Edgar Filing: MFS GOVERNMENT MARKETS INCOME TRUST

Fair Value (a)

Derivative Contracts

Liability Derivatives

Interest Rate

Interest Rate Futures

MFS GOVERNMENT MARKETS INCOME TRUST N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT 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)

111 Huntington Avenue, Boston, Massachusetts 02199

(Address of principal executive offices) (Zip code)

Susan S. Newton

Massachusetts Financial Services Company

111 Huntington Avenue

Boston, Massachusetts 02199

(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: May 31, 2015

ITEM 1.

REPORTS TO STOCKHOLDERS.

SEMIANNUAL REPORT

May 31, 2015

LOGO

MFS® GOVERNMENT MARKETS INCOME TRUST

LOGO

MGF-SEM

MANAGED DISTRIBUTION POLICY DISCLOSURE

The MFS Government Markets Income Trust’s (the fund) Board of Trustees has adopted a managed distribution policy. The fund seeks to pay monthly distributions based on an annual rate of 7.25% of the fund’s average monthly net asset value. The fund’s total return in relation to changes in net asset value is presented in the Financial Highlights. You should not draw any conclusions about the fund’s investment performance from the amount of the current distribution or from the terms of the fund’s managed distribution policy. The Board may amend or terminate the managed distribution policy at any time without prior notice to fund shareholders.

With each distribution, the fund will issue a notice to shareholders and an accompanying press release which will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the fund’s investment experience during its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Under a managed distribution policy the fund may at times distribute more than its net investment income and net realized capital gains; therefore, a portion of your distribution may result in a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital does not necessarily reflect the fund’s investment performance and should not be confused with ‘yield’ or ‘income’. Please refer to “Tax Matters and Distributions” under Note 2 of the Notes to Financial Statements for information regarding the tax character of the fund’s distributions.

MFS® GOVERNMENT MARKETS INCOME TRUST

New York Stock Exchange Symbol: MGF


Letter from the Chairman			1
Portfolio composition			2
Portfolio managers’ profile			4
Other notes			4
Portfolio of investments			5
Statement of assets and liabilities			14
Statement of operations			15
Statements of changes in net assets			16
Financial highlights			17
Notes to financial statements			19
Report of independent registered public accounting firm			30
Proxy voting policies and information			31
Quarterly portfolio disclosure			31
Further information			31
Contact information back cover

NOT FDIC INSURED Ÿ MAY LOSE VALUE Ÿ NO BANK GUARANTEE

LOGO

LETTER FROM THE CHAIRMAN

Dear Shareholders:

Global economic conditions were sluggish in early 2015. U.S. growth decelerated sharply, and a strong dollar made exports more expensive. Also contributing to

weakness were a slow, tentative eurozone economic recovery, a steady deceleration in China’s pace of growth and a struggling Japanese economy.

Other major economies and regions have struggled, leading central banks to step up their efforts to stimulate economic growth. The European Central Bank’s quantitative easing program has begun to make an impact. However, risks associated with a potential Greek debt default and potential eurozone exit have weighed on business and investor confidence.

Despite the People’s Bank of China’s targeted stimulative actions,

China’s economic growth rate has continued to decelerate to multi-decade lows, and Chinese equity markets are showing signs of strain.

In Puerto Rico, concerns about the island nation’s ability to pay its outstanding debt obligations resurfaced, which weighed on municipal bond markets.

The U.S. Federal Reserve has remained accommodative in the face of global headwinds and low inflation.

The world’s financial markets have become increasingly complex in recent years. Now, more than ever, it is important to understand companies on a global basis. At MFS®, we believe our integrated research platform, collaborative culture, active risk management process and long-term focus give us a research advantage.

As investors, we aim to add long-term value. We believe this approach will serve you well as you work with your financial advisor to reach your investment objectives.

Respectfully,

LOGO

Robert J. Manning

Chairman

MFS Investment Management

July 16, 2015

The opinions expressed in this letter are subject to change and may not be relied upon for investment advice. No forecasts can be guaranteed.

PORTFOLIO COMPOSITION

Portfolio structure (i)

LOGO


Fixed income sectors (i)
Mortgage-Backed Securities			48.6%
U.S. Treasury Securities			16.4%
U.S. Government Agencies			13.1%
Investment Grade Corporates			12.0%
Commercial Mortgage-Backed Securities			4.6%
Emerging Markets Bonds			4.1%
Municipal Bonds			1.0%
Non-U.S. Government Bonds			0.5%
High Yield Corporates			0.1%


Composition including fixed income credit quality (a)(i)
AAA			2.2%
AA			3.0%
A			2.5%
BBB			13.8%
BB			0.3%
B			0.5%
U.S. Government			20.7%
Federal Agencies			61.7%
Not Rated			(4.3)%
Cash & Other			(0.4)%

Portfolio facts (i)
Average Duration (d)			5.1
Average Effective Maturity (m)			7.7 yrs.

(a)

For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. Not Rated includes fixed income securities, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. The fund is not rated by these agencies.

Portfolio Composition – continued

(d)	Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move.

(i)

For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts.

(m)

In determining an instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity.

From time to time Cash & Other may be negative due to timing of cash receipts and/or equivalent exposure from any derivative holdings.

Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.

Cash & Other can include cash, other assets less liabilities, offsets to derivative positions, and short-term securities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and the Notes to Financial Statements for additional information related to certain risks associated with assets included in “Other”.

Percentages are based on net assets as of 5/31/15.

The portfolio is actively managed and current holdings may be different.

PORTFOLIO MANAGERS’ PROFILE


Portfolio Manager	Primary Role	Since	Title and Five Year History
Geoffrey Schechter	Lead and U.S. Government Securities Portfolio Manager	2006	Investment Officer of MFS; employed in the investment management area of MFS since 1993.

Ward Brown	Emerging Markets Debt Instruments Portfolio Manager	2012	Investment Officer of MFS; employed in the investment management area of MFS since 2005.

Robert Persons	Investment Grade Debt Instruments Portfolio Manager	2012	Investment Officer of MFS; employed in the investment management area of MFS since 2000.

Matthew Ryan	Emerging Markets Debt Instruments Portfolio Manager	2012	Investment Officer of MFS; employed in the investment management area of MFS since 1997.

OTHER NOTES

The fund’s shares may trade at a discount or premium to net asset value. When fund shares trade at a premium, buyers pay more than the net asset value underlying fund shares, and shares purchased at a premium would receive less than the amount paid for them in the event of the fund’s liquidation.

The fund’s monthly distributions may include a return of capital to shareholders to the extent that the fund’s net investment income and net capital gains are insufficient to meet the fund’s target annual distribution rate. Distributions that are treated for federal income tax purposes as a return of capital will reduce each shareholder’s basis in his or her shares and, to the extent the return of capital exceeds such basis, will be treated as gain to the shareholder from a sale of shares. It may also result in a recharacterization of what economically represents a return of capital to ordinary income in those situations where a fund has long term capital gains and a capital loss carryforward. Returns of shareholder capital have the effect of reducing the fund’s assets and increasing the fund’s expense ratio.

The fund’s target annual distribution rate is calculated based on an annual rate of 7.25% of the fund’s average monthly net asset value, not a fixed share price, and the fund’s dividend amount will fluctuate with changes in the fund’s average monthly net assets.

In accordance with Section 23(c) of the Investment Company Act of 1940, the fund hereby gives notice that it may from time to time repurchase shares of the fund in the open market at the option of the Board of Trustees and on such terms as the Trustees shall determine.

PORTFOLIO OF INVESTMENTS

5/31/15 (unaudited)

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


Bonds - 103.9%
Issuer	Shares/Par		Value ($)

U.S. Bonds - 98.8%
Agency - Other - 9.1%
Financing Corp., 10.7%, 10/06/17	$	4,095,000	$	5,018,025
Financing Corp., 9.4%, 2/08/18		3,085,000		3,762,725
Financing Corp., 10.35%, 8/03/18		6,820,000		8,790,066

			$	17,570,816
Asset-Backed & Securitized - 4.6%
Citigroup Commercial Mortgage Trust, FRN, 5.711%, 12/10/49	$	1,000,000	$	1,073,861
Citigroup/Deutsche Bank Commercial Mortgage Trust, 5.322%, 12/11/49		1,200,000		1,255,570
Commercial Mortgage Pass-Through Certificates, “A4”, 5.306%, 12/10/46		1,314,075		1,376,973
Commercial Mortgage Trust, 2015-DC1, “A5”, 3.35%, 2/10/48		327,000		336,479
Credit Suisse Commercial Mortgage Trust, “A4”, FRN, 5.948%, 9/15/39		349,617		372,788
Credit Suisse Commercial Mortgage Trust, “AM”, FRN, 5.7%, 6/15/39		398,459		417,040
Credit Suisse Commercial Mortgage Trust, “C4”, FRN, 5.948%, 9/15/39		378,313		406,568
Credit Suisse Mortgage Capital Certificate, 5.311%, 12/15/39		489,341		510,097
CWCapital Cobalt Ltd., “A4”, FRN, 5.765%, 5/15/46		558,132		597,779
CWCapital LLC, 5.223%, 8/15/48		823,742		859,569
JPMorgan Chase Commercial Mortgage Securities Corp., “A3”, FRN, 5.938%, 2/15/51		40,100		40,160
JPMorgan Chase Commercial Mortgage Securities Corp., “A4”, FRN, 5.773%, 6/15/49		1,000,000		1,062,297
Morgan Stanley Capital I Trust, “AM”, FRN, 5.683%, 4/15/49		431,000		451,750

			$	8,760,931
Building - 0.0%
Martin Marietta Materials, Inc., 4.25%, 7/02/24	$	82,000	$	84,831

Business Services - 0.5%
Fidelity National Information Services, Inc., 3.875%, 6/05/24	$	1,000,000	$	1,017,382

Cable TV - 0.7%
Comcast Corp., 4.2%, 8/15/34	$	96,000	$	96,163
Time Warner Cable, Inc., 8.25%, 4/01/19		1,000,000		1,184,699
Time Warner Cable, Inc., 4.5%, 9/15/42		100,000		86,754

			$	1,367,616

Portfolio of Investments (unaudited) – continued


Issuer	Shares/Par		Value ($)

Bonds - continued
U.S. Bonds - continued
Chemicals - 0.3%
Dow Chemical Co., 8.55%, 5/15/19	$	500,000	$	614,487

Computer Software - Systems - 0.1%
Apple, Inc., 4.375%, 5/13/45	$	121,000	$	122,591

Energy - Independent - 0.5%
Anadarko Petroleum Corp., 4.5%, 7/15/44	$	1,000,000	$	965,876
Hess Corp., 8.125%, 2/15/19		30,000		35,998

			$	1,001,874
Food & Beverages - 0.7%
J.M. Smucker Co., 4.25%, 3/15/35 (n)	$	189,000	$	183,655
Kraft Foods Group, Inc., 6.125%, 8/23/18		960,000		1,080,957
Tyson Foods, Inc., 5.15%, 8/15/44		38,000		41,332

			$	1,305,944
Forest & Paper Products - 0.1%
Packaging Corp. of America, 3.65%, 9/15/24	$	153,000	$	152,973

Insurance - Property & Casualty - 0.1%
Liberty Mutual Group, Inc., 4.85%, 8/01/44 (n)	$	99,000	$	99,822

Local Authorities - 1.0%
Nashville & Davidson County, TN, Metropolitan Government Convention Center Authority (Build America Bonds), 6.731%, 7/01/43	$	580,000	$	743,960
New Jersey Turnpike Authority Rev. (Build America Bonds), “F”, 7.414%, 1/01/40		32,000		46,284
State of California (Build America Bonds), 7.6%, 11/01/40		420,000		644,456
University of California Rev. (Build America Bonds), 5.77%, 5/15/43		450,000		561,046

			$	1,995,746
Major Banks - 1.0%
Bank of America Corp., 7.625%, 6/01/19	$	170,000	$	203,898
Goldman Sachs Group, Inc., 3.625%, 1/22/23		446,000		454,741
Goldman Sachs Group, Inc., 4.8%, 7/08/44		94,000		98,253
Merrill Lynch & Co., Inc., 6.05%, 5/16/16		750,000		782,550
Morgan Stanley, 3.875%, 4/29/24		221,000		227,685
Morgan Stanley, 4.3%, 1/27/45		81,000		78,533
Wells Fargo & Co., 5.9% to 6/15/24, FRN to 12/29/49		100,000		103,000

			$	1,948,660

Portfolio of Investments (unaudited) – continued


Issuer	Shares/Par		Value ($)

Bonds - continued
U.S. Bonds - continued
Medical & Health Technology & Services - 0.2%
Becton, Dickinson and Co., 4.685%, 12/15/44	$	179,000	$	182,392
Laboratory Corp. of America Holdings, 4.7%, 2/01/45		106,000		102,272

			$	284,664
Medical Equipment - 0.4%
Medtronic, Inc., 4.625%, 3/15/45 (n)	$	237,000	$	247,144
Zimmer Holdings, Inc., 4.45%, 8/15/45		607,000		585,825

			$	832,969
Metals & Mining - 0.2%
Freeport-McMoRan Copper & Gold, Inc., 3.875%, 3/15/23	$	500,000	$	470,483

Midstream - 1.0%
Energy Transfer Partners LP, 5.15%, 3/15/45	$	220,000	$	206,426
Enterprise Products Operating LLC, 3.9%, 2/15/24		29,000		30,010
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20		1,000,000		1,164,244
Kinder Morgan Energy Partners LP, 5.4%, 9/01/44		358,000		343,433
Sunoco Logistics Partners LP, 5.35%, 5/15/45		220,000		215,604

			$	1,959,717
Mortgage-Backed - 48.5%
Fannie Mae, 4.78%, 8/01/15	$	464,220	$	465,620
Fannie Mae, 5.431%, 11/01/15		515,462		517,673
Fannie Mae, 5.432%, 2/01/16		560,089		570,220
Fannie Mae, 5.845%, 6/01/16		79,960		81,570
Fannie Mae, 6.5%, 11/01/16 - 2/01/37		1,036,875		1,215,061
Fannie Mae, 5.09%, 12/01/16		483,764		510,114
Fannie Mae, 5.05%, 1/01/17		484,619		506,739
Fannie Mae, 5.3%, 4/01/17		526,478		554,200
Fannie Mae, 1.9%, 6/01/17		160,128		161,940
Fannie Mae, 6%, 8/01/17 - 7/01/37		1,872,065		2,135,351
Fannie Mae, 5.5%, 9/01/17 - 3/01/38		6,206,772		7,020,954
Fannie Mae, 4.88%, 3/01/20		160,561		173,894
Fannie Mae, 2.41%, 5/01/23		133,286		134,196
Fannie Mae, 2.55%, 5/01/23		114,822		116,679
Fannie Mae, 2.59%, 5/01/23		72,522		73,878
Fannie Mae, 3%, 4/01/27 - 4/01/30		819,458		857,560
Fannie Mae, 2.5%, 5/01/28 - 5/01/30		493,119		505,616
Fannie Mae, 5%, 6/01/35 - 3/01/40		1,043,426		1,160,419
Fannie Mae, 4%, 2/01/41 - 2/01/45		10,940,724		11,698,993
Fannie Mae, 4.5%, 2/01/41 - 4/01/44		5,671,347		6,182,380
Fannie Mae, 3.5%, 4/01/43		742,595		777,016

Portfolio of Investments (unaudited) – continued


Issuer	Shares/Par		Value ($)

Bonds - continued
U.S. Bonds - continued
Mortgage-Backed - continued
Fannie Mae, TBA, 3%, 6/01/30 - 7/01/45	$	3,299,531	$	3,425,721
Fannie Mae, TBA, 3.5%, 7/01/45		1,159,000		1,208,031
Fannie Mae, TBA, 4.5%, 7/01/45		1,024,000		1,111,904
Freddie Mac, 4%, 9/01/44		1,155,608		1,232,274
Freddie Mac, 1.426%, 8/25/17		1,112,000		1,120,880
Freddie Mac, 2.699%, 5/25/18		800,000		831,941
Freddie Mac, 2.412%, 8/25/18		1,152,000		1,189,543
Freddie Mac, 2.303%, 9/25/18		275,000		283,186
Freddie Mac, 2.323%, 10/25/18		499,000		514,210
Freddie Mac, 2.13%, 1/25/19		1,575,000		1,612,146
Freddie Mac, 5.085%, 3/25/19		752,000		844,090
Freddie Mac, 2.456%, 8/25/19		383,000		395,913
Freddie Mac, 4.186%, 8/25/19		600,000		657,050
Freddie Mac, 3.034%, 10/25/20		291,000		307,611
Freddie Mac, 2.856%, 1/25/21		400,000		418,644
Freddie Mac, 6%, 5/01/21 - 10/01/38		959,585		1,095,921
Freddie Mac, 2.791%, 1/25/22		517,000		535,261
Freddie Mac, 2.682%, 10/25/22		189,000		193,977
Freddie Mac, 2.51%, 11/25/22		496,000		502,545
Freddie Mac, 3.32%, 2/25/23		433,000		461,789
Freddie Mac, 3.3%, 4/25/23		429,471		456,840
Freddie Mac, 3.06%, 7/25/23		181,000		189,128
Freddie Mac, 3.458%, 8/25/23		367,000		393,798
Freddie Mac, 4.5%, 9/01/24 - 8/01/40		1,131,572		1,227,776
Freddie Mac, 5.5%, 10/01/24 - 6/01/36		1,301,657		1,469,141
Freddie Mac, 2.67%, 12/25/24		827,000		833,407
Freddie Mac, 2.811%, 1/25/25		642,000		653,028
Freddie Mac, 2.5%, 5/01/28 - 7/01/28		4,769,769		4,891,906
Freddie Mac, 6.5%, 5/01/37		258,931		297,489
Freddie Mac, 5%, 4/01/40		3,352,603		3,746,582
Freddie Mac, 3.5%, 5/01/42 - 7/01/43		5,854,501		6,119,807
Freddie Mac, 3%, 4/01/43 - 5/01/43		2,298,942		2,332,496
Freddie Mac, 4%, 11/01/43		480,168		511,902
Freddie Mac, TBA, 3%, 8/01/30		1,501,000		1,561,052
Freddie Mac, TBA, 3.5%, 8/01/45		406,000		421,284
Ginnie Mae, 5.5%, 7/15/33 - 1/20/42		1,713,884		1,986,722
Ginnie Mae, 4%, 8/15/40 - 1/20/45		3,873,350		4,129,649
Ginnie Mae, 4.5%, 9/20/41		360,177		395,408
Ginnie Mae, 3.5%, 4/15/42 - 7/20/43		4,375,829		4,604,224
Ginnie Mae, 3%, 7/20/43		1,273,115		1,310,058
Ginnie Mae, 5.612%, 4/20/58		169,237		173,132
Ginnie Mae, 6.357%, 4/20/58		136,037		142,090

Portfolio of Investments (unaudited) – continued


Issuer	Shares/Par		Value ($)

Bonds - continued
U.S. Bonds - continued
Mortgage-Backed - continued
Ginnie Mae, TBA, 3.5%, 6/01/45 - 8/01/45	$	2,021,000	$	2,117,678

			$	93,327,307
Municipals - 1.0%
Houston, TX, Public Improvement Refunding, “A”, 5%, 3/01/25	$	95,000	$	114,040
New York Dormitory Authority Rev., State Personal Income Tax (General Purpose), “E”, 5%, 2/15/24		585,000		709,482
State of Washington, 5%, 7/01/25		780,000		947,567
University of California Limited Project Rev., “I”, 5%, 5/15/25		165,000		202,980

			$	1,974,069
Network & Telecom - 1.6%
AT&T, Inc., 4.75%, 5/15/46	$	110,000	$	104,749
Verizon Communications, Inc., 5.05%, 3/15/34		1,500,000		1,557,542
Verizon Communications, Inc., 6.55%, 9/15/43		1,200,000		1,457,621

			$	3,119,912
Oils - 0.1%
Valero Energy Corp., 4.9%, 3/15/45	$	130,000	$	128,257

Other Banks & Diversified Financials - 0.9%
Capital One Bank (USA) N.A., 3.375%, 2/15/23	$	336,000	$	334,483
Citigroup, Inc., 8.5%, 5/22/19		80,000		98,698
Citigroup, Inc., 3.75%, 6/16/24		223,000		229,872
Discover Bank, 4.25%, 3/13/26		1,000,000		1,020,629

			$	1,683,682
Pharmaceuticals - 0.9%
AbbVie, Inc., 4.7%, 5/14/45	$	1,000,000	$	1,016,599
Actavis Funding SCS, 4.55%, 3/15/35		261,000		258,749
Actavis Funding SCS, 4.85%, 6/15/44		272,000		272,773
Gilead Sciences, Inc., 4.5%, 2/01/45		82,000		83,787

			$	1,631,908
Real Estate - Healthcare - 0.1%
HCP, Inc., REIT, 3.875%, 8/15/24	$	267,000	$	268,067

Real Estate - Retail - 0.1%
DDR Corp., REIT, 3.625%, 2/01/25	$	122,000	$	119,781

Retailers - 0.3%
Bed Bath & Beyond, Inc., 5.165%, 8/01/44	$	495,000	$	509,907

Portfolio of Investments (unaudited) – continued


Issuer	Shares/Par		Value ($)

Bonds - continued
U.S. Bonds - continued
Supranational - 0.1%
Inter-American Development Bank, 4.375%, 1/24/44	$	158,000	$	191,418

Tobacco - 0.4%
Altria Group, Inc., 9.25%, 8/06/19	$	55,000	$	69,931
Altria Group, Inc., 4%, 1/31/24		14,000		14,517
Lorillard Tobacco Co., 8.125%, 6/23/19		583,000		707,230

			$	791,678
Transportation - Services - 0.0%
ERAC USA Finance LLC, 3.85%, 11/15/24 (n)	$	34,000	$	34,952

U.S. Government Agencies and Equivalents - 3.7%
Aid-Egypt, 4.45%, 9/15/15	$	1,755,000	$	1,775,872
Aid-Tunisia, 2.452%, 7/24/21		235,000		240,025
Aid-Ukraine, 1.844%, 5/16/19		444,000		451,273
Aid-Ukraine, 1.847%, 5/29/20		330,000		330,934
Hashemite Kingdom of Jordan, 1.945%, 6/23/19		443,000		452,925
Hashemite Kingdom of Jordan, 2.503%, 10/30/20		418,000		434,848
Private Export Funding Corp., 2.25%, 3/15/20		86,000		87,655
Private Export Funding Corp., 1.875%, 7/15/18		460,000		466,983
Small Business Administration, 6.35%, 4/01/21		117,915		128,348
Small Business Administration, 6.34%, 5/01/21		95,229		103,979
Small Business Administration, 6.44%, 6/01/21		124,165		136,141
Small Business Administration, 6.625%, 7/01/21		127,941		140,351
Small Business Administration, 5.52%, 6/01/24		238,430		261,479
Small Business Administration, 2.21%, 2/01/33		289,246		286,716
Small Business Administration, 2.22%, 3/01/33		481,864		477,735
Small Business Administration, 3.15%, 7/01/33		419,189		437,476
Small Business Administration, 3.62%, 9/01/33		373,524		399,148
Tennessee Valley Authority, 1.75%, 10/15/18		292,000		297,262
U.S. Department of Housing & Urban Development, 6.36%, 8/01/16		70,000		70,246
U.S. Department of Housing & Urban Development, 6.59%, 8/01/16		113,000		114,205

			$	7,093,601
U.S. Treasury Obligations - 20.6%
U.S. Treasury Bonds, 5.25%, 2/15/29	$	1,448,000	$	1,935,116
U.S. Treasury Bonds, 4.75%, 2/15/37		336,000		451,001
U.S. Treasury Bonds, 4.375%, 2/15/38		4,842,000		6,182,251
U.S. Treasury Bonds, 4.5%, 8/15/39		5,097,100		6,633,794
U.S. Treasury Bonds, 3.125%, 2/15/43		453,700		476,208
U.S. Treasury Bonds, 2.875%, 5/15/43		1,697,100		1,697,497
U.S. Treasury Bonds, TIPS, 0.125%, 7/15/24		2,901,688		2,874,259
U.S. Treasury Notes, 0.875%, 12/31/16		550,000		553,438

Portfolio of Investments (unaudited) – continued


Issuer	Shares/Par		Value ($)

Bonds - continued
U.S. Bonds - continued
U.S. Treasury Obligations - continued
U.S. Treasury Notes, 4.75%, 8/15/17 (f)	$	1,603,000	$	1,745,266
U.S. Treasury Notes, 2.625%, 4/30/18		2,272,000		2,383,292
U.S. Treasury Notes, 2.75%, 2/15/19		1,654,000		1,748,458
U.S. Treasury Notes, 3.125%, 5/15/19		300,000		321,633
U.S. Treasury Notes, 1%, 6/30/19		3,593,000		3,553,419
U.S. Treasury Notes, 2.625%, 8/15/20		162,000		170,796
U.S. Treasury Notes, 3.125%, 5/15/21		5,026,000		5,433,970
U.S. Treasury Notes, 1.75%, 5/15/22		508,000		505,063
U.S. Treasury Notes, 2.5%, 8/15/23		2,031,000		2,114,620
U.S. Treasury Notes, 2.75%, 2/15/24		827,000		875,393

			$	39,655,474
Total U.S. Bonds			$	190,121,519

Foreign Bonds - 5.1%
Brazil - 0.3%
Federative Republic of Brazil, 11%, 8/17/40	$	183,000	$	187,117
Federative Republic of Brazil, 5.625%, 1/07/41		162,000		164,430
Vale Overseas Ltd., 6.875%, 11/10/39		165,000		162,876

			$	514,423
Canada - 0.2%
Teck Resources Ltd., 6%, 8/15/40	$	200,000	$	172,943
Teck Resources Ltd., 5.4%, 2/01/43		300,000		249,003

			$	421,946
Chile - 0.7%
E.CL S.A., 5.625%, 1/15/21	$	566,000	$	629,675
Empresa Nacional de Electricidad S.A., 4.25%, 4/15/24		20,000		20,818
Empresa Nacional del Petroleo, 6.25%, 7/08/19		214,000		238,789
GNL Quintero S.A., 4.634%, 7/31/29 (n)		200,000		204,845
Transelec S.A., 4.25%, 1/14/25		200,000		204,788

			$	1,298,915
China - 0.6%
Baidu, Inc., 3.25%, 8/06/18	$	240,000	$	248,352
CNPC (HK) Overseas Capital Ltd., 4.5%, 4/28/21 (n)		226,000		243,783
State Grid Overseas Investment (2014) Ltd., 4.125%, 5/07/24 (n)		690,000		739,668

			$	1,231,803
Iceland - 0.4%
Republic of Iceland, 4.875%, 6/16/16 (n)	$	667,000	$	690,398
Republic of Iceland, 5.875%, 5/11/22 (n)		101,000		117,153

			$	807,551

Portfolio of Investments (unaudited) – continued


Issuer	Shares/Par		Value ($)

Bonds - continued
Foreign Bonds - continued
Malaysia - 0.1%
Petronas Capital Ltd., 7.875%, 5/22/22	$	185,000	$	241,857

Mexico - 1.5%
Banco Inbursa S.A. Institucion de Banca Multiple Grupo Financiero Inbursa, 4.125%, 6/06/24 (n)	$	299,000	$	294,889
Comision Federal de Electricidad, 4.875%, 5/26/21		277,000		295,005
Pemex Project Funding Master Trust, 5.75%, 3/01/18		160,000		176,000
Petroleos Mexicanos, 5.625%, 1/23/46 (n)		23,000		22,733
Petroleos Mexicanos, 8%, 5/03/19		228,000		270,294
Petroleos Mexicanos, 6%, 3/05/20		202,000		228,220
Petroleos Mexicanos, 5.5%, 1/21/21		130,000		142,234
Petroleos Mexicanos, 4.875%, 1/18/24		95,000		99,073
Petroleos Mexicanos, 4.25%, 1/15/25 (n)		15,000		14,918
Petroleos Mexicanos, 5.5%, 6/27/44 (n)		35,000		34,090
Southern Copper Corp., 5.875%, 4/23/45		80,000		78,232
United Mexican States, 3.625%, 3/15/22		1,164,000		1,190,772

			$	2,846,460
Netherlands - 0.4%
ING Bank N.V., 5.8%, 9/25/23 (n)	$	769,000	$	868,225

Peru - 0.2%
El Fondo Mivivienda S.A., 3.5%, 1/31/23	$	226,000	$	221,367
Republic of Peru, 8.75%, 11/21/33		180,000		281,700

			$	503,067
Romania - 0.1%
Republic of Romania, 4.875%, 1/22/24 (n)	$	58,000	$	63,382
Republic of Romania, 4.375%, 8/22/23 (n)		36,000		38,042

			$	101,424
Russia - 0.1%
LUKOIL International Finance B.V., 4.563%, 4/24/23	$	213,000	$	193,031

Slovakia - 0.4%
Republic of Slovakia, 4.375%, 5/21/22 (n)	$	639,000	$	711,686

United Kingdom - 0.1%
Royal Bank of Scotland PLC, 6%, 12/19/23	$	124,000	$	134,854

Uruguay - 0.0%
Oriental Republic of Uruguay, 4.5%, 8/14/24	$	71,000	$	75,970
Total Foreign Bonds			$	9,951,212
Total Bonds (Identified Cost, $188,422,397)			$	200,072,731

Portfolio of Investments (unaudited) – continued


Money Market Funds - 1.3%
Issuer	Shares/Par		Value ($)

MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v)		2,463,667	$	2,463,667
Total Investments (Identified Cost, $190,886,064)			$	202,536,398

Other Assets, Less Liabilities - (5.2)%				(10,048,343	)
Net Assets - 100.0%			$	192,488,055

(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 $4,609,385, representing 2.4% 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.

The following abbreviations are used in this report and are defined:

TIPS

Treasury Inflation Protected Security

FRN

Floating Rate Note. Interest rate resets periodically and the current rate may not be the rate reported at period end.

PLC

Public Limited Company

REIT

Real Estate Investment Trust

TBA

To Be Announced

Derivative Contracts at 5/31/15

Futures Contracts at 5/31/15


Description	Currency		Contracts	Value	Expiration Date		Unrealized Appreciation (Depreciation)
Liability Derivatives
*Interest Rate Futures*
U.S. Treasury Bond 30 yr (Short)		USD	36	$5,602,500		September - 2015		$(56,367	)
U.S. Treasury Bond 10 yr (Short)		USD	10	$1,276,875		September - 2015		(5,868	)
U.S. Treasury Ultra Bond (Short)		USD	9	1,442,531		September - 2015		(18,031	)

								$(80,266	)

At May 31, 2015, the fund had liquid securities with an aggregate value of $179,644 to cover any commitments for certain derivative contracts.

See Notes to Financial Statements

Financial Statements

STATEMENT OF ASSETS AND LIABILITIES

At 5/31/15 (unaudited)

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


Assets
Investments
Non-affiliated issuers, at value (identified cost, $188,422,397)	$200,072,731
Underlying affiliated funds, at cost and value	2,463,667
Total investments, at value (identified cost, $190,886,064)	$202,536,398
Receivables for
Investments sold	141,079
Interest	1,446,468
Other assets	19,410
Total assets	$204,143,355
Liabilities
Payables for
Distributions	$72,023
Daily variation margin on open futures contracts	41,781
Investments purchased	1,544,604
TBA purchase commitments	9,860,016
Payable to affiliates
Investment adviser	11,858
Transfer agent and dividend disbursing costs	3,067
Payable for independent Trustees’ compensation	37,555
Accrued expenses and other liabilities	84,396
Total liabilities	$11,655,300
Net assets	$192,488,055
Net assets consist of
Paid-in capital	$198,460,850
Unrealized appreciation (depreciation) on investments	11,570,068
Accumulated net realized gain (loss) on investments	(13,059,236	)
Accumulated distributions in excess of net investment income	(4,483,627	)
Net assets	$192,488,055
Shares of beneficial interest outstanding	32,601,117
Net asset value per share (net assets of $192,488,055 / 32,601,117 shares of beneficial interest outstanding)	$5.90

See Notes to Financial Statements

Financial Statements

STATEMENT OF OPERATIONS

Six months ended 5/31/15 (unaudited)

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Net investment income
Income
Interest	$3,492,223
Dividends from underlying affiliated funds	4,312
Total investment income	$3,496,535
Expenses
Management fee	$521,192
Transfer agent and dividend disbursing costs	42,022
Administrative services fee	20,372
Independent Trustees’ compensation	19,334
Stock exchange fee	14,839
Custodian fee	15,912
Shareholder communications	53,104
Audit and tax fees	38,552
Legal fees	1,976
Miscellaneous	10,495
Total expenses	$737,798
Fees paid indirectly	(26	)
Net expenses	$737,772
Net investment income	$2,758,763
Realized and unrealized gain (loss) on investments
Realized gain (loss) (identified cost basis)
Investments	$886,142
Futures contracts	(48,337	)
Net realized gain (loss) on investments	$837,805
Change in unrealized appreciation (depreciation)
Investments	$(1,855,901	)
Futures contracts	44,548
Net unrealized gain (loss) on investments	$(1,811,353	)
Net realized and unrealized gain (loss) on investments	$(973,548	)
Change in net assets from operations	$1,785,215

See Notes to Financial Statements

Financial Statements

STATEMENTS OF CHANGES IN NET ASSETS

These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.


Change in net assets	Six months ended 5/31/15 (unaudited)			Year ended 11/30/14
From operations
Net investment income		$2,758,763			$5,870,851
Net realized gain (loss) on investments		837,805			731,254
Net unrealized gain (loss) on investments		(1,811,353	)		2,439,289
Change in net assets from operations		$1,785,215			$9,041,394
Distributions declared to shareholders
From net investment income		$(2,758,763	)		$(6,965,359	)
From tax return of capital		—			(7,581,593	)
From other sources		(4,369,807	)		—
Total distributions declared to shareholders		$(7,128,570	)		$(14,546,952	)
Total change in net assets		$(5,343,355	)		$(5,505,558	)
Net assets
At beginning of period		197,831,410			203,336,968
At end of period (including accumulated distributions in excess of net investment income of $4,483,627 and $113,820, respectively)		$192,488,055			$197,831,410

See Notes to Financial Statements

Financial Statements

FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.


	Six months ended 5/31/15 (unaudited)			Years ended 11/30
				2014			2013			2012			2011			2010

Net asset value, beginning of period		$6.07			$6.24			$6.88			$7.01			$7.17			$7.27
Income (loss) from investment operations
Net investment income (d)		$0.08			$0.18			$0.20			$0.23			$0.26			$0.30
Net realized and unrealized gain (loss) on investments and foreign currency		(0.03	)		0.10			(0.36	)		0.15			0.09			0.12
Total from investment operations		$0.05			$0.28			$(0.16	)		$0.38			$0.35			$0.42
Less distributions declared to shareholders
From net investment income		$(0.09	)		$(0.22	)		$(0.23	)		$(0.32	)		$(0.32	)		$(0.32	)
From tax return of capital		—			(0.23	)		(0.25	)		(0.19	)		(0.19	)		(0.20	)
From other sources		(0.13	)		—			—			—			—			—
Total distributions declared to shareholders		$(0.22	)		$(0.45	)		$(0.48	)		$(0.51	)		$(0.51	)		$(0.52	)
Net asset value, end of period (x)		$5.90			$6.07			$6.24			$6.88			$7.01			$7.17
Market value, end of period		$5.60			$5.80			$5.62			$6.76			$6.85			$7.15
Total return at market value (%)		0.31	(n)		11.46			(10.19	)		6.12			3.36			5.54
Total return at net asset value (%) (j)(r)(s)(x)		0.98	(n)		5.06			(2.02	)		5.54			5.48			5.98
Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.76	(a)		0.75			0.75			0.78			0.80			0.83
Expenses after expense reductions (f)		N/A			0.75			0.75			0.78			0.80			0.80
Net investment income		2.83	(a)		2.93			3.04			3.36			3.75			4.19
Portfolio turnover		40	(n)		62			100			41			14			26
Net assets at end of period (000 omitted)		$192,488			$197,831			$203,337			$223,942			$227,609			$232,865

Financial Highlights – continued

(a)	Annualized.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(j)	Total return at net asset value is calculated using the net asset value of the fund, not the publicly traded price and therefore may be different than the total return at market value.

(n)	Not annualized.

(r)	Certain expenses have been reduced without which performance would have been lower.

(s)	From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower.

(x)	The net asset values and total returns at net asset value have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

NOTES TO FINANCIAL STATEMENTS

(unaudited)

(1) Business and Organization

MFS Government Markets Income Trust (the fund) is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a diversified closed-end management investment company.

The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

(2) Significant Accounting Policies

General – The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued.

In June 2014, FASB issued Accounting Standards Update 2014-11, Transfers and Servicing (Topic 860) – Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (“ASU 2014-11”). ASU 2014-11 changes the accounting for repurchase-to-maturity transactions (i.e., repurchase agreements that settle at the same time as the maturity of the transferred financial asset) and enhances the required disclosures for repurchase agreements and other similar transactions. Although still evaluating the potential impacts of ASU 2014-11 to the fund, management expects that the impact of the fund’s adoption will be limited to additional financial statement disclosures which would first be effective for interim reporting periods beginning after March 15, 2015.

Balance Sheet Offsetting – The fund’s accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund’s right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’s in-scope financial instruments and transactions.

Investment Valuations – Debt instruments and floating rate loans, 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 may be valued at amortized cost, which approximates

Notes to Financial Statements (unaudited) – continued

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

Notes to Financial Statements (unaudited) – continued

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 contracts. The following is a summary of the levels used as of May 31, 2015 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		$—			$64,319,891		$—		$64,319,891
Non-U.S. Sovereign Debt		—			6,680,099		—		6,680,099
Municipal Bonds		—			1,974,069		—		1,974,069
U.S. Corporate Bonds		—			21,547,902		—		21,547,902
Residential Mortgage-Backed Securities		—			93,327,307		—		93,327,307
Commercial Mortgage-Backed Securities		—			8,760,931		—		8,760,931
Foreign Bonds		—			3,462,532		—		3,462,532
Mutual Funds		2,463,667			—		—		2,463,667
Total Investments		$2,463,667			$200,072,731		$—		$202,536,398

Other Financial Instruments
Futures Contracts		$(80,266	)		$—		$—		$(80,266	)

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

Inflation-Adjusted Debt Securities – The fund invests in inflation-adjusted debt securities issued by the U.S. Treasury. The principal value of these debt securities is adjusted through income according to changes in the Consumer Price Index. These debt securities typically pay a fixed rate of interest, but this fixed rate is applied to the inflation-adjusted principal amount. The principal paid at maturity of the debt security is typically equal to the inflation-adjusted principal amount, or the security’s original par value, whichever is greater. Other types of inflation-adjusted securities may use other methods to adjust for other measures of inflation.

Foreign Currency Translation – Purchases and sales of foreign investments, income, and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions or on the reporting date for foreign denominated receivables and payables. Gains and losses attributable to foreign currency exchange rates on sales of securities are recorded for financial statement purposes as net realized gains and losses on investments. Gains and losses attributable to foreign exchange rate movements on receivables, payables, income and expenses are recorded for financial statement purposes as foreign currency transaction gains and losses. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.

Derivatives – The fund uses derivatives for different purposes, primarily to increase or decrease exposure to a particular market or segment of the market, or security, to

Notes to Financial Statements (unaudited) – continued

increase or decrease interest rate or currency exposure, or as alternatives to direct investments. Derivatives are used for hedging or non-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the fund uses derivatives as an investment to increase market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.

The derivative instruments used by the fund were futures contracts. The fund’s period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of its derivative activity during the period.

The following table presents, by major type of derivative contract, the fair value, on a gross basis, of the asset and liability components of derivatives held by the fund at May 31, 2015 as reported in the Statement of Assets and Liabilities:

(a)	The value of futures contracts includes cumulative appreciation (depreciation) as reported in the fund’s Portfolio of Investments. Only the current day variation margin for futures contracts is separately reported within the fund’s Statement of Assets and Liabilities.

The following table presents, by major type of derivative contract, the realized gain (loss) on derivatives held by the fund for the six months ended May 31, 2015 as reported in the Statement of Operations:


Risk	Futures Contracts
Interest Rate		$(48,337	)

The following table presents, by major type of derivative contract, the change in unrealized appreciation (depreciation) on derivatives held by the fund for the six months ended May 31, 2015 as reported in the Statement of Operations:


Risk	Futures Contracts
Interest Rate		$44,548

Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain, but not all, uncleared derivatives, the fund attempts to reduce its exposure to counterparty credit risk whenever possible by entering into an ISDA Master Agreement on a bilateral basis. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. Upon an event of default or a termination of the ISDA Master Agreement, the non-defaulting party has the right to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the fund’s credit risk to such counterparty equal to any amounts payable by the fund under the applicable transactions, if any.

Notes to Financial Statements (unaudited) – continued

Collateral and margin requirements differ by type of derivative. Margin requirements are set by the clearing broker and the clearing house for cleared derivatives (i.e., futures contracts, cleared swaps, and exchange-traded options) while collateral terms are contract specific for uncleared derivatives (i.e., forward foreign currency exchange contracts, uncleared swap agreements, and uncleared options). For derivatives traded under an ISDA Master Agreement, which contains a collateral support annex, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. Cash that has been segregated to cover the fund’s collateral or margin obligations under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities as “Restricted cash” or “Deposits with brokers.” Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments.

Futures Contracts – The fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, currency exposure, or to manage duration. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

Upon entering into a futures contract, the fund is required to deposit with the broker, either in cash or securities, an initial margin in an amount equal to a certain percentage of the notional amount of the contract. Subsequent payments (variation margin) are made or received by the fund each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gain or loss by the fund until the contract is closed or expires at which point the gain or loss on futures contracts is realized.

The fund bears the risk of interest rates, exchange rates or securities prices moving unexpectedly, in which case, the fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. While futures contracts may present less counterparty risk to the fund since the contracts are exchange traded and the exchange’s clearinghouse guarantees payments to the broker, there is still counterparty credit risk due to the insolvency of the broker. The fund’s maximum risk of loss due to counterparty credit risk is equal to the margin posted by the fund to the broker plus any gains or minus any losses on the outstanding futures contracts.

Dollar Roll Transactions – The fund enters into dollar roll transactions, with respect to mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, in which the fund sells mortgage-backed securities to financial institutions and simultaneously agrees to purchase similar (same issuer, type and coupon) securities at a later date at an agreed-upon price. During the period between the sale and repurchase in a dollar roll transaction the fund will not be entitled to receive interest and principal payments on the securities sold but is compensated by interest earned on the proceeds of the initial sale and by a lower purchase price on the securities to be repurchased which enhances the fund’s total return. The fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions.

Indemnifications – Under the fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the fund. Additionally, in the normal course of business,

Notes to Financial Statements (unaudited) – continued

the fund enters into agreements with service providers that may contain indemnification clauses. The fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be made against the fund that have not yet occurred.

Investment Transactions and Income – Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Some securities may be purchased on a “when-issued” or “forward delivery” basis, which means that the securities will be delivered to the fund at a future date, usually beyond customary settlement time. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted upward or downward based on the rate of inflation. Interest is accrued based on the principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond is generally recorded as an increase or decrease in interest income, respectively, even though the adjusted principal is not received until maturity. Interest payments received in additional securities are recorded on the ex-interest date in an amount equal to the value of the security on such date.

The fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statement of Operations in realized gain/loss if the security has been disposed of by the fund or in unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statement of Operations.

The fund invests a significant portion of its assets in asset-backed and/or mortgage-backed securities. The value of these securities may depend, in part, on the issuer’s or borrower’s credit quality or ability to pay principal and interest when due and that value may fall if an issuer or borrower defaults on its obligation to pay principal or interest or if the instrument’s credit rating is downgraded by a credit rating agency. U.S. Government securities not supported as to the payment of principal or interest by the U.S. Treasury, such as those issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, are subject to greater credit risk than are U.S. Government securities supported by the U.S. Treasury, such as those issued by Ginnie Mae.

The fund purchased or sold debt securities on a when-issued or delayed delivery basis, or in a “To Be Announced” (TBA) or “forward commitment” transaction with delivery or payment to occur at a later date beyond the normal settlement period. At the time a fund enters into a commitment to purchase or sell a security, the transaction is recorded and the value of the security acquired is reflected in the fund’s net asset value. The price of such security and the date that the security will be delivered and paid for are fixed at the time the transaction is negotiated. The value of the security may vary with market fluctuations. TBA securities resulting from these transactions are included in the Portfolio of Investments. TBA purchase commitments are held at carrying amount, which approximates fair value and are categorized as level 2 within the fair value hierarchy. No interest accrues to the fund until payment takes place. At the time that a fund enters into this type of transaction, the fund is required to have sufficient cash and/or liquid securities to cover its commitments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not

Notes to Financial Statements (unaudited) – continued

perform under the contract’s terms, or if the issuer does not issue the securities due to political, economic or other factors. Additionally, losses may arise due to declines in the value of the securities prior to settlement date.

To mitigate this risk of loss on TBA securities and other types of forward settling mortgage-backed securities, the fund whenever possible enters into a Master Securities Forward Transaction Agreement (“MSFTA”) on a bilateral basis with each of the counterparties with whom it undertakes a significant volume of transactions. The MSFTA gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. Upon an event of default or a termination of the MSFTA, the non-defaulting party has the right to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the MSFTA could result in a reduction of the fund’s credit risk to such counterparty equal to any amounts payable by the fund under the applicable transactions, if any.

For mortgage-backed securities traded under a MSFTA, the collateral and margining requirements are contract specific. Collateral amounts across all transactions traded under such agreement are netted and one amount is posted from one party to the other to collateralize such obligations. Cash that has been pledged to cover the fund’s collateral or margin obligations under a MSFTA, if any, will be reported separately on the Statement of Assets and Liabilities as restricted cash. Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments.

Fees Paid Indirectly – The fund’s custody fee may be reduced by a credit earned under an arrangement that measures the value of U.S. dollars deposited with the custodian by the fund. The amount of the credit, for the six months ended May 31, 2015, is shown as a reduction of total expenses in the Statement of Operations.

Tax Matters and Distributions – The fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable income, including realized capital gains. As a result, no provision for federal income tax is required. The fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for a three year period. Management has analyzed the fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability. Foreign taxes, if any, have been accrued by the fund in the accompanying financial statements in accordance with the applicable foreign tax law. Foreign income taxes may be withheld by certain countries in which the fund invests. Additionally, capital gains realized by the fund on securities issued in or by certain foreign countries may be subject to capital gains tax imposed by those countries.

Distributions to shareholders are recorded on the ex-dividend date. The fund seeks to pay monthly distributions based on an annual rate of 7.25% of the fund’s average monthly net asset value. As a result, distributions may exceed actual earnings which may result in a tax return of capital or, to the extent the fund has long-term gains, distributions of current year long-term gains may be recharacterized as ordinary

Notes to Financial Statements (unaudited) – continued

income. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Distributions from other sources, in excess of net investment income or net realized gains are temporary overdistributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.

Book/tax differences primarily relate to expiration of capital loss carryforwards, amortization and accretion of debt securities, and straddle loss deferrals.

For the six months ended May 31, 2015, the amount of distributions estimated to be a tax return of capital was approximately $3,882,888. The tax character of distributions made during the current period will be determined at fiscal year end. The tax character of distributions declared to shareholders for the last fiscal year is as follows:


	11/30/14
Ordinary income (including any short-term capital gains)		$6,965,359
Tax return of capital (b)		7,581,593
Total distributions		$14,546,952

(b)

Distributions in excess of tax basis earnings and profits are reported in the financial statements as a tax return of capital.

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 5/31/15
Cost of investments	$196,580,266
Gross appreciation	9,909,365
Gross depreciation	(3,953,233	)
Net unrealized appreciation (depreciation)	$5,956,132

As of 11/30/14
Capital loss carryforwards	(7,210,891	)
Other temporary differences	(1,584,692	)
Net unrealized appreciation (depreciation)	8,166,143

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

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized for fund fiscal years beginning after November 30, 2011, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses (“post-enactment losses”). Previously, net capital losses were carried forward for eight years and treated as short-term losses (“pre-enactment losses”). As a transition rule, the Act requires that all post-enactment net capital losses be used before pre-enactment net capital losses.

Notes to Financial Statements (unaudited) – continued

As of November 30, 2014, the fund had capital loss carryforwards available to offset future realized gains as follows:


Pre-enactment losses which expire as follows:
11/30/15	$(5,364,143	)
11/30/16	(766,085	)
11/30/17	(129,764	)
11/30/18	(199,149	)
Total	$(6,459,141	)

Post-enactment losses which are characterized as follows:
Short-Term	$(485,946	)
Long-Term	(265,804	)
Total	$(751,750	)

(3) Transactions with Affiliates

Investment Adviser – The fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. The management fee is computed daily and paid monthly at an annual rate of 0.32% of the fund’s average daily net assets and 5.33% of gross income. Gross income is calculated based on tax elections that generally include the accretion of discount and exclude the amortization of premium, which may differ from investment income reported in the Statement of Operations. MFS has agreed to reduce its management fee to the lesser of the contractual management fee as set forth above or 0.85% of the average daily net assets. This written agreement will continue until modified by the Board of Trustees, but such agreement will continue at least until November 30, 2016. For the six months ended May 31, 2015, the fund’s average daily net assets and gross income did not meet the thresholds required to waive the management fee under this agreement. The management fee, from net assets and gross income, incurred for the six months ended May 31, 2015 was equivalent to an annual effective rate of 0.53% of the fund’s average daily net assets.

The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total fund operating expenses do not exceed 0.80% annually of the fund’s average daily net assets. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until November 30, 2016. For the six months ended May 31, 2015, the fund’s actual operating expenses did not exceed the limit and therefore, the investment adviser did not pay any portion of the fund’s expenses related to this agreement.

Transfer Agent – The fund engages Computershare Trust Company, N.A. (“Computershare”) as the sole transfer agent for the fund. MFS Service Center, Inc. (MFSC) monitors and supervises the activities of Computershare for an agreed upon fee approved by the Board of Trustees. For the six months ended May 31, 2015, these fees paid to MFSC amounted to $11,391.

Notes to Financial Statements (unaudited) – continued

Administrator – MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to the fund. Under an administrative services agreement, the fund reimburses MFS the costs incurred to provide these services. The fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee incurred for the six month ended May 31, 2015 was equivalent to an annual effective rate of 0.0209% of the fund’s average daily net assets.

Trustees’ and Officers’ Compensation – The fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. The fund does not pay compensation directly to Trustees or officers of the fund who are also officers of the investment adviser, all of whom receive remuneration for their services to the fund from MFS. Certain officers and Trustees of the fund are officers or directors of MFS and MFSC.

Prior to December 31, 2001, the fund had an unfunded defined benefit plan (“DB plan”) for independent Trustees. As of December 31, 2001, the Board took action to terminate the DB plan with respect to then-current and any future independent Trustees, such that the DB plan covers only certain of those former independent Trustees who retired on or before December 31, 2001. The DB plan resulted in a pension expense of $1,703 and is included in “Independent Trustees’ compensation” in the Statement of Operations for the six months ended May 31, 2015. The liability for deferred retirement benefits payable to certain independent Trustees under the DB plan amounted to $37,188 at May 31, 2015, and is included in “Payable for independent Trustees’ compensation” in the Statement of Assets and Liabilities.

Other – This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the six months ended May 31, 2015, the fee paid by the fund under this agreement was $356 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

The fund invests in the MFS Institutional Money Market Portfolio which is managed by MFS and seeks current income consistent with preservation of capital and liquidity. Income earned on this investment is included in “Dividends from underlying affiliated funds” in the Statement of Operations. This money market fund does not pay a management fee to MFS.

(4) Portfolio Securities

For the six months ended May 31, 2015, purchases and sales of investments, other than short-term obligations, were as follows:


	Purchases		Sales
U.S. Government securities		$74,271,432		$70,751,097
Investments (non-U.S. Government securities)		$8,634,403		$9,039,809

Notes to Financial Statements (unaudited) – continued

(5) Shares of Beneficial Interest

The fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. The Trustees have authorized the repurchase by the fund of up to 10% annually of its own shares of beneficial interest. During the six months ended May 31, 2015 and the year ended November 30, 2014, there were no transactions in fund shares.

(6) Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 billion unsecured committed line of credit, subject to a $1 billion sublimit, provided by a syndication of banks under a credit agreement. Borrowings may be made for temporary financing needs. Interest is charged to each fund, based on its borrowings, generally at a rate equal to the higher of the Federal Reserve funds rate or one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds at the end of each calendar quarter. In addition, the fund and other funds managed by MFS have established unsecured uncommitted borrowing arrangements with certain banks for temporary financing needs. Interest is charged to each fund, based on its borrowings, at a rate equal to the Federal Reserve funds rate plus an agreed upon spread. For the six months ended May 31, 2015, the fund’s commitment fee and interest expense were $343 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7) 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 an affiliated issuer:


Underlying Affiliated Fund	Beginning Shares/Par Amount		Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount
MFS Institutional Money Market Portfolio		15,361,860		18,882,990		(31,781,183	)		2,463,667

Underlying Affiliated Fund	Realized Gain (Loss)		Capital Gain Distributions		Dividend Income			Ending Value
MFS Institutional Money Market Portfolio		$—		$—		$4,312			$2,463,667

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees and Shareholders of MFS Government Markets Income Trust:

We have reviewed the accompanying statement of assets and liabilities of MFS Government Markets Income Trust (the “Fund”), including the portfolio of investments, as of May 31, 2015, and the related statements of operations, changes in net assets, and the financial highlights for the six-month period ended May 31, 2015. These interim financial statements and financial highlights are the responsibility of the Fund’s management.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial statements and financial highlights referred to above for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the statement of changes in net assets for the year ended November 30, 2014, and the financial highlights for each of the five years in the period ended November 30, 2014, and in our report dated January 15, 2015, we expressed an unqualified opinion on such statement of changes in net assets and financial highlights.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

July 16, 2015

PROXY VOTING POLICIES AND INFORMATION

MFS votes proxies on behalf of the fund pursuant to proxy voting policies and procedures that are available without charge, upon request, by calling 1-800-225-2606, by visiting the Proxy Voting section of mfs.com or by visiting the SEC’s Web site at http://www.sec.gov.

Information regarding how the fund voted proxies relating to portfolio securities during the twelve-month period ended June 30, 2014 is available without charge by visiting the Proxy Voting section of mfs.com or by visiting the SEC’s Web site at http://www.sec.gov.

QUARTERLY PORTFOLIO DISCLOSURE

The fund will file a complete schedule of portfolio holdings with the Securities and Exchange Commission (the Commission) for the first and third quarters of each fiscal year on Form N-Q. A shareholder can obtain the quarterly portfolio holdings report at mfs.com. The fund’s Form N-Q is also available on the EDGAR database on the Commission’s Internet Web site at http://www.sec.gov, and may be reviewed and copied at the:

Public Reference Room

Securities and Exchange Commission

100 F Street, NE, Room 1580

Washington, D.C. 20549

Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-800-SEC-0330. Copies of the Fund’s Form N-Q also may be obtained, upon payment of a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov or by writing the Public Reference Section at the above address.

FURTHER INFORMATION

From time to time, MFS may post important information about the fund or the MFS funds on the MFS web site (mfs.com). This information is available by visiting the “Market Commentary” and “Announcements” sub sections in the “Market Outlooks” section of mfs.com or by clicking on the fund’s name under “Closed-End Funds” in the “Products” section of mfs.com.

Additional information about the fund (e.g. performance, dividends and the fund’s price history) is also available by clicking on the fund’s name under “Closed-End Funds” in the “Products” section of mfs.com.

LOGO

CONTACT US

TRANSFER AGENT, REGISTRAR, AND

DIVIDEND DISBURSING AGENT

CALL

1-800-637-2304

9 a.m. to 5 p.m. Eastern time

WRITE

Computershare Trust Company, N.A.

P.O. Box 43078

Providence, RI 02940-3078

New York Stock Exchange Symbol: MGF

ITEM 2.

CODE OF ETHICS.

During the period covered by this report, the Registrant has not amended any provision in its Code of Ethics (the “Code”) that relates to an element of the Code’s definitions enumerated in paragraph (b) of Item 2 of this Form N-CSR. During the period covered by this report, the Registrant did not grant a waiver, including an implicit waiver, from any provision of the Code.

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable for semi-annual reports.

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable for semi-annual reports.

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable for semi-annual reports.

ITEM 6.

SCHEDULE OF INVESTMENTS

A schedule of investments for each series of the Registrant is included as part of the report to shareholders of such series under Item 1 of this Form N-CSR.

ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable for semi-annual reports.

ITEM 8.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

There were no changes during this period.

ITEM 9.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

MFS Government Markets Income Trust


Period	(a) Total number of Shares Purchased		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased under the Plans or Programs
12/01/14-12/31/14		0		N/A		0		3,260,111
1/01/15-1/31/15		0		N/A		0		3,260,111
2/01/15-2/28/15		0		N/A		0		3,260,111
3/01/15-3/31/15		0		N/A		0		3,260,111
4/01/15-4/30/15		0		N/A		0		3,260,111
5/01/15-5/31/15		0		N/A		0		3,260,111

*Total*		0				0

Note: The Board of Trustees approves procedures to repurchase shares annually. The notification to shareholders of the program is part of the semi-annual and annual reports sent to shareholders. These annual programs begin on March 1^st of each year. The programs conform to the conditions of Rule 10b-18 of the Securities Exchange Act of 1934 and limit the aggregate number of shares that may be purchased in each annual period (March 1 through the following February 28) to 10% of the Registrant’s outstanding shares as of the first day of the plan year (March 1). The aggregate number of shares available for purchase for the March 1, 2015 plan year is 3,260,111.

ITEM 10.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant’s Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407 (c)(2)(iv) of Regulation S-K or this Item.

ITEM 11.

CONTROLS AND PROCEDURES.

(a)

Based upon their evaluation 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-CSR, 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 second fiscal quarter covered by the report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12.

EXHIBITS.

(a)	File the exhibits listed below as part of this form. Letter or number the exhibits in the sequence indicated.

(1)

Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit.

(2)

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.

(3)

Notices to Trust’s common shareholders in accordance with Investment Company Act Section 19(a) and Rule 19a-1.

(b)

If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference: Attached hereto.

Notice

A copy of the Amended and Restated Declaration of Trust 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)*		ROBIN A. STELMACH
		Robin A. Stelmach, President

Date: July 16, 2015

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)*

ROBIN A. STELMACH

Robin A. Stelmach, President

(Principal Executive Officer)

Date: July 16, 2015

By (Signature and Title)*

DAVID L. DILORENZO

David L. DiLorenzo, Treasurer

(Principal Financial Officer and Accounting Officer)

Date: July 16, 2015

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