PITTSBURGH, Feb. 16, 2012 /PRNewswire/ -- Federated Enhanced Treasury Income Fund (NYSE: FTT) today announced that its Board of Trustees, as part of its evaluation of options to enhance shareholder value, has authorized a share repurchase program. The program will allow the fund to purchase up to 5% of its outstanding common shares as of Dec. 31, 2011, or 478,446 shares, in the open market at fund management's discretion. The amount and timing of share purchases will be subject to market conditions and investment considerations. The program will begin on March 1, 2012 and run for a one-year period. The fund's Board of Trustees and investment adviser analyze options to enhance shareholder value and potentially reduce the discount between the market price of the fund's common shares and their net asset value per share (NAV). The investment adviser believes that the share repurchase program may further these goals because the program allows the fund to acquire its shares in the open market at a discount to NAV, which will increase the NAV and thereby benefit remaining shareholders while potentially providing additional liquidity in the trading of fund shares. The share repurchase program is the most recent in a series of actions the fund has taken to seek to enhance shareholder value, including the adoption of a managed distribution plan last year. The board will monitor the program and will continue to consider strategic options to enhance shareholder value over the long-term. There is no assurance that the fund will purchase shares at any specific discount levels or in any specific amounts. The fund's repurchase activity will be disclosed in its shareholder report for the relevant fiscal period. There is no assurance that the market price of the fund's shares, either absolutely or relative to NAV, will increase as a result of any share repurchases.