MFS GOVERNMENT MARKETS INCOME TRUST N-Q

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)

Registrant’s 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.


 

LOGO


 

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 fund’s 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 fund’s 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 investment’s 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 fund’s 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 fund’s 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 fund’s 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 fund’s 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 investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund’s 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 adviser’s 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 fund’s 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 registrant’s 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 registrant’s 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 Commission’s rules and forms.

 

(b) There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s 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.

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.