BLACKROCK INCOME TRUST, INC.

Regulatory Filings • Jul 26, 2012

N-Q 1 i00311_bkt-nq.htm

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 811-05542

Name of Fund: BlackRock Income Trust, Inc. (BKT)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Income Trust, Inc., 55 East 52 nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 08/31/2012

Date of reporting period: 05/31/2012

Item 1 – Schedule of Investments

insert

Schedule of Investments May 31, 2012 (Unaudited) BlackRock Income Trust, Inc. (BKT) (Percentages shown are based on Net Assets)

| Asset-Backed
Securities | Par (000) | | |
| --- | --- | --- | --- |
| Asset-Backed Securities – 1.9% | | | |
| First Franklin Mortgage Loan Asset-Backed Certificates, Series 2005-FF2, Class M2, 0.68%, 3/25/35 (a) | $ 5,890 | $ | 5,541,412 |
| Freddie Mac Mortgage-Backed Securities, Series T-11, Class A9, 2.65%, 1/25/28 (a) | 2,058 | | 1,942,772 |
| Securitized Asset-Backed Receivables LLC Trust, Series 2005-OP2, Class M1, 0.67%, 10/25/35 (a) | 1,875 | | 1,138,905 |
| Small Business Administration Participation Certificates Class 1: | | | |
| Series 1996-20E, 7.60%, 5/01/16 | 112 | | 119,429 |
| Series 1996-20G, 7.70%, 7/01/16 | 173 | | 185,507 |
| Series 1996-20H, 7.25%, 8/01/16 | 211 | | 225,905 |
| Series 1996-20K, 6.95%, 11/01/16 | 307 | | 330,405 |
| Series 1997-20C, 7.15%, 3/01/17 | 133 | | 144,736 |
| | | | 9,629,071 |
| Interest Only Asset-Backed Securities – 0.2 | | | |
| Small Business Administration, Series 1, 2.00%, 4/01/15 | 1,483 | | 12,976 |
| Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (b) | 4,379 | | 333,879 |
| Sterling Coofs Trust, Series 1, 2.36%, 4/15/29 | 7,753 | | 605,698 |
| | | | 952,553 |
| Total Asset-Backed Securities – 2.1% | | | 10,581,624 |
| Non-Agency Mortgage-Backed Securities | | | |
| Collateralized Mortgage Obligations — 1.4% | | | |
| Collateralized Mortgage Obligation Trust, Series 40, Class R, 0.58%, 4/01/18 | 96 | | 96 |
| Countrywide Alternative Loan Trust, Series 2005-28CB, Class 1A5, 5.50%, 8/25/35 | 168 | | 166,093 |
| Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-AR5, Class 22A, 5.50%, 10/25/21 | 850 | | 821,649 |
| Homebanc Mortgage Trust, Series 2005-4, Class A1, 0.51%, 10/25/35 (a) | 2,969 | | 2,111,998 |
| Non-Agency Mortgage-Backed Securities | Par (000) | Value | |
| Collateralized Mortgage Obligations (concluded) | | | |
| JPMorgan Mortgage Trust, Series 2006-A7, Class 2A2, 2.72%, 1/25/37 (a) | $ 356 | $ | 244,932 |
| Kidder Peabody Acceptance Corp., Series 1993-1, Class A6, 16.20%, 8/25/23 (a) | 51 | | 57,068 |
| Residential Funding Securities LLC, Series 2003-RM2, Class AI5, 8.50%, 5/25/33 | 2,360 | | 2,516,703 |
| Structured Adjustable Rate Mortgage Loan Trust, Series 2004-11, Class A, 2.83%, 8/25/34 (a) | 1,388 | | 1,308,019 |
| | | | 7,226,558 |
| Commercial Mortgage-Backed Securities —
0.5% | | | |
| Credit Suisse Mortgage Capital Certificates, Series 2007-C2, Class A3, 5.54%, 1/15/49 (a) | 2,420 | | 2,593,197 |
| Interest Only Collateralized Mortgage
Obligations — 1.0% | | | |
| Bank of America Mortgage Securities Inc., Series 2003-3, Class 1A, 0.27%, 5/25/33 (a) | 62,999 | | 396,139 |
| CitiMortgage Alternative Loan Trust, Series 2007-A5, Class 1A7, 6.00%, 5/25/37 | 924 | | 148,404 |
| Collateralized Mortgage Obligation Trust, Series 42, Class R, 6.00%, 10/01/14 | — | (c) | 18 |
| First Boston Mortgage Securities Corp., Series C, 10.97%, 4/25/17 | 19 | | 2,623 |
| GSMPS Mortgage Loan Trust, Series 1998-5, 0.11%, 6/19/27 (a)(b) | 4,240 | | 92,523 |
| IndyMac INDX Mortgage Loan Trust, Series 2006-AR33, Class 4AX, 0.17%, 1/25/37 | 94,441 | | 472,204 |
| MASTR Adjustable Rate Mortgages Trust, Series 2004-3, Class 3AX, 0.98%, 4/25/34 | 11,591 | | 128,585 |
| MASTR Alternative Loans Trust, Series 2003-9, Class 15X2, 6.00%, 1/25/19 | 493 | | 63,024 |
| Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 1AX, 5.00%, 5/25/19 | 544 | | 50,741 |
| Sequoia Mortgage Trust, Series 2005-2, Class XA, 1.08%, 3/20/35 (a) | 37,991 | | 617,355 |
| Structured Adjustable Rate Mortgage Loan Trust, Series 2006-7, Class 3AS, 5.19%, 8/25/36 (a) | 25,532 | | 2,760,628 |

BLACKROCK INCOME TRUST, INC. MAY 31, 2012 1

Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

| Non-Agency
Mortgage-Backed Securities | Par (000) | | |
| --- | --- | --- | --- |
| Interest Only Collateralized Mortgage Obligations (concluded) | | | |
| Vendee Mortgage Trust, Series 1999-2, Class 1, 0.04%, 5/15/29 (a) | $ 51,965 | $ | 89,769 |
| | | | 4,822,013 |
| Interest Only Commercial Mortgage-Backed
Securities — 0.0% | | | |
| CS First Boston Mortgage Securities Corp., Series 1997-C1, Class AX, 1.31%, 6/20/29 (a)(b) | 2,459 | | 52,723 |
| Principal Only Collateralized Mortgage
Obligations — 0.6% | | | |
| Countrywide Home Loan Mortgage Pass- Through Trust: | | | |
| Series 2003-26, 8/25/33 | 1,349 | | 1,297,264 |
| Series 2003-J4, 6/25/33 | 277 | | 264,652 |
| Series 2003-J5, 7/25/33 | 408 | | 390,382 |
| Series 2003-J8, 9/25/23 | 312 | | 307,175 |
| Drexel Burnham Lambert CMO Trust, Class 1: | | | |
| Series K, 9/23/17 | 8 | | 7,516 |
| Series V, 9/01/18 | 22 | | 21,817 |
| MASTR Asset Securitization Trust, Series 2004-3, Class 4A15, 3/25/34 | 53 | | 48,973 |
| Residential Asset Securitization Trust, Series 2005-A15, Class 1A8, 2/25/36 | 796 | | 590,688 |
| Structured Mortgage Asset Residential Trust, Series 1993- 3C, Class CX, 4/25/24 | 7 | | 5,337 |
| Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2005-9, Class CP, 11/25/35 | 507 | | 319,142 |
| | | | 3,252,946 |
| Total Non-Agency Mortgage-Backed Securities – 3.5% | | | 17,947,437 |
| US Government Sponsored Agency Securities | | | |
| Agency Obligations — 2.5% | | | |
| Federal Housing Administration: | | | |
| General Motors Acceptance Corp. Projects, Series 56, 7.43%, 1/01/22 | 205 | | 200,657 |
| Merrill Projects, Series 54, 7.43%, 5/15/23 | 2 | | 1,855 |
| Reilly Projects, Series 41, 8.28%, 3/01/20 | 208 | | 207,084 |
| USGI Projects, Series 87, 7.43%, 12/01/22 | 63 | | 62,052 |
| USGI Projects, Series 99, 7.43%, 6/01/21 | 4,178 | | 4,094,757 |
| USGI Projects, Series 99, 7.43%, 10/01/23 | 1558 | | 151,569 |
| US Government Sponsored Agency Securities | Par (000) | Value | |
| Agency Obligations (concluded) | | | |
| Resolution Funding Corp., 2.71%, 4/15/30 (d) | $ 13,000 | $ | 8,034,481 |
| | | | 12,752,455 |
| Collateralized Mortgage Obligations — 13.1% | | | |
| Fannie Mae Mortgage-Backed Securities: | | | |
| Series 7, Class 2, 8.50%, 4/01/17 | 4 | | 555 |
| Series 89, Class 2, 8.00%, 10/01/18 | 6 | | 837 |
| Series 94, Class 2, 9.50%, 8/01/21 | 2 | | 447 |
| Series 1991-46, Class S, 2,461.75%, 5/25/21 (a) | — | (c) | 4,879 |
| Series 1991-87, Class S, 26.02%, 8/25/21 (a) | 44 | | 69,203 |
| Series 1993-199, Class SB, 7.25%, 10/25/23 (a) | 607 | | 75,647 |
| Series 1993-247, Class SN, 10.00%, 12/25/23 (a) | 346 | | 424,203 |
| Series 1997-90, Class M, 6.00%, 1/25/28 | 4,994 | | 865,804 |
| Series 2003-32, Class VT, 6.00%, 9/25/15 | 903 | | 904,266 |
| Series 2003-135, Class PB, 6.00%, 1/25/34 | 12,264 | | 14,500,343 |
| Series 2004-31, Class ZG, 7.50%, 5/25/34 | 3,355 | | 4,383,610 |
| Series 2005-43, Class IC, 6.00%, 3/25/34 | 10 | | 60 |
| Series 2005-73, Class DS, 16.91%, 8/25/35 (a) | 2,669 | | 3,558,579 |
| Series 2010-75, Class PI, 4.50%, 12/25/36 | 14,008 | | 412,316 |
| Series G-7, Class S, 1,116.37%, 3/25/21 (a) | — | (c) | 3,883 |
| Series G-12, Class S, 1,146.44%, 5/25/21 (a) | — | (c) | 10,198 |
| Series G-17, Class S, 1,055.17%, 6/25/21 (a) | — | (c) | 4,737 |
| Series G-33, Class PV, 1.08%, 10/25/21 | 236 | | 4,315 |
| Series G-49, Class S, 1,008.80%, 12/25/21 (a) | — | (c) | 1,570 |
| Series G92-5, Class H, 9.00%, 1/25/22 | 69 | | 9,920 |
| Series G92-12, Class C, 1.02%, 2/25/22 | 204 | | 3,561 |
| Freddie Mac Mortgage-Backed Securities: | | | |
| Series 19, Class R, 16,195.30%, 3/15/20 (a) | — | (c) | 1,072 |
| Series 40, Class K, 6.50%, 8/17/24 | 311 | | 360,468 |
| Series 75, Class R, 9.50%, 1/15/21 | — | (c) | 2 |

BLACKROCK INCOME TRUST, INC. MAY 31, 2012 2

Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

| US
Government Sponsored Agency Securities | Par (000) | | Value |
| --- | --- | --- | --- |
| Collateralized Mortgage Obligations (concluded) | | | |
| Freddie Mac Mortgage-Backed Securities (concluded): | | | |
| Series 75, Class RS, 28.10%, 1/15/21 (a) | $ — | (c) | $ 2 |
| Series 119, Class F, 8.50%, 3/15/20 | 68 | | 73,646 |
| Series 173, Class R, 9.00%, 11/15/21 (a)(b) | 11 | | 11 |
| Series 173, Class RS, 9.23%, 11/15/21 (a) | — | (c) | 11 |
| Series 192, Class U, 1,009.03%, 2/15/22 (a) | — | (c) | 54 |
| Series 1043, Class H, 43.90%, 2/15/21 (a) | 7,853 | | 16,807 |
| Series 1054, Class I, 859.64%, 3/15/21 (a) | — | (c) | 1,353 |
| Series 1057, Class J, 1.01%, 3/15/21 | 73 | | 1,679 |
| Series 1160, Class F, 39.10%, 10/15/21 (a) | 16 | | 32,023 |
| Series 2218, Class Z, 8.50%, 3/15/30 | 4,910 | | 5,706,077 |
| Series 2542, Class UC, 6.00%, 12/15/22 | 6,568 | | 7,356,838 |
| Series 2758, Class KV, 5.50%, 5/15/23 | 9,021 | | 10,176,116 |
| Series 2927, Class BZ, 5.50%, 2/15/35 (a) | 3,089 | | 3,863,094 |
| Series 2861, Class AX, 10.44%, 9/15/34 (a) | 169 | | 189,526 |
| Series 3744, Class PI, 4.00%, 6/15/39 | 19,980 | | 3,037,171 |
| Series 3745, Class IN, 4.00%, 1/15/35 (a) | 44,190 | | 4,493,470 |
| Ginnie Mae Mortgage-Backed Securities: | | | |
| Series 1996-5, Class Z, 7.00%, 5/16/26 | 478 | | 514,029 |
| Series 2001-33, Class PB, 6.50%, 7/20/31 | 815 | | 940,660 |
| Series 2004-89, Class PE, 6.00%, 10/20/34 | 3,392 | | 3,660,031 |
| Series 2010-101, Class YT, 2.00%, 8/16/13 | 52,722 | | 1,030,192 |
| | | | 66,693,265 |
| Federal Deposit Insurance Corporation
Guaranteed — 0.8% | | | |
| Citigroup Funding, Inc., 1.88%, 10/22/12 | 3,800 | | 3,825,369 |
| Interest Only Collateralized Mortgage
Obligations — 4.5% | | | |
| Fannie Mae Mortgage-Backed Securities: | | | |
| 4.50%, 4/01/41 | 2,735 | | 2,947,510 |
| Series 1990-123, Class M, 1,009.50%, 10/25/20 | — | (c) | 518 |
| US Government Sponsored Agency Securities | Par (000) | | Value |
| Interest Only Collateralized Mortgage
Obligations (concluded) | | | |
| Freddie Mac Mortgage-Backed Securities (concluded): | | | |
| Series 1990-136, Class S, 19.80%, 11/25/20 (a) | $ 10,777 | | $ 16,543 |
| Series 1991-99, Class L, 930.00%, 8/25/21 | — | (c) | 2,083 |
| Series 1991-139, Class PT, 648.35%, 10/25/21 | — | (c) | 3,590 |
| Series 1999-W4, 6.50%, 12/25/28 | 309 | | 59,060 |
| Series 2003-80, Class DI, 5.50%, 10/25/31 | 7,102 | | 480,985 |
| Series 2010-74, Class DI, 5.00%, 12/25/39 | 46,584 | | 3,706,629 |
| Series 2010-126, Class UI, 5.50%, 10/25/40 | 19,181 | | 3,053,176 |
| Series G-10, Class S, 1,080.00%, 5/25/21 (a) | — | (c) | 11,722 |
| Freddie Mac Mortgage-Backed Securities: | | | |
| Series 176, Class M, 1,010.00%, 7/15/21 | — | (c) | 570 |
| Series 200, Class R, 196,075.58%, 12/15/22 (a) | — | (c) | 12 |
| Series 1056, Class KD, 1.08%, 3/15/21 | 50 | | 1,274 |
| Series 1148, Class E, 1,167.37%, 10/15/21 (a) | — | (c) | 3,814 |
| Series 2559, 0.50%, 8/15/30 (a) | 167 | | 1,742 |
| Series 2611, Class QI, 5.50%, 9/15/32 | 3,045 | | 358,666 |
| Series 2949, 5.50%, 3/15/35 | 505 | | 25,197 |
| Ginnie Mae Mortgage-Backed Securities (a): | | | |
| Series 2007-41, Class SL, 6.46%, 7/20/37 | 9,578 | | 1,695,180 |
| Series 2011-52, Class MJ, 6.41%, 4/20/41 | 27,837 | | 5,202,422 |
| Series 2011-52, Class NS, 6.43%, 4/16/41 | 29,401 | | 5,218,065 |
| | | | 22,788,758 |
| Mortgage-Backed Securities — 104.7% | | | |
| Fannie Mae Mortgage-Backed Securities: | | | |
| 3.50%, 6/13/42 (f) | 7,000 | | 7,346,718 |
| 4.00%, 1/01/41 – 6/13/42 (f) | 55,323 | | 58,952,363 |
| 4.50%, 8/01/25 – 6/13/42 (e)(f)(g) | 175,212 | | 190,885,375 |
| 5.00%, 1/01/23 - 6/13/42 (e)(f) | 109,778 | | 119,763,152 |
| 5.50%, 2/01/33 – 6/01/38 (f)(g) | 75,725 | | 82,976,653 |
| 5.97%, 8/01/16 | 3,025 | | 3,460,867 |
| 6.00%, 6/13/42 (f) | 21,800 | | 23,997,030 |
| 6.50%, 12/01/37 - 10/01/39 | 38,614 | | 43,593,730 |
| 7.50%, 2/01/22 | — | (c) | 115 |
| 9.50%, 1/01/19 - 9/01/19 | 2 | | 2,652 |

BLACKROCK INCOME TRUST, INC. MAY 31, 2012 3

Schedule of Investments (continued) BlackRock Income Trust, Inc. (BKT) (Percentages shown are based on Net Assets)

| US
Government Sponsored Agency Securities | Par (000) | Value | |
| --- | --- | --- | --- |
| Mortgage-Backed Securities (concluded) | | | |
| Freddie Mac Mortgage-Backed Securities: | | | |
| 0.20%, 10/01/34 (a) | $ 299 | $ 310,263 | |
| 2.48%, 1/01/35 (a) | 199 | 202,361 | |
| 2.73%, 11/01/17 | 13 | 14,019 | |
| 5.00%, 2/01/22 - 4/01/22 | 816 | 879,014 | |
| 9.00%, 9/01/20 | 43 | 48,898 | |
| Ginnie Mae Mortgage-Backed Securities: | | | |
| 7.50%, 8/15/21 - 12/15/23 | 172 | 185,177 | |
| 8.00%, 10/15/22 - 8/15/27 | 67 | 75,314 | |
| 9.00%, 6/15/18 - 9/15/21 | 8 | 7,999 | |
| | | 532,701,700 | |
| Principal Only Collateralized Mortgage
Obligations — 0.4% | | | |
| Fannie Mae Mortgage-Backed Securities: | | | |
| Series 203, Class 1, 2/01/23 | 17 | 15,517 | |
| Series 228, Class 1, 6/01/23 | 13 | 11,480 | |
| Series 1991-7, Class J, 2/25/21 | 18 | 16,007 | |
| Series 1993-51, Class E, 2/25/13 | 57 | 51,554 | |
| Series 1993-70, Class A, 5/25/23 | 9 | 8,285 | |
| Series 1996-68, Class SC, 1/25/24 | 225 | 6,255 | |
| Series 1997-50, Class SI, 4/25/23 | 302 | 11,053 | |
| Series 1999-W4, Class PO, 2/25/29 | 158 | 151,808 | |
| Series 2002-13, Class PR, 3/25/32 | 327 | 315,615 | |
| Series G92-60, Class SB, 10/25/22 | 213 | 9,028 | |
| Series G93-2, Class KB, 1/25/23 | 148 | 130,642 | |
| Freddie Mac Mortgage-Backed Securities: | | | |
| Series 1418, Class M, 11/15/22 | 61 | 55,555 | |
| Series 1571, Class G, 8/15/23 | 385 | 351,441 | |
| Series 1691, Class B, 3/15/24 | 782 | 687,835 | |
| Series 1793, Class B, 2/15/24 | 11 | 11,192 | |
| Series T-8, Class A10, 11/15/28 | 127 | 121,563 | |
| | | 1,954,830 | |
| Total US Government Sponsored Agency Securities – 126.0% | | 640,716,377 | |
| US Treasury Obligations | | | |
| US Treasury Bonds (e): | | | |
| 3.13%, 2/15/42 | 22,410 | 24,503,945 | |
| 3.00%, 5/15/42 | 46,715 | 49,875,550 | |
| US Treasury Notes: | | | |
| 0.88%, 4/30/17 (e) | 2,370 | 2,395,181 | |
| 0.63%, 5/31/17 (e) | 18,165 | 18,125,255 | |
| 1.13%, 5/31/19 | 3,140 | 3,160,605 | |
| 2.00%, 2/15/22 (e) | 17,930 | 18,654,211 | |
| 1.75%, 5/15/22 (e) | 13,065 | 13,269,141 | |
| Total US Treasury Obligations – 25.6% | | 129,983,888 | |
| Total Long-Term Investments (Cost – $775,851,145) – 157.2% | | 799,229,326 | |
| Short-Term
Securities | Par (000) | Value | |
| Borrowed Bond Agreements — 3.7% | | | |
| US Treasury Bills: | | | |
| 0.00%, Open 1 | $ 438 | $ 437,800 | |
| 0.13%, Open 1 | 7,264 | 7,264,256 | |
| 0.14%, Open 1 | 938 | 938,400 | |
| 0.15%, Open 1 | 6,508 | 6,508,450 | |
| 0.16%, Open 1 | 101 | 100,750 | |
| 0.16%, Open 1 | 3,760 | 3,760,294 | |
| | | 19,009,950 | |
| | Shares | | |
| Money Market Fund — 0.4% | | | |
| BlackRock Liquidity Funds, TempFund, Institutional Class, 0.15% (h)(i) | 2,214,550 | 2,214,550 | |
| Total Short-Term Securities (Cost – $21,224,500) – 4.1% | | 21,224,500 | |
| Total Investments Before Borrowed Bonds and TBA Sale Commitments (Cost – $797,075,645*) – 161.3% | | 820,453,826 | |
| Borrowed Bonds | Par (000) | | |
| US Treasury Notes: | | | |
| 1.25%, 2/15/14 | $ 920 | (935,237 | ) |
| 2.13%, 2/29/16 | 6,845 | (7,258,376 | ) |
| 1.00%, 10/31/16 | 3,765 | (3,832,062 | ) |
| 0.88%, 12/31/16 | 6,460 | (6,535,201 | ) |
| 0.88%, 2/28/17 | 440 | (445,053 | ) |
| 1.00%, 3/31/17 | 100 | (101,688 | ) |
| Total Borrowed Bonds (Proceeds – $18,486,329) – (3.7)% | | (19,107,617 | ) |
| TBA Sale Commitments (f) | | | |
| Fannie Mae Mortgage-Backed Securities: | | | |
| 4.50%, 8/01/25 – 6/13/42 | 13,300 | (14,245,548 | ) |
| 5.00%, 1/01/23 - 6/13/42 | 900 | (970,734 | ) |
| Total TBA Sale Commitments (Proceeds – $15,263,860) – (3.0)% | | (15,216,282 | ) |

BLACKROCK INCOME TRUST, INC. MAY 31, 2012 4

Schedule of Investments (continued) BlackRock Income Trust, Inc. (BKT) (Percentages shown are based on Net Assets)

Total Investments, Net of Borrowed Bonds and TBA Sale Commitments – 154.6%	Value — $ 786,129,927
Liabilities in Excess of Other Assets –
(54.6)%	(277,594,919	)
Net Assets – 100.0%	$ 508,535,008

• As of May 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$
Gross
unrealized appreciation	$ 44,499,527
Gross
unrealized depreciation	(21,108,395	)
Net
unrealized appreciation	$ 23,391,132

| 1 | Certain
agreements have no stated maturity and can be terminated by either party at
any time. |
| --- | --- |
| (a) | Variable
rate security. Rate shown is as of report date. |
| (b) | Security
exempt from registration pursuant to Rule 144A under the Securities Act of
1933, as amended. These securities may be resold in transactions exempt from
registration to qualified institutional investors. |
| (c) | Amount is
less than $500. |
| (d) | Represents a
zero-coupon bond. Rate shown reflects the current yield as of report date. |
| (e) | All or a
portion of security has been pledged as collateral in connection with open
reverse repurchase agreements. |
| (f) | Represents
or includes a TBA transaction. Unsettled TBA transactions as of May 31, 2012
were as follows: |

Counterparty — BNP Paribas	Value — $ 524,766		Unrealized Appreciation (Depreciation) — $ 6,016
Credit Suisse Securities (USA) LLC	$ 34,460,936		$ (63,533	)
Goldman Sachs & Co.	$ 61,905,421		$ (239,079	)
JPMorgan Chase Securities, Inc.	$ 24,537,499		$ 76,264
Morgan Stanley & Co., Inc.	$ 321,328		$ (1,172	)
UBS AG	$ (14,245,548	)	$ 43,640

| (g) | All or a
portion of security has been pledged as collateral in connection with swaps. |
| --- | --- |
| (h) | Investments
in companies considered to be an affiliate of the Trust during the period,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows: |

Affiliate — BlackRock Liquidity Funds, TempFund, Institutional Class	3,958,025	(1,743,475	)	2,214,550	Income — $ 7,604

(i) Represents the current yield as of report date.

Portfolio Abbreviations
To simplify
the listings of portfolio holdings in the Schedule of Investments, the names
and descriptions of many of the securities have been abbreviated according to
the following list:
LIBOR	London-Interbank
Offered Rate
TBA	To Be
Announced

BLACKROCK INCOME TRUST, INC. MAY 31, 2012 5

Schedule of Investments (continued) BlackRock Income Trust, Inc. (BKT)

| • | For Trust compliance
purposes, the Trust’s industry classifications refer to any one or more of
the industry sub-classifications used by one or more widely recognized market
indexes or rating group indexes, and/or as defined by Trust management. These
definitions may not apply for purposes of this report, which may combine such
industry sub-classifications for reporting ease. |
| --- | --- |
| • | Reverse repurchase
agreements outstanding as of May 31, 2012 were as follows: |

| Counterparty | Interest Rate | | Trade Date | Maturity Date | Net
Closing Amount | Face Amount |
| --- | --- | --- | --- | --- | --- | --- |
| Barclays Capital, Inc. | 0.32 | % | 5/11/12 | 6/13/12 | $ 60,897,446 | $ 60,886,081 |
| BNP Paribas Securities Corp. | 0.23 | % | 5/31/12 | 6/01/12 | 18,096,997 | 18,096,881 |
| BNP Paribas Securities Corp. | 0.25 | % | 5/31/12 | 6/01/12 | 6,547,545 | 6,547,500 |
| BNP Paribas Securities Corp. | 0.18 | % | 5/31/12 | 6/01/12 | 49,342,965 | 49,342,719 |
| Credit Suisse Securities (USA) LLC | 0.17 | % | 5/31/12 | 6/01/12 | 2,393,711 | 2,393,700 |
| Credit Suisse Securities (USA) LLC | (0.02 | )% | 5/31/12 | 6/01/12 | 5,511,309 | 5,511,312 |
| Morgan Stanley & Co.,
Inc. | 0.20 | % | 5/31/12 | 6/01/12 | 3,207,418 | 3,207,400 |
| Morgan Stanley & Co.,
Inc. | 0.23 | % | 5/31/12 | 6/01/12 | 53,343,578 | 53,343,238 |
| Total | | | | | $ 199,340,969 | $ 199,328,831 |

• Financial futures contracts purchased as of May 31, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value	Unrealized Appreciation
101	90-Day
Euro Dollar	Chicago
Mercantile	June
2012	$ 25,130,062	$ 2,910
115	90-Day
Euro Dollar	Chicago
Mercantile	September
2012	$ 28,590,437	8,091
43	Ultra
Long US Treasury Bond	Chicago
Board of Trade	September
2012	$ 7,267,000	196,304
44	90-Day
Euro Dollar	Chicago
Mercantile	December
2012	$ 10,932,900	1,566
16	90-Day
Euro Dollar	Chicago
Mercantile	March
2013	$ 3,974,800	600
57	90-Day
Euro Dollar	Chicago
Mercantile	June
2013	$ 14,158,088	1,759
51	90-Day
Euro Dollar	Chicago
Mercantile	September
2013	$ 12,666,488	4,318
18	90-Day
Euro Dollar	Chicago
Mercantile	December
2013	$ 4,469,400	1,975
Total					$ 217,523

• Financial futures contracts sold as of May 31, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value	Unrealized Depreciation
143	2-Year
US Treasury Note	Chicago
Board of Trade	September
2012	$ 31,518,094	$ (12,374	)
784	5-Year
US Treasury Note	Chicago
Board of Trade	September
2012	$ 97,363,000	(187,202	)
1,550	10-Year
US Treasury Note	Chicago
Board of Trade	September
2012	$ 207,603,125	(1,972,394	)
39	30-Year
US Treasury Bond	Chicago
Board of Trade	September
2012	$ 5,839,031	(98,436	)
13	90-Day
Euro Dollar	Chicago
Mercantile	March
2014	$ 3,227,250	(2,798	)
30	90-Day
Euro Dollar	Chicago
Mercantile	June
2014	$ 7,443,750	(15,581	)
30	90-Day
Euro Dollar	Chicago
Mercantile	September
2014	$ 7,438,875	(5,831	)
30	90-Day
Euro Dollar	Chicago
Mercantile	December
2014	$ 7,431,750	(8,595	)
30	90-Day
Euro Dollar	Chicago
Mercantile	March
2015	$ 7,425,000	(19,499	)
Total					$ (2,322,710	)

BLACKROCK INCOME TRUST, INC. MAY 31, 2012 6

Schedule of Investments (continued) BlackRock Income Trust, Inc. (BKT)

• Interest rate swaps outstanding as of May 31, 2012 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)	Unrealized Appreciation (Depreciation)
0.83% 1	3-month
LIBOR	Deutsche
Bank AG	7/27/12	$ 34,800	$ (17,773	)
4.88% 2	3-month
LIBOR	UBS
AG	3/21/15	$ 25,000	2,922,494
4.87% 2	3-month
LIBOR	Goldman
Sachs & Co.	1/25/16	$ 5,500	809,706
2.81% 2	3-month
LIBOR	Citibank
NA	2/06/16	$ 20,000	1,475,232
5.72% 2	3-month
LIBOR	JPMorgan
Chase & Co.	7/14/16	$ 5,400	1,065,575
4.31% 1	3-month
LIBOR	Deutsche
Bank AG	10/01/18	$ 60,000	(11,263,637	)
3.43% 2	3-month
LIBOR	JPMorgan
Chase & Co.	3/28/21	$ 6,000	1,152,607
5.41% 2	3-month
LIBOR	JPMorgan
Chase & Co.	8/15/22	$ 9,565	3,309,824
Total					$ (545,972	)

| 1 | Trust pays a fixed interest
rate and receives floating rate. |
| --- | --- |
| 2 | Trust pays a floating rate
and receives fixed rate. |

•
•	Level 1 — unadjusted price
quotations in active markets/exchanges for identical assets and liabilities
•	Level 2 — other observable
inputs (including, but not limited to: quoted prices for similar assets or
liabilities in markets that are active, quoted prices for identical or
similar assets or liabilities in markets that are not active, inputs other
than quoted prices that are observable for the assets or liabilities (such as
interest rates, yield curves, volatilities, prepayment speeds, loss
severities, credit risks and default rates) or other market-corroborated
inputs)
•	Level 3 — unobservable
inputs based on the best information available in the circumstances, to the
extent observable inputs are not available (including the Trust’s own
assumptions used in determining the fair value of investments and derivative
financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its semi-annual report.

BLACKROCK INCOME TRUST, INC. MAY 31, 2012 7

Schedule of Investments (continued) BlackRock Income Trust, Inc. (BKT)

The following tables summarize the inputs used as of May 31, 2012 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

Valuation Inputs	Level 1	Level 2			Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	—	$ 9,629,071	$	952,553	$ 10,581,624
Non-Agency Mortgage-Backed Securities	—	13,968,551		3,978,886	17,947,437
US Government Sponsored Agency Securities	—	635,997,293		4,719,084	640,716,377
US Treasury Obligations	—	129,983,888		—	129,983,888
Short-Term Securities:
Borrowed Bond Agreements	—	19,009,950		—	19,009,950
Money Market Fund	$ 2,214,550	—		—	2,214,550
Liabilities:
Investments:
Long-Term Investments:
Borrowed Bonds	—	(19,107,617	)	—	(19,107,617	)
TBA Sale Commitments	—	(15,216,282	)	—	(15,216,282	)
Total	$ 2,214,550	$ 774,264,854	$	9,650,523	$ 786,129,927

Valuation Inputs	Level 1		Level 2			Total
Derivative Financial
Instruments 1
Assets:
Interest rate contracts	$ 217,523		$ 10,735,438		—	$ 10,952,961
Liabilities:
Interest rate contracts	(2,322,710	)	(11,281,410	)	—	(13,604,120	)
Total	$ (2,105,187	)	$ (545,972	)	—	$ (2,651,159	)

1 Derivative financial instruments are swaps and financial futures contracts which are valued at the unrealized appreciation/depreciation on the instrument.

Certain of the Trust’s assets and liabilities are held at carrying or face amount, which approximates fair value for financial reporting purposes. As of May 31, 2012, such assets and liabilities are categorized within the disclosure hierarchy as follows:

Valuation Inputs	Level 1					Total
Assets:
Cash pledged as collateral for financial futures contracts	$ 2,000,000		—		—	$ 2,000,000
Cash pledged as collateral for swaps	2,464,000		—		—	2,464,000
Cash pledged as collateral for reverse repurchase agreements	841,000		—		—	841,000
Liabilities:
Cash held as collateral for swaps	(4,300,000	)	—		—	(4,300,000	)
Reverse repurchase agreements	—	$	(199,328,831	)	—	(199,328,831	)
Total	$ 1,005,000	$	(199,328,831	)	—	$ (198,323,831	)

There were no transfers between Level 1 and Level 2 during the period ended May 31, 2012.

BLACKROCK INCOME TRUST, INC. MAY 31, 2012 8

Schedule of Investments (concluded) BlackRock Income Trust, Inc. (BKT)

Certain of the Trust’s investments are categorized as Level 3 investments with values derived utilizing prices from prior transactions or third party pricing information without adjustment for which such inputs are unobservable. A significant change in the unobservable inputs could result in a significantly lower or higher value in such Level 3 investments.

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Asset-Backed Securities
Assets:
Opening balance, as of August 31, 2011	$ 1,038,628	$	4,432,527	$	5,096,285	$	10,567,440
Transfers into Level 3 1	—		—		—		—
Transfers out of Level 3 1	—		—		—		—
Accrued discounts/premiums	(298,457	)	44,888		(10,407	)	(263,976	)
Realized gain (loss)	—		(385	)	(10,541	)	(10,926	)
Change in unrealized appreciation/depreciation 2	212,382		(371,266	)	(72,473	)	(231,357	)
Purchases	—		—		—		—
Sales	—		(126,878	)	(283,780	)	(410,658	)
Closing
balance, as of May 31, 2012	$ 952,553	$	3,978,886	$	4,719,084	$	9,650,523

| 1 | Transfers into and
transfers out of Level 3 represent the beginning of the reporting period
value. |
| --- | --- |
| 2 | The change in unrealized
appreciation/depreciation on investments still held as of May 31, 2012 was
$(231,357). |

A reconciliation of Level 3 investments is presented when the Trust had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets.

BLACKROCK INCOME TRUST, INC. MAY 31, 2012 9

end

Item 2 –	Controls and Procedures
2(a) –	The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this
report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(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) 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
	Certifications – Attached hereto
	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.
	BlackRock Income Trust, Inc.
	By:	/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock Income Trust, Inc.
	Date: July 25, 2012
	Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
	By:	/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock Income Trust, Inc.
	Date: July 25, 2012
	By:	/s/ Neal J. Andrews
		Neal J. Andrews
		Chief Financial Officer (principal financial officer) of
		BlackRock Income Trust, Inc.
	Date: July 25, 2012