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: 811-03870

Morgan Stanley U.S. Government Securities Trust

(Exact name of registrant as specified in charter)

522 Fifth Avenue, New York, New York	10036
(Address of principal executive offices)	(Zip code)

John H. Gernon

522 Fifth Avenue, New York, New York 10036

(Name and address of agent for service)

Registrant's telephone number, including area code: 212-296-0289

Date of fiscal year end: December 31,

Date of reporting period: June 30, 2022

Item 1 - Report to Shareholders

Morgan Stanley U.S. Government Securities Trust

Semi-Annual Report

June 30, 2022

Morgan Stanley U.S. Government Securities Trust

Table of Contents (unaudited)

Welcome Shareholder		3
Fund Report		4
Performance Summary		9
Expense Example		10
Portfolio of Investments		12
Statement of Assets and Liabilities		21
Statement of Operations		22
Statements of Changes in Net Assets		23
Notes to Financial Statements		24
Financial Highlights		39
Investment Advisory Agreement Approval		43
Liquidity Risk Management Program		46
U.S. Customer Privacy Notice		47
Trustee and Officer Information	Back Cover

Welcome Shareholder,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Morgan Stanley U.S. Government Securities Trust (the "Fund") performed during the latest six-month period. It includes an overview of the market conditions and discusses some of the factors that affected performance during the reporting period. In addition, the report contains financial statements and a list of portfolio holdings.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management and look forward to working with you in the months and years ahead.

This material must be preceded or accompanied by a prospectus for the fund being offered.

Market forecasts provided in this report may not necessarily come to pass. There is no assurance that the Fund will achieve its investment objective. The Fund is subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

Fund Report (unaudited)

For the six months ended June 30, 2022

Total Return for the 6 Months Ended June 30, 2022

Class A

Class L

Class I

Class C

Bloomberg
U.S.
Government/
Mortgage
Index¹

Lipper
General
U.S.
Government
Funds
Index²

–9.40

–9.57

–9.14

–9.79

–8.93

–9.17

The performance of Morgan Stanley U.S. Government Securities Trust's (the "Fund") four share classes varies because each has different expenses. The Fund's total returns assume the reinvestment of all distributions but do not reflect the deduction of any applicable sales charges. Such costs would lower performance. See Performance Summary for standardized performance and benchmark information.

Market Conditions

The first quarter of 2022 was one of the worst quarters for financial markets since the 1980s. In the first half of the quarter, the focus was the hawkish shift in central bank policy. Then, in late February, Russia invaded Ukraine. The relative safe-haven status of government bonds, which was initially evident after the invasion, proved ephemeral, as the rally at the end of February quickly reversed and turned into a large March sell-off. Indeed, it did not take long for markets to turn their focus away from the negative growth implications of the war and increased sanctions and toward its inflationary, possibly stagflationary, implications. The market's reaction was especially strong as the new shock exacerbated inflationary

conditions already on the boil from an overheating global economy beset with supply chain disruptions.

Market expectations of central bank rate hikes ratcheted higher, sending global bond yields spiraling upward. The extent of the shift in monetary policy in 2022 was breathtaking by historical standards. At its March 2022 meeting, the U.S. Federal Reserve (Fed) massively increased its year-end inflation and rates forecast. The 160-basis point increase in 2-year Treasury yields over the first three months of the year marked the largest jump since early 1994, a time period which also went down in history for its shocking Fed hawkish shift.⁽ⁱ⁾ The market started pricing in fed funds rate increases of a similar speed and magnitude — from just above 0% prior to the March 2022 Fed meeting, to over 3% in late 2023.

During the first quarter of 2022, 2-, 5- and 10-year yields rose by 160, 120 and 83 basis points (bps), respectively.⁽ⁱ⁾ The flattening of the yield curve resulted in the 3- to 10-year portion becoming inverted. Agency mortgage-backed securities (MBS) underperformed significantly during the first quarter, with current coupon agency MBS spreads widening so much that they became materially wider than pre-pandemic levels. The average 30-year mortgage rate rose from about 3.25% to almost 5%.⁽ⁱ⁾ Securitized credit sectors also suffered; however, fundamental performance continued to be positive. Consumer savings rates remained high and household balance sheets were near the best levels in decades. As the securitized credit sector did not tighten

(i) Source: Bloomberg L.P. Data as of March 31, 2022. One basis point = 0.01%

in late March 2022 when corporate spreads contracted, we believe it appeared relatively attractive through the second quarter of 2022.

The second quarter of 2022 continued the trends of poor performance, high inflation and a hawkish central bank, and added increasing fears of recession. Volatility continued at levels rarely seen over the last two decades, with markets zigging and zagging between inflation and recession fears. One key event was the Fed's June 2022 Federal Open Market Committee (FOMC) meeting, which surprised the market with a larger-than-expected 75-basis point rate hike and a substantial increase in their "dot plot," which pushed the Fed's median rate forecast to 3.8% for end-2023.

For the second quarter of 2022, 2-, 5- and 10-year Treasury yields rose by 62, 58 and 67 bps, respectively.⁽ⁱⁱ⁾ In the year-to-date ended June 30, 2022, they are 222, 177 and 150 bps higher.⁽ⁱⁱ⁾ This could be a sign that the market expects the Fed to eventually win its battle against inflation, though not without significant effort. Agency MBS spreads widened further in the quarter. Securitized credit spreads also widened further during the quarter, but fundamental performance continues to be positive. U.S. housing prices rose on average by 20% over the past year.⁽ⁱⁱⁱ⁾

The market's fading of the Fed's "dot plot" fed funds rate peak and the fading of inflation risk (falling forward inflation rates) is ambitious to say the least. Falling

inflation means growth slows below trend and unemployment rates rise. Clarity remains lacking as to where economies and markets will eventually end up. So far, the growth slowdown could just be a midcycle adjustment from unsustainably rapid growth in 2021 (in both nominal and real terms). As such it is premature to believe the slowdown occurring will continue or be significant enough to return inflation to Fed targets. Inflation on this measure could be stickier than the market thinks. While we may see inflation peak this summer, in year-on-year terms, it implies the Fed is unlikely to ease as fast as market optimism suggests (2023 rate cuts). Upcoming data will be key in understanding the robustness of business models to input cost inflation and a slowing economy.

Performance Analysis

All share classes of the Fund underperformed the Bloomberg U.S. Government/Mortgage Index (the "Index") and Class A, L and C shares underperformed the Lipper General U.S. Government Funds Index while Class I shares outperformed the Lipper General U.S. Government Funds Index for the six months ended June 30, 2022, assuming no deduction of applicable sales charges.

Over the six-month period, the portfolio underperformed the Index mainly due to the portfolio's positioning within spread sectors. The out-of-Index holdings in taxable municipal bonds was the largest detractor. The overweight to government-related agency debt

(ii) Source: Bloomberg L.P. Data as of June 30, 2022.

(iii) Source: S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. Data as of June 30, 2022.

detracted as well amid a challenging macro backdrop. The allocations to non-agency residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS) as well as asset-backed securities (ABS) were also detractors as securitized credit spreads widened through the first half 2022 on the back of increasing volatility, continued high inflation and risks of recession. The short U.S. duration position contributed to relative performance, as interest rates rose over the period. The portfolio's underweight positioning to agency RMBS also contributed, given that the asset class performed poorly with the Fed now reducing its holdings of these securities.

The Fund is structured to have an underweight in Treasuries and agency RMBS and a yield advantage relative to the Index. The Fund's largest sector overweights were in U.S. taxable municipals, government-related agency debt, agency CMBS, non-agency MBS and ABS. At the close of the reporting period, the Fund's overall duration position was 0.34 years short relative to the Index.

There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future.

PORTFOLIO COMPOSITION as of 06/30/22
Agency Fixed Rate Mortgages	27.7	%
Mortgages — Other	18.7
Municipal Bonds	14.4
Short-Term Investments	10.8
Commercial Mortgage-Backed Securities	9.7
Collateralized Mortgage Obligations — Agency Collateral Series	7.6
U.S. Treasury Securities	3.9
Asset-Backed Securities	3.6
U.S. Agency Security	2.7
Agency Adjustable Rate Mortgages	0.3
Agency Bond — Sovereign (U.S. Government Guaranteed)	0.3
Agency Bond — Finance (U.S. Government Guaranteed)	0.3

* Does not include open long/short futures contracts with a value of $47,900,609 and net unrealized depreciation of $145,725.

Subject to change daily. Provided for informational purposes only and should not be deemed as a recommendation to buy or sell the types of securities mentioned above. All percentages for portfolio composition are stated as a percentage of total investments.

Morgan Stanley is a full-service securities firm engaged in securities trading and brokerage activities, investment banking, research and analysis, financing and financial advisory services.

Investment Strategy

The Fund normally invests at least 80% of its net assets in a portfolio of U.S. government securities. This policy may be changed without shareholder approval; however, you would be notified upon 60 days' notice in writing of any changes. In making investment decisions, the Fund's "Adviser," Morgan Stanley Investment Management Inc., considers economic developments, interest rate trends and other factors. The U.S. government securities that the Fund may purchase include: U.S. Treasury bills, notes and bonds, all of which are direct obligations of the U.S. Government; securities (including mortgage-backed securities) issued by agencies and instrumentalities of the U.S. Government which are backed by the full faith and credit of the United States; securities (including mortgage-backed securities) issued by agencies and instrumentalities which are not backed by the full faith and credit of the United States, but whose issuing agency or instrumentality has the right to borrow, to meet its obligations, from the U.S. Treasury; securities issued by agencies and instrumentalities which are backed solely by the credit of the issuing agency or instrumentality; municipal securities; and securities guaranteed by the U.S. Government or its agencies and instrumentalities or securities supported by the U.S. Government in some other way, such as the discretionary authority of the U.S. Government to purchase certain obligations of the agency or instrumentality. The Fund's investments may include zero coupon securities, which are purchased at a discount and generally accrue interest, but make no payment until maturity.

For More Information About Portfolio Holdings

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its Semi-Annual and Annual Reports within 60 days of the end of the fund's second and fourth fiscal quarters. The Semi-Annual Reports and the Annual Reports are filed electronically with the Securities and Exchange Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. Morgan Stanley also delivers the Semi-Annual and Annual Reports to fund shareholders and makes these reports available on its public web site, www.morganstanley.com/im/shareholderreports. Each Morgan Stanley non-money market fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters as an attachment to Form N-PORT. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, but makes the complete schedule of portfolio holdings for the fund's first and third fiscal quarters available on its public website. The holdings for each money market fund are also posted to the money market public website. You may, however, obtain the Form N-PORT filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's web site, http://www.sec.gov. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's e-mail address (publicinfo@sec.gov).

Householding Notice

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 548-7786, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

Performance Summary (unaudited)

Average Annual Total Returns—Period Ended June 30, 2022

Symbol

Class A Shares*
(since 07/28/97)
USGAX

Class L Shares**
(since 07/28/97)
USGCX

Class I Shares***
(since 07/28/97)
USGDX

Class C Shares^†(since 04/30/15)
MSGVX

1 Year

–10.07
–12.97⁴

%³

–10.35
—

%³

–9.76
—

%³

–10.80
–11.68⁴

%³

5 Years

0.09³–0.56⁴

–0.18³—

0.45³—

–0.70³–0.70⁴

10 Years

0.96³0.63⁴

0.64³—

1.27³—

—
—

Since Inception

3.16³3.02⁴

2.74³—

3.44³—

–0.22³–0.22⁴

Gross Expense Ratio

0.98

1.25

0.72

1.73

Performance data quoted represents past performance, which is no guarantee of future results and current performance may be lower or higher than the figures shown. For most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports or speak with your Financial Advisor. Investment returns and principal value will fluctuate and fund shares, when redeemed, may be worth more or less than their original cost. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Performance for Class A, Class L, Class I and Class C shares will vary due to differences in sales charges and expenses. See the Fund's current prospectus for complete details on fees and sales charges. Expenses are as of the Fund's fiscal year end as outlined in the Fund's current prospectus.

* The maximum front-end sales charge for Class A is 3.25%.

** Class L has no sales charge. Class L shares are closed for new investments.

*** Class I has no sales charge.

† The maximum contingent deferred sales charge for Class C is 1.0% for shares redeemed within one year of purchase.

(1) The Bloomberg U.S. Government/Mortgage Index includes Treasuries, government-related issues, and agency mortgage-backed pass-through securities issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

(2) The Lipper General U.S. Government Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper General U.S. Government Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 10 funds represented in this Index. The Fund was in the Lipper General U.S. Government Funds classification as of the date of this report.

(3) Figure shown assumes reinvestment of all distributions and does not reflect the deduction of any sales charges.

(4) Figure shown assumes reinvestment of all distributions and the deduction of the maximum applicable sales charge. See the Fund's current prospectus for complete details on fees and sales charges.

Expense Example (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period 01/01/22 – 06/30/22.

Actual Expenses

The first line of the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table on the following page provides information about hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing cost of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table is useful in comparing ongoing costs, and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Example (unaudited) continued

	Beginning Account Value		Ending Account Value		Expenses Paid During Period⁽¹⁾
	01/01/22		06/30/22		01/01/22 – 06/30/22
Class A
Actual (–9.40% return)	$	1,000.00	$	906.00	$	3.97
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,020.35	$	4.21
Class L
Actual (–9.57% return)	$	1,000.00	$	904.30	$	5.23
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,019.03	$	5.54
Class I
Actual (–9.14% return)	$	1,000.00	$	908.60	$	2.43
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,021.97	$	2.58
Class C
Actual (–9.79% return)	$	1,000.00	$	902.10	$	7.56
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,016.58	$	8.01

(1) Expenses are equal to the Fund's annualized expense ratios of 0.85%, 1.12%, 0.52%, and 1.62% for Class A, Class L, Class I and Class C shares, respectively, multiplied by the average account value over the period and multiplied by 179/365 (to reflect the one-half year period). If the Fund had borne all of its expenses, the annualized expense ratios would have been 1.02%, 1.30%, 0.78%, and 1.77% for Class A, Class L, Class I and Class C shares, respectively.

Morgan Stanley U.S. Government Securities Trust

Portfolio of Investments ◼ June 30, 2022 (unaudited)

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
		Agency Adjustable Rate Mortgages (0.4%)
		Federal Home Loan Mortgage Corporation, Conventional Pools:
$	104	12 Month USD LIBOR + 1.74%		1.99	%	11/01/36	$	107,299
	583	12 Month USD LIBOR + 1.82%		2.921		06/01/43		599,476
	219	12 Month USD LIBOR + 1.91%		2.155		10/01/36		225,961
		Federal National Mortgage Association, Conventional Pools:
	15	12 Month USD LIBOR + 1.57%		3.32		05/01/44		15,214
		Total Agency Adjustable Rate Mortgages (Cost $970,607)						947,950
		Agency Bond - Finance (U.S. Government Guaranteed) (0.3%)
	849	Washington Aircraft 1 Co., DAC (Ireland) (Cost $849,128)		2.637		09/15/26		833,833
		Agency Bond - Sovereign (U.S. Government Guaranteed) (0.3%)
	901	Petroleos Mexicanos (Mexico) (Cost $901,250)		2.46		12/15/25		884,329
		Agency Fixed Rate Mortgages (30.8%)
		Federal Home Loan Mortgage Corporation, Conventional Pools:
	92			3.00		12/01/49		84,768
	277			4.00		04/01/49		277,460
	293			4.50		11/01/48		297,174
		Gold Pools:
	2,093			3.00		03/01/47 - 06/01/49		1,979,780
	4,143			3.50		08/01/42 - 04/01/49		4,068,307
	1,500			4.00		12/01/41 - 10/01/45		1,514,681
	357			5.00		01/01/40		376,566
	436			5.134		03/01/38		448,958
	494			5.50		11/01/39		527,415
	130			6.50		03/01/29 - 09/01/32		136,133
	123			7.50		05/01/35		133,362
	76			8.00		08/01/32		82,316
	93			8.50		08/01/31		102,705
		Federal National Mortgage Association Conventional Pools:
	2,725			2.00		11/01/51		2,299,934
	418			2.50		02/01/50		376,920

See Notes to Financial Statements
12

Morgan Stanley U.S. Government Securities Trust

Portfolio of Investments ◼ June 30, 2022 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	4,050			3.00	%	06/01/40 - 11/01/49	$	3,834,302
	9,042			3.50		12/01/42 - 07/01/49		8,845,966
	10,155			4.00		11/01/41 - 09/01/48		10,225,009
	3,835			4.50		01/01/25 - 09/01/48		3,942,257
	1,230			5.00		05/01/35 - 02/01/41		1,294,458
	1,253			5.50		03/01/35 - 10/01/35		1,344,403
	20			6.50		06/01/29 - 02/01/33		22,201
	1			7.00		05/01/31		707
	200			7.50		08/01/37		222,447
	158			8.00		04/01/33		175,814
	165			8.50		10/01/32		185,307
		July TBA:
	8,675	(a)		2.00		07/1/52		7,530,984
	12,475	(a)		2.50		07/1/52		11,222,627
	4,275	(a)		3.50		07/1/52		4,112,350
	1,325	(a)		4.00		07/1/52		1,306,962
	4,800	(a)		4.50		07/1/52		4,819,688
	1,525	(a)		5.00		07/1/52		1,556,930
		Government National Mortgage Association, July TBA:
	1,225	(a)		4.00		07/20/52		1,220,000
		Various Pools:
	2,358			3.50		08/20/45 - 07/20/49		2,318,766
	2,419			4.00		11/20/42 - 05/20/49		2,445,837
	59			4.50		04/20/49		60,129
	382			5.00		01/20/40 - 02/20/49		397,515
	34			5.125		11/20/37		34,394
	312			5.25		04/20/36 - 09/20/39		326,673
	587			5.375		02/20/36 - 08/20/40		614,595
	670			6.00		06/15/28 - 09/20/34		718,056
	44			7.00		03/20/26 - 07/20/29		46,804
	90			8.00		06/15/22 - 08/15/31		94,270
	92			8.50		07/15/30		95,310
	3			9.00		07/15/24 - 02/15/25		3,117
		Total Agency Fixed Rate Mortgages (Cost $84,274,158)						81,724,357
		Asset-Backed Securities (4.1%)
	715	Ajax Mortgage Loan Trust (b)		1.698		05/25/59		659,345
	1,500	AMSR 2019-SFR1 Trust (b)		2.774		01/19/39		1,417,520

See Notes to Financial Statements
13

Morgan Stanley U.S. Government Securities Trust

Portfolio of Investments ◼ June 30, 2022 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	670	Arbor Realty Commercial Real Estate Notes 2021-FL3 Ltd., 1 Month USD LIBOR + 1.07% (b)		2.394	(c)%	08/15/34	$	643,114
	866	ELFI Graduate Loan Program 2021-A LLC (b)		1.53		12/26/46		787,207
		Navient Private Education Refinance Loan Trust
	1,005	(b)		0.97		12/16/69		902,438
	765	(b)		1.11		02/18/70		671,101
	550	(b)		4.16		10/15/70		546,267
	664	Nelnet Student Loan Trust (b)		1.32		04/20/62		610,359
		PFS Financing Corp.
	850	(b)		0.77		08/15/26		788,959
	1,090	(b)		2.47		02/15/27		1,045,913
		United States Small Business Administration
	839			2.42		06/01/32		811,658
	1,945			2.67		04/01/32		1,863,079
		Total Asset-Backed Securities (Cost $11,398,787)						10,746,960
		Collateralized Mortgage Obligations - Agency Collateral Series (8.4%)
		Federal Home Loan Mortgage Corporation
	4,368			2.682		10/25/22		4,367,534
	3,850			3.208		02/25/26		3,820,510
	3,827			3.32	(c)	02/25/23		3,825,730
	3,429			3.527	(c)	10/25/23		3,434,177
	3,200			3.69		01/25/29		3,228,500
	2,760			3.90	(c)	08/25/28		2,812,052
		IO
	32,316			0.458	(c)	11/25/27		508,735
		IO REMIC
	1,914	6.00% - 1 Month USD LIBOR		4.676	(d)	11/15/43		226,130
	1,128	Federal National Mortgage Association, IO REMIC, 6.55% - 1 Month USD LIBOR		4.926	(d)	08/25/41		39,761
	261	Government National Mortgage Association, IO		5.00		02/16/41		50,674
		Total Collateralized Mortgage Obligations - Agency Collateral Series (Cost $22,324,669)						22,313,803

See Notes to Financial Statements
14

Morgan Stanley U.S. Government Securities Trust

Portfolio of Investments ◼ June 30, 2022 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
		Commercial Mortgage-Backed Securities (10.8%)
$	1,425	BAMLL Commercial Mortgage Securities Trust, 1 Month Term SOFR + 1.15% (b)		2.429	(c)%	01/15/39	$	1,387,073
	6,932	BANK 2019-BNK21, IO		0.987	(c)	10/17/52		328,058
	621	BDS 2021-FL8, 1 Month USD LIBOR + 0.92% (b)		2.532	(c)	01/18/36		605,666
	1,400	BF Mortgage Trust, 1 Month USD LIBOR + 1.20% (b)		2.524	(c)	12/15/35		1,361,070
	775	BSREP Commercial Mortgage Trust, 1 Month USD LIBOR + 0.95% (b)		2.275	(c)	08/15/38		745,589
	1,500	BX Commercial Mortgage Trust, Class A, 1 Month USD LIBOR + 0.70% (b)		2.024	(c)	04/15/34		1,456,651
	600	CAMB Commercial Mortgage Trust, 1 Month USD LIBOR + 1.07% (b)		2.394	(c)	12/15/37		589,696
		Citigroup Commercial Mortgage Trust, IO
	4,876			0.87	(c)	11/10/48		96,362
	13,180			1.032	(c)	09/10/58		303,903
	7,775			1.148	(c)	11/10/46		76,663
		Commercial Mortgage Trust, IO
	21,788			0.675	(c)	02/10/47		148,059
	4,931			1.145	(c)	08/10/46		40,316
		Credit Suisse Mortgage Capital Certificates
	1,300	1 Month USD LIBOR + 1.40% (b)		2.725	(c)	07/15/38		1,252,956
	1,950	(b)		2.389		07/15/31		1,761,971
	1,214	CSWF Commercial Mortgage Trust, 1 Month USD LIBOR + 0.97% (b)		2.291	(c)	06/15/34		1,178,145
	1,250	DROP Mortgage Trust, 1 Month USD LIBOR + 1.15% (b)		2.47	(c)	10/15/43		1,208,295
		GS Mortgage Securities Trust, IO
	8,650			1.179	(c)	11/10/46		86,325
	12,355			1.182	(c)	04/10/47		166,700
	14,054			1.374	(c)	10/10/48		446,977
	1,300	Hawaii Hotel Trust, 1 Month USD LIBOR + 1.15% (b)		2.474	(c)	05/15/38		1,266,356

See Notes to Financial Statements
15

Morgan Stanley U.S. Government Securities Trust

Portfolio of Investments ◼ June 30, 2022 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	1,600	JP Morgan Chase Commercial Mortgage Securities Trust, SOFR30A + 1.40% (b)		2.179	(c)%	03/15/39	$	1,574,970
	1,350	Class A, 1 Month USD LIBOR + 1.12% (b)		2.44	(c)	11/15/38		1,297,888
	7,605	IO		0.724	(c)	12/15/49		145,472
		JPMBB Commercial Mortgage Securities Trust, IO
	21,351			0.878	(c)	01/15/47		174,321
	4,424			1.182	(c)	11/15/45		40,665
	1,170	Natixis Commercial Mortgage Securities Trust, 1 Month USD LIBOR + 0.95% (b)		2.274	(c)	08/15/38		1,127,783
	1,450	1 Month Term SOFR + 1.40% (b)		2.68	(c)	01/15/39		1,385,457
	1,975	SFO Commercial Mortgage Trust, Class A, 1 Month USD LIBOR + 1.15% (b)		2.474	(c)	05/15/38		1,890,910
	1,300	SG Commercial Mortgage Securities Trust (b)		4.163		02/15/41		1,233,070
	1,375	Taubman Centers Commercial Mortgage Trust, 1 Month Term SOFR + 2.19% (b)		3.465	(c)	05/15/37		1,341,449
	850	TPGI Trust, Class A, 1 Month USD LIBOR + 0.70% (b)		2.02	(c)	06/15/26		813,012
	608	TTAN 2021-MHC, Class A, 1 Month USD LIBOR + 0.85% (b)		2.175	(c)	03/15/38		586,527
	380	VMC Finance LLC, 1 Month USD LIBOR + 1.10% (b)		2.623	(c)	09/15/36		376,784
	800	Wells Fargo Commercial Mortgage Trust, 1 Month USD LIBOR + 1.01% (b)		2.334	(c)	02/15/37		778,376
		WFRBS Commercial Mortgage Trust, IO
	10,237			0.547	(c)	08/15/46		31,310
	6,358			1.087	(c)	03/15/46		61,747
	12,972			1.214	(c)	12/15/46		145,523
	1,100	Worldwide Plaza Trust (b)		3.526		11/10/36		1,025,883
		Total Commercial Mortgage-Backed Securities (Cost $29,609,425)						28,537,978
		Mortgages - Other (20.8%)
	2,011	Bayview MSR Opportunity Master Fund Trust (b)		3.00	(c)	11/25/51 - 01/25/52		1,798,943
	1,130	BPR Trust		4.279		05/15/39		1,114,208

See Notes to Financial Statements
16

Morgan Stanley U.S. Government Securities Trust

Portfolio of Investments ◼ June 30, 2022 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	749	BRAVO Residential Funding Trust (b)		3.50	(c) %	10/25/44	$	724,646
	499	Bunker Hill Loan Depositary Trust (b)		1.724	(c)	02/25/55		484,775
	627	Cascade Funding Mortgage Trust (b)		4.00	(c)	10/25/68		615,789
		CIM Trust
	3,054	(b)		2.50	(c)	06/25/51 - 07/01/51		2,620,913
	133	(b)		3.00	(c)	04/25/57		133,031
	1,480	Citigroup Mortgage Loan Trust (b)		2.50	(c)	09/25/51		1,271,571
	737	Deephaven Residential Mortgage (b)		4.30	(c)	03/25/67		717,713
	655	Ellington Financial Mortgage Trust (b)		0.797	(c)	02/25/66		600,027
		Federal Home Loan Mortgage Corporation
	24,124			0.435	(c)	04/25/32		687,664
	1,360			3.00		09/25/45 - 05/25/47		1,298,009
	901			3.50		05/25/45 - 05/25/47		877,424
	23			4.00		05/25/45		22,532
		Flagstar Mortgage Trust
	1,295	(b)		2.50	(c)	09/25/51		1,110,340
		Class A2
	1,600	(b)		2.50	(c)	06/25/51		1,374,156
	573	Freddie Mac STACR REMIC Trust, SOFR30A + 2.20% (b)		3.126	(c)	05/25/42		566,421
		Galton Funding Mortgage Trust
	152	(b)		3.50	(c)	06/25/59		151,171
	192	(b)		4.00	(c)	11/25/57 - 02/25/59		187,627
	347	GCAT Trust (b)		1.555		04/25/65		333,337
	1,261	GS Mortgage-Backed Securities Trust (b)		3.00	(c)	06/25/52		1,128,765
	2,934	Hundred Acre Wood Trust (b)		2.50	(c)	10/25/51		2,525,929
		Imperial Fund Mortgage Trust
	505	(b)		1.595	(c)	11/25/56		449,461
	920	(b)		2.493	(c)	02/25/67		873,106
		JP Morgan Mortgage Trust
	682	(b)		2.50	(c)	12/25/51		580,485
	2,050	(b)		3.00	(c)	08/25/52 - 09/25/52		1,831,724
	1,256	(b)		3.25	(c)	07/25/52		1,111,188
	1,390	(b)		3.50	(c)	09/25/52		1,288,758
	1,375	Life Mortgage Trust, 1 Month Term SOFR + 1.30% (b)		2.574	(c)	05/15/39		1,343,412
		Mello Mortgage Capital Acceptance
	4,560	(b)		2.50	(c)	06/25/51 - 08/25/51		3,907,535
	1,370	(b)		3.50	(c)	04/25/52		1,262,920
		New Residential Mortgage Loan Trust
	1,050	(b)		3.75	(c)	11/26/35 - 08/25/55		1,018,891

See Notes to Financial Statements
17

Morgan Stanley U.S. Government Securities Trust

Portfolio of Investments ◼ June 30, 2022 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	465	(b)		3.956	(c)%	09/25/57	$	458,390
	1,317	(b)		4.00	(c)	02/25/57 - 08/27/57		1,296,790
	900	NewRez Warehouse Securitization Trust, 1 Month USD LIBOR + 0.75% (b)		2.374	(c)	05/25/55		891,210
	198	OBX Trust (b)		3.50	(c)	02/25/60		187,601
	450	Oceanview Mortgage Loan Trust (b)		1.733	(c)	05/28/50		434,819
	1,658	PRMI Securitization Trust (b)		2.50	(c)	04/25/51		1,423,959
	1,616	Rate Mortgage Trust (b)		2.50	(c)	11/25/51		1,388,126
		Seasoned Credit Risk Transfer Trust
	9,605			3.00		07/25/56 - 05/25/60		9,132,963
	798			4.00		08/25/58 - 02/25/59		798,636
	1,505			4.50		06/25/57		1,532,143
	3,189	United Wholesale Mortgage Trust (b)		2.50	(c)	06/25/51 - 08/25/51		2,735,297
	1,064	UWM Mortgage Trust (b)		2.50	(c)	11/25/51		915,775
		Total Mortgages - Other (Cost $60,399,227)						55,208,180
		Municipal Bonds (16.0%)
	3,615	Bay Area Toll Authority		6.263		04/01/49		4,624,923
	3,875	City of New York, NY, Series G-1		5.968		03/01/36		4,405,522
	3,060	City of San Francisco CA Public Utilities Commission Water Revenue		6.00		11/01/40		3,464,918
	5,980	Los Angeles Unified School District		5.75		07/01/34		6,668,113
	1,450	Metropolitan Transportation Authority		6.668		11/15/39		1,758,795
	6,245	Missouri Highway & Transportation Commission		5.445		05/01/33		6,804,864
	3,625	New York City, NY, Transitional Finance Authority Future Tax Secured Revenue Series A		5.267		05/01/27		3,845,868
	3,000	New York State Dormitory Authority		5.628		03/15/39		3,278,607
	1,725	North Carolina State University at Raleigh, Series B		2.62		10/01/39		1,410,877
	1,400	Onondaga Civic Development Corp., NY		3.068		12/01/55		958,314
	2,575	State of Oregon Department of Transportation		5.834		11/15/34		2,918,657
	1,580	State of Washington		5.481		08/01/39		1,813,699
	560	University of Michigan, MI, Series A		4.454		04/01/22		513,809
		Total Municipal Bonds (Cost $39,341,103)						42,466,966

See Notes to Financial Statements
18

Morgan Stanley U.S. Government Securities Trust

Portfolio of Investments ◼ June 30, 2022 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE			VALUE
		U.S. Agency Security (3.0%)
$	6,935	Tennessee Valley Authority (Cost $7,170,120)		5.25	%	09/15/39			$	7,942,165
		U.S. Treasury Securities (4.4%)
		U.S. Treasury Notes
	2,550			1.25		09/30/28				2,284,342
	7,200			1.50		08/15/26 - 11/30/28				6,673,102
	2,800			1.625		05/15/26				2,654,203
		Total U.S. Treasury Securities (Cost $11,719,939)								11,611,647
		Short-Term Investments (12.1%)
		U.S. Treasury Securities (11.7%)
	2,370	U.S. Treasury Bill (e)(f)		1.404		10/27/22				2,355,102
		U.S. Treasury Notes
	14,000			0.125		05/15/23				13,669,181
	1,000			0.50		03/15/23				984,488
	750			1.625		05/31/23				741,446
	13,000			1.875		07/31/22				13,207,695
		Total U.S. Treasury Securities (Cost $30,573,615)								30,957,912
NUMBER OF SHARES (000)
		Investment Company (0.4%)
	995	Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Class (See Note 9) (Cost $994,643)								994,643
		Total Short-Term Investments (Cost $31,568,258)								31,952,555
		Total Investments (Cost $300,526,671) (g)(h)					111.4	%		295,170,723
		Liabilities in Excess of Other Assets					(11.4	)		(30,155,134	)
		Net Assets					100.0	%	$	265,015,589

IO Interest Only.

LIBOR London Interbank Offered Rate.

REMIC Real Estate Mortgage Investment Conduit.

SOFR Secured Overnight Financing Rate.

TBA To Be Announced.

(a) Security is subject to delayed delivery.

(b) 144A security - Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

See Notes to Financial Statements
19

Morgan Stanley U.S. Government Securities Trust

Portfolio of Investments ◼ June 30, 2022 (unaudited) continued

(c) Floating or variable rate securities: The rates disclosed are as of June 30, 2022. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(d) Inverse Floating Rate Security - Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at June 30, 2022.

(e) Rate shown is the yield to maturity at June 30, 2022.

(f) All or a portion of the security was pledged to cover margin requirements for futures contracts.

(g) Securities are available for collateral in connection with purchases of securities on a forward commitment basis and open futures contracts.

(h) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is $5,925,923 and the aggregate gross unrealized depreciation is $11,427,596, resulting in net unrealized depreciation of $5,501,673.

USD - United States Dollar

Futures Contracts:

The Fund had the following futures contracts open at June 30, 2022:

	NUMBER OF CONTRACTS		EXPIRATION DATE	NOTIONAL AMOUNT (000)			VALUE			UNREALIZED APPRECIATION (DEPRECIATION)
Long:
U.S. Treasury Ultra Bond		97	Sep-22	$	9,700		$	14,971,344		$	(369,371	)
U.S. Treasury 5 yr. Note		77	Sep-22		7,700			8,643,250			150,625
U.S. Treasury 10 yr. Note		32	Sep-22		3,200			3,793,000			(18,645	)
U.S. Treasury 2 yr. Note		17	Sep-22		3,400			3,570,265			16,501
Short:
U.S. Treasury Long Bond		55	Sep-22		(5,500	)		(7,624,375	)		9,453
U.S. Treasury 10 yr. Ultra Note		73	Sep-22		(7,300	)		(9,298,375	)		65,712
										$	(145,725	)

See Notes to Financial Statements
20

Morgan Stanley U.S. Government Securities Trust

Financial Statements

Statement of Assets and Liabilities June 30, 2022 (unaudited)

Assets:
Investments in securities, at value (cost $299,532,028)	$	294,176,080
Investment in affiliate, at value (cost $994,643)		994,643
Total investments in securities, at value (cost $300,526,671)		295,170,723
Cash		91,762
Due from broker		830,000
Receivable for:
Interest		1,446,501
Variation margin on open futures contracts		126,951
Shares of beneficial interest sold		18,922
Dividends from affiliate		424
Prepaid expenses and other assets		67,636
Total Assets		297,752,919
Liabilities:
Payable for:
Investments purchased		31,951,366
Shares of beneficial interest redeemed		349,161
Transfer and sub transfer agent fees		89,561
Trustees' fees		48,980
Distribution fee		48,842
Advisory fee		46,365
Dividends to shareholders		39,701
Administration fee		17,491
Accrued expenses and other payables		145,863
Total Liabilities		32,737,330
Net Assets	$	265,015,589
Composition of Net Assets:
Paid-in-Capital	$	284,528,893
Total Accumulated Loss		(19,513,304	)
Net Assets	$	265,015,589
Class A Shares:
Net Assets	$	210,489,254
Shares Outstanding (unlimited shares authorized, $0.01 par value)		27,467,936
Net Asset Value Per Share	$	7.66
Maximum Offering Price Per Share, (net asset value plus 3.36% of net asset value)	$	7.92
Class L Shares:
Net Assets	$	4,560,562
Shares Outstanding (unlimited shares authorized, $0.01 par value)		590,470
Net Asset Value Per Share	$	7.72
Class I Shares:
Net Assets	$	45,792,278
Shares Outstanding (unlimited shares authorized, $0.01 par value)		5,972,817
Net Asset Value Per Share	$	7.67
Class C Shares:
Net Assets	$	4,173,495
Shares Outstanding (unlimited shares authorized, $0.01 par value)		540,319
Net Asset Value Per Share	$	7.72

See Notes to Financial Statements
21

Morgan Stanley U.S. Government Securities Trust

Financial Statements continued

Statement of Operations For the six months ended June 30, 2022 (unaudited)

Net Investment Income: Income
Interest	$	4,317,619
Dividends from affiliate (Note 9)		2,441
Total Income		4,320,060
Expenses
Advisory fee (Note 4)		582,284
Distribution fee (Class A shares) (Note 5)		279,159
Distribution fee (Class L shares) (Note 5)		12,071
Distribution fee (Class C shares) (Note 5)		24,635
Administration fee (Note 4)		110,911
Sub transfer agent fees and expenses (Class A shares)		75,848
Sub transfer agent fees and expenses (Class L shares)		1,790
Sub transfer agent fees and expenses (Class I shares)		23,541
Sub transfer agent fees and expenses (Class C shares)		2,103
Transfer agent fees and expenses (Class A shares) (Note 8)		76,639
Transfer agent fees and expenses (Class L shares) (Note 8)		2,153
Transfer agent fees and expenses (Class I shares) (Note 8)		8,878
Transfer agent fees and expenses (Class C shares) (Note 8)		1,359
Professional fees		75,250
Shareholder reports and notices		33,165
Registration fees		28,337
Custodian fees (Note 7)		17,831
Trustees' fees and expenses		5,144
Other		29,939
Total Expenses		1,391,037
Less: waiver of Advisory fees (Note 4)		(161,938	)
Less: reimbursement of class specific expenses (Class A shares) (Note 4)		(63,354	)
Less: reimbursement of class specific expenses (Class L shares) (Note 4)		(1,435	)
Less: reimbursement of class specific expenses (Class I shares) (Note 4)		(32,411	)
Less: reimbursement of class specific expenses (Class C shares) (Note 4)		(902	)
Less: rebate from Morgan Stanley affiliated cash sweep (Note 9)		(740	)
Net Expenses		1,130,257
Net Investment Income		3,189,803
Realized and Unrealized Gain (Loss): Realized Loss on:
Investments		(4,320,968	)
Futures contracts		(2,121,655	)
Net Realized Loss		(6,442,623	)
Change in Unrealized Appreciation (Depreciation) on:
Investments		(25,068,969	)
Futures contracts		37,839
Net Change in Unrealized Appreciation (Depreciation)		(25,031,130	)
Net Loss		(31,473,753	)
Net Decrease	$	(28,283,950	)

See Notes to Financial Statements
22

Morgan Stanley U.S. Government Securities Trust

Financial Statements continued

Statements of Changes in Net Assets

	FOR THE SIX MONTHS ENDED JUNE 30, 2022			FOR THE YEAR ENDED DECEMBER 31, 2021
	(unaudited)
Increase (Decrease) in Net Assets: Operations:
Net investment income	$	3,189,803		$	7,234,223
Net realized loss		(6,442,623	)		(844,884	)
Net change in unrealized appreciation (depreciation)		(25,031,130	)		(13,706,720	)
Net Decrease		(28,283,950	)		(7,317,381	)
Dividends to Shareholders from Net Investment Income:
Class A shares		(2,752,360	)		(6,040,410	)
Class L shares		(52,330	)		(115,313	)
Class I shares		(619,099	)		(1,776,583	)
Class C shares		(40,873	)		(106,407	)
Total Dividends and Distributions to Shareholders		(3,464,662	)		(8,038,713	)
Net decrease from transactions in shares of beneficial interest		(12,999,322	)		(73,470,952	)
Net Decrease		(44,747,934	)		(88,827,046	)
Net Assets:
Beginning of period		309,763,523			398,590,569
End of Period	$	265,015,589		$	309,763,523

See Notes to Financial Statements
23

Morgan Stanley U.S. Government Securities Trust

Notes to Financial Statements ◼ June 30, 2022 (unaudited)

1. Organization and Accounting Policies

Morgan Stanley U.S. Government Securities Trust (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified, open-end management investment company. The Fund applies investment company accounting and reporting guidance. The Fund's investment objective is to seek a high level of current income consistent with safety of principal. The Fund was organized as a Massachusetts business trust on September 29, 1983 and commenced operations on June 29, 1984. On July 28, 1997, the Fund converted to a multiple class share structure.

The Fund offers Class A shares, Class L shares, Class I shares and Class C shares. The four classes are substantially the same except that most Class A shares are subject to a sales charge imposed at the time of purchase and some Class A shares and most Class C shares are subject to a contingent deferred sales charge imposed on shares redeemed within one year. Class L shares and Class I shares are not subject to a sales charge. Additionally, Class A shares, Class L shares and Class C shares incur distribution expenses.

The Fund suspended offering Class L shares to all investors (April 30, 2015). Class L shareholders of the Fund do not have the option of purchasing additional Class L shares. However, the existing Class L shareholders may invest through reinvestment of dividends and distributions. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.

The following is a summary of significant accounting policies:

A. Valuation of Investments — (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Fund's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers

Morgan Stanley U.S. Government Securities Trust

Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

or dealers; (2) portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at its latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets; (3) when market quotations are not readily available, including circumstances under which the Adviser determines that the market quotations are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees; (4) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; and (5) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

The Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees may appoint others, such as the Fund's Adviser or a valuation committee, to assist the Trustees in determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Trustees. Under procedures approved by the Trustees, the Fund's Adviser has formed a Valuation Committee whose members are approved by the Trustees. The Valuation Committee provides administration and oversight of the Fund's valuation policies and procedures, which are reviewed at least annually by the Trustees. These procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

B. Accounting for Investments — Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on security transactions are determined by the identified cost method. Dividend income and other distributions are recorded on the ex-dividend date. Discounts are accreted and premiums are amortized over the life of the respective securities and are included in interest income. Interest income is accrued daily as earned.

C. Multiple Class Allocations — Investment income, realized and unrealized gain (loss) and non-class specific expenses are allocated daily based upon the proportion of net assets of each class. Class specific expenses are borne by the respective share classes and include Distribution, Transfer Agent and Sub Transfer Agent fees.

D. Dividends and Distributions to Shareholders — Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually.

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Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

E. When-Issued/Delayed Delivery Securities — The Fund may purchase or sell when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price, and no income accrues to the Fund on such securities prior to delivery date. Payment and delivery for when-issued and delayed delivery securities can take place a month or more after the date of the transaction. When the Fund enters into a purchase transaction on a when-issued or delayed delivery basis, securities are available for collateral in an amount at least equal in value to the Fund's commitments to purchase such securities. Purchasing securities on a when-issued or delayed delivery basis may involve a risk that the market price at the time of delivery may be lower than the agreed upon purchase price, in which case there could be an unrealized loss at the time of delivery. Purchasing investments on a when-issued or delayed delivery basis may be considered a form of leverage which may increase the impact that gains (losses) may have on the Fund.

F. Use of Estimates — The preparation of financial statements in accordance with generally accepted accounting principles in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates.

G. Indemnifications — The Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

2. Fair Valuation Measurements

FASB Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs); and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in

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Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 — unadjusted quoted prices in active markets for identical investments

• Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 — significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

INVESTMENT TYPE	LEVEL 1 UNADJUSTED QUOTED PRICES		LEVEL 2 OTHER SIGNIFICANT OBSERVABLE INPUTS		LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS		TOTAL
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgages	$	—	$	947,950	$	—	$	947,950
Agency Bond — Finance (U.S. Government Guaranteed)		—		833,833		—		833,833
Agency Bond — Sovereign (U.S. Government Guaranteed)		—		884,329		—		884,329
Agency Fixed Rate Mortgages		—		81,724,357		—		81,724,357
Asset-Backed Securities		—		10,746,960		—		10,746,960
Collateralized Mortgage Obligations — Agency Collateral Series		—		22,313,803		—		2,313,803
Commercial Mortgage-Backed Securities		—		28,537,978		—		28,537,978
Mortgages — Other		—		55,208,180		—		55,208,180
Municipal Bonds		—		42,466,966		—		42,466,966

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Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

INVESTMENT TYPE	LEVEL 1 UNADJUSTED QUOTED PRICES			LEVEL 2 OTHER SIGNIFICANT OBSERVABLE INPUTS		LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS		TOTAL
Assets (cont'd):
Fixed Income Securities (cont'd)
U.S. Agency Security	$	—		$	7,942,165	$	—	$	7,942,165
U.S. Treasury Securities		—			11,611,647		—		11,611,647
Total Fixed Income Securities		—			263,218,168		—		263,218,168
Short-Term Investments
U.S. Treasury Securities		—			30,957,912		—		30,957,912
Investment Company		994,643			—		—		994,643
Total Short-Term Investments		994,643			30,957,912		—		31,952,555
Futures Contracts		242,291			—		—		242,291
Total Assets		1,236,934			294,176,080		—		295,413,014
Liabilities:
Futures Contracts		(388,016	)		—		—		(388,016	)
Total	$	848,918		$	294,176,080	$	—	$	295,024,998

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

3. Derivatives

The Fund may, but it is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Fund's holdings, including derivative

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Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and risk of loss. Leverage associated with derivative transactions may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet earmarking or segregation requirements, pursuant to applicable Securities and Exchange Commission rules and regulations, or may cause the Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser seeks to use derivatives to further the Fund's investment objectives, there is no assurance that the use of derivatives will achieve this result.

Following is a description of the derivative instruments and techniques that the Fund used during the period and their associated risks:

Futures — A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return and the potential loss from futures contracts can exceed the Fund's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. There is also the risk of loss by the Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

FASB ASC 815, "Derivatives and Hedging" ("ASC 815"), is intended to improve financial reporting about derivative instruments by requiring enhanced disclosures to enable investors to better understand how and why the Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

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Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

PRIMARY RISK EXPOSURE

ASSET DERIVATIVES
STATEMENT OF ASSETS
AND LIABILITIES LOCATION

FAIR VALUE

LIABILITY DERIVATIVES
STATEMENT OF ASSETS
AND LIABILITIES LOCATION

FAIR VALUE

Interest Rate Risk

Variation margin on open
futures contracts

232,838

(a)

Variation margin on open
futures contracts

(388,016

)(a)

(a) Includes cumulative appreciation (depreciation) as reported in the Portfolio of Investments. Only current day's net variation margin is reported within the Statement of Assets and Liabilities.

The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended June 30, 2022 in accordance with ASC 815:

AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES

PRIMARY RISK EXPOSURE				FUTURES CONTRACTS
Interest Rate Risk				$	(2,121,655	)

CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES

PRIMARY RISK EXPOSURE				FUTURES CONTRACTS
Interest Rate Risk				$	37,839

For the six months ended June 30, 2022, the average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly notional value				$	102,018,746

4. Advisory/Administration Agreements

Pursuant to an Investment Advisory Agreement with the Adviser, the Fund pays an advisory fee, accrued daily and paid monthly, by applying the following annual rates to the net assets of the Fund determined as of the close of each business day: 0.42% to the portion of the daily net assets not exceeding $1 billion; 0.395% to the portion of the daily net assets exceeding $1 billion but not exceeding $1.5 billion; 0.37% to the portion of the daily net assets exceeding $1.5 billion but not exceeding $2 billion; 0.345% to the portion of the daily net assets exceeding $2 billion but not exceeding $2.5 billion; 0.32% to the portion of the daily net assets exceeding $2.5 billion but not exceeding $5 billion; 0.295% to the portion of the daily net assets exceeding $5 billion but not exceeding $7.5 billion; 0.27% to the portion of the daily net assets exceeding $7.5 billion but not exceeding $10 billion; 0.245% to the portion of the daily net assets

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Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

exceeding $10 billion but not exceeding $12.5 billion; and 0.22% to the portion of the daily net assets exceeding $12.5 billion. For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.30% of the Fund's average daily net assets.

The Adviser also serves as the Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund's average daily net assets.

Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

The Adviser/Administrator has agreed to reduce its advisory fee, its administration fee and/or reimburse the Fund so that total annual operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.85% for Class A, 1.12% for Class L, 0.52% for Class I and 1.62% for Class C shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time that the Trustees act to discontinue all or a portion of such waivers and/or expense reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, $161,938 of advisory fees were waived and $98,102 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

5. Plan of Distribution

Shares of the Fund are distributed by Morgan Stanley Distribution, Inc. (the "Distributor"), an affiliate of the Adviser/Administrator. The Fund has adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the Act. The Plan provides that the Fund will pay the Distributor a fee which is accrued daily and paid monthly at the following annual rates: (i) Class A — up to 0.25% of the average daily net assets of Class A shares; (ii) Class L — up to 0.50% of the average daily net assets of Class L shares; and (iii) Class C — up to 1.00% of the average daily net assets of Class C shares.

In the case of Class A shares, Class L shares and Class C shares, expenses incurred pursuant to the Plan in any calendar year in excess of 0.25%, 0.50% and 1.00% of the average daily net assets of Class A shares, Class L shares and Class C shares, respectively, will not be reimbursed by the Fund through payments in any subsequent year, except that expenses representing a gross sales commission credited to Financial Intermediaries at the time of sale may be reimbursed in the subsequent calendar year. For the six months ended June 30, 2022, the distribution fee was accrued

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Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

for Class A shares, Class L shares and Class C shares at the annual rate of 0.25%, 0.50% and 1.00%, respectively.

The Distributor has informed the Fund that for the six months ended June 30, 2022, it received contingent deferred sales charges from certain redemptions of the Fund's Class A shares of $2,399 and received $2,741 in front-end sales charges from sales of the Fund's Class A shares. The respective shareholders pay such charges, which are not an expense of the Fund.

6. Shares of Beneficial Interest

Transactions in shares of beneficial interest were as follows:

	FOR THE SIX MONTHS ENDED JUNE 30, 2022						FOR THE YEAR ENDED DECEMBER 31, 2021
	(unaudited)
	SHARES			AMOUNT			SHARES			AMOUNT
CLASS A SHARES
Sold		580,722		$	4,583,401			1,261,611		$	11,007,961
Reinvestment of dividends and distributions		330,773			2,625,037			671,380			5,848,925
Redeemed		(2,653,956	)		(21,153,376	)		(5,171,836	)		(45,096,919	)
Net decrease — Class A		(1,742,461	)		(13,944,938	)		(3,238,845	)		(28,240,033	)
CLASS L SHARES
Exchanged		1			6			6,356			54,980
Reinvestment of dividends and distributions		6,393			51,156			13,048			114,582
Redeemed		(48,155	)		(390,913	)		(82,055	)		(718,634	)
Net decrease — Class L		(41,761	)		(339,751	)		(62,651	)		(549,072	)
CLASS I SHARES
Sold		747,257			5,854,636			2,000,277			17,439,031
Reinvestment of dividends and distributions		75,221			597,130			190,638			1,663,846
Redeemed		(542,601	)		(4,349,772	)		(6,785,268	)		(59,301,487	)
Net increase (decrease) — Class I		279,877			2,101,994			(4,594,353	)		(40,198,610	)
CLASS C SHARES
Sold		150,400			1,260,392			196,181			1,723,819
Reinvestment of dividends and distributions		5,049			40,425			12,151			106,407
Redeemed		(260,951	)		(2,117,444	)		(716,701	)		(6,313,463	)
Net decrease — Class C		(105,502	)		(816,627	)		(508,369	)		(4,483,237	)
Net decrease in Fund		(1,609,847	)	$	(12,999,322	)		(8,404,218	)	$	(73,470,952	)

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Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

7. Custodian Fees

State Street (the "Custodian") also serves as Custodian for the Fund in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Fund as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

8. Dividend Disbursing and Transfer Agent

The Fund's dividend disbursing and transfer agent is DST Asset Manager Solutions, Inc. ("DST"). Pursuant to a Transfer Agency Agreement, the Fund pays DST a fee based on the number of classes, accounts and transactions relating to the Fund.

9. Security Transactions and Transactions with Affiliates

The cost of purchases and proceeds from sales of investment securities, excluding short-term investments, for the six months ended June 30, 2022, aggregated $423,745,597 and $436,768,782, respectively. Included in the aforementioned are purchases and sales of U.S. Government securities of $402,250,988 and $422,618,834, respectively.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds – Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by $740 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

AFFILIATED INVESTMENT COMPANY				VALUE DECEMBER 31, 2021				PURCHASES AT COST				PROCEEDS FROM SALES				DIVIDEND INCOME				REALIZED GAIN (LOSS)				CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)				VALUE JUNE 30, 2022
Liquidity Funds				$	5,540,185			$	108,134,064			$	112,679,606			$	2,441			$	—			$	—			$	994,643

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in

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Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

compliance with provisions of the Rule. For the six months ended June 30, 2022, the Fund did not engage in any cross-trade transactions.

The Fund has an unfunded noncontributory defined benefit pension plan covering certain independent Trustees of the Fund who will have served as independent Trustees for at least five years at the time of retirement. Benefits under this plan are based on factors which include years of service and compensation. The Trustees voted to close the plan to new participants and eliminate the future benefits growth due to increases to compensation after July 31, 2003. Aggregate pension costs for the six months ended June 30, 2022, included in "Trustees' fees and expenses" in the Statement of Operations amounted to $1,593. At June 30, 2022, the Fund had an accrued pension liability of $48,980, which is reflected as "Trustees' fees" in the Statement of Assets and Liabilities.

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Trustee to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Trustees. Each eligible Trustee generally may elect to have the deferred amounts credited with a return equal to the total return on one or more of the Morgan Stanley funds that are offered as investment options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Fund.

10. Federal Income Tax Status

It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for federal income taxes is required in the financial statements.

The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally,

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Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

each of the tax years in the four-year period ended December 31, 2021 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2021 and 2020 was as follows:

2021 DISTRIBUTIONS PAID FROM:		2020 DISTRIBUTIONS PAID FROM:
ORDINARY INCOME		ORDINARY INCOME
$	8,038,713	$	9,890,045

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses.

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2021.

At December 31, 2021, the components of distributable earnings for the Fund on a tax basis were as follows:

UNDISTRIBUTED ORDINARY INCOME				UNDISTRIBUTED LONG-TERM CAPITAL GAIN
$	1,995,326			$	—

At December 31, 2021, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of $1,499,824 and $6,759,615, respectively, that do not have an expiration date.

To the extent that capital loss carryforwards are used to offset any future capital gains realized, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.

Morgan Stanley U.S. Government Securities Trust

Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

11. Market Risk and Risks Relating to Certain Financial Instruments

The Fund may invest in mortgage securities, including securities issued by the Federal National Mortgage Association ("FNMA") and Federal Home Loan Mortgage Corporation ("FHLMC"). These are fixed income securities that derive their value from or represent interests in a pool of mortgages or mortgage securities. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of a mortgage-backed security and could result in losses to the Fund. The risk of such defaults is generally higher in the case of mortgage pools that include sub-prime mortgages. Sub-prime mortgages refer to loans made to borrowers with weakened credit histories or with a lower capacity to make timely payments on their mortgages. The securities held by the Fund are not backed by sub-prime mortgages.

Additionally, securities issued by FNMA and FHLMC are not backed by or entitled to the full faith and credit of the United States; rather, they are supported by the right of the issuer to borrow from the U.S. Department of the Treasury.

The Federal Housing Finance Agency ("FHFA") serves as conservator of FNMA and FHLMC and the U.S. Department of the Treasury has agreed to provide capital as needed to ensure FNMA and FHLMC continue to provide liquidity to the housing and mortgage markets.

The outbreak of the coronavirus ("COVID-19") and the recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

12. Credit Facility

The Fund and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate for any funds drawn will be based on the federal funds rate or overnight bank funding rate plus a spread. The Facility

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Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended June 30, 2022, the Fund did not have any borrowings under the Facility.

13. Other

At June 30, 2022, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 51.5%.

14. LIBOR Discontinuance or Unavailability Risk

LIBOR is intended to represent the rate at which contributing banks may obtain short-term borrowings from each other in the London interbank market. The Financial Conduct Authority (the "FCA"), which is the regulatory authority that oversees financial services firms, financial markets in the U.K. and the administrator of LIBOR, has announced that, after the end of 2021, one-week and two-month U.S. Dollar LIBOR and all non-U.S. Dollar LIBOR settings have either ended or are no longer representative of the underlying market they seek to measure. The FCA also announced that the most commonly used U.S. Dollar LIBOR settings, may continue to be provided on a representative basis until mid-2023. However, in connection with supervisory guidance from regulators, some regulated entities may no longer enter into most new LIBOR-based contracts. As a result of the foregoing, LIBOR may no longer be available or no longer deemed an appropriate reference rate upon which to determine the interest rate on or impacting certain derivatives and other instruments or investments comprising some or all of the Fund's portfolio. In light of this eventuality, public and private sector industry initiatives are currently underway to establish new or alternative reference rates to be used in place of LIBOR. There is no assurance that the composition or characteristics of any such alternative reference rate will be similar to or produce the same value or economic equivalence as LIBOR or that it will have the same volume or liquidity as did LIBOR prior to its discontinuance or unavailability, which may affect the value or liquidity or return on certain of the Fund's investments and result in costs incurred in connection with closing out positions and entering into new trades.

Neither the effect of the LIBOR transition process nor its ultimate success can yet be known. The transition process might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. While some existing LIBOR-based instruments may contemplate a scenario where LIBOR is no longer available by providing for an alternative rate-setting methodology, there may be significant uncertainty regarding the effectiveness of any such alternative methodologies to replicate LIBOR. Not all existing LIBOR-based instruments may have alternative rate-setting provisions and there remains uncertainty regarding the willingness and ability of issuers to add alternative rate-setting provisions in certain existing instruments.

Morgan Stanley U.S. Government Securities Trust

Notes to Financial Statements ◼ June 30, 2022 (unaudited) continued

Although state and federal statutes have been enacted to address difficult LIBOR transition issues, the application and effect of these statutes are uncertain. In addition, a liquid market for newly-issued instruments that use a reference rate other than LIBOR is still developing. There may also be challenges for the Fund to enter into hedging transactions against such newly-issued instruments until a market for such hedging transactions develops. All of the aforementioned may adversely affect the Fund's performance or NAV.

15. Results of Special Meeting of Shareholders

On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Trustees by all shareholders:

	FOR		AGAINST
Frances L. Cashman		28,352,031		1,371,321
Nancy C. Everett		28,423,337		1,300,015
Eddie A. Grier		28,343,841		1,379,511
Jakki L. Haussler		28,412,334		1,311,018
Patricia A. Maleski		28,419,823		1,303,529

Morgan Stanley U.S. Government Securities Trust

Financial Highlights

Selected ratios and per share data for a share of beneficial interest outstanding throughout each period:

	FOR THE SIX			FOR THE YEAR ENDED DECEMBER 31,
	MONTHS ENDED
	JUNE 30, 2022			2021			2020			2019			2018			2017
	(unaudited)
Class A Shares
Selected Per Share Data:
Net asset value, beginning of period	$	8.56		$	8.94		$	8.68		$	8.41		$	8.67		$	8.68
Income (loss) from investment operations:
Net investment income		0.09			0.18			0.20			0.27			0.25			0.24
Net realized and unrealized gain (loss)		(0.89	)		(0.36	)		0.28			0.27			(0.26	)		(0.01	)
Total income (loss) from investment operations		(0.80	)		(0.18	)		0.48			0.54			(0.01	)		0.23
Less dividends from net investment income		(0.10	)		(0.20	)		(0.22	)		(0.27	)		(0.25	)		(0.24	)
Net asset value, end of period	$	7.66		$	8.56		$	8.94		$	8.68		$	8.41		$	8.67
Total Return⁽¹⁾		(9.40	)%⁽⁶⁾		(2.06	)%		5.55	%		6.43	%		(0.01	)%		2.66	%
Ratios to Average Net Assets:
Net expenses		0.85	%^(2)(4)(7)		0.85	%⁽²⁾⁽⁴⁾		0.85	%⁽²⁾⁽⁴⁾		0.85	%^(2)(3)(4)		0.87	%⁽²⁾⁽⁴⁾		0.86	%⁽²⁾⁽⁴⁾
Net investment income		2.25	%^(2)(4)(7)		1.98	%⁽²⁾⁽⁴⁾		2.32	%⁽²⁾⁽⁴⁾		2.97	%⁽²⁾⁽⁴⁾		3.01	%⁽²⁾⁽⁴⁾		2.79	%⁽²⁾⁽⁴⁾
Rebate from Morgan Stanley affiliate		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.01	%
Supplemental Data:
Net assets, end of period, in thousands	$	210,489		$	249,990		$	289,964		$	295,522		$	34,504		$	38,438
Portfolio turnover rate		151	%⁽⁶⁾		376	%		189	%		167	%		159	%		179	%

(1) Does not reflect the deduction of sales charge. Calculated based on the net asset value as of the last business day of the period.

(2) The ratios reflect the rebate of certain Fund expenses in connection with investments in a Morgan Stanley affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as "Rebate from Morgan Stanley affiliate."

(3) Effective February 28, 2019, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.85% for Class A shares. Prior to February 28, 2019, the maximum ratio was 0.87% for Class A shares.

(4) If the Fund had borne all of its expenses that were waived by the Adviser/Administrator, the annualized expense and net investment income ratios would have been as follows:

PERIOD ENDED	EXPENSE RATIO			NET INVESTMENT INCOME RATIO
June 30, 2022		1.02	%		2.08	%
December 31, 2021		0.98			1.85
December 31, 2020		0.97			2.20
December 31, 2019		0.99			2.83
December 31, 2018		1.02			2.86
December 31, 2017		1.08			2.57

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

See Notes to Financial Statements
39

Morgan Stanley U.S. Government Securities Trust

Financial Highlights continued

	FOR THE SIX			FOR THE YEAR ENDED DECEMBER 31,
	MONTHS ENDED
	JUNE 30, 2022			2021			2020			2019			2018			2017
	(unaudited)
Class L Shares
Selected Per Share Data:
Net asset value, beginning of period	$	8.63		$	9.01		$	8.75		$	8.48		$	8.73		$	8.75
Income (loss) from investment operations:
Net investment income		0.08			0.16			0.18			0.24			0.23			0.22
Net realized and unrealized gain (loss)		(0.90	)		(0.37	)		0.27			0.27			(0.25	)		(0.02	)
Total income (loss) from investment operations		(0.82	)		(0.21	)		0.45			0.51			(0.02	)		0.20
Less dividends from net investment income		(0.09	)		(0.17	)		(0.19	)		(0.24	)		(0.23	)		(0.22	)
Net asset value, end of period	$	7.72		$	8.63		$	9.01		$	8.75		$	8.48		$	8.73
Total Return⁽¹⁾		(9.57	)%⁽⁵⁾		(2.32	)%		5.21	%		6.09	%		(0.25	)%		2.38	%
Ratios to Average Net Assets:
Net expenses		1.12	%^(2)(3)(6)		1.12	%⁽²⁾⁽³⁾		1.12	%⁽²⁾⁽³⁾		1.12	%⁽²⁾⁽³⁾		1.10	%⁽²⁾⁽³⁾		1.11	%⁽²⁾⁽³⁾
Net investment income		1.96	%^(2)(3)(6)		1.69	%⁽²⁾⁽³⁾		2.02	%⁽²⁾⁽³⁾		2.73	%⁽²⁾⁽³⁾		2.74	%⁽²⁾⁽³⁾		2.51	%⁽²⁾⁽³⁾
Rebate from Morgan Stanley affiliate		0.00	%⁽⁴⁾⁽⁶⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.01	%
Supplemental Data:
Net assets, end of period, in thousands	$	4,561		$	5,454		$	6,259		$	6,668		$	7,411		$	9,729
Portfolio turnover rate		151	%⁽⁵⁾		376	%		189	%		167	%		159	%		179	%

(1) Calculated based on the net asset value as of the last business day of the period.

(3) If the Fund had borne all of its expenses that were waived by the Adviser/Administrator, the annualized expense and net investment income ratios would have been as follows:

PERIOD ENDED	EXPENSE RATIO			NET INVESTMENT INCOME RATIO
June 30, 2022		1.30	%		1.78	%
December 31, 2021		1.25			1.56
December 31, 2020		1.24			1.90
December 31, 2019		1.25			2.60
December 31, 2018		1.20			2.64
December 31, 2017		1.24			2.38

(4) Amount is less than 0.005%.

(5) Not annualized.

(6) Annualized.

See Notes to Financial Statements
40

Morgan Stanley U.S. Government Securities Trust

Financial Highlights continued

	FOR THE SIX			FOR THE YEAR ENDED DECEMBER 31,
	MONTHS ENDED
	JUNE 30, 2022			2021			2020			2019			2018			2017
	(unaudited)
Class I Shares
Selected Per Share Data:
Net asset value, beginning of period	$	8.56		$	8.94		$	8.69		$	8.41		$	8.67		$	8.68
Income (loss) from investment operations:
Net investment income		0.11			0.21			0.23			0.29			0.28			0.27
Net realized and unrealized gain (loss)		(0.89	)		(0.36	)		0.27			0.28			(0.26	)		(0.01	)
Total income (loss) from investment operations		(0.78	)		(0.15	)		0.50			0.57			0.02			0.26
Less dividends from net investment income		(0.11	)		(0.23	)		(0.25	)		(0.29	)		(0.28	)		(0.27	)
Net asset value, end of period	$	7.67		$	8.56		$	8.94		$	8.69		$	8.41		$	8.67
Total Return⁽¹⁾		(9.14	)%⁽⁵⁾		(1.74	)%		5.77	%		6.90	%		0.34	%		2.90	%
Ratios to Average Net Assets:
Net expenses		0.52	%^(2)(3)(6)		0.52	%⁽²⁾⁽³⁾		0.52	%⁽²⁾⁽³⁾		0.52	%⁽²⁾⁽³⁾		0.52	%⁽²⁾⁽³⁾		0.51	%⁽²⁾⁽³⁾
Net investment income		2.59	%^(2)(3)(6)		2.33	%⁽²⁾⁽³⁾		2.61	%⁽²⁾⁽³⁾		3.35	%⁽²⁾⁽³⁾		3.36	%⁽²⁾⁽³⁾		3.14	%⁽²⁾⁽³⁾
Rebate from Morgan Stanley affiliate		0.00	%⁽⁴⁾⁽⁶⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.01	%
Supplemental Data:
Net assets, end of period, in thousands	$	45,792		$	48,749		$	91,971		$	65,594		$	67,487		$	73,314
Portfolio turnover rate		151	%⁽⁵⁾		376	%		189	%		167	%		159	%		179	%

(1) Calculated based on the net asset value as of the last business day of the period.

(3) If the Fund had borne all of its expenses that were waived by the Adviser/Administrator, the annualized expense and net investment income ratios would have been as follows:

PERIOD ENDED	EXPENSE RATIO			NET INVESTMENT INCOME RATIO
June 30, 2022		0.78	%		2.33	%
December 31, 2021		0.72			2.13
December 31, 2020		0.73			2.40
December 31, 2019		0.74			3.13
December 31, 2018		0.72			3.16
December 31, 2017		0.74			2.91

(4) Amount is less than 0.005%.

(5) Not annualized.

(6) Annualized.

See Notes to Financial Statements
41

Morgan Stanley U.S. Government Securities Trust

Financial Highlights continued

	FOR THE SIX			FOR THE YEAR ENDED DECEMBER 31,
	MONTHS ENDED
	JUNE 30, 2022			2021			2020			2019			2018			2017
	(unaudited)
Class C Shares
Selected Per Share Data:
Net asset value, beginning of period	$	8.63		$	9.01		$	8.75		$	8.48		$	8.74		$	8.75
Income (loss) from investment operations:
Net investment income		0.06			0.12			0.13			0.20			0.19			0.18
Net realized and unrealized gain (loss)		(0.90	)		(0.37	)		0.28			0.27			(0.26	)		(0.02	)
Total income (loss) from investment operations		(0.84	)		(0.25	)		0.41			0.47			(0.07	)		0.16
Less dividends from net investment income		(0.07	)		(0.13	)		(0.15	)		(0.20	)		(0.19	)		(0.17	)
Net asset value, end of period	$	7.72		$	8.63		$	9.01		$	8.75		$	8.48		$	8.74
Total Return⁽¹⁾		(9.79	)%⁽⁵⁾		(2.81	)%		4.69	%		5.56	%		(0.76	)%		1.87	%
Ratios to Average Net Assets:
Net expenses		1.62	%^(2)(3)(6)		1.62	%⁽²⁾⁽³⁾		1.62	%⁽²⁾⁽³⁾		1.62	%⁽²⁾⁽³⁾		1.62	%⁽²⁾⁽³⁾		1.61	%⁽²⁾⁽³⁾
Net investment income		1.45	%^(2)(3)(6)		1.21	%⁽²⁾⁽³⁾		1.40	%⁽²⁾⁽³⁾		2.23	%⁽²⁾⁽³⁾		2.24	%⁽²⁾⁽³⁾		2.00	%⁽²⁾⁽³⁾
Rebate from Morgan Stanley affiliate		0.00	%⁽⁴⁾⁽⁶⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.01	%
Supplemental Data:
Net assets, end of period, in thousands	$	4,173		$	5,571		$	10,397		$	2,163		$	2,012		$	902
Portfolio turnover rate		151	%⁽⁵⁾		376	%		189	%		167	%		159	%		179	%

(1) Does not reflect the deduction of sales charge. Calculated based on the net asset value as of the last business day of the period.

(3) If the Fund had borne all of its expenses that were waived by the Adviser/Administrator, the annualized expense and net investment income ratios would have been as follows:

PERIOD ENDED	EXPENSE RATIO			NET INVESTMENT INCOME RATIO
June 30, 2022		1.77	%		1.30	%
December 31, 2021		1.73			1.10
December 31, 2020		1.72			1.30
December 31, 2019		1.85			2.00
December 31, 2018		1.96			1.90
December 31, 2017		1.96			1.65

(4) Amount is less than 0.005%.

(5) Not annualized.

(6) Annualized.

See Notes to Financial Statements
42

Morgan Stanley U.S. Government Securities Trust

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

The Board reviewed and considered the nature and extent of the investment advisory services provided by the Adviser under the advisory agreement, including portfolio management, investment research and equity and fixed income securities trading. The Board also reviewed and considered the nature and extent of the non-advisory, administrative services provided by the Administrator under the administration agreement, including accounting, operations, clerical, bookkeeping, compliance, business management and planning, legal services and the provision of supplies, office space and utilities at the Adviser's expense. The Board also considered the Adviser's investment in personnel and infrastructure that benefits the Fund. (The Adviser and Administrator together are referred to as the "Adviser" and the advisory and administration agreements together are referred to as the "Management Agreement.") The Board also considered that the Adviser serves a variety of other investment advisory clients and has experience overseeing service providers. The Board also compared the nature of the services provided by the Adviser with similar services provided by non-affiliated advisers as prepared by Broadridge Financial Solutions, Inc. ("Broadridge").

The Board reviewed and considered the qualifications of the portfolio managers, the senior administrative managers and other key personnel of the Adviser who provide the advisory and administrative services to the Fund. The Board determined that the Adviser's portfolio managers and key personnel are well qualified by education and/or training and experience to perform the services in an efficient and professional manner. The Board concluded that the nature and extent of the advisory and administrative services provided were necessary and appropriate for the conduct of the business and investment activities of the Fund and supported its decision to approve the Management Agreement.

Performance, Fees and Expenses of the Fund

The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2021, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was better than its peer group average for the one- and five-year periods but below its peer group average for the three-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. The Board noted that the Fund's management fee and total expense ratio were lower than its peer group

Morgan Stanley U.S. Government Securities Trust

Investment Advisory Agreement Approval continued

averages. After discussion, the Board concluded that the Fund's performance, management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

The Board considered the size and growth prospects of the Fund and how that relates to the Fund's total expense ratio and particularly the Fund's management fee rate, which includes breakpoints. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the Fund and whether the management fee level is appropriate relative to current and projected asset levels and/or whether the management fee structure reflects economies of scale as asset levels change. The Board has determined that its review of the actual and/or potential economies of scale of the Fund supports its decision to approve the Management Agreement.

Profitability of the Adviser and Affiliates

The Board considered information concerning the costs incurred and profits realized by the Adviser and its affiliates during the last year from their relationship with the Fund and during the last two years from their relationship with the Morgan Stanley Fund Complex and reviewed with the Adviser the cost allocation methodology used to determine the profitability of the Adviser and affiliates. The Board has determined that its review of the analysis of the Adviser's expenses and profitability supports its decision to approve the Management Agreement.

Other Benefits of the Relationship

The Board considered other direct and indirect benefits to the Adviser and/or its affiliates derived from their relationship with the Fund and other funds advised by the Adviser. These benefits may include, among other things, fees for trading, distribution and/or shareholder servicing and for transaction processing and reporting platforms used by securities lending agents, and research received by the Adviser generated from commission dollars spent on funds' portfolio trading. The Board reviewed with the Adviser these arrangements and the reasonableness of the Adviser's costs relative to the services performed. The Board has determined that its review of the other benefits received by the Adviser or its affiliates supports its decision to approve the Management Agreement.

Resources of the Adviser and Historical Relationship Between the Fund and the Adviser

The Board considered whether the Adviser is financially sound and has the resources necessary to perform its obligations under the Management Agreement. The Board also reviewed and considered the historical relationship between the Fund and the Adviser, including the organizational structure of the Adviser, the policies and procedures formulated and adopted by the Adviser for managing the Fund's operations and the Board's confidence in the competence and integrity of the senior managers and key

Morgan Stanley U.S. Government Securities Trust

Investment Advisory Agreement Approval continued

personnel of the Adviser. The Board concluded that the Adviser has the financial resources necessary to fulfill its obligations under the Management Agreement and that it is beneficial for the Fund to continue its relationship with the Adviser.

Other Factors and Current Trends

The Board considered the controls and procedures adopted and implemented by the Adviser and monitored by the Fund's Chief Compliance Officer and concluded that the conduct of business by the Adviser indicates a good faith effort on its part to adhere to high ethical standards in the conduct of the Fund's business.

As part of the Board's review, the Board received information from management on the impact of the COVID-19 pandemic on the firm generally and the Adviser and the Fund in particular including, among other information, the pandemic's current and expected impact on the Fund's performance and operations.

General Conclusion

After considering and weighing all of the above factors, with various written materials and verbal information presented by the Adviser, the Board concluded that it would be in the best interest of the Fund and its shareholders to approve renewal of the Management Agreement for another year. In reaching this conclusion the Board did not give particular weight to any single piece of information or factor referenced above. The Board considered these factors and information over the course of the year and in numerous meetings, some of which were in executive session with only the independent Board members and their counsel present. It is possible that individual Board members may have weighed these factors, and the information presented, differently in reaching their individual decisions to approve the Management Agreement.

Morgan Stanley U.S. Government Securities Trust

Liquidity Risk Management Program (unaudited)

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "Liquidity Rule"), the Fund has adopted and implemented a liquidity risk management program (the "Program"), which is reasonably designed to assess and manage the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors' interests in the Fund (i.e., liquidity risk). The Fund's Board of Trustees (the "Board") previously approved the designation of the Liquidity Risk Subcommittee (the "LRS") as Program administrator. The LRS is comprised of representatives from various divisions within Morgan Stanley Investment Management.

At a meeting held on March 1-2, 2022, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2021, through December 31, 2021, as required under the Liquidity Rule. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

In accordance with the Program, the LRS assessed each Fund's liquidity risk no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections and (iii) holdings of cash and cash equivalents and borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.

Each Fund portfolio investment is classified into one of four liquidity categories, which classification is assessed at least monthly by the LRS. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading and investment-specific considerations, as well as market depth, and in some cases utilize third-party vendor data.

The Liquidity Rule limits a fund's investments in illiquid investments to 15% of its net assets and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund's net assets to be invested in highly liquid investments (highly liquid investment minimum or "HLIM"). The LRS believes that the Program includes provisions reasonably designed to review, monitor and comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement, as applicable.

There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.

Morgan Stanley U.S. Government Securities Trust

U.S. Customer Privacy Notice (unaudited) April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share

Morgan Stanley U.S. Government Securities Trust

U.S. Customer Privacy Notice (unaudited) continued April 2021

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.

Morgan Stanley U.S. Government Securities Trust

U.S. Customer Privacy Notice (unaudited) continued April 2021

What we do

Why can't I limit all sharing?

Federal law gives you the right to limit only
◼ sharing for affiliates' everyday business purposes — information about your creditworthiness
◼ affiliates from using your information to market to you
◼ sharing for non-affiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Non-affiliates unless you provide us with your written consent to share such information.

California: Except as permitted by law, we will not share personal information we collect about California residents with Non-affiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

Trustees

Frank L. Bowman

Frances L. Cashman

Kathleen A. Dennis

Nancy C. Everett

Eddie A. Grier

Jakki L. Haussler

Dr. Manuel H. Johnson

Joseph J. Kearns

Michael F. Klein

Patricia A. Maleski

W. Allen Reed, Chair of the Board

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent Trustees

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

The financial statements included herein have been taken from the records of the Fund without examination by the independent auditors and accordingly they do not express an opinion thereon.

This report is submitted for the general information of the shareholders of the Fund. For more detailed information about the Fund, its fees and expenses and other pertinent information, please read its Prospectus. The Fund's Statement of Additional Information contains additional information about the Fund, including its trustees. It is available, without charge, by calling 1 (800) 548-7786.

This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective Prospectus. Please read the Prospectus carefully before investing.

Morgan Stanley Distribution, Inc., member FINRA.

USGSAN
4822840 EXP 08.31.23

Item 2. Code of Ethics.

Not applicable for semiannual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semiannual reports.

Item 4. Principal Accountant Fees and Services

Not applicable for semiannual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semiannual reports.

Item 6.

(a) Refer to Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Applicable only to annual reports filed by closed-end funds.

Item 9. Closed-End Fund Repurchases

Applicable to reports filed by closed-end funds.

Item 10. Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominee to the Fund’s Board of Trustees since the Fund last provided disclosure in response to this item.

Item 11. Controls and Procedures

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b) There were no changes in the registrant's internal control over financial reporting that occurred during the most recent fiscal half-year period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed End Management Investment Companies.

Not Applicable.

Item 13. Exhibits

(a) Code of Ethics – Not applicable for semiannual reports.

(b) A separate certification for each principal executive officer and principal financial officer of the registrant as part of EX-99.CERT.

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.

Morgan Stanley U.S. Government Securities Trust

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer

August 17, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer

August 17, 2022

/s/ Francis J. Smith
Francis J. Smith
Principal Financial Officer

August 17, 2022

Date: August 17, 2022	/s/ John H. Gernon
	John H. Gernon
	Principal Executive Officer