UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 
     811-21126               

               BlackRock Municipal Income Trust II                
(Exact name of registrant as specified in charter)

100 Bellevue Parkway, Wilmington, DE
 
19809
(Address of principal executive offices)
 
(Zip code)

Robert S. Kapito, President

 
BlackRock Municipal Income Trust II
40 East 52nd Street, New York, NY 10022
(Name and address of agent for service)

Registrant's telephone number, including area code: 
     888-825-2257

Date of fiscal year end:
     August 31, 2007     
Date of reporting period: 
     May 31, 2007     

Item 1. Schedule of Investments.

The Registrant’s unaudited schedule of investments as of the close of the reporting period pursuant to Rule 30b1-5 under the Investment Company Act of 1940 is as follows:

PORTFOLIO OF INVESTMENTS (unaudited)
MAY 31, 2007
BlackRock Municipal Income Trust II (BLE)
(Percentages shown are based on Net Assets)

  Principal                  
  Amount       Option Call          
  (000)  
Description
 
Provisions1
   
Value
 
  LONG-TERM INVESTMENTS—153.8%   
   
 
  Alabama—1.2%   
   
 
  Birmingham Spl. Care Facs. Fing. Auth, Hlth., Hosp. & Nursing Home RB, Ascension   
     
 
  Hlth. Proj.,   
   
 
$     2,525
      Ser. C-2, 5.00%, 11/15/36   
11/16@ 100
 
$
2,582,241 
 
1,825
      Ser. C-2, 5.00%, 11/15/39   
11/16@ 100
 
 
1,863,015 
 
     
 
 
4,445,256 
 
  Arizona—1.0%   
   
 
3,520
  Pima Cnty. Indl. Dev. Auth., Local or Gtd. Hsg. RB, 4.89%, 2/04/12, AMT   
06/07@ 100
 
 
3,520,000 
 
  California—9.7%   
   
 
2,250
2 Agua Caliente Band of Cahuilla Indians, Casinos Parimutuel Betting RB, 6.00%, 7/01/18   
07/13@ 100
   
2,402,483 
 
2,700
  California GO, 5.00%, 6/01/34   
12/14@ 100
   
2,787,912 
 
  Cnty. Tobacco Sec. Agcy., Tobacco Settlement Funded RB,   
   
 
1,840
      Ser. B, Zero Coupon, 6/01/46   
06/@16 17.602
   
193,862 
 
9,710
      Ser. C, Zero Coupon, 6/01/55   
06/16@ 8.9
   
498,900 
 
12,410
  Stanislaus Cnty. Proj., Ser. D, Zero Coupon, 6/01/55   
06/16@ 6.219
   
422,685 
 
9,100
  Hlth. Fac. Fing. Auth., Hlth., Hosp. & Nursing Home RB, Sutter Hlth. Proj.,   
   
 
       Ser. A,5.25%, 11/15/46   
11/16@ 100
   
9,503,767 
 
3,500
  Mobilehome Pk. Fing. Auth., St. Sngl. Fam. Hsg. RB, Millennium Hsg. Corp. Proj.,   
   
 
      Ser. A, 5.25%, 3/15/34, ACA   
03/13@ 102
   
3,663,590 
 
4,620
  San Francisco City & Cnty. Redev. Agcy., Pub. Impvts. ST, Mission Bay South Pub.   
   
 
      Proj., 6.625%, 8/01/27   
08/11@ 101
   
4,943,261 
 
5,000
  Statewide Cmnty. Dev. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mem. Hlth.  Svcs. Proj.,  
   
 
      Ser. A, 5.50%, 10/01/33   
04/13@ 100
   
5,240,650 
 
5,755
  Univ. of California, Univ. & Coll. Impvts. RB, Ser. B, 4.75%, 5/15/38   
05/13@ 101
 
 
5,829,700 
 
     
 
 
35,486,810 
 
  Colorado—4.9%   
   
 
1,375
  City of Colorado Springs, Mult. Util. Impvts. RB, Ser. C, 5.00%, 11/15/45, FSA   
11/15@ 100
   
1,425,820 
 
10,000
3 Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Catholic Hlth. Initiatives  Proj.,  
   
 
      Ser. A, 5.50%, 3/01/32   
ETM
   
10,660,200 
 
4,000
  Northwest Pkwy. Pub. Hwy. Auth., Hwy. Tolls RB, Ser. A, 5.25%, 6/15/41, FSA   
06/11@ 102
   
4,197,960 
 
1,375
  Pk. Creek Met. Dist., Ppty. Tax Misc. RB, 5.50%, 12/01/37   
12/15@ 101
 
 
1,447,765 
 
     
 
 
17,731,745 
 
  District of Columbia—6.3%   
   
 
1,265
  Misc. RB, Friendship Pub. Charter Sch. Proj., 5.25%, 6/01/33, ACA   
06/14@ 100
   
1,306,859 
 
  Tobacco Settlement Fing. Corp., Tobacco Settlement Funded RB,   
   
 
7,500
      6.50%, 5/15/33   
No Opt. Call
   
8,936,850 
 
11,500
      6.75%, 5/15/40   
05/11@ 101
 
 
12,613,890 
 
     
 
 
22,857,599 
 
  Florida—14.7%   
   
 
2,650
  City of Leesburg, Hlth., Hosp. & Nursing Home Impvts. RB, Leesburg Regl. Med. Ctr.   Proj.,  
   
 
     5.50%, 7/01/32   
07/12@ 100
   
2,730,269 
 
3,990
  Cnty. of Orange, Sales Tax RB, 4.75%, 10/01/32, XLCA   
10/16@ 100
   
4,039,316 
 
10
  Fishhawk Cmnty. Dev. Dist. II, Pub. Impvts. SA TA, Ser. B, 5.00%, 11/01/07   
No Opt. Call
   
9,999 
 
1,670
  JEA, Wtr. Util. Impvts. Wtr. RB, Ser. A, 4.75%, 10/01/36, MBIA   
04/11@ 100
   
1,689,723 
 
4,735
  Lakes by the Bay South Cmnty. Dev. Dist., Pub. Impvts. SA RB, Ser. A, 6.25%, 5/01/34   
05/14@ 101
   
5,087,947 
 
3,125
  Live Oak Comm. Dev. Dist. No. 1, Pub. Impvts. SA, Ser. A, 6.30%, 5/01/34   
05/13@ 101
   
3,365,656 
 
6,230
  Miami Beach Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mt. Sinai   
   
 
  Med. Ctr. Proj., 6.75%, 11/15/21   
11/14@ 100 
   
6,983,705 
 
6,850
4 Orange Cnty. Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Adventist   
   
 
  Hlth. Sys. Proj., 5.625%, 11/15/12   
N/A
   
7,459,856 
 
14,000
4 Pinellas Cnty. Hlth. Fac. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Baycare   
   
 
  Hlth. Sys., Inc. Proj., 5.50%, 5/15/13   
N/A
   
15,118,180 
 
2,040
  Stevens Plantation Cmnty. Dev. Dist., Pub. Impvts. SA, Ser. A, 7.10%, 5/01/35   
05/14@ 100
   
2,206,076 

1

BlackRock Municipal Income Trust II (BLE) (continued)
(Percentages shown are based on Net Assets)

Principal                  
Amount       Option Call          
(000)  
Description
 
Provisions1
   
Value
   
Florida— (cont'd)
 
     
$     4,520  
Sumter Cnty. Ind. Dev. Auth., Indl. Impvts. RB, North Sumter Util. Co. LLC Proj.,
 
     
   
    6.90%,10/01/34, AMT
 
10/09@ 100
 
$
4,694,427 
   
 
 
 
53,385,154 
   
Georgia—1.5%
 
       
205  
City of Atlanta Port, Arpt. & Marina Impvts. RB, Ser. J, 5.00%, 1/01/34, FSA
 
01/15@ 100
    212,450 
5,000  
    Milledgeville-Baldwin Cnty. Dev. Auth., Univ. & Coll. Impvts. RB, Georgia Coll. & St.
 
     
   
    Univ Fndtn. Proj., 5.625%, 9/01/30
 
09/14@ 101
 
 
5,354,900 
   
 
 
 
5,567,350 
   
Illinois—17.3%
 
     
2,470 2
Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23
 
No Opt. Call
    2,539,061 
4,290  
Chicago O'Hare Intl. Arpt., Port, Arpt. & Marina RB, Ser. C-2, 5.25%, 1/01/30, FSA, AMT
 
01/14@ 100
    4,488,799 
   
Fin. Auth.,
 
     
2,310  
    Coll. & Univ. RB, Edl. Advancement Proj., Ser. B, 5.00%, 5/01/25
 
11/16@ 100
    2,334,116 
1,845  
    Coll. & Univ. RB, Edl. Advancement Proj., Ser. B, 5.00%, 5/01/30
 
11/16@ 100
    1,860,092 
910  
Hlth., Hosp. & Nursing Home RB, Friendship Vlg. Schaumburg Proj.,
 
     
   
    Ser. A, 5.625%,2/15/37
 
02/15@ 100
    935,962 
1,880  
Hlth., Hosp. & Nursing Home RB, Northwestern Mem. Hosp. Proj.,
 
     
   
    Ser. A, 5.50%,8/15/43
 
08/14@ 100
    2,024,422 
1,125  
Univ. & Coll. Impvts. RB, MJH Ed. Asst. LLC Proj., Ser. A, 5.125%, 6/01/35
 
06/14@ 100
    1,147,196 
900  
Univ. & Coll. Impvts. RB, MJH Ed. Asst. LLC Proj., Ser. B, 5.375%, 6/01/35
 
06/14@ 100
    917,604 
8,000  
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Elmhurst Mem. Hosp. Proj.,
 
     
   
    5.50%,1/01/22
 
01/13@ 100
    8,334,640 
   
Met. Pier & Exposition Auth., Pub. Impvts. St. Tax RB, McCormick Place Expansion Proj.,
 
     
45,190  
    Ser. A, Zero Coupon, 6/15/33, MBIA
 
No Opt. Call
    13,683,984 
5,000  
    Ser. A, Zero Coupon, 6/15/40, MBIA
 
No Opt. Call
    1,084,400 
5,490  
Mun. Elec. Agcy., Elec., Pwr. & Lt. RB, 4.50%, 2/01/35, FGIC
 
02/16@ 100
    5,353,903 
15,000  
Sports Facs. Auth., Ded. St. Tax Supported RB, Zero Coupon, 6/15/30, AMBAC
 
06/15@ 101
    13,930,800 
4,000 4
Vlg. of Bolingbrook, Pub. Impvts. Ad Valorem Ppty. Tax GO,
 
     
   
    Ser. A, 5.375%, 1/01/12, FGIC
 
N/A
 
 
4,247,040 
   
 
 
 
62,882,019 
   
Indiana—8.4%
 
     
5,000  
Hlth. Fac. Fin. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Ascension Hlth. Proj.,
 
     
   
Ser.F, 5.375%, 11/15/25
 
11/12@ 101
    5,384,350 
19,735 4
Indianapolis Local Pub. Impvt. Bd. Bank, Wtr. Util. Impvts. RB, Wtr. Wks. Proj., Ser. A,
 
     
   
5.25%, 7/01/12, MBIA
 
N/A
    20,961,530 
4,200  
Mun. Pwr. Agcy., Elec., Pwr. & Lt. Impvts. RB, Pwr. Sply. Sys. Proj., Ser. A,
 
     
   
4.50%,1/01/32 , AMBAC
  
01/16@ 100
 
 
4,120,200 
   
 
 
 
30,466,080 
   
Maryland—1.8%
 
     
3,000  
Frederick Cnty., Pub. Impvts. ST, Urbana Cmnty. Dev. Auth. Proj., Ser. A, 5.95%, 7/01/30
 
07/07@ 102
    3,062,940 
   
Hlth. & Higher Edl. Facs. Auth.,
 
     
2,240  
Hlth., Hosp. & Nursing Home Impvts. RB, Medstar Hlth., Inc. Proj., 5.50%, 8/15/33
 
08/14@ 100
    2,365,104 
1,000  
Hlth., Hosp. & Nursing Home Impvts. RB, Union Hosp. of Cecil Cnty. Proj.,
 
     
   
    5.625%, 7/01/32
 
07/12@ 100
 
 
1,053,820 
   
 
 
 
6,481,864 
   
Massachusetts—0.9%
 
     
3,145  
Wtr. Recs. Auth., Wtr. RB, Ser. A, 5.00%, 8/01/41
 
08/16@ 100
 
 
3,266,649 
   
Michigan—0.6%
 
     
2,305  
Hosp. Fin. Auth., Hlth., Hosp. & Nursing Home RB, Henry Ford Hlth. Sys. Proj., Ser. A,
 
     
   
    5.25%, 11/15/46
 
11/16@ 100
 
 
2,382,333 
   
Mississippi—1.6%
 
     
4,950  
Lowndes Cnty., Indl. RB, Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22
 
No Opt. Call
 
 
5,995,638 
   
Missouri—1.8%
 
     
6,000  
370 Missouri Bottom Rd. Taussig Rd. Transp. Dev. Dist. Hazelwood, Pub. Impvts. Sales
 
     
   
Tax RB, 7.20%, 5/01/33
 
05/13@ 100
 
 
6,630,420 
   
Multi-State—3.7%
 
     
   
Charter Mac Equity Issuer Trust,
 
     
1,000 2
    Ser. A, 5.75%, 4/30/15
 
No Opt. Call
    1,066,670 
3,500 2
    Ser. A, 6.00%, 4/30/19
 
No Opt. Call
    3,846,885 
5,000 2
    Ser. B, 6.00%, 4/30/15
 
No Opt. Call
    5,342,050 

2

BlackRock Municipal Income Trust II (BLE) (continued)
(Percentages shown are based on Net Assets)

Principal                  
Amount       Option Call          
(000)  
Description
 
Provisions1
   
Value
    Multi-State— (cont'd)          
$      3,000 2    Ser. B, 6.30%, 4/30/19   No Opt. Call  
$
3,201,990 
           
 
13,457,595 
    Nevada—2.3%            
2,855   Cnty. of Clark Private Schs. RB, Alexander Dawson Sch. Rainbow Proj., 5.00%, 5/15/29   05/16 @ 100     2,942,220 
2,565   Henderson Local Impvt. Dist. No. T-14, Pub. Impvts. SA, 5.80%, 3/01/23   09/07 @ 103     2,646,003 
2,900   Truckee Meadows Wtr. Auth. Wtr. RB, 4.875%, 7/01/34, XLCA   07/16 @ 100  
 
2,969,368 
           
 
8,557,591 
    New Jersey—12.5%          
    Econ. Dev. Auth.,          
10,000      Econ. Impvts. Elec., Pwr. & Lt. RB, Kapkowski Rd. Landfill Proj., 6.50%, 4/01/31, AMT   No Opt. Call     11,863,400 
4,000      Econ. Impvts. Misc. RB, Cigarette Tax Proj., 5.75%, 6/15/34   06/14 @ 100     4,274,600 
9,000      Econ. Impvts. RB, Cigarette Tax Proj., 5.50%, 6/15/31   06/14 @ 100     9,483,840 
10,100      Port, Arpt. & Marina Impvts. RB, Contl. Airlines, Inc. Proj., 7.20%, 11/15/30, AMT   11/10 @ 101     10,843,764 
7,475      SA, Kapkowski Rd. Landfill Proj., 6.50%, 4/01/28   No Opt. Call  
 
9,103,728 
           
 
45,569,332 
    New Mexico—1.6%          
5,200 4 Hsg. Auth., St. Multi-Fam. Hsg. RB, Villa Delaware Oso Apts. Proj., Ser. A, 6.00%,          
       1/01/13   N/A  
 
5,796,180 
    New York—8.1%          
985 5 Albany Indl. Dev. Agcy., Sch. Impvts. Lease Approp. RB, New Covenant Charter Sch.          
       Proj., Ser. A, 7.00%, 5/01/35   05/15 @ 102     960,188 
2,845   Env. Facs. Corp., Swr. Impvts. Misc. RB, NYC Mun. Wtr. Proj., Ser. B, 5.00%, 6/15/31   06/12 @ 100     2,936,922 
5,425   Liberty Dev. Corp., Indl. Impvts. Misc. RB, Goldman Sachs Group., Inc. Proj., 5.25%,          
       10/01/35   No Opt. Call     6,025,982 
3,775   Met. Transp. Auth., Misc. RB, Ser. A, 5.00%, 7/01/30, AMBAC   07/12 @ 100     3,901,349 
6,700   New York City Indl. Dev. Agcy., Port, Arpt. & Marina Impvts. RB, American Airlines,          
       Inc./JFK Intl. Arpt. Proj., 7.75%, 8/01/31, AMT   08/16 @ 101     8,061,574 
7,325   Port Auth. of New York & New Jersey, Port, Arpt. & Marina Impvts. RB, Contl./Eastn.          
       LaGuardia Proj., 9.00%, 12/01/10, AMT   07/07 @ 100  
7,472,159 
           
 
29,358,174 
    North Carolina—2.2%          
7,500   Gaston Cnty. Indl. Facs. & Poll. Ctrl. Fing. Auth., Indl. Impvts. RB, 5.75%, 8/01/35, AMT   08/15 @ 100  
 
7,864,650 
    Ohio—2.5%          
9,140   Air Qual. Dev. Auth., Rec. Recovery RB, Dayton Pwr. & Lt. Co. Proj., 4.80%, 1/01/34,          
       FGIC   07/15 @ 100  
 
9,263,116 
    Oklahoma—2.1%          
3,000   Dev. Fin. Auth., Hlth., Hosp. & Nursing Home RB, St. John Hlth. Sys. Proj., 5.00%,          
       2/15/42   02/17 @ 100     3,045,900 
3,925   Tulsa Mun. Arpt. Trust, Port, Arpt. & Marina Impvts. RB, AMR Corp. Proj., Ser. A, 7.75%,          
       6/01/35, AMT   No Opt. Call  
 
4,597,235 
           
 
7,643,135 
    Pennsylvania—5.5%          
    Econ. Dev. Fing. Auth.,          
8,425      Elec., Pwr. & Lt. Impvts. RB, Reliant Energy, Inc. Proj., Ser. A, 6.75%, 12/01/36, AMT   06/11 @ 103     9,305,412 
5,175      Trans. Impvts. Lease Renewal RB, Amtrak Proj., Ser. A, 6.375%, 11/01/41, AMT   05/11 @ 101     5,510,340 
5,000   Monroe Cnty. Hosp. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Pocono Med. Ctr.          
       Proj., 6.00%, 1/01/43   01/14 @ 100  
 
5,345,800 
           
 
20,161,552 
    Puerto Rico—2.5%          
4,000   Elec. Pwr. Auth., Elec., Pwr. & Lt. RB, Ser. UU, 5.00%, 7/01/22, FSA   07/17 @ 100     4,257,320 
4,370   Hwy. & Transp. Auth., Hwy. Impvts. Tolls RB, Ser. N, 5.25%, 7/01/36   No Opt. Call  
 
4,937,007 
           
 
9,194,327 
    South Carolina—5.3%          
    Greenwood Cnty., Hlth., Hosp. & Nursing Home Impvts. RB, Self Mem. Hosp. Facs. Proj.,          
3,280      5.50%, 10/01/26   10/11 @ 100     3,419,400 
3,250      5.50%, 10/01/31   10/11 @ 100     3,381,625 

3

BlackRock Municipal Income Trust II (BLE) (continued)
(Percentages shown are based on Net Assets)

Principal              
Amount          
Option Call
         
(000)  
Description
 
Provisions1
   
Value
    South Carolina— (cont'd)          
    Jobs-Econ. Dev. Auth., Hlth., Hosp. & Nursing Home RB,            
$     3,750      Georgetown Mem. Hosp. Proj., 5.375%, 2/01/30, RAA  
08/11 @ 100
 
$
 3,887,588 
5,000 4    Palmetto Hlth. Alliance Proj., 6.875%, 8/01/13   N/A     5,772,487 
2,640      Ser. A, 6.25%, 8/01/31   08/13 @ 100  
 
2,907,062 
           
 
19,368,162 
    Tennessee—2.8%          
20,405   Knox Cnty. Hlth., Edl. & Hsg. Facs. Brd., Hlth., Hosp. & Nursing Home RB, Ser. A, Zero          
       Coupon, 1/01/21, FSA   01/13 @ 63.44  
 
10,036,607 
    Texas—18.2%          
2,015 4 Dallas Area Rapid Trans., Sales Tax RB, 5.00%, 12/01/11, AMBAC   N/A     2,107,368 
20,000   Gulf Coast Wst. Disp. Auth., Indl. RB, Intl. Paper Co. Proj., Ser. A, 6.10%, 8/01/24, AMT   08/12 @ 100     21,222,600 
25,375   Harris Cnty.-Houston Sports Auth., Lease RB, Ser. A-3, Zero Coupon, 11/15/36, MBIA   11/24 @ 49.423     5,458,162 
    Lower Colorado River Auth., Misc. RB,          
5 4    Ser. A, 5.00%, 5/15/13, MBIA   N/A     5,282 
1,300      Ser. A, 5.00%, 5/15/31, MBIA   05/13 @ 100     1,341,132 
930   Montgomery Cnty. Mun. Util. Dist. No. 46, Pub. Impvts. Ad Valorem Ppty. Tax GO,          
       4.75%, 3/01/30, MBIA   03/14 @ 100     939,030 
    Tpke. Auth., Hwy. Impvts. Tolls RB,          
73,370      Zero Coupon, 8/15/36, AMBAC   08/12 @ 24.171     13,988,724 
65,000      Zero Coupon, 8/15/37, AMBAC   08/12 @ 22.708     11,643,450 
27,600      Zero Coupon, 8/15/38, AMBAC   08/12 @ 21.384     4,655,568 
4,575      Ser. A, 5.00%, 8/15/42, AMBAC   08/12 @ 100  
 
4,686,218 
           
 
66,047,534 
    Virginia—6.4%          
12,980   Alexandria Redev. & Hsg. Auth., Local Hsg. RB, 3001 Pk. Ctr. Apts. Proj., Ser. A, 6.375%,          
       4/01/34   04/08 @ 103     13,468,827 
9,000   Halifax Cnty. Indl. Dev. Auth., Indl. RB, Old Dominion Elec. Coop. Proj., 5.625%,          
       6/01/28, AMBAC, AMT   06/13 @ 101  
 
9,738,180 
           
 
23,207,007 
    Washington—1.9%          
1,960   Cnty. of King, Swr. RB, 5.00%, 1/01/36, FSA   01/16 @ 100     2,040,399 
4,820   Hlth. Care Facs. Auth., Hlth., Hosp. & Nursing Home RB, Providence Hlth. Sys. Proj., Ser.          
       A, 4.625%, 10/01/34, FGIC   10/16 @ 100  
 
4,742,543 
           
 
6,782,942 
    West Virginia—1.8%          
1,115   Econ. Dev. Auth., Correctional Fac. Impvts. Lease RB, Correctional Juvenile Safety Proj.,          
       Ser. A, 5.00%, 6/01/29, MBIA   06/14 @ 100     1,160,380 
5,000   Mason Cnty. Poll. Ctrl., Rec. Recovery Impvts. RB, Appalachian Pwr. Co. Proj., Ser. L,          
       5.50%, 10/01/22   10/11 @ 100  
 
5,232,600 
           
 
6,392,980 
    Wisconsin—2.7%          
    Hlth. & Edl. Facs. Auth., Hlth., Hosp. & Nursing Home RB,          
3,930      Aurora Hlth. Care Proj., 6.40%, 4/15/33   04/13 @ 100     4,322,803 
5,000 4    Wheaton Franciscan Svcs. Proj., 5.75%, 2/15/12   N/A  
 
5,410,650 
           
 
9,733,453 
    Total Long-Term Investments (cost $518,085,582)      
 
559,533,254 
Shares              
(000)              
    MONEY MARKET FUND—1.0%          
3,500
 6,7 Merrill Lynch Institutional Tax Exempt Fund, 3.60% (cost $3,500,000)      
 
3,500,000 
    Total Investments —154.8% (cost $521,585,5828)      
$
 563,033,254 
    Other assets in excess of liabilities —1.7%         6,261,059 
    Preferred shares at redemption value, including dividends payable —(56.5)%      
 
(205,616,802)
    Net Assets Applicable to Common Shareholders —100%      
$
363,677,511 

 

 
1      Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.
 
2 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of May 31, 2007, the Trust held 5.1% of its net assets, with a current market value of $18,399,139, in securities restricted as to resale.
 
3 Security is collateralized by Municipal or U.S. Treasury obligations.
 
4 This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par.
 
5 Illiquid security. As of May 31, 2007, the Trust held 0.3% of its net assets, with a current market value of $960,188, in these securities.
 
6 Represents an investment in an affiliate.
 
7 Represents current yield as of May 31, 2007.
 
8 Cost for federal income tax purposes is $521,564,677. The net unrealized appreciation on a tax basis is $41,468,577, consisting of $41,977,884 gross unrealized appreciation and $509,307 gross unrealized depreciation.
 

4

BlackRock Municipal Income Trust II (BLE) (continued)
(Percentages shown are based on Net Assets)

 
 
KEY TO ABBREVIATIONS
 
ACA —   American Capital Access  
MBIA
  —   Municipal Bond Insurance Assoc. 
AMBAC —   American Municipal Bond Assurance Corp.  
RAA
  —   Radian Asset Assurance 
AMT —   Subject to Alternative Minimum Tax  
RB
  —   Revenue Bond 
ETM —   Escrowed to Maturity  
SA
  —   Special Assessment 
FGIC —   Financial Guaranty Insurance Co.  
ST
  —   Special Tax 
FSA —   Financial Security Assurance  
TA
  —   Tax Allocation 
GO —   General Obligation  
XLCA
  —   XL Capital Assurance 
 

5

Item 2. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrant’s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-Q was recorded, processed, summarized, and reported within the required time periods and that information to be disclosed by the Registrant in this Form N-Q was accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a -3(d)) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 3. Exhibits.

Separate certifications of the Registrant’s Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as 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.

(Registrant) 
       BlackRock Municipal Income Trust II       
   
By: 
     /s/ Donald C. Burke
Name: Donald C. Burke
Title: Treasurer and Principal Financial Officer
Date: July 25, 2007

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

By: 
     /s/ Robert S. Kapito
Name: Robert S. Kapito
Title: President and Principal Executive Officer
Date: July 25, 2007
   
By: 
     /s/ Donald C. Burke
Name: Donald C. Burke
Title: Treasurer and Principal Financial Officer
Date: July 25, 2007