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: February 28, 2010


ITEM 1. SCHEDULE OF INVESTMENTS.


LOGO


MFS Government Markets Income Trust

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/10

 

Issuer

   Shares/Par    Value ($)

Bonds – 96.3%

     

U.S. Bonds – 92.0%

     

Agency - Other – 12.8%

     

Financing Corp., 10.7%, 2017

   $ 4,095,000    $ 5,946,792

Financing Corp., 9.4%, 2018

     3,085,000      4,228,937

Financing Corp., 9.8%, 2018

     4,350,000      6,112,068

Financing Corp., 10.35%, 2018

     6,820,000      9,893,283

Financing Corp., STRIPS, 0%, 2017

     5,000,000      3,633,900
         
      $ 29,814,980
         

Asset Backed & Securitized – 3.9%

     

Citigroup Commercial Mortgage Trust, FRN, 5.7%, 2049

   $ 1,000,000    $ 951,823

Citigroup/Deutsche Bank Commercial Mortgage Trust, 5.322%, 2049

     1,200,000      1,085,766

Commercial Mortgage Pass-Through Certificates, 5.306%, 2046

     1,366,646      1,250,975

Credit Suisse Mortgage Capital Certificate, 5.311%, 2039

     500,000      439,811

CWCapital LLC, 5.223%, 2048

     1,000,000      925,159

JPMorgan Chase Commercial Mortgage Securities Corp., 5.42%, 2049

     1,000,000      912,693

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.818%, 2049

     1,000,000      916,095

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.989%, 2051

     754,902      761,113

Merrill Lynch Mortgage Trust, FRN, 5.826%, 2050

     750,000      211,952

Prudential Securities Secured Financing Corp., FRN, 7.298%, 2013 (z)

     1,819,000      1,636,532
         
      $ 9,091,919
         

Cable TV – 0.5%

     

Time Warner Cable, Inc., 8.25%, 2019

   $ 1,000,000    $ 1,214,935
         

Chemicals – 0.3%

     

Dow Chemical Co., 8.55%, 2019

   $ 500,000    $ 604,456

Dow Chemical Co., 9.4%, 2039

     70,000      92,842
         
      $ 697,298
         

Computer Software - Systems – 0.3%

     

International Business Machines Corp., 8%, 2038

   $ 500,000    $ 672,800
         

Energy - Integrated – 0.0%

     

Hess Corp., 8.125%, 2019

   $ 30,000    $ 36,673
         

Food & Beverages – 1.0%

     

Anheuser-Busch Cos., Inc., 7.75%, 2019 (n)

   $ 750,000    $ 902,769

Dr. Pepper Snapple Group, Inc., 6.82%, 2018

     231,000      263,187

Kraft Foods, Inc., 6.125%, 2018

     960,000      1,058,210
         
      $ 2,224,166
         

Local Authorities – 1.0%

     

Metropolitan Transportation Authority, NY (Build America Bonds), 7.336%, 2039

   $ 665,000    $ 765,954

New Jersey Turnpike Authority Rev. (Build America Bonds), “F”, 7.414%, 2040

     32,000      37,853

University of California Rev. (Build America Bonds), 5.77%, 2043

     450,000      439,106

Utah Transit Authority Sales Tax Rev. (Build America Bonds), “B”, 5.937%, 2039

     1,020,000      1,074,519
         
      $ 2,317,432
         

Major Banks – 0.4%

     

Bank of America Corp., 7.625%, 2019

   $ 170,000    $ 192,245

Merrill Lynch & Co., Inc., 6.05%, 2016

     750,000      763,404
         
      $ 955,649
         

Mortgage Backed – 53.0%

     

Fannie Mae, 4.79%, 2012

   $ 265,692    $ 280,487

Fannie Mae, 4.542%, 2013

     962,130      1,023,535

Fannie Mae, 5%, 2013 - 2049

     5,780,127      6,013,499

Fannie Mae, 5.06%, 2013

     379,630      401,741

Fannie Mae, 5.37%, 2013

     995,705      1,067,873

Fannie Mae, 4.77%, 2014

     467,286      502,610

Fannie Mae, 4.841%, 2014

     2,695,797      2,897,181

 

1


MFS Government Markets Income Trust

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

U.S. Bonds – continued

     

Mortgage Backed – continued

     

Fannie Mae, 5.1%, 2014

     504,207    $ 547,704

Fannie Mae, 4.7%, 2015

     460,021      492,255

Fannie Mae, 4.74%, 2015

     373,183      399,811

Fannie Mae, 4.78%, 2015

     521,792      559,564

Fannie Mae, 4.815%, 2015

     543,000      582,972

Fannie Mae, 4.82%, 2015

     924,250      994,048

Fannie Mae, 4.85%, 2015

     328,294      353,367

Fannie Mae, 4.86%, 2015

     153,151      165,028

Fannie Mae, 4.87%, 2015

     347,616      373,797

Fannie Mae, 4.89%, 2015

     389,664      420,504

Fannie Mae, 5.466%, 2015

     861,506      950,913

Fannie Mae, 5.09%, 2016

     500,000      542,450

Fannie Mae, 5.424%, 2016

     765,348      845,298

Fannie Mae, 5.845%, 2016

     383,377      426,829

Fannie Mae, 6.5%, 2016 - 2037

     5,264,302      5,704,567

Fannie Mae, 5.05%, 2017

     524,799      568,528

Fannie Mae, 5.3%, 2017

     578,617      633,753

Fannie Mae, 5.5%, 2017 - 2037

     40,513,244      42,900,446

Fannie Mae, 6%, 2017 - 2037

     11,514,577      12,332,881

Fannie Mae, 4.88%, 2020

     294,280      313,949

Freddie Mac, 5%, 2016 - 2027

     1,731,953      1,795,764

Freddie Mac, 6%, 2021 - 2038

     5,438,379      5,832,233

Freddie Mac, 3.75%, 2024

     56,341      56,523

Freddie Mac, 4%, 2024

     57,544      57,733

Freddie Mac, 4.5%, 2024

     1,258,508      1,311,929

Freddie Mac, 5.5%, 2024 - 2036

     9,044,747      9,569,203

Freddie Mac, 6.5%, 2037

     1,976,193      2,137,464

Freddie Mac, TBA, 5%, 2049

     11,500,000      11,906,088

Ginnie Mae, 5.5%, 2033 - 2038

     5,821,747      6,200,069

Ginnie Mae, 5.612%, 2058

     1,136,114      1,227,355

Ginnie Mae, 6.357%, 2058

     1,005,249      1,093,836
         
      $ 123,483,787
         

Municipals – 2.3%

     

California Educational Facilities Authority Rev. (Stanford University), “T-1”, 5%, 2039

   $ 3,075,000    $ 3,513,649

Massachusetts Health & Educational Facilities Authority Rev. (Boston College), 5.5%, 2027

     755,000      900,300

Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology), “K”, 5.5%, 2032

     745,000      903,961
         
      $ 5,317,910
         

Natural Gas - Pipeline – 0.5%

     

Energy Transfer Partners LP, 8.5%, 2014

   $ 21,000    $ 24,579

Kinder Morgan Energy Partners, 6.85%, 2020

     1,000,000      1,136,038
         
      $ 1,160,617
         

Network & Telecom – 0.2%

     

Verizon Communications, Inc., 8.75%, 2018

   $ 449,000    $ 566,393
         

Oil Services – 0.6%

     

Smith International, Inc., 9.75%, 2019

   $ 1,000,000    $ 1,355,832
         

Other Banks & Diversified Financials – 0.5%

     

Capital One Financial Corp., 8.8%, 2019

   $ 280,000    $ 336,470

Citigroup, Inc., 8.5%, 2019

     94,000      108,472

UBS Preferred Funding Trust V, 6.243% to 2016, FRN to 2049

     750,000      622,500
         
      $ 1,067,442
         

 

2


MFS Government Markets Income Trust

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

U.S. Bonds – continued

     

Pollution Control – 0.5%

     

Allied Waste North America, Inc., 6.875%, 2017

   $ 1,000,000    $ 1,080,000
         

Real Estate – 0.3%

     

Simon Property Group, Inc., REIT, 5.875%, 2017

   $ 750,000    $ 784,499
         

Retailers – 0.4%

     

Staples, Inc., 9.75%, 2014

   $ 750,000    $ 917,041
         

Tobacco – 0.8%

     

Altria Group, Inc., 9.7%, 2018

   $ 500,000    $ 628,782

Altria Group, Inc., 9.25%, 2019

     250,000      309,664

Lorillard Tobacco Co., 8.125%, 2019

     796,000      888,088
         
      $ 1,826,534
         

U.S. Government Agencies and Equivalents – 5.0%

     

Aid-Egypt, 4.45%, 2015

     1,755,000    $ 1,895,927

Farmer Mac, 5.5%, 2011 (n)

     3,010,000      3,176,269

Small Business Administration, 8.875%, 2011

     42,952      43,660

Small Business Administration, 6.35%, 2021

     648,329      703,403

Small Business Administration, 6.34%, 2021

     631,196      684,989

Small Business Administration, 6.44%, 2021

     609,711      663,167

Small Business Administration, 6.625%, 2021

     675,320      737,366

Small Business Administration, 5.52%, 2024

     934,029      997,513

U.S. Department of Housing & Urban Development, 6.36%, 2016

     1,580,000      1,692,494

U.S. Department of Housing & Urban Development, 6.59%, 2016

     1,146,000      1,166,399
         
      $ 11,761,187
         

U.S. Treasury Obligations – 7.7%

     

U.S. Treasury Bonds, 4.75%, 2017

   $ 3,389,000    $ 3,760,997

U.S. Treasury Bonds, 4.75%, 2037

     2,000,000      2,087,500

U.S. Treasury Bonds, 4.375%, 2038

     3,225,000      3,160,500

U.S. Treasury Bonds, 4.5%, 2039

     2,500,000      2,488,672

U.S. Treasury Notes, 4.125%, 2012 (f)

     513,000      552,116

U.S. Treasury Notes, 4%, 2015

     1,860,000      2,015,195

U.S. Treasury Notes, 2.625%, 2016

     499,000      494,868

U.S. Treasury Notes, 3.75%, 2018

     975,000      997,852

U.S. Treasury Notes, 3.125%, 2019

     2,500,000      2,421,290
         
      $ 17,978,990
         

Total U.S. Bonds

      $ 214,326,084
         

Foreign Bonds – 4.3%

     

Brazil – 1.0%

     

Banco do Brasil (Cayman Branch), 6%, 2020 (n)

   $ 100,000    $ 100,743

BNDES Participacoes S.A., 6.5%, 2019 (n)

     475,000      501,719

Federative Republic of Brazil, 11%, 2040

     183,000      245,678

Federative Republic of Brazil, 5.625%, 2041

     323,000      301,198

Net Servicos de Comunicacao S.A., 7.5%, 2020 (n)

     226,000      231,085

Petrobras International Finance Co., 7.875%, 2019

     453,000      521,698

Petrobras International Finance Co., 6.875%, 2040

     102,000      103,896

Vale Overseas Ltd., 6.875%, 2039

     217,000      221,019
         
      $ 2,227,036
         

Canada – 0.8%

     

Rogers Communications, Inc., 6.8%, 2018

   $ 1,000,000    $ 1,138,823

Talisman Energy, Inc., 7.75%, 2019

     650,000      774,417
         
      $ 1,913,240
         

Chile – 0.4%

     

Colbun S.A., 6%, 2020 (n)

   $ 704,000    $ 709,004

 

3


MFS Government Markets Income Trust

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)  

Bonds – continued

     

Foreign Bonds – continued

     

Chile – continued

     

Empresa Nacional del Petroleo, 6.25%, 2019 (n)

   $ 136,000    $ 140,029   
           
      $ 849,033   
           

Luxembourg – 0.1%

     

ArcelorMittal, 6.125%, 2018

   $ 91,000    $ 94,153   

UniCredito Luxembourg Finance S.A., 6%, 2017 (n)

     200,000      201,285   
           
      $ 295,438   
           

Malaysia – 0.2%

     

Petronas Capital Ltd., 7.875%, 2022

   $ 370,000    $ 447,651   
           

Mexico – 0.4%

     

Pemex Project Funding Master Trust, 5.75%, 2018

   $ 160,000    $ 162,012   

Petroleos Mexicanos, 6%, 2020 (n)

     404,000      410,868   

Petroleos Mexicanos, 8%, 2019

     228,000      264,480   
           
      $ 837,360   
           

Peru – 0.2%

     

Republic of Peru, 9.875%, 2015

   $ 191,000    $ 241,233   

Republic of Peru, 7.125%, 2019

     103,000      119,480   
           
      $ 360,713   
           

Portugal – 0.0%

     

EDP Finance B.V., 6%, 2018 (n)

   $ 100,000    $ 104,847   
           

Qatar – 0.5%

     

Qtel International Finance Ltd., 7.875%, 2019

   $ 132,000    $ 150,260   

Qtel International Finance Ltd., 7.875%, 2019 (n)

     426,000      484,932   

State of Qatar, 4%, 2015 (n)

     131,000      132,310   

State of Qatar, 5.15%, 2014 (n)

     477,000      508,601   
           
      $ 1,276,103   
           

Russia – 0.4%

     

Gaz Capital S.A., 8.125%, 2014 (n)

   $ 509,000    $ 560,409   

TNK-BP Finance S.A., 6.25%, 2015 (n)

     102,000      103,530   

VTB Capital S.A., 6.465%, 2015 (z)

     307,000      305,772   
           
      $ 969,711   
           

South Korea – 0.1%

     

Korea Development Bank, 4.375%, 2015

   $ 127,000    $ 128,727   
           

United Kingdom – 0.2%

     

Diageo Capital PLC, 5.75%, 2017

   $ 520,000    $ 565,243   
           

Total Foreign Bonds

      $ 9,975,102   
           

Total Bonds

      $ 224,301,186   
           

Money Market Funds (v) – 9.3%

     

MFS Institutional Money Market Portfolio, 0.14%, at Net Asset Value

     21,679,933    $ 21,679,933   
           

Total Investments

      $ 245,981,119   
           

Other Assets, Less Liabilities (5.6)%

        (13,145,168
           

Net Assets – 100.0%

      $ 232,835,951   
           

 

(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 $8,268,400, representing 3.6% 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 securities:

 

4


MFS Government Markets Income Trust

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/10 - continued

 

Restricted Securities

   Acquisition
Date
   Cost    Current
Market Value
 

Prudential Securities Secured Financing Corp., FRN, 7.298%, 2013

   12/06/04    $ 2,019,445    $ 1,636,532   

VTB Capital S.A., 6.465%, 2015

   2/25/10      307,000      305,772   
              

Total Restricted Securities

         $ 1,942,304   

% of Net Assets

           0.8

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

TBA

   To Be Announced

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) 2/28/10

(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 February 28, 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

  $ —        $ 59,555,157   $ —     $ 59,555,157   

Non-U.S. Sovereign Debt

    —          5,525,924     —       5,525,924   

Municipal Bonds

    —          5,317,910     —       5,317,910   

Corporate Bonds

    —          16,877,311       16,877,311   

Residential Mortgage-Backed Securities

    —          123,483,787     —       123,483,787   

Commercial Mortgage-Backed Securities

    —          9,091,919     —       9,091,919   

Foreign Bonds

    —          4,449,178     —       4,449,178   

Mutual Funds

    21,679,933        —       —       21,679,933   
                           

Total Investments

  $ 21,679,933      $ 224,301,186   $ —     $ 245,981,119   
                           

Other Financial Instruments

                   

Futures

  $ (211,736   $ —     $ —     $ (211,736

For further information regarding security characteristics, see the Portfolio of Investments.

In January 2010, Accounting Standards Update (ASU) No. 2010-06, Improving Disclosures about Fair Value Measurements (the “Update”) was issued, and is effective for interim and annual reporting periods beginning after December 15, 2009. This Update provides for expanded disclosures about fair value measurements. Management has evaluated the application of the Update to the fund, and believes the impact is limited to expanded disclosures resulting from the adoption of this Update in the fund’s financial statements.

 

6


MFS Government Markets Income Trust

Supplemental Information (Unaudited) 2/28/10 - 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

   $ 235,950,317   
        

Gross unrealized appreciation

   $ 12,195,309   

Gross unrealized depreciation

     (2,164,507
        

Net unrealized appreciation (depreciation)

   $ 10,030,802   
        

The aggregate cost above includes prior fiscal year end tax adjustments.

(3) Derivative Contracts at 2/28/10

Futures Contracts Outstanding at 2/28/10

 

Description

   Currency    Contracts    Value    Expiration
Date
   Unrealized
Appreciation
(Depreciation)
 

Asset Derivatives

              

Interest Rate Futures

              

U.S. Treasury Note 5 yr (Long)

   USD    21    2,434,688    Jun-10    $ 12,231   
                    

Liability Derivatives

              

Interest Rate Futures

              

U.S. Treasury Note 10 yr (Short)

   USD    120    14,098,125    Jun-10    $ (97,920

U.S. Treasury Bond 30 yr (Short)

   USD    87    10,238,813    Jun-10      (126,047
                    
               $ (223,967
                    

At February 28, 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      19,478,609      (9,632,254     21,679,933

Underlying Funds

   Realized
Gain
(Loss)
   Capital Gain
Distributions
   Dividend
Income
    Ending
Value

MFS Institutional Money Market Portfolio

   $ —      $ —      $ 5,300      $ 21,679,933

 

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: April 16, 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: April 16, 2010

 

By (Signature and Title)*    JOHN M. CORCORAN
 

John M. Corcoran, Treasurer

(Principal Financial Officer

and Accounting Officer)

Date: April 16, 2010

 

* Print name and title of each signing officer under his or her signature.