
	150,000		Georgia-Pacific Corp., Sr. Note, 9.375%, 2/1/2013		175,125
	150,000		Graphic Packaging International Corp., Sr. Sub. Note, 9.50%, 8/15/2013		168,750
	100,000		Jefferson Smurfit Corp., Company Guarantee, 7.50%, 6/1/2013		103,500
	75,000		MDP Acquisitions PLC, 9.625%, 10/1/2012		84,000
	133,868		MDP Acquisitions PLC, Sub. Note, 15.50%, 10/1/2013		157,295
	75,000	1,2	Riverside Forest Products Ltd., Sr. Note, 7.875%, 3/1/2014		78,375
Principal Amount				Value
			CORPORATE BONDS--continued
			Paper--continued
$	100,000		Stone Container Corp., Sr. Note, 9.75%, 2/1/2011	$	110,500
	75,000		Tembec Industries, Inc., 8.50%, 2/1/2011		76,500
			TOTAL		1,368,733
			Restaurants--0.7%
	125,000		Carrols Corp., Company Guarantee, 9.50%, 12/1/2008		129,688
	100,000		Domino's, Inc., Sr. Sub. Note, 8.25%, 7/1/2011		108,000
			TOTAL		237,688
			Retailers--3.2%
	125,000		Buhrmann US, Inc., Company Guarantee, 12.25%, 11/1/2009		137,500
	100,000		Couche-Tard Financing Corp., Sr. Sub. Note, 7.50%, 12/15/2013		105,500
	50,000	1,2	FTD, Inc., Sr. Sub. Note, 7.75%, 2/15/2014		50,000
	50,000	1,2	General Nutrition Center, Sr. Sub. Note, 8.50%, 12/1/2010		52,813
	50,000		Mothers Work, Inc., Sr. Note, 11.25%, 8/1/2010		52,250
	125,000		PCA International, Inc., Sr. Note, 11.875%, 8/1/2009		138,750
	125,000		Penney (J.C.) Co., Inc., Note, 9.00%, 8/1/2012		152,813
	50,000	1,2	Petro Stopping Centers, Sr. Secd. Note, 9.00%, 2/15/2012		52,500
	100,000		Rite Aid Corp., Sr. Deb., 6.875%, 8/15/2013		94,750
	175,000		Rite Aid Corp., Sr. Secd. Note, 8.125%, 5/1/2010		189,875
	100,000		United Auto Group, Inc., Company Guarantee, 9.625%, 3/15/2012		112,000
			TOTAL		1,138,751
			Services--0.9%
	50,000		CB Richard Ellis Services, Sr. Note, 9.75%, 5/15/2010		55,750
	100,000		SITEL Corp., Sr. Sub. Note, 9.25%, 3/15/2006		100,500
	125,000		The Brickman Group Ltd., Sr. Sub. Note, Series B, 11.75%, 12/15/2009		145,313
			TOTAL		301,563
			Technology--2.9%
	32,000		AMI Semiconductor, Inc., Sr. Sub. Note, 10.75%, 2/1/2013		37,680
	125,000		Activant Solutions, Inc., Sr. Note, 10.50%, 6/15/2011		129,375
	100,000		Danka Business Systems PLC, Sr. Note, 11.00%, 6/15/2010		102,500
	175,000		Ingram Micro, Inc., Sr. Sub. Note, 9.875%, 8/15/2008		196,000
	100,000		Seagate Technology HDD Holdings, Sr. Note, 8.00%, 5/15/2009		108,500
	50,000	1,2	Telex Communications, Inc., Sr. Secd. Note, 11.50%, 10/15/2008		53,750
	75,000		Unisys Corp., Sr. Note, 6.875%, 3/15/2010		79,875
	200,000		Xerox Corp., Sr. Note, 7.625%, 6/15/2013		205,000
	100,000		Xerox Corp., Sr. Note, 9.75%, 1/15/2009		114,000
			TOTAL		1,026,680
Principal Amount				Value
			CORPORATE BONDS--continued
			Textile--1.4%
$	100,000		GFSI, Inc., Sr. Sub. Note, 9.625%, 3/1/2007	$	96,500
	100,000		Levi Strauss & Co., Sr. Note, 11.625%, 1/15/2008		91,500
	125,000		Phillips Van Heusen Corp., Sr. Note, 8.125%, 5/1/2013		131,875
	150,000		Warnaco Group, Inc., Sr. Note, 8.875%, 6/15/2013		162,375
			TOTAL		482,250
			Tobacco--0.8%
	125,000	1,2	Commonwealth Brands, Inc., Sr. Sub. Secd. Note, 10.625%, 9/1/2008		135,625
	100,000		Dimon, Inc., Sr. Note, 7.75%, 6/1/2013		99,000
	50,000	1,2	Standard Commercial Corp., Sr. Note, 8.00%, 4/15/2012		51,750
			TOTAL		286,375
			Transportation--0.9%
	50,000		Allied Holdings, Inc., Sr. Note, 8.625%, 10/1/2007		48,500
	125,000		Stena AB, Sr. Note, 7.50%, 11/1/2013		131,875
	125,000		Stena AB, Sr. Note, 9.625%, 12/1/2012		142,188
			TOTAL		322,563
			Utility - Electric--3.0%
	225,000		CMS Energy Corp., Sr. Note, 8.90%, 7/15/2008		239,625
	200,000		Illinois Power Co., 1st Mtg. Bond, 11.50%, 12/15/2010		240,000
	125,000	1,2	NRG Energy, Inc., Sr. Secd. Note, 8.00%, 12/15/2013		127,188
	50,000	1,2	Nevada Power Co., 6.50%, 4/15/2012		49,986
	50,000	1,2	P G & E Corp., Sr. Secd. Note, 6.875%, 7/15/2008		53,795
	100,000		PSEG Energy Holdings, Sr. Note, 10.00%, 10/1/2009		116,250
	50,000		PSEG Energy Holdings, Sr. Note, 8.625%, 2/15/2008		54,125
	50,000		Reliant Resources, Inc., Sr. Secd. Note, 9.25%, 7/15/2010		54,000
	100,000		Reliant Resources, Inc., Sr. Secd. Note, 9.50%, 7/15/2013		109,500
			TOTAL		1,044,469
			Utility - Natural Gas--3.4%
	50,000		ANR Pipeline Co., Sr. Note, 8.875%, 3/15/2010		55,750
	100,000		El Paso Corp., 6.75%, 5/15/2009		89,500
	150,000		El Paso Corp., Sr. Note, 7.80%, 8/1/2031		118,875
	50,000		El Paso Corp., Sr. Note, 8.05%, 10/15/2030		40,250
	125,000		El Paso Production Holding Co., Company Guarantee, 7.75%, 6/1/2013		119,375
	50,000		Semco Energy, Inc., Sr. Note, 7.125%, 5/15/2008		52,250
	300,000		Tennessee Gas Pipeline, Bond, 8.375%, 6/15/2032		308,625
	25,000		Tennessee Gas Pipeline, Sr. Deb., 7.50%, 4/1/2017		25,500
Principal Amount or Shares				Value
			CORPORATE BONDS--continued
			Utility - Natural Gas--continued
$	50,000		Williams Cos., Inc., Note, 7.625%, 7/15/2019	$	48,875
	175,000		Williams Cos., Inc., Note, 7.875%, 9/1/2021		171,500
	150,000		Williams Cos., Inc., Sr. Note, 8.625%, 6/1/2010		165,375
			TOTAL		1,195,875
			Wireless Communications--2.3%
	150,000		American Cellular Corp., Sr. Note, Series B, 10.00%, 8/1/2011		146,625
	300,000		NEXTEL Communications, Inc., Sr. Note, 9.375%, 11/15/2009		326,250
	68,000		Nextel Partners, Inc., Sr. Note, 12.50%, 11/15/2009		80,410
	50,000		Nextel Partners, Inc., Sr. Note, 8.125%, 7/1/2011		52,750
	125,000	1,2	Rogers Wireless, Inc., Sr. Secd. Note, 6.375%, 3/1/2014		120,938
	100,000		Triton PCS, Inc., Sr. Note, 8.50%, 6/1/2013		104,500
			TOTAL		831,473
			Wireline Communications--4.0%
	100,000		Alaska Communications Systems Holdings, Inc., Sr. Note, 9.875%, 8/15/2011		103,250
	50,000		Alaska Communications Systems Holdings, Inc., Sr. Sub. Note, 9.375%, 5/15/2009		49,750
	125,000		Cincinnati Bell, Inc., Company Guarantee, 7.25%, 7/15/2013		120,938
	125,000		Cincinnati Bell, Inc., Sr. Sub. Note, 8.375%, 1/15/2014		119,063
	100,000		Eircom Funding, Sr. Sub. Note, 8.25%, 8/15/2013		108,500
	100,000	1,2	Primus Telecommunications Holding, Inc., Sr. Note, 8.00%, 1/15/2014		94,500
	325,000	1,2	Qwest Communications International, Inc., Note, 9.125%, 3/15/2012		352,625
	400,000	1,2	Qwest Communications International, Inc., Sr. Sub. Note, 13.50%, 12/15/2010		464,000
			TOTAL		1,412,626
			TOTAL CORPORATE BONDS (IDENTIFIED COST $31,331,023)		33,057,095
			PREFERRED STOCKS--0.4%
			Retailers--0.4%
	150	1,2	General Nutrition Centers Holding Co., Exchangeable Pfd. Stock, Series A (identified cost $150,900)		154,875
			WARRANTS--0.1%
			Industrial - Other--0.1%
	17,689	1,2,3	Neenah Corp., Warrants (identified cost $0)		22,553
Shares				Value
			MUTUAL FUNDS--4.3%5
	146,216		High Yield Bond Portfolio	$	1,007,429
	526,604		Prime Value Obligations Fund, IS Shares		526,604
			TOTAL MUTUAL FUNDS (IDENTIFIED COST $1,535,335)		1,534,033
			TOTAL INVESTMENTS--98.4% (IDENTIFIED COST $33,017,258)6		34,768,556
			OTHER ASSETS AND LIABILITIES - NET--1.6%		574,773
			TOTAL NET ASSETS--100%	$	35,343,329

1 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. At April 30, 2004, these securities amounted to $7,799,608 which represents 22.1% of net assets.

2 Denotes a restricted security that has been deemed liquid by criteria approved by the Fund's Board of Trustees.

3 Non-income producing security.

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

5 Affiliated companies.

6 The cost of investments for federal tax purposes amounts to $33,062,349.

Note: The categories of investments are shown as a percentage of total net assets at April 30, 2004.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

April 30, 2004 (unaudited)

Assets:
Total investments in securities, at value including $1,534,033 of investments in affiliated issuers (Note 5) (identified cost $33,017,258)			$	34,768,556
Cash				29,210
Income receivable				757,367
Receivable for investments sold				102,628
Receivable for shares sold				31,500
Prepaid expenses				8,155
TOTAL ASSETS				35,697,416
Liabilities:
Payable for investments purchased	$	160,313
Payable for shares redeemed		15,955
Income distribution payable		176,342
Payable for transfer and dividend disbursing agent fees and expenses (Note 5)		967
Payable for Directors'/Trustees' fees		510
TOTAL LIABILITIES				354,087
Net assets for 3,008,916 shares outstanding			$	35,343,329
Net Assets Consist of:
Paid in capital			$	31,394,255
Net unrealized appreciation of investments				1,751,298
Accumulated net realized gain on investments				2,254,652
Distributions in excess of net investment income				(56,876	)
TOTAL NET ASSETS			$	35,343,329
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Net asset value per share ($35,343,329 ÷ 3,008,916 shares outstanding)				$11.75
Offering price per share				$11.75
Redemption proceeds per share (98.00/100 of $11.75)1				$11.52

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

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended April 30, 2004 (unaudited)

Investment Income:
Interest							$	1,490,819
Dividends (received from affiliated issuers) (Note 5)								520,821
TOTAL INCOME								2,011,640
Expenses:
Investment adviser fee (Note 5)				$	96,797
Administrative personnel and services fee (Note 5)					74,591
Custodian fees					4,453
Transfer and dividend disbursing agent fees and expenses (Note 5)					9,827
Directors'/Trustees' fees					2,993
Auditing fees					8,969
Legal fees					2,954
Portfolio accounting fees (Note 5)					24,013
Share registration costs					12,856
Printing and postage					5,781
Insurance premiums					910
Miscellaneous					324
TOTAL EXPENSES					244,468
Waivers and Reimbursement (Note 5):
Waiver of investment adviser fee	$	(96,797	)
Waiver of administrative personnel and services fee		(12,190	)
Waiver of transfer and dividend disbursing agent fees and expenses		(1,835	)
Reimbursement of other operating expenses		(11,463	)
TOTAL WAIVERS AND REIMBURSEMENT					(122,285	)
Net expenses								122,183
Net investment income								1,889,457
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments (including realized gain of $1,722,177 on sales of investments in affiliated issuers) (Note 5)								2,277,529
Net change in unrealized appreciation of investments								(1,423,760	)
Net realized and unrealized gain on investments								853,769
Change in net assets resulting from operations							$	2,743,226

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

	Six Months Ended (unaudited) 4/30/2004			Year Ended 10/31/2003
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	1,889,457		$	2,418,126
Net realized gain on investments		2,277,529			307,683
Net change in unrealized appreciation/depreciation of investments		(1,423,760	)		3,175,058
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		2,743,226			5,900,867
Distributions to Shareholders:
Distributions from net investment income		(1,947,947	)		(2,441,757	)
Distributions from net realized gain on investments		(305,315	)		--
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(2,253,262	)		(2,441,757	)
Share Transactions:
Proceeds from sale of shares		9,751,086			47,623,113
Net asset value of shares issued to shareholders in payment of distributions declared		391,465			340,141
Cost of shares redeemed		(23,726,188	)		(2,985,362	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(13,583,637	)		44,977,892
Change in net assets		(13,093,673	)		48,437,002
Net Assets:
Beginning of period		48,437,002			--
End of period (including undistributed (distributions in excess of) net investment income of $(56,876) and $1,614, respectively)	$	35,343,329		$	48,437,002

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

April 30, 2004 (unaudited)

1. 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.

2. 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") in the United States of America.

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 accordance with procedures established by and under general supervision of 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 the 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 (the "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.

Redemption Fees

Effective November 1, 2002, the Fund began imposing a 2.00% redemption fee to shareholders of the Fund who redeem shares held for 90 days or less. The redemption fee may be waived in certain situations; see "What Do Shares Cost?" in the Statement of Additional Information. All redemption fees are recorded by the Fund as paid in capital. For the six months ended April 30, 2004, the redemption fees amounted to $52.

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.

3. 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 capital stock were as follows:

	Six Months Ended 4/30/2004		Year Ended 10/31/2003
Shares sold	828,182		4,398,707
Shares issued to shareholders in payment of distributions declared	33,374		30,080
Shares redeemed	(2,013,578	)	(267,849	)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(1,152,022	)	4,160,938

4. FEDERAL TAX INFORMATION

At April 30, 2004, the cost of investments for federal tax purposes was $33,062,349. The net unrealized appreciation of investments for federal tax purposes was $1,706,207. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $1,799,078 and net unrealized depreciation from investments for those securities having an excess of cost over value of $92,871.

5. 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 any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund may invest in other funds that are managed by the Fund's Adviser or an affiliate of the Adviser. The Adviser has agreed to reimburse certain investment adviser fees as a result of these transactions. Income distributions earned from investments in these funds are recorded as income in the accompanying financial statements and are listed below:

Prime Value Obligations Fund	$	4,180
High Yield Bond Portfolio	$	516,641

Administrative Fee

Federated Administrative Services ("FAS"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of all Federated funds as specified below:

Maximum Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
0.150%	on the first $5 billion
0.125%	on the next $5 billion
0.100%	on the next $10 billion
0.075%	on assets in excess of $20 billion

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of shares. FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion.

Transfer and Dividend Disbursing Agent Fees and Expenses

Federated Services Company ("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

Prior to January 1, 2004, FServ maintained the Fund's accounting records for which it received a fee. The fee was based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses. The fee paid to FServ during the reporting period was $7,892, after voluntary waiver, if applicable.

General

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

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations (and in-kind contributions), for the six months ended April 30, 2004, were as follows:

Purchases	$	12,016,384
Sales	$	26,470,065

7. LEGAL PROCEEDINGS

In October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds"), were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland seeking damages of unspecified amounts. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. The Board of the Funds has retained the law firm of Dickstein Shapiro Morin & Oshinsky LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and will respond appropriately. Additional lawsuits based upon similar allegations have been filed, and others may be filed in the future. Although Federated does not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from related regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

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.

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. This information is also available from the EDGAR database on the SEC's Internet site at http://www.sec.gov.

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 Shareholder 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: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 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

Federated is a registered mark of Federated Investors, Inc. 2004 ©Federated Investors, Inc.

28539 (6/04)

Item 2.     Code of Ethics

            Not Applicable

Item 3.     Audit Committee Financial Expert

            Not Applicable

Item 4.     Principal Accountant Fees and Services

            Not Applicable

Item 5      Audit Committee of Listed Registrants

            Not Applicable

Item 6      Schedule of Investments

            Not Applicable

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

            Not Applicable

Item 8.     Purchases of Equity Securities by Closed-End Management
            Investment Company and Affiliated Purchasers

            Not Applicable

Item 9.     Submission of Matters to a Vote of Security Holders

            Not Applicable

Item 10.    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-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-CSR.

(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
half year (the registrant's second half year in the case of an annual report)
that have materially affected, or are reasonably likely to materially affect,
the registrant's internal control over financial reporting.

Item 11.    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 21, 2004


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 22, 2004


By          /S/ Richard J. Thomas, Principal Financial Officer
Date        June 21, 2004