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 811-05078

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 29, 2012

ITEM 1. SCHEDULE OF INVESTMENTS.

LOGO

 

MFS® Government Markets Income Trust

 

LOGO

 

 

QUARTERLY REPORT

February 29, 2012

PORTFOLIO OF INVESTMENTS

2/29/12 (unaudited)

 

The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.

Issuer    Shares/Par     Value ($)  
    
Bonds - 96.2%                 
U.S. Bonds - 86.8%                 
Agency - Other - 13.9%                 
Financing Corp., 10.7%, 2017    $ 4,095,000      $ 6,057,301   
Financing Corp., 9.4%, 2018      3,085,000        4,385,830   
Financing Corp., 9.8%, 2018      4,350,000        6,367,587   
Financing Corp., 10.35%, 2018      6,820,000        10,324,177   
Financing Corp., STRIPS, 0%, 2017      5,000,000        4,543,975   
    

 

 

  
             $ 31,678,870   
Asset-Backed & Securitized - 4.1%                 
Citigroup Commercial Mortgage Trust, FRN, 5.697%, 2049    $ 1,000,000      $ 1,150,672   
Citigroup/Deutsche Bank Commercial Mortgage Trust, 5.322%, 2049      1,200,000        1,317,002   
Commercial Mortgage Pass-Through Certificates, “A4”, 5.306%, 2046      1,366,646        1,530,660   
Credit Suisse Mortgage Capital Certificate, 5.311%, 2039      500,000        555,580   
CWCapital LLC, 5.223%, 2048      1,000,000        1,105,764   
JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.818%, 2049      1,000,000        1,104,081   
JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.986%, 2051      754,902        812,567   
Prudential Securities Secured Financing Corp., FRN, 7.317%, 2013 (z)      1,819,000        1,695,326   
    

 

 

  
             $ 9,271,652   
Cable TV - 0.6%                 
Time Warner Cable, Inc., 8.25%, 2019    $ 1,000,000      $ 1,296,942   
Chemicals - 0.3%                 
Dow Chemical Co., 8.55%, 2019    $ 500,000      $ 665,074   
Computer Software - Systems - 0.3%                 
International Business Machines Corp., 8%, 2038    $ 500,000      $ 793,507   
Energy - Integrated - 0.0%                 
Hess Corp., 8.125%, 2019    $ 30,000      $ 39,057   
Food & Beverages - 0.9%                 
Anheuser-Busch InBev S.A., 7.75%, 2019    $ 750,000      $ 987,548   
Kraft Foods, Inc., 6.125%, 2018      960,000        1,157,366   
    

 

 

  
             $ 2,144,914   
Local Authorities - 2.0%                 
Nashville & Davidson County, TN, Metropolitan Government Convention Center Authority (Build America Bonds), 6.731%, 2043    $ 580,000      $ 696,644   
New Jersey Turnpike Authority Rev. (Build America Bonds), “F”, 7.414%, 2040      32,000        46,033   
Port Authority NY & NJ (168th Series), 4.926%, 2051      770,000        828,258   
San Francisco, CA, City & County Public Utilities Commission, Water Rev. (Build America Bonds), 6%, 2040      1,650,000        1,979,324   
State of California (Build America Bonds), 7.6%, 2040      420,000        561,859   
University of California Rev. (Build America Bonds), 5.77%, 2043      450,000        543,560   
    

 

 

  
             $ 4,655,678   
Major Banks - 0.4%                 
Bank of America Corp., 7.625%, 2019    $ 170,000      $ 192,211   
Merrill Lynch & Co., Inc., 6.05%, 2016      750,000        774,407   
    

 

 

  
             $ 966,618   
Mortgage-Backed - 35.2%                 
Fannie Mae, 4.719%, 2012    $ 95,654      $ 95,935   
Fannie Mae, 4.541%, 2013      916,452        935,887   

 

1

Portfolio of Investments (unaudited) – continued

 

Issuer    Shares/Par     Value ($)  
    
Bonds - continued                 
U.S. Bonds - continued                 
Mortgage-Backed - continued                 
Fannie Mae, 5%, 2013 - 2040    $ 3,620,240      $ 3,860,642   
Fannie Mae, 5.06%, 2013      362,127        377,399   
Fannie Mae, 5.37%, 2013      962,006        985,984   
Fannie Mae, 4.77%, 2014      447,437        476,224   
Fannie Mae, 4.842%, 2014      2,560,851        2,716,222   
Fannie Mae, 5.1%, 2014      486,441        521,764   
Fannie Mae, 4.7%, 2015      442,362        477,651   
Fannie Mae, 4.74%, 2015      359,767        389,786   
Fannie Mae, 4.78%, 2015      501,681        546,734   
Fannie Mae, 4.815%, 2015      530,276        576,104   
Fannie Mae, 4.82%, 2015      891,883        961,636   
Fannie Mae, 4.85%, 2015      316,200        341,288   
Fannie Mae, 4.86%, 2015      144,970        156,130   
Fannie Mae, 4.87%, 2015      334,579        362,934   
Fannie Mae, 4.89%, 2015      375,166        405,674   
Fannie Mae, 5.465%, 2015      830,036        920,244   
Fannie Mae, 5.09%, 2016      500,000        556,349   
Fannie Mae, 5.423%, 2016      724,685        819,809   
Fannie Mae, 5.845%, 2016      279,251        304,844   
Fannie Mae, 6.5%, 2016 - 2037      3,084,097        3,505,535   
Fannie Mae, 5.05%, 2017      510,871        569,249   
Fannie Mae, 5.3%, 2017      560,586        628,615   
Fannie Mae, 5.5%, 2017 - 2037      21,134,732        23,086,220   
Fannie Mae, 6%, 2017 - 2037      6,178,109        6,830,293   
Fannie Mae, 4.88%, 2020      247,654        272,226   
Fannie Mae, 4.5%, 2041      1,726,928        1,854,636   
Freddie Mac, 5%, 2016 - 2040      8,272,441        8,920,887   
Freddie Mac, 6%, 2021 - 2038      3,168,459        3,507,171   
Freddie Mac, 2.375%, 2022      1,120,000        1,132,691   
Freddie Mac, 4.5%, 2024      678,387        724,004   
Freddie Mac, 5.5%, 2024 - 2036      4,579,987        5,013,158   
Freddie Mac, 6.5%, 2037      942,730        1,062,233   
Ginnie Mae, 5.5%, 2033 - 2038      3,850,964        4,305,868   
Ginnie Mae, 5.612%, 2058      986,143        1,058,069   
Ginnie Mae, 6.357%, 2058      784,519        838,914   
    

 

 

  
             $ 80,099,009   
Municipals - 0.2%                 
Triborough Bridge & Tunnel Authority Rev., NY, “A”, 5%, 2021    $ 370,000      $ 459,018   
Natural Gas - Pipeline - 0.5%                 
Energy Transfer Partners LP, 8.5%, 2014    $ 17,000      $ 19,329   
Kinder Morgan Energy Partners, 6.85%, 2020      1,000,000        1,194,034   
    

 

 

  
             $ 1,213,363   
Network & Telecom - 0.3%                 
Verizon Communications, Inc., 8.75%, 2018    $ 449,000      $ 618,227   
Other Banks & Diversified Financials - 0.5%                 
Capital One Financial Corp., 8.8%, 2019    $ 280,000      $ 342,179   
Citigroup, Inc., 8.5%, 2019      94,000        116,625   
UBS Preferred Funding Trust V, 6.243% to 2016, FRN to 2049      750,000        696,000   
    

 

 

  
             $ 1,154,804   
Pollution Control - 0.5%                 
Allied Waste North America, Inc., 6.875%, 2017    $ 1,000,000      $ 1,048,750   

 

2

Portfolio of Investments (unaudited) – continued

 

Issuer    Shares/Par     Value ($)  
    
Bonds - continued                 
U.S. Bonds - continued                 
Real Estate - 0.4%                 
Simon Property Group, Inc., REIT, 5.875%, 2017    $ 750,000      $ 873,994   
Retailers - 0.4%                 
Staples, Inc., 9.75%, 2014    $ 750,000      $ 860,099   
Tobacco - 0.9%                 
Altria Group, Inc., 9.7%, 2018    $ 500,000      $ 680,521   
Altria Group, Inc., 9.25%, 2019      250,000        341,889   
Lorillard Tobacco Co., 8.125%, 2019      796,000        996,466   
    

 

 

  
             $ 2,018,876   
U.S. Government Agencies and Equivalents - 2.1%                 
Aid-Egypt, 4.45%, 2015    $ 1,755,000      $ 1,979,342   
Small Business Administration, 6.35%, 2021      393,657        435,808   
Small Business Administration, 6.34%, 2021      340,071        376,927   
Small Business Administration, 6.44%, 2021      360,482        400,642   
Small Business Administration, 6.625%, 2021      422,694        471,621   
Small Business Administration, 5.52%, 2024      679,840        757,230   
U.S. Department of Housing & Urban Development, 6.36%, 2016      121,000        122,010   
U.S. Department of Housing & Urban Development, 6.59%, 2016      171,000        172,096   
    

 

 

  
             $ 4,715,676   
U.S. Treasury Obligations - 23.3%                 
U.S. Treasury Bonds, 5.25%, 2029    $ 1,448,000      $ 1,960,004   
U.S. Treasury Bonds, 4.75%, 2037      2,000,000        2,639,062   
U.S. Treasury Bonds, 4.375%, 2038      6,580,000        8,251,728   
U.S. Treasury Bonds, 4.5%, 2039      2,618,100        3,353,624   
U.S. Treasury Notes, 1.375%, 2013      6,961,000        7,032,782   
U.S. Treasury Notes, 4%, 2015      4,140,000        4,572,113   
U.S. Treasury Notes, 2.625%, 2016      6,999,000        7,552,355   
U.S. Treasury Notes, 4.75%, 2017 (f)      3,389,000        4,068,654   
U.S. Treasury Notes, 2.625%, 2018      702,000        763,261   
U.S. Treasury Notes, 2.75%, 2019      6,894,000        7,527,386   
U.S. Treasury Notes, 3.125%, 2019      2,834,000        3,164,337   
U.S. Treasury Notes, 3.5%, 2020      1,741,000        1,993,309   
U.S. Treasury Notes, 2.625%, 2020      162,000        173,960   
    

 

 

  
             $ 53,052,575   
Total U.S. Bonds            $ 197,626,703   
Foreign Bonds - 9.4%                 
Brazil - 3.0%                 
Banco do Brasil (Cayman Branch), 6%, 2020 (n)    $ 100,000      $ 111,250   
Banco do Brasil S.A., 5.875%, 2022 (n)      693,000        712,058   
Banco do Nordeste do Brasil (BNB), 3.625%, 2015 (n)      253,000        253,253   
BNDES Participacoes S.A., 6.5%, 2019 (n)      475,000        555,750   
Brasil Telecom S.A., 5.75%, 2022 (z)      691,000        708,275   
Centrais Eletricas Brasileiras S.A., 5.75%, 2021 (n)      965,000        1,049,438   
Federative Republic of Brazil, 11%, 2040      183,000        243,573   
Federative Republic of Brazil, 5.625%, 2041      323,000        379,525   
Net Servicos de Comunicacao S.A., 7.5%, 2020      226,000        265,550   
Petrobras International Finance Co., 7.875%, 2019      453,000        557,190   
Petrobras International Finance Co., 5.375%, 2021      1,377,000        1,480,437   
Vale Overseas Ltd., 4.625%, 2020      104,000        111,317   
Vale Overseas Ltd., 6.875%, 2039      165,000        203,271   
Votorantim Participacoes S.A., 6.75%, 2021 (n)      125,000        136,250   
    

 

 

  
             $ 6,767,137   

 

3

Portfolio of Investments (unaudited) – continued

 

Issuer    Shares/Par     Value ($)  
    
Bonds - continued                 
Foreign Bonds - continued                 
Canada - 0.9%                 
Rogers Communications, Inc., 6.8%, 2018    $ 1,000,000      $ 1,263,636   
Talisman Energy, Inc., 7.75%, 2019      650,000        814,518   
    

 

 

  
             $ 2,078,154   
Chile - 0.4%                 
Corporacion Nacional del Cobre de Chile, 3.75%, 2020 (n)    $ 209,000      $ 214,016   
Empresa Nacional del Petroleo, 6.25%, 2019      214,000        242,510   
Sociedad Quimica y Minera de Chile S.A., 6.125%, 2016      429,000        473,915   
    

 

 

  
             $ 930,441   
China - 0.1%                 
CNPC (HK) Overseas Capital Ltd., 4.5%, 2021 (n)    $ 226,000      $ 240,328   
Colombia - 0.1%                 
Republic of Colombia, 6.125%, 2041    $ 104,000      $ 127,764   
Iceland - 0.3%                 
Republic of Iceland, 4.875%, 2016 (n)    $ 804,000      $ 803,476   
Italy - 0.1%                 
UniCredito Luxembourg Finance S.A., 6%, 2017 (n)    $ 200,000      $ 177,278   
Kazakhstan - 0.1%                 
Development Bank of Kazakhstan, 5.5%, 2015 (n)    $ 209,000      $ 219,450   
Lithuania - 0.3%                 
Republic of Lithuania, 6.625%, 2022 (n)    $ 667,000      $ 717,025   
Luxembourg - 0.0%                 
ArcelorMittal, 9.85%, 2019    $ 33,000      $ 40,027   
Malaysia - 0.2%                 
Petronas Capital Ltd., 7.875%, 2022    $ 370,000      $ 506,944   
Mexico - 1.1%                 
Pemex Project Funding Master Trust, 5.75%, 2018    $ 160,000      $ 178,400   
Petroleos Mexicanos, 6%, 2020      404,000        457,530   
Petroleos Mexicanos, 5.5%, 2021      130,000        142,584   
Petroleos Mexicanos, 8%, 2019      228,000        285,000   
Petroleos Mexicanos, 4.875%, 2022 (n)      261,000        273,267   
United Mexican States, 3.625%, 2022      1,164,000        1,187,280   
    

 

 

  
             $ 2,524,061   
Peru - 0.2%                 
Republic of Peru, 8.75%, 2033    $ 180,000      $ 276,930   
Southern Copper Corp., 6.75%, 2040      117,000        127,455   
    

 

 

  
             $ 404,385   
Poland - 0.1%                 
Republic of Poland, 5%, 2022    $ 136,000      $ 144,337   
Portugal - 0.0%                 
EDP Finance B.V., 6%, 2018 (n)    $ 100,000      $ 85,124   
Russia - 1.4%                 
Gaz Capital S.A., 8.125%, 2014 (n)    $ 509,000      $ 564,990   

 

4

Portfolio of Investments (unaudited) – continued

 

Issuer    Shares/Par     Value ($)  
    
Bonds - continued                 
Foreign Bonds - continued                 
Russia - continued                 
Gaz Capital S.A., 5.999%, 2021 (n)    $ 796,000      $ 838,785   
LUKOIL International Finance B.V., 6.125%, 2020 (n)      810,000        846,450   
OJSC Russian Agricultural Bank, FRN, 6%, 2021 (n)      447,000        442,530   
VTB Capital S.A., 6.465%, 2015 (n)      154,000        162,501   
VTB Capital S.A., 6.551%, 2020 (n)      395,000        392,709   
    

 

 

  
             $ 3,247,965   
South Africa - 0.8%                 
Gold Fields Orogen Holding Ltd., 4.875%, 2020 (n)    $ 592,000      $ 563,913   
Myriad International Holdings B.V., 6.375%, 2017 (n)      174,000        193,140   
Republic of South Africa, 6.25%, 2041      344,000        407,210   
Republic of South Africa, 5.5%, 2020      140,000        159,075   
Republic of South Africa, 4.665%, 2024      412,000        429,510   
    

 

 

  
             $ 1,752,848   
United Kingdom - 0.3%                 
Diageo Capital PLC, 5.75%, 2017    $ 520,000      $ 628,161   
Total Foreign Bonds            $ 21,394,905   
Total Bonds            $ 219,021,608   
Money Market Funds - 3.2%                 
MFS Institutional Money Market Portfolio, 0.1%, at Net Asset Value (v)      7,238,440      $ 7,238,440   
Total Investments            $ 226,260,048   
Other Assets, Less Liabilities - 0.6%              1,427,284   
Net Assets - 100.0%            $ 227,687,332   

 

(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 $9,552,981 representing 4.2% of net assets.
(v)   Underlying affiliated fund that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio 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:

 

Restricted Securities    Acquisition
Date		    Cost      Value  
Brasil Telecom S.A., 5.75%, 2022    2/06/12      $691,000         $708,275   
Prudential Securities Secured Financing Corp., FRN, 7.317%, 2013    12/06/04      1,849,514         1,695,326   
Total Restricted Securities            $2,403,601   
% of Net assets            1.1%   

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

 

5

Portfolio of Investments (unaudited) – continued

 

Derivative Contracts at 2/29/12

Futures Contracts Outstanding at 2/29/12

 

Description    Currency      Contracts      Value    Expiration Date      Unrealized
Appreciation
(Depreciation)		  
Liability Derivatives               
Interest Rate Futures               
U.S. Treasury Bond 30 yr (Short)      USD         47       $6,657,844      June - 2012         $(4,571 ) 
              

 

 

  

At February 29, 2012, the fund had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.

See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.

 

6

Supplemental Information

2/29/12 (unaudited)

 

(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. The following is a summary of the levels used as of February 29, 2012 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      $—         $90,579,812         $—         $90,579,812   
Non-U.S. Sovereign Debt      —         14,756,625         —         14,756,625   
Municipal Bonds      —         459,018         —         459,018   
Corporate Bonds      —         18,349,903         —         18,349,903   
Residential Mortgage-Backed Securities      —         78,966,318         —         78,966,318   
Commercial Mortgage-Backed Securities      —         9,271,652         —         9,271,652   
Foreign Bonds      —         6,638,280         —         6,638,280   
Mutual Funds      7,238,440         —         —         7,238,440   
Total Investments      $7,238,440         $219,021,608         $—         $226,260,048   
Other Financial Instruments                            
Futures      $(4,571 )       $—         $—         $(4,571 ) 

 

7

Supplemental Information (unaudited) – continued

 

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

 

(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      $206,651,313   
Gross unrealized appreciation      $20,316,659   
Gross unrealized depreciation      (707,924 ) 
Net unrealized appreciation (depreciation)      $19,608,735   

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

 

(3)   Transactions in Underlying Affiliated 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 Affiliated Funds    Beginning
Shares/Par
Amount		      Acquisitions
Shares/Par
Amount		      Dispositions
Shares/Par
Amount		      Ending
Shares/Par
Amount		  
MFS Institutional Money Market Portfolio      6,474,891         9,347,042         (8,583,493 )       7,238,440   
Underlying Affiliated Funds    Realized
Gain (Loss)		      Capital Gain
Distributions		      Dividend
Income		      Ending
Value		  
MFS Institutional Money Market Portfolio      $—         $—         $1,477         $7,238,440   

 

8

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)*    JOHN M. CORCORAN
  John M. Corcoran, President

Date: April 13, 2012

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)*    JOHN M. CORCORAN
 

John M. Corcoran, President

(Principal Executive Officer)

Date: April 13, 2012

 

By (Signature and Title)*    DAVID L. DILORENZO
  David L. DiLorenzo, Treasurer (Principal Financial Officer and Accounting Officer)

Date: April 13, 2012

 

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