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 811-5078
MFS GOVERNMENT MARKETS INCOME TRUST
(Exact name of registrant as specified in charter)
500 Boylston Street, Boston, Massachusetts 02116
(Address of principal executive offices) (Zip code)
Susan S. Newton
Massachusetts Financial Services Company
500 Boylston Street
Boston, Massachusetts 02116
(Name and address of agents for service)
Registrants telephone number, including area code: (617) 954-5000
Date of fiscal year end: November 30
Date of reporting period: August 31, 2010
ITEM 1. | SCHEDULE OF INVESTMENTS. |
MFS Government Markets Income Trust
PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10
Issuer |
Shares/Par | Value ($) | ||||||
Bonds 98.3% |
||||||||
U.S. Bonds 92.7% |
||||||||
Agency - Other 13.6% |
||||||||
Financing Corp., 10.7%, 2017 |
$ | 4,095,001 | $ | 6,277,912 | ||||
Financing Corp., 9.4%, 2018 |
3,085,000 | 4,522,585 | ||||||
Financing Corp., 9.8%, 2018 |
4,350,000 | 6,509,919 | ||||||
Financing Corp., 10.35%, 2018 |
6,820,000 | 10,620,131 | ||||||
Financing Corp., STRIPS, 0%, 2017 |
5,000,000 | 4,132,120 | ||||||
$ | 32,062,667 | |||||||
Asset-Backed & Securitized 4.3% |
||||||||
Citigroup Commercial Mortgage Trust, FRN, 5.886%, 2049 |
$ | 1,000,000 | $ | 1,064,218 | ||||
Citigroup/Deutsche Bank Commercial Mortgage Trust, 5.322%, 2049 |
1,200,000 | 1,222,564 | ||||||
Commercial Mortgage Pass-Through Certificates, A4, 5.306%, 2046 |
1,366,646 | 1,407,704 | ||||||
Credit Suisse Mortgage Capital Certificate, 5.311%, 2039 |
500,000 | 515,229 | ||||||
CWCapital LLC, 5.223%, 2048 |
1,000,000 | 1,019,740 | ||||||
JPMorgan Chase Commercial Mortgage Securities Corp., 5.42%, 2049 |
1,000,000 | 1,022,776 | ||||||
JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 6.005%, 2049 |
1,000,000 | 1,023,988 | ||||||
JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 6.187%, 2051 |
754,902 | 792,172 | ||||||
Merrill Lynch Mortgage Trust, FRN, 6.019%, 2050 |
750,000 | 238,630 | ||||||
Prudential Securities Secured Financing Corp., FRN, 7.315%, 2013 (z) |
1,819,000 | 1,767,674 | ||||||
$ | 10,074,695 | |||||||
Cable TV 0.5% |
||||||||
Time Warner Cable, Inc., 8.25%, 2019 |
$ | 1,000,000 | $ | 1,282,555 | ||||
Chemicals 0.3% |
||||||||
Dow Chemical Co., 8.55%, 2019 |
$ | 500,000 | $ | 626,743 | ||||
Dow Chemical Co., 9.4%, 2039 |
70,000 | 99,359 | ||||||
$ | 726,102 | |||||||
Computer Software - Systems 0.3% |
||||||||
International Business Machines Corp., 8%, 2038 |
$ | 500,000 | $ | 750,669 | ||||
Energy - Integrated 0.0% |
||||||||
Hess Corp., 8.125%, 2019 |
$ | 30,000 | $ | 39,100 | ||||
Food & Beverages 1.0% |
||||||||
Anheuser-Busch InBev S.A., 7.75%, 2019 (n) |
$ | 750,000 | $ | 960,577 | ||||
Dr. Pepper Snapple Group, Inc., 6.82%, 2018 |
231,000 | 284,525 | ||||||
Kraft Foods, Inc., 6.125%, 2018 |
960,000 | 1,126,753 | ||||||
$ | 2,371,855 | |||||||
Local Authorities 1.2% |
||||||||
Nashville & Davidson County, TN, Metropolitan Government Convention Center Authority (Build America Bonds), 6.731%, 2043 |
$ | 580,000 | $ | 631,974 | ||||
New Jersey Turnpike Authority Rev. (Build America Bonds), F, 7.414%, 2040 |
32,000 | 40,274 | ||||||
San Francisco, CA, City & County Public Utilities Commission, Water Rev. (Build America Bonds), 6%, 2040 |
1,650,000 | 1,750,353 | ||||||
University of California Rev. (Build America Bonds), 5.77%, 2043 |
450,000 | 488,354 | ||||||
$ | 2,910,955 | |||||||
Major Banks 0.4% |
||||||||
Bank of America Corp., 7.625%, 2019 |
$ | 170,000 | $ | 198,978 | ||||
Merrill Lynch & Co., Inc., 6.05%, 2016 |
750,000 | 794,450 | ||||||
$ | 993,428 | |||||||
Mortgage-Backed 46.6% |
||||||||
Fannie Mae, 4.79%, 2012 |
$ | 121,613 | $ | 128,788 | ||||
Fannie Mae, 4.542%, 2013 |
950,961 | 1,015,562 | ||||||
Fannie Mae, 5%, 2013 - 2040 |
5,152,377 | 5,473,392 |
1
MFS Government Markets Income Trust
PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued
Issuer |
Shares/Par | Value ($) | ||||||
Bonds continued |
||||||||
U.S. Bonds continued |
||||||||
Mortgage-Backed continued |
||||||||
Fannie Mae, 5.06%, 2013 |
375,438 | $ | 396,961 | |||||
Fannie Mae, 5.37%, 2013 |
987,403 | 1,049,346 | ||||||
Fannie Mae, 4.77%, 2014 |
462,518 | 506,423 | ||||||
Fannie Mae, 4.841%, 2014 |
2,662,774 | 2,905,315 | ||||||
Fannie Mae, 5.1%, 2014 |
499,839 | 552,330 | ||||||
Fannie Mae, 4.7%, 2015 |
455,680 | 501,293 | ||||||
Fannie Mae, 4.74%, 2015 |
369,956 | 407,902 | ||||||
Fannie Mae, 4.78%, 2015 |
516,845 | 572,549 | ||||||
Fannie Mae, 4.815%, 2015 |
541,778 | 599,997 | ||||||
Fannie Mae, 4.82%, 2015 |
916,480 | 1,010,972 | ||||||
Fannie Mae, 4.85%, 2015 |
325,321 | 359,360 | ||||||
Fannie Mae, 4.86%, 2015 |
151,159 | 166,714 | ||||||
Fannie Mae, 4.87%, 2015 |
344,410 | 381,230 | ||||||
Fannie Mae, 4.89%, 2015 |
386,100 | 427,502 | ||||||
Fannie Mae, 5.466%, 2015 |
853,773 | 961,730 | ||||||
Fannie Mae, 5.09%, 2016 |
500,000 | 561,806 | ||||||
Fannie Mae, 5.424%, 2016 |
758,540 | 856,963 | ||||||
Fannie Mae, 5.845%, 2016 |
358,448 | 396,970 | ||||||
Fannie Mae, 6.5%, 2016 - 2037 |
4,527,076 | 4,998,108 | ||||||
Fannie Mae, 5.05%, 2017 |
521,340 | 586,043 | ||||||
Fannie Mae, 5.3%, 2017 |
574,163 | 647,483 | ||||||
Fannie Mae, 5.5%, 2017 - 2037 |
34,422,427 | 37,156,442 | ||||||
Fannie Mae, 6%, 2017 - 2037 |
9,733,381 | 10,600,450 | ||||||
Fannie Mae, 4.88%, 2020 |
283,081 | 316,362 | ||||||
Freddie Mac, 5%, 2016 - 2040 |
12,048,296 | 12,846,674 | ||||||
Freddie Mac, 6%, 2021 - 2038 |
4,535,060 | 4,887,334 | ||||||
Freddie Mac, 4.5%, 2024 |
1,174,820 | 1,243,668 | ||||||
Freddie Mac, 5.5%, 2024 - 2036 |
7,513,650 | 8,059,462 | ||||||
Freddie Mac, 6.5%, 2037 |
1,497,316 | 1,629,686 | ||||||
Ginnie Mae, 5.5%, 2033 - 2038 |
5,208,351 | 5,666,374 | ||||||
Ginnie Mae, 5.612%, 2058 |
1,130,363 | 1,234,308 | ||||||
Ginnie Mae, 6.357%, 2058 |
1,000,263 | 1,101,735 | ||||||
$ | 110,207,234 | |||||||
Municipals 2.7% |
||||||||
California Educational Facilities Authority Rev. (Stanford University), 5.25%, 2040 |
$ | 620,000 | $ | 776,290 | ||||
California Educational Facilities Authority Rev. (Stanford University), T-1, 5%, 2039 |
3,075,000 | 3,769,581 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Boston College), 5.5%, 2027 |
755,000 | 949,465 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology), K, 5.5%, 2032 |
745,000 | 963,009 | ||||||
$ | 6,458,345 | |||||||
Natural Gas - Pipeline 0.5% |
||||||||
Energy Transfer Partners LP, 8.5%, 2014 |
$ | 21,000 | $ | 24,795 | ||||
Kinder Morgan Energy Partners, 6.85%, 2020 |
1,000,000 | 1,180,938 | ||||||
$ | 1,205,733 | |||||||
Network & Telecom 0.3% |
||||||||
Verizon Communications, Inc., 8.75%, 2018 |
$ | 449,000 | $ | 605,205 | ||||
Oil Services 0.6% |
||||||||
Smith International, Inc., 9.75%, 2019 |
$ | 1,000,000 | $ | 1,424,744 | ||||
Other Banks & Diversified Financials 0.5% |
||||||||
Capital One Financial Corp., 8.8%, 2019 |
$ | 280,000 | $ | 354,642 | ||||
2
MFS Government Markets Income Trust
PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued
Issuer |
Shares/Par | Value ($) | ||||||
Bonds continued |
||||||||
U.S. Bonds continued |
||||||||
Other Banks & Diversified Financials continued |
||||||||
Citigroup, Inc., 8.5%, 2019 |
$ | 94,000 | $ | 114,941 | ||||
UBS Preferred Funding Trust V, 6.243% to 2016, FRN to 2049 |
750,000 | 709,688 | ||||||
$ | 1,179,271 | |||||||
Pollution Control 0.5% |
||||||||
Allied Waste North America, Inc., 6.875%, 2017 |
$ | 1,000,000 | $ | 1,103,750 | ||||
Real Estate 0.4% |
||||||||
Simon Property Group, Inc., REIT, 5.875%, 2017 |
$ | 750,000 | $ | 853,382 | ||||
Retailers 0.4% |
||||||||
Staples, Inc., 9.75%, 2014 |
$ | 750,000 | $ | 931,007 | ||||
Tobacco 1.2% |
||||||||
Altria Group, Inc., 9.7%, 2018 |
$ | 500,000 | $ | 661,380 | ||||
Altria Group, Inc., 9.25%, 2019 |
250,000 | 327,632 | ||||||
Lorillard Tobacco Co., 8.125%, 2019 |
796,000 | 917,359 | ||||||
Lorillard Tobacco Co., 6.875%, 2020 |
1,000,000 | 1,055,804 | ||||||
$ | 2,962,175 | |||||||
U.S. Government Agencies and Equivalents 4.5% |
||||||||
Aid-Egypt, 4.45%, 2015 |
1,755,000 | $ | 1,978,727 | |||||
Farmer Mac, 5.5%, 2011 (n) |
3,010,000 | 3,142,157 | ||||||
Small Business Administration, 8.875%, 2011 |
26,158 | 26,426 | ||||||
Small Business Administration, 6.35%, 2021 |
607,846 | 663,146 | ||||||
Small Business Administration, 6.34%, 2021 |
579,418 | 632,752 | ||||||
Small Business Administration, 6.44%, 2021 |
563,501 | 616,964 | ||||||
Small Business Administration, 6.625%, 2021 |
619,410 | 680,823 | ||||||
Small Business Administration, 5.52%, 2024 |
884,408 | 962,381 | ||||||
U.S. Department of Housing & Urban Development, 6.36%, 2016 |
1,580,000 | 1,658,649 | ||||||
U.S. Department of Housing & Urban Development, 6.59%, 2016 |
299,000 | 300,784 | ||||||
$ | 10,662,809 | |||||||
U.S. Treasury Obligations 12.9% |
||||||||
U.S. Treasury Bonds, 4.75%, 2037 |
$ | 2,000,000 | $ | 2,455,000 | ||||
U.S. Treasury Bonds, 4.375%, 2038 |
3,225,000 | 3,731,931 | ||||||
U.S. Treasury Bonds, 4.5%, 2039 |
2,500,000 | 2,939,845 | ||||||
U.S. Treasury Notes, 4.625%, 2011 |
3,500,000 | 3,650,392 | ||||||
U.S. Treasury Notes, 1.375%, 2013 |
550,000 | 560,270 | ||||||
U.S. Treasury Notes, 4%, 2015 |
4,140,000 | 4,651,033 | ||||||
U.S. Treasury Notes, 2.625%, 2016 |
4,499,000 | 4,754,530 | ||||||
U.S. Treasury Notes, 4.75%, 2017 (f) |
3,389,000 | 4,022,055 | ||||||
U.S. Treasury Notes, 3.75%, 2018 |
975,000 | 1,091,696 | ||||||
U.S. Treasury Notes, 3.125%, 2019 |
2,500,000 | 2,663,280 | ||||||
$ | 30,520,032 | |||||||
Total U.S. Bonds |
$ | 219,325,713 | ||||||
Foreign Bonds 5.6% |
||||||||
Brazil 1.0% |
||||||||
Banco do Brasil (Cayman Branch), 6%, 2020 (n) |
$ | 100,000 | $ | 111,125 | ||||
BNDES Participacoes S.A., 6.5%, 2019 (n) |
475,000 | 546,250 | ||||||
Federative Republic of Brazil, 11%, 2040 |
183,000 | 250,802 | ||||||
Federative Republic of Brazil, 5.625%, 2041 |
323,000 | 348,840 | ||||||
Net Servicos de Comunicacao S.A., 7.5%, 2020 (n) |
226,000 | 255,663 | ||||||
Petrobras International Finance Co., 7.875%, 2019 |
453,000 | 554,606 | ||||||
Vale Overseas Ltd., 6.875%, 2039 |
93,000 | 106,500 |
3
MFS Government Markets Income Trust
PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued
Issuer |
Shares/Par | Value ($) | ||||||
Bonds continued |
||||||||
Foreign Bonds continued |
||||||||
Brazil continued |
||||||||
Votorantim Participacoes S.A., 6.75%, 2021 (n) |
$ | 125,000 | $ | 133,125 | ||||
$ | 2,306,911 | |||||||
Canada 0.9% |
||||||||
Rogers Communications, Inc., 6.8%, 2018 |
$ | 1,000,000 | $ | 1,230,466 | ||||
Talisman Energy, Inc., 7.75%, 2019 |
650,000 | 820,134 | ||||||
$ | 2,050,600 | |||||||
Chile 0.6% |
||||||||
Colbun S.A., 6%, 2020 (n) |
$ | 704,000 | $ | 742,200 | ||||
Empresa Nacional del Petroleo, 6.25%, 2019 |
214,000 | 233,096 | ||||||
Sociedad Quimica y Minera de Chile S.A., 6.125%, 2016 |
429,000 | 475,546 | ||||||
$ | 1,450,842 | |||||||
India 0.1% |
||||||||
State Bank of India, 4.5%, 2015 (n) |
$ | 267,000 | $ | 275,592 | ||||
Luxembourg 0.1% |
||||||||
ArcelorMittal, 6.125%, 2018 |
$ | 33,000 | $ | 35,011 | ||||
UniCredito Luxembourg Finance S.A., 6%, 2017 (n) |
200,000 | 203,845 | ||||||
$ | 238,856 | |||||||
Malaysia 0.2% |
||||||||
Petronas Capital Ltd., 7.875%, 2022 |
$ | 370,000 | $ | 512,397 | ||||
Mexico 0.4% |
||||||||
Pemex Project Funding Master Trust, 5.75%, 2018 |
$ | 160,000 | $ | 174,633 | ||||
Petroleos Mexicanos, 5.5%, 2021 (n) |
100,000 | 104,385 | ||||||
Petroleos Mexicanos, 6%, 2020 (n) |
404,000 | 437,330 | ||||||
Petroleos Mexicanos, 8%, 2019 |
228,000 | 281,580 | ||||||
$ | 997,928 | |||||||
Peru 0.2% |
||||||||
Republic of Peru, 8.75%, 2033 |
$ | 180,000 | $ | 267,300 | ||||
Southern Copper Corp., 6.75%, 2040 |
117,000 | 126,287 | ||||||
$ | 393,587 | |||||||
Portugal 0.1% |
||||||||
EDP Finance B.V., 6%, 2018 (n) |
$ | 100,000 | $ | 100,118 | ||||
Qatar 0.5% |
||||||||
Qatari Diar Finance Q.S.C., 5%, 2020 (n) |
$ | 268,000 | $ | 281,883 | ||||
Qtel International Finance Ltd., 7.875%, 2019 |
132,000 | 162,261 | ||||||
Qtel International Finance Ltd., 7.875%, 2019 (n) |
213,000 | 261,830 | ||||||
State of Qatar, 5.15%, 2014 (n) |
477,000 | 519,930 | ||||||
$ | 1,225,904 | |||||||
Russia 1.1% |
||||||||
Bank of Moscow Capital PLC, 6.699%, 2015 (n) |
$ | 1,057,000 | $ | 1,076,766 | ||||
Gaz Capital S.A., 8.125%, 2014 (n) |
509,000 | 571,353 | ||||||
VEB Finance Ltd., 6.902%, 2020 (n) |
593,000 | 637,475 | ||||||
VTB Capital S.A., 6.465%, 2015 (n) |
307,000 | 314,675 | ||||||
$ | 2,600,269 | |||||||
South Africa 0.1% |
||||||||
Myriad International Holdings B.V., 6.375%, 2017 (n) |
$ | 174,000 | $ | 178,141 | ||||
Republic of South Africa, 5.5%, 2020 |
140,000 | 155,575 | ||||||
$ | 333,716 | |||||||
4
MFS Government Markets Income Trust
PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued
Issuer |
Shares/Par | Value ($) | ||||||
Bonds continued |
||||||||
Foreign Bonds continued |
||||||||
United Kingdom 0.3% |
||||||||
Diageo Capital PLC, 5.75%, 2017 |
$ | 520,000 | $ | 610,516 | ||||
Total Foreign Bonds |
$ | 13,097,236 | ||||||
Total Bonds |
$ | 232,422,949 | ||||||
Money Market Funds (v) 1.1% |
||||||||
MFS Institutional Money Market Portfolio, 0.24%, at Net Asset Value |
2,634,667 | $ | 2,634,667 | |||||
Total Investments |
$ | 235,057,616 | ||||||
Other Assets, Less Liabilities 0.6% |
1,496,948 | |||||||
Net Assets 100.0% |
$ | 236,554,564 | ||||||
(f) | All or a portion of the security has been segregated as collateral for open futures contracts. |
(n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $10,854,420, representing 4.6% of net assets. |
(v) | Underlying fund that is available only to investment companies managed by MFS. The rate quoted is the annualized seven- day yield of the fund at period end. |
(z) | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted security: |
Restricted Security |
Acquisition Date |
Cost | Current Market Value |
|||||||||
Prudential Securities Secured Financing Corp., FRN, 7.315%, 2013 |
12/06/04 | $ | 1,885,772 | $ | 1,767,674 | |||||||
% of Net Assets |
0.7 | % |
The following abbreviations are used in this report and are defined:
FRN |
Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end. | |
PLC |
Public Limited Company | |
REIT |
Real Estate Investment Trust | |
STRIPS |
Separate Trading of Registered Interest and Principal of Securities |
See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
5
MFS Government Markets Income Trust
Supplemental Information (Unaudited) 8/31/10
(1) Investment Valuations
Debt instruments and floating rate loans (other than short-term instruments), including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less generally are valued at amortized cost, which approximates market value. Futures contracts are generally valued at last posted settlement price as provided by a third-party pricing service on the market on which they are primarily traded. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation as provided by a third-party pricing service on the market on which such futures contracts are primarily traded. Open-end investment companies are generally valued at net asset value per share. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.
The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the funds investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the funds valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investments value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the funds net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the funds net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the funds net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the funds assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investments level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The funds assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the advisers own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as futures, forwards, swap contracts, and written options. The following is a summary of the levels used as of August 31, 2010 in valuing the funds assets or liabilities:
Investments at Value |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
U.S. Treasury Bonds & U.S. Government Agency & Equivalents |
$ | | $ | 73,245,508 | $ | | $ | 73,245,508 | ||||||||
Non-U.S. Sovereign Debt |
| 7,002,918 | | 7,002,918 | ||||||||||||
Municipal Bonds |
| 6,458,345 | | 6,458,345 | ||||||||||||
Corporate Bonds |
| 19,339,931 | 19,339,931 | |||||||||||||
Residential Mortgage-Backed Securities |
| 110,207,234 | | 110,207,234 | ||||||||||||
Commercial Mortgage-Backed Securities |
| 10,074,695 | | 10,074,695 | ||||||||||||
Foreign Bonds |
| 6,094,318 | | 6,094,318 | ||||||||||||
Mutual Funds |
2,634,667 | | | 2,634,667 | ||||||||||||
Total Investments |
$ | 2,634,667 | $ | 232,422,949 | $ | | $ | 235,057,616 | ||||||||
Other Financial Instruments |
||||||||||||||||
Futures |
$ | (65,294 | ) | $ | | $ | | $ | (65,294 | ) |
For further information regarding security characteristics, see the Portfolio of Investments.
6
MFS Government Markets Income Trust
Supplemental Information (Unaudited) 8/31/10 - continued
(2) Portfolio Securities
The cost and unrealized appreciation and depreciation in the value of the investments owned by the fund, as computed on a federal income tax basis, are as follows:
Aggregate cost |
$ | 216,136,191 | ||
Gross unrealized appreciation |
$ | 19,743,624 | ||
Gross unrealized depreciation |
(822,199 | ) | ||
Net unrealized appreciation (depreciation) |
$ | 18,921,425 | ||
The aggregate cost above includes prior fiscal year end tax adjustments, if applicable.
(3) Derivative Contracts at 8/31/10
Futures Contracts Outstanding at 8/31/10
Description |
Currency | Contracts | Value | Expiration Date | Unrealized Appreciation (Depreciation) |
|||||||||||||||
Liability Derivatives |
||||||||||||||||||||
Interest Rate Futures |
||||||||||||||||||||
U.S. Treasury Note 10 yr (Short) |
USD | 120 | $ | 15,075,000 | December-2010 | $ | (29,713 | ) | ||||||||||||
U.S. Treasury Bond 30 yr (Short) |
USD | 87 | 11,747,719 | December-2010 | (35,581 | ) | ||||||||||||||
$ | (65,294 | ) | ||||||||||||||||||
At August 31, 2010, the fund had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.
(4) Transactions in Underlying Funds-Affiliated Issuers
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the fund assumes the following to be affiliated issuers:
Underlying Funds |
Beginning Shares/Par Amount |
Acquisitions Shares/Par Amount |
Dispositions Shares/Par Amount |
Ending Shares/Par Amount |
||||||||||||
MFS Institutional Money Market Portfolio |
11,833,578 | 46,185,888 | (55,384,799 | ) | 2,634,667 | |||||||||||
Underlying Funds |
Realized Gain (Loss) |
Capital Gain Distributions |
Dividend Income |
Ending Value |
||||||||||||
MFS Institutional Money Market Portfolio |
$ | | $ | | $ | 11,168 | $ | 2,634,667 |
7
ITEM 2. | CONTROLS AND PROCEDURES. |
(a) | Based upon their evaluation of the effectiveness of the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the Act)) as conducted within 90 days of the filing date of this Form N-Q, the registrants principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commissions rules and forms. |
(b) | There were no changes in the registrants internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrants last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting. |
ITEM 3. | EXHIBITS. |
File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.
Notice
A copy of the Amended and Restated Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.
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: MFS GOVERNMENT MARKETS INCOME TRUST
By (Signature and Title)* | MARIA F. DWYER | |
Maria F. Dwyer, President |
Date: October 18, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | MARIA F. DWYER | |
Maria F. Dwyer, President (Principal Executive Officer) |
Date: October 18, 2010
By (Signature and Title)* | JOHN M. CORCORAN | |
John M. Corcoran, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: October 18, 2010
* | Print name and title of each signing officer under his or her signature. |