BLACKROCK INCOME TRUST, INC.

N-CSRS 1 c43027_ncsrs.htm

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: 811-05542

_ BlackRock Income Trust, Inc. _ (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 Income Trust, Inc. 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: October 31, 2006 ______ Date of reporting period: April 30, 2006 ______

Item 1. Reports to Stockholders. The Registrants semi-annual report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:

| FIXED

INCOME LIQUIDITY EQUITIES ALTERNATIVES BLACKROCK SOLUTIONS
BlackRock
Closed-End Funds
Semi-Annual Report
APRIL 30, 2006 (Unaudited)
BlackRock Broad Investment Grade
2009 Term Trust Inc. (BCT)
BlackRock Core Bond Trust (BHK)
BlackRock High Yield Trust (BHY)
BlackRock Income Opportunity
Trust (BNA)
BlackRock Income Trust Inc.
(BKT)
BlackRock Limited Duration
Income Trust (BLW)
BlackRock Strategic Bond Trust
(BHD)
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE	●

TABLE OF CONTENTS

Letter to Shareholders	1
Trusts Summaries	2
Financial
Statements
Portfolios of Investments	9
Statements of Assets and Liabilities	65
Statements of Operations	67
Statements of Cash Flows	69
Statements of Changes in Net Assets	71
Financial Highlights	74
Notes to Financial Statements	81
Dividend Reinvestment Plans	92
Additional Information	93
Section 19 Notices	94

Privacy Principles of the Trusts

The Trusts are committed to maintaining the privacy of shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information the Trusts collect, how we protect that information and why, in certain cases, we may share information with select other parties.

Generally, the Trusts do not receive any non-public personal information relating to their shareholders, although certain non-public personal information of shareholders may become available to the Trusts. The Trusts do not disclose any non-public personal information about their shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer agent or third-party administrator).

The Trusts restrict access to non-public personal information about their shareholders to BlackRock employees with a legitimate business need for the information. The Trusts maintain physical, electronic and procedural safeguards designed to protect the non-public personal information of their shareholders.

LETTER TO SHAREHOLDERS

April 30, 2006

Dear Shareholder:

We are pleased to report that during the six month period, the Trusts provided the opportunity to invest in various portfolios of fixed income securities. This report contains the Trusts unaudited and audited financial statements and a listing of the portfolios holdings.

The portfolio management team continuously monitors the fixed income markets and adjusts the portfolios in order to gain exposure to various issuers and security types. This strategy enables the Trusts to move among different sectors, credits and coupons to capitalize on changing market conditions.

The following table shows the Trusts yields, closing market prices per share and net asset values (NAV) per share as of April 30, 2006.

Trust	Yield 1		NAV
BlackRock Broad Investment
Grade 2009 Term Trust Inc. (BCT)	5.92 %	$ 15.20	$ 14.44
BlackRock Core Bond Trust
(BHK)	7.22	12.81	13.41
BlackRock High Yield Trust
(BHY)	8.20	8.10	7.57
BlackRock Income
Opportunity Trust (BNA)	7.18	10.34	10.80
BlackRock Income Trust
Inc. (BKT)	7.13	6.19	6.45
BlackRock Limited Duration
Income Trust (BLW)	8.17	17.89	19.08
BlackRock Strategic Bond
Trust (BHD)	8.59	12.30	13.58

1 Yield is based on closing market price. Past performance does not guarantee future results. These yields may increase/decrease due to an increase/decrease in the monthly distribution per share.

BlackRock, Inc. (BlackRock), a world leader in asset management, has a proven commitment to managing fixed income securities. As of March 31, 2006, BlackRock managed $309 billion in fixed income securities, including 20 open-end and 48 closed-end bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the worlds largest institutional investors. BlackRock Advisors, Inc., and its affiliate, BlackRock Financial Management, Inc., which manage the Trusts, are wholly owned subsidiaries of BlackRock, Inc.

On behalf of BlackRock, we thank you for your continued confidence and assure you that we remain committed to excellence in managing your assets.

Sincerely,
●	●
Laurence D. Fink Chief Executive Officer BlackRock Advisors, Inc.	Ralph L. Schlosstein President BlackRock Advisors, Inc.

TRUST SUMMARIES (unaudited) APRIL 30, 2006

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)

Trust Information

| Symbol on American Stock
Exchange: | BCT |
| --- | --- |
| Initial Offering Date: | June
17, 1993 |
| Closing Market Price as of
4/30/06: | $ 15.20 |
| Net Asset Value as of
4/30/06: | $ 14.44 |
| Yield on Closing Market
Price as of 4/30/06 ($15.20): 1 | 5.92% |
| Current Monthly
Distribution per Share: 2 | $ 0.075 |
| Current Annualized
Distribution per Share: 2 | $ 0.900 |

The table below summarizes the changes in the Trusts market price and NAV:

	4/30/06	10/31/05	Change	High	Low
Market Price	$15.20	$15.86	(4.16)%	$15.86	$14.85
NAV	$14.44	$14.63	(1.30)%	$14.65	$14.41

The following charts show the portfolio composition of the Trusts long-term investments and credit quality allocations of the Trusts corporate bond investments:

Portfolio Composition

Composition	April 30, 2006	October 31, 2005
U.S. Government and Agency Securities	45 %	46 %
Corporate Bonds	20	18
Agency Multiple Class Mortgage Pass-Through Securities	16	16
Taxable Municipal Bonds	9	9
Interest Only Mortgage-Backed Securities	6	6
Inverse Floating Rate Mortgage Securities	3	4
Mortgage Pass-Through Securities	1	1

Corporate Credit Breakdown 3

Credit Rating	April 30, 2006	October 31, 2005
AAA/Aaa	7 %	7 %
AA/Aa	54	54
A	22	23
BBB/Baa	8	15
BB/Ba	7
CCC/Caa	2	1

3 Using the higher of Standard & Poors (S&P), Moodys Investors Service (Moodys) or Fitch Ratings (Fitch) rating. Corporate bonds represented approximately 15.6% and 15.5% of net assets on April 30, 2006 and October 31, 2005, respectively.

TRUST SUMMARIES (unaudited) APRIL 30, 2006

BlackRock Core Bond Trust (BHK)

Trust Information

| Symbol on New York Stock
Exchange: | BHK |
| --- | --- |
| Initial Offering Date: | November
27, 2001 |
| Closing Market Price as of
4/30/06: | $ 12.81 |
| Net Asset Value as of
4/30/06: | $ 13.41 |
| Yield on Closing Market
Price as of 4/30/06 ($12.81): 1 | 7.22% |
| Current Monthly
Distribution per Share: 2 | $ 0.0771 |
| Current Annualized
Distribution per Share: 2 | $ 0.9252 |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | A change in the distribution
rate was declared on June 2, 2006. The Monthly Distribution per Share was
decreased to $0.0670. TheYield on Closing Market Price, Current Monthly
Distribution and Current Annualized Distribution do not reflect the new
distribution rate. A portion of the distribution may be deemed a tax return
of capital or net realized gain at fiscal year end. |

The table below summarizes the changes in the Trusts market price and NAV:

	4/30/06	10/31/05	Change	High	Low
Market Price	$12.81	$13.69	(6.43)%	$13.85	$12.45
NAV	$13.41	$14.27	(6.03)%	$14.36	$13.36

The following charts show the portfolio composition of the Trusts long-term investments and credit quality allocations of the Trusts corporate bond investments:

Portfolio Composition

Composition	April 30, 2006	October 31, 2005
Corporate Bonds	57 %	42 %
Mortgage Pass-Through Securities	11	15
Asset-Backed Securities	9	1
Agency Multiple Class Mortgage Pass-Through Securities	7
Commercial Mortgage-Backed Securities	7	6
Collateralized Mortgage Obligation Securities	4	2
U.S. Government and Agency Securities	2	31
Interest Only Asset-Backed Securities	1
Foreign Government Bonds	1	2
Interest Only Mortgage-Backed Securities	1	1

Corporate Credit Breakdown 3

| Credit
Rating | April 30, 2006 | October 31, 2005 |
| --- | --- | --- |
| AAA/Aaa | 7 % | 5 % |
| AA/Aa | 28 | 25 |
| A | 12 | 13 |
| BBB/Baa | 12 | 13 |
| BB/Ba | 10 | 12 |
| B | 24 | 23 |
| CCC/Caa | 4 | 6 |
| Not Rated | 3 | 3 |

3 Using the higher of S&Ps, Moodys or Fitchs rating. Corporate bonds represented approximately 55.8% and 53.3% of net assets on April 30, 2006 and October 31, 2005, respectively.

TRUST SUMMARIES (unaudited) APRIL 30, 2006

BlackRock High Yield Trust (BHY)

Trust Information

| Symbol on New York Stock
Exchange: | BHY |
| --- | --- |
| Initial Offering Date: | December
23, 1998 |
| Closing Market Price as of
4/30/06: | $ 8.10 |
| Net Asset Value as of
4/30/06: | $ 7.57 |
| Yield on Closing Market
Price as of 4/30/06 ($8.10): 1 | 8.20% |
| Current Monthly
Distribution per Share: 2 | $ 0.055333 |
| Current Annualized
Distribution per Share: 2 | $ 0.663996 |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. A portion of the distribution may be
deemed a tax return of capital or net realized gain at fiscal year end. |

The table below summarizes the changes in the Trusts market price and NAV:

	4/30/06	10/31/05	Change	High	Low
Market Price	$8.10	$7.36	10.05%	$8.89	$7.08
NAV	$7.57	$7.48	1.20%	$7.60	$7.38

The following charts show the portfolio composition and credit quality allocations of the Trusts corporate bond investments:

Corporate Portfolio Composition

Composition	April 30, 2006	October 31, 2005
Energy	18 %	19 %
Financial Institutions	13	14
Basic Materials	11	12
Media	9	7
Telecommunications	9	8
Technology	6	5
Consumer Products	5	7
Aerospace & Defense	5	3
Industrials	5	6
Building & Development	4	3
Entertainment &
Leisure	4	3
Containers & Packaging	3	2
Automotive	3	2
Health Care	2	4
Transportation	2	3
Ecological Services &
Equipment	1	1
Real Estate		1

Corporate Credit Breakdown 3

| Credit
Rating | April 30, 2006 | October 31, 2005 |
| --- | --- | --- |
| BBB/Baa | 3 % | 3 % |
| BB/Ba | 30 | 32 |
| B | 54 | 51 |
| CCC/Caa | 10 | 14 |
| C | 1 | |
| Not Rated | 2 | |

3 Using the higher of S&Ps, Moodys or Fitchs rating. Corporate bonds represented approximately 133.1% and 133.8% of net assets on April 30, 2006 and October 31, 2005, respectively.

TRUST SUMMARIES (unaudited) APRIL 30, 2006

BlackRock Income Opportunity Trust (BNA)

Trust Information

| Symbol on New York Stock
Exchange: | BNA |
| --- | --- |
| Initial Offering Date: | December
20, 1991 |
| Closing Market Price as of
4/30/06: | $ 10.34 |
| Net Asset Value as of
4/30/06: | $ 10.80 |
| Yield on Closing Market
Price as of 4/30/06 ($10.34): 1 | 7.18% |
| Current Monthly
Distribution per Share: 2 | $ 0.0619 |
| Current Annualized
Distribution per Share: 2 | $ 0.7428 |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | A change in the distribution
rate was declared on June 2, 2006. The Monthly Distribution per Share was
decreased to $0.0550. The Yield on Closing Market Price, Current Monthly
Distribution and Current Annualized Distribution do not reflect the new
distribution rate. A portion of the distribution may be deemed a tax return
of capital or net realized gain at fiscal year end. |

The table below summarizes the changes in the Trusts market price and NAV:

	4/30/06	10/31/05	Change	High	Low
Market Price	$10.34	$10.90	(5.14)%	$11.06	$10.07
NAV	$10.80	$11.56	(6.57)%	$11.63	$10.76

The following charts show the portfolio composition of the Trusts long-term investments and credit quality allocations of the Trusts corporate bond investments:

Portfolio Composition

Composition	April 30, 2006	October 31, 2005
Corporate Bonds	45 %	35 %
U.S. Government and Agency Securities	13	37
Mortgage Pass-Through Securities	10	13
Asset-Backed Securities	9
Agency Multiple Class Mortgage Pass-Through Securities	9	5
Commercial Mortgaged-Backed Securities	4	4
Collateralized Mortgage Obligation Securities	4	1
Non-Agency Multiple Class Mortgage Pass-Through Securities	2	1
Federal Housing Administration Securities	1	1
Interest Only Asset-Backed Securities	1	1
Interest Only Mortgage-Backed Securities	1	1
Inverse Floating Rate Mortgage Securities	1	1

Corporate Credit Breakdown 3

Credit Rating	April 30, 2006	October 31, 2005
AAA/Aaa	10 %	8 %
AA/Aa	20	17
A	10	9
BBB/Baa	13	19
BB/Ba	14	15
B	25	24
CCC/Caa	5	6
Not Rated	3	2

3 Using the higher of S&Ps, Moodys or Fitchs rating. Corporate bonds represented approximately 49.1% and 46.6% of net assets on April 30, 2006 and October 31, 2005, respectively.

TRUST SUMMARIES (unaudited) APRIL 30, 2006

BlackRock Income Trust Inc. (BKT)

Trust Information

| Symbol on New York Stock
Exchange: | BKT |
| --- | --- |
| Initial Offering Date: | July
22, 1988 |
| Closing Market Price as of
4/30/06: | $ 6.19 |
| Net Asset Value as of
4/30/06: | $ 6.45 |
| Yield on Closing Market
Price as of 4/30/06 ($6.19): 1 | 7.13% |
| Current Monthly
Distribution per Share: 2 | $ 0.036787 |
| Current Annualized
Distribution per Share: 2 | $ 0.441444 |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. A portion of the distribution may be deemed
a tax return of capital or net realized gain at fiscal year end. |

The table below summarizes the changes in the Trusts market price and NAV:

	4/30/06	10/31/05	Change	High	Low
Market Price	$6.19	$5.90	4.92%	$6.52	$5.86
NAV	$6.45	$6.54	(1.22)%	$6.57	$6.44

The following chart shows the portfolio composition of the Trusts long-term investments:

Portfolio Composition

Composition	April 30, 2006	October 31, 2005
Mortgage Pass-Through
Securities	23 %	23 %
U.S. Government and Agency
Securities	22	30
Collateralized Mortgage
Obligation Securities	19	13
Agency Multiple Class Mortgage Pass-Through Securities	16	14
Interest Only
Mortgage-Backed Securities	7	7
Principal Only
Mortgage-Backed Securities	5	5
Non Agency Multiple Class Mortgage Pass-Through Securities	3	2
Federal Housing Administration
Securities	2	2
Inverse Floating Rate
Mortgage Securities	1	1
Interest Only Asset-Backed
Securities	1	1
Corporate Bonds	1
Collateralized Mortgage
Obligation Residual Securities		2

TRUST SUMMARIES (unaudited) APRIL 30, 2006

BlackRock Limited Duration Income Trust (BLW)

Trust Information

| Symbol on New York Stock
Exchange: | BLW |
| --- | --- |
| Initial Offering Date: | July
30, 2003 |
| Closing Market Price as of
4/30/06: | $ 17.89 |
| Net Asset Value as of
4/30/06: | $ 19.08 |
| Yield on Closing Market
Price as of 4/30/06 ($17.89): 1 | 8.17% |
| Current Monthly
Distribution per Share: 2 | $ 0.1218 |
| Current Annualized
Distribution per Share: 2 | $ 1.4616 |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | A change in the distribution
rate was declared on June 2, 2006. The Monthly Distribution per Share was
increased to $0.1250. The Yield on Closing Market Price, Current Monthly
Distribution and Current Annualized Distribution do not reflect the new
distribution rate. |

The table below summarizes the Trusts market price and NAV:

	4/30/06	10/31/05	Change	High	Low
Market Price	$17.89	$17.48	2.35%	$18.68	$16.54
NAV	$19.08	$19.17	(0.47)%	$19.22	$18.97

The following charts show the portfolio composition of the Trusts long-term investments and credit quality allocations of the Trusts corporate bond investments:

Portfolio Composition

Composition	April 30, 2006	October 31, 2005
Corporate Bonds	42 %	43 %
Bank Loans	35	32
Mortgage Pass-Through
Securities	14	15
U.S. Government and Agency
Securities	4	4
Foreign Government Bonds	2	2
Collateralized Mortgage
Obligations	1	1
Asset-Backed Securities	1	2
Interest Only Asset-Backed
Securities	1	1

Corporate Credit Breakdown 3

| Credit
Rating | April 30, 2006 | October 31, 2005 |
| --- | --- | --- |
| A | 3 % | 3 % |
| AA/Aa | 3 | |
| BBB/Baa | 8 | 9 |
| BB/Ba | 26 | 33 |
| B | 48 | 43 |
| CCC/Caa | 9 | 8 |
| Not Rated | 3 | 4 |

3 Using the higher of S&Ps, Moodys or Fitchs rating. Corporate bonds represented approximately 61.0% and 59.8% of net assets on April 30, 2006 and October 31, 2005, respectively.

TRUST SUMMARIES (unaudited) APRIL 30, 2006

BlackRock Strategic Bond Trust (BHD)

Trust Information

| Symbol on New York Stock
Exchange: | BHD |
| --- | --- |
| Initial Offering Date: | February
26, 2002 |
| Closing Market Price as of
4/30/06: | $ 12.30 |
| Net Asset Value as of
4/30/06: | $ 13.58 |
| Yield on Closing Market
Price as of 4/30/06 ($12.30): 1 | 8.59% |
| Current Monthly
Distribution per Share: 2 | $ 0.088 |
| Current Annualized
Distribution per Share: 2 | $ 1.056 |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | The distribution is not
constant and is subject to change. A portion of the distribution may be
deemed a tax return of capital or net realized gain at fiscal year end. |

The table below summarizes the changes in the Trusts market price and NAV:

	4/30/06	10/31/05	Change	High	Low
Market Price	$12.30	$12.45	(1.20)%	$13.23	$11.56
NAV	$13.58	$13.68	(0.73)%	$13.85	$13.52

The following charts show the portfolio composition and credit quality allocations of the Trusts corporate bond investments:

Corporate Portfolio Composition

Composition	April 30, 2006	October 31, 2005
Financial Institutions	21 %	21 %
Energy	12	12
Media	11	10
Telecommunications	8	8
Consumer Products	7	9
Aerospace & Defense	7	5
Basic Materials	6	5
Health Care	5	7
Entertainment &
Leisure	4	3
Technology	4	3
Automotive	3	3
Building & Development	3	2
Industrials	2	4
Real Estate	2	2
Ecological Services &
Equipment	2	2
Transportation	2	2
Containers & Packaging	1	1
Conglomerates		1

Corporate Credit Breakdown 3

| Credit
Rating | April 30, 2006 | October 31, 2005 |
| --- | --- | --- |
| AAA/Aaa | 4 % | 3 % |
| AA/Aa | 8 | 8 |
| A | 13 | 11 |
| BBB/Baa | 12 | 19 |
| BB/Ba | 13 | 11 |
| B | 39 | 36 |
| CCC/Caa | 8 | 9 |
| Not Rated | 3 | 3 |

3 Using the higher of S&Ps, Moodys or Fitchs rating. Corporate bonds represented approximately 114.7% and 122.7% of net assets on April 30, 2006 and October 31, 2005, respectively.

CONSOLIDATED PORTFOLIO OF INVESTMENTS (unaudited) APRIL 30, 2006

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)

Rating 1			Description	Value
			LONG-TERM
INVESTMENTS80.0%
			Mortgage
Pass-Through Securities1.0%
			Federal National Mortgage Assoc.,
$	411		5.50%,
1/01/17-2/01/17	$ 408,649
	15		6.50%, 7/01/29	15,776
			Total Mortgage Pass-Through Securities	424,425
			Agency Multiple
Class Mortgage Pass-Through Securities13.0%
			Federal Home Loan Mortgage Corp.,
	2,168		Ser. 1510, Class
G, 7.05%, 5/15/13	2,193,772
	2,000		Ser. 1598, Class
J, 6.50%, 10/15/08	2,017,719
			Federal National Mortgage Assoc.,
	39	2	Ser. 13, Class
SJ, 8.75%, 2/25/09	38,906
	1,000		Ser. 49, Class H,
7.00%, 4/25/13	1,020,140
	165	2	Ser. 214, Class
SK, 10.00%, 12/25/08	170,458
	100	2	Government National Mortgage Assoc., REMIC Trust
2000, 5.731%, 12/16/27	99,953
			Total Agency Multiple Class Mortgage Pass-Through
Securities	5,540,948
			Inverse
Floating Rate Mortgage Securities2.3%
AAA	185	2	Citicorp Mortgage Securities, Inc., 5.932%, 11/25/23	184,625
			Federal Home Loan Mortgage Corp.,
	162	2	Ser. 1425, Class
SB, 9.258%, 12/15/07	163,227
	30	2	Ser. 1506, Class
S, 11.833%, 5/15/08	30,595
	106	2	Ser. 1515, Class
S, 11.291%, 5/15/08	107,365
	68	2	Ser. 1618, Class
SA, 8.25%, 11/15/08	67,810
	32	2	Ser. 1661, Class
SB, 11.297%, 1/15/09	32,833
	121	2	Ser. 1688, Class
S, 8.794%, 12/15/13	120,771
			Federal National Mortgage Assoc.,
	95	2	Ser. 187, Class
SB, 14.266%, 10/25/07	97,319
	85	2	Ser. 191, Class
SD, 8.807%, 10/25/08	84,152
	118	2	Ser. 214, Class
SH, 5.345%, 12/25/08	114,495
			Total Inverse Floating Rate Mortgage Securities	1,003,192
			Interest
Only Mortgage-Backed Securities4.4%
			Federal Home Loan Mortgage Corp.,
	110		Ser. 65, Class I,
918.03%, 8/15/20	1,394
	27		Ser. 141, Class
H, 1,060.00%, 5/15/21	360
			Ser. 1114, Class
J, 1,008.00%, 7/15/06	119
	234		Ser. 1645, Class
IB, 5.50%, 9/15/08	6,457
	1,970		Ser. 2523, Class
EH, 5.50%, 4/15/20	158,909
	281		Ser. 2543, Class
IM, 5.00%, 9/15/12	1,869
	1,399		Ser. 2633, Class
PI, 4.50%, 3/15/12	39,335
	841		Ser. 2672, Class
TP, 5.00%, 9/15/16	6,417
	5,605		Ser. 2739, Class
PI, 5.00%, 3/15/22	434,652
	1,920		Ser. 2775, Class
UB, 5.00%, 12/15/17	65,532
	2,568		Ser. 2976, Class
KI, 5.50%, 11/15/34	275,917
			Federal National Mortgage Assoc.,
	1		Ser. 8, Class HA,
1,199.999%, 1/25/08	10,416
	2,016		Ser. 13, Class
IG, 5.00%, 10/25/22	120,404
	149	2	Ser. 20, Class
SL, 12.666%, 9/25/08	15,044
	4		Ser. 49, Class L,
444.917%, 4/25/13	38,508
	2		Ser. 51, Class K,
1,006.50%, 4/25/07	9,063
	12,992		Ser. 70, Class
ID, 5.00%, 4/25/22	654,938
			Ser. 72, Class H,
1,183.25%, 7/25/06	73
	296		Ser. 82, Class
IR, 5.00%, 9/25/12	3,737
	4	2	Ser. 174, Class
S, 111.644%, 9/25/22	10,982
	42	2	Ser. 208, Class
S, 2.531%, 2/25/23	158
			Ser. G-21, Class
L, 949.50%, 7/25/21	6,597
	15,981		Vendee Mortgage Trust, 0.04%, 10/15/31	30,828
			Total Interest Only Mortgage-Backed Securities	1,891,709

See Notes to Financial Statements.

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Principal
Only Mortgage-Backed Security0.1%
Aaa	$ 25	3	Salomon Brothers Mortgage Securities, Inc. VI,
12.50%, 10/23/17	$ 21,808
			Asset-Backed
Securities0.0%
NR	235	2,4,5,6	Global Rated Eligible Asset Trust, 7.33%, 9/15/07	23
			Structured Mortgage Asset Residential Trust,
NR	568	2,5,6	Ser. 2, 8.24%,
12/15/06	57
NR	629	2,5,6	Ser. 3, 8.724%,
4/15/07	63
			Total Asset-Backed Securities	143
			Corporate
Bonds15.6%
			Energy2.4%
A1	500		Conoco Funding Co., 5.45%, 10/15/06 (Canada)	500,382
BBB+	500	4	Israel Electric Corp. Ltd., 7.25%, 12/15/06 (Israel)	504,109
			Total Energy	1,004,491
			Financial
Institutions13.0%
Aa2	500		Bank of America Corp., 4.75%, 10/15/06	499,221
AAA	500		General Electric Capital Corp., 2.75%, 9/25/06	495,367
BB	500		General Motors Acceptance Corp., 6.125%, 9/15/06	497,595
AA-	500		Goldman Sachs Group, Inc., 2.85%, 10/27/06	494,025
A+	500		Lehman Brothers Holdings, Inc., 7.50%, 9/01/06	503,338
AA-	1,000		Morgan Stanley Group, Inc., 10.00%, 6/15/08	1,092,327
A+	500		SLM Corp., 3.50%, 9/30/06	496,987
Aa3	500		SunTrust Bank, 7.25%, 9/15/06	503,320
Aa1	500		U.S. Bank NA, 2.85%, 11/15/06	493,117
AA-	500		Wachovia Corp., 4.95%, 11/01/06	499,110
			Total Financial Institutions	5,574,407
			Transportation0.2%
Caa2	100		American Airlines, Inc., 10.44%, 3/04/07	102,000
			Total Corporate Bonds	6,680,898
			U.S.
Government and Agency Securities36.3%
			U.S. Treasury Notes,
	3,200		3.50%, 11/15/06	3,175,001
	2,000		6.00%, 8/15/09	2,066,718
	385		6.625%, 5/15/07	391,527
	10,000		U.S. Treasury Strip, Zero Coupon, 8/15/06	9,871,875
			Total U.S. Government and Agency Securities	15,505,121
			Taxable
Municipal Bonds7.3%
AAA	500		Fresno California Pension Oblig., 7.80%, 6/01/14	552,350
AAA	500		Kern County California Pension Oblig., 6.98%, 8/15/09	524,340
			Los Angeles County California Pension Oblig.,
AAA	1,000		Ser. A, 8.62%,
6/30/06	1,005,110
AAA	500		Ser. D, 6.97%,
6/30/08	516,360
AAA	500		Orleans Parish Louisiana School Board, 6.60%, 2/01/08	509,475
			Total Taxable Municipal Bonds	3,107,635
			Total
Long-Term Investments (cost $34,801,147)	34,175,879
			SHORT-TERM
INVESTMENT19.4%
			U.S.
Government and Agency Zero Coupon Bond19.4%
	8,300	7	Federal Home Loan Bank Discount Notes, 4.71%, 5/01/06
(cost $8,300,000)	8,300,000
			Total
Investments99.4% (cost $43,101,147 8 )	$ 42,475,879
			Other assets in excess of liabilities0.6%	239,030
			Net
Assets100%	$ 42,714,909

| 1 | Using the higher of
S&Ps, Moodys or Fitchs rating. |
| --- | --- |
| 2 | Variable rate security. Rate
shown is interest rate as of April 30, 2006. |
| 3 | Rate shown is interest rate
or effective yield as of April 30, 2006 of the underlying collateral. |
| 4 | 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 April 30, 2006, the Trust held 1.2% of its net
assets, with a current market value of $504,132, in securities restricted as
to resale. |
| 5 | Security is fair valued. |
| 6 | Illiquid security. As of
April 30, 2006, the Trust held less than 0.1% of its net assets, with a
current market value of $143 in these securities. |
| 7 | Rate shown is the yield to
maturity as of April 30, 2006. |
| 8 | Cost for Federal income tax
purposes is $43,101,147. The net unrealized depreciation on a tax basis is
$625,268, consisting of $365,558 gross unrealized appreciation and $990,826
gross unrealized depreciation. |

KEY TO ABBREVIATIONS
REMIC
Real Estate Mortgage Investment Conduit

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS (unaudited) APRIL 30, 2006

BlackRock Core Bond Trust (BHK)

Rating 1			Description
			LONG-TERM
INVESTMENTS98.9%
			Mortgage
Pass-Through Securities11.0%
			Federal Home Loan Mortgage Corp.,
$	1,875		3.01%, 4/19/07	$ 1,836,600
	88		5.00%, 8/01/33	83,307
	8,052		5.50%,
11/01/18-2/01/36	7,871,483
	3,294		6.00%,
2/01/13-12/01/18	3,331,696
	194	2	6.013%, 5/01/32	196,296
	31		7.00%, 9/01/31	32,120
			Federal National Mortgage Assoc.,
	870		1.75%, 6/16/06	866,246
	3,675	3	2.35%, 4/05/07	3,582,072
	52		4.50%, 2/01/20	49,949
	12,165		5.00%,
11/01/17-7/01/35	11,829,691
	4,262		5.50%,
1/01/18-1/01/36	4,156,375
	1,025		6.00%,
8/01/29-3/01/36	1,019,787
	382		7.00%,
1/01/31-7/01/32	392,674
	1,400		TBA, 5.00%,
5/16/21	1,362,813
	314		Government National Mortgage Assoc., 5.50%, 8/15/33	308,634
			Small Business Administration,
	908		Ser. P10B, Class
1, 4.754%, 8/01/14	856,938
	2,029		Ser. P10B, Class
1, 5.136%, 8/01/13	1,974,778
			Total Mortgage Pass-Through Securities	39,751,459
			Federal
Housing Administration Security0.3%
	1,062		FHA Hebre Home Hospital, 6.25%, 9/01/28	1,088,338
			Agency
Multiple Class Mortgage Pass-Through Securities7.0%
			Federal Home Loan Mortgage Corp.,
	2,553		Ser. 82, Class
HJ, 5.50%, 9/25/32	2,518,808
	1,504		Ser. 2825, Class
VP, 5.50%, 6/15/15	1,491,332
	1,300		Ser. 2883, Class
DR, 5.00%, 11/15/19	1,200,368
	3,557		Ser. 2922, Class
GA, 5.50%, 5/15/34	3,502,995
	1,910		Ser. 2927, Class
BA, 5.50%, 10/15/33	1,885,104
	1,847		Ser. 2933 Class
HD, 5.50%, 2/15/35	1,828,325
	1,600		Ser. 2968, Class
EG, 6.00%, 10/15/34	1,578,522
			Federal National Mortgage Assoc.,
	1,635		Ser. 3 Class AP,
5.50%, 2/25/35	1,625,448
	3,472		Ser. 5, Class PK,
5.00%, 12/25/34	3,387,800
	2,136		Ser. 27, Class
PC, 5.50%, 5/25/34	2,101,560
	2,129		Ser. 70, Class
NA, 5.50%, 8/25/35	2,084,354
	1,974	2	Ser. 118, Class
FD, 5.359%, 12/25/33	1,985,652
			Total Agency Multiple Class Mortgage Pass-Through
Securities	25,190,268
			Asset-Backed
Securities8.8%
AAA	2,825		Citibank Credit Card Issuance Trust, 4.85%, 2/10/11	2,797,112
			Countrywide Asset-Backed Certificates,
AAA	2,572	2	Ser. 15, Class
2AV1, 5.059%, 4/25/36	2,572,692
AAA	2,702	2	Ser. 16, Class
4AV1, 5.059%, 1/25/35	2,702,945
AAA	2,825		DaimlerChrysler Auto Trust, 5.00%, 5/08/10	2,813,432
AAA	2,850		Ford Credit Auto Owner Trust, 5.07%, 12/15/10	2,835,422
AAA	2,825		MBNA Credit Card Master Note Trust, 4.90%, 7/15/11	2,802,534
AAA	2,207	2	Merrill Lynch Mortgage Investors, Inc., 5.069%,
9/25/36	2,207,649
AAA	2,630	2	New Century Home Equity Loan Trust, 5.039%, 1/25/36	2,630,585
			SLM Student Loan Trust,
AAA	2,179	2	Ser. 5, Class A1,
5.10%, 1/25/18	2,179,334
AAA	812	2	Ser. 9, Class A2,
5.12%, 10/25/12	812,235
AAA	2,293	2	Ser. 10, Class
A1, 5.07%, 4/25/12	2,291,548
AAA	2,648	2	Structured Asset Investment Loan Trust, 5.039%,
1/25/36	2,649,966
AAA	2,725		USAA Auto Owner Trust, 5.04%, 12/15/11	2,705,887
			Total Asset-Backed Securities	32,001,341

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

Rating 1			Description	Value
			Interest
Only Asset-Backed Securities1.1%
			Sterling Coofs Trust,
$	28,253		Ser. 1, 2.362%,
4/15/29	$ 1,977,731
	30,350		Ser. 2, 1.00%,
3/30/30	2,124,500
			Total Interest Only Asset-Backed Securities	4,102,231
			Interest
Only Mortgage-Backed Securities0.9%
			Federal Home Loan Mortgage Corp.,
	2,923		Ser. 2579, Class
HI, 5.00%, 8/15/17	406,453
	7,231		Ser. 2611, Class
QI, 5.50%, 9/15/32	1,331,487
	32,031	2	Federal National Mortgage Assoc., 1.741%, 11/25/34	1,410,164
			Total Interest Only Mortgage-Backed Securities	3,148,104
			Commercial
Mortgage-Backed Securities6.9%
AAA	2,180	2	Banc of America Commerical Mortgage, Inc., 4.894%,
11/10/42	2,123,455
AAA	1,808		Commercial Mortgage Acceptance Corp., 6.03%, 9/15/30	1,813,353
AAA	2,720		Credit Suisse First Boston Mortgage Securities Corp.,
4.94%, 12/15/35	2,620,591
AAA	1,648		General Motors Acceptance Corp. Commercial Mortgage
Securities, Inc., 7.179%, 8/15/36	1,711,936
AAA	2,683		Goldman Sachs Mortgage Securities Corp. II, 6.135%,
10/18/30	2,700,471
AAA	1,677		Heller Financial Commercial Mortgage Asset Co.,
6.847%, 5/15/31	1,714,263
			JP Morgan Chase Commercial Mortgage Securities Corp.,
AAA	2,140		Ser. C1, Class
A3, 5.857%, 10/12/35	2,163,647
AAA	2,180		Ser. CBX, Class
A4, 4.529%, 1/12/37	2,071,680
AAA	1,770		JP Morgan Commercial Mortgage Finance Corp., 7.371%,
8/15/32	1,861,937
AAA	2,622		Morgan Stanley Capital Trust I, 6.48%, 11/15/30	2,670,614
AAA	3,500		Salomon Brothers Mortgage Securities VII, 7.52%,
12/18/09	3,717,713
			Total Commercial Mortgage-Backed Securities	25,169,660
			Collateralized
Mortgage Obligation Securities4.1%
			Federal Home Loan Mortgage Corp.,
	1,200		Ser. 2562, Class
PG, 5.00%, 1/15/18	1,148,654
	372		Ser. 2582, Class
TB, 3.50%, 10/15/21	370,317
	3,197		Ser. 2806, Class
VC, 6.00%, 12/15/19	3,184,040
			First Union National Bank Commercial Mortgage,
AAA	3,150		Ser. C3, Class A3,
6.423%, 8/15/33	3,237,475
AAA	2,265		Ser. C4, Class
A2, 6.223%, 12/12/33	2,327,197
AAA	2,350		General Motors Acceptance Corp. Commercial Mortgage
Securities, Inc., 4.93%, 7/10/39	2,261,508
AAA	2,741		Structured Asset Securities Corp., 3.45%, 2/25/32	2,459,530
			Total Collateralized Mortgage Obligation Securities	14,988,721
			Corporate
Bonds55.8%
			Aerospace
& Defense2.2%
B-	384		Aero Invest, 10.634%, 3/22/15 (Norway) (EUR)	501,517
B+	30		Armor Holdings, Inc., 8.25%, 8/15/13	32,025
			BE Aerospace, Inc.,
BB-	1,310		8.50%, 10/01/10	1,396,787
B	475		8.875%, 5/01/11	495,781
B-	1,430		DI Finance/DynCorp. Intl., 9.50%, 2/15/13	1,494,350
B	80		DRS Technologies, Inc., 7.625%, 2/01/18	81,600
			Northrop Grumman Corp.,
BBB+	615		4.079%, 11/16/06	611,058
BBB+	960		7.875%, 3/01/26	1,128,825
NR	1,190		Raytheon Co., 7.00%, 5/15/06	1,204,975
BB	90		Sequa Corp., 8.875%, 4/01/08	94,050
A+	1,125		United Technologies Corp., 4.875%, 5/01/15	1,059,080
			Total Aerospace & Defense	8,100,048
			Automotive0.8%
BB+	25		ArvinMeritor, Inc., 8.75%, 3/01/12	25,563
			Autonation, Inc.,
BB+	150	4	7.00%, 4/15/14	150,750
BB+	150	2,4	7.045%, 4/15/13	152,625
			Avis Budget Car Rental LLC,
BB-	30	2,4	7.576%, 5/15/14	30,862
BB-	65	4	7.75%, 5/15/16	66,300

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Automotive(contd)
A3	$ 660		DaimlerChrysler NA Holding Corp., 7.45%, 3/01/27	$ 681,184
CCC	90		Dura Operating Corp., 8.625%, 4/15/12	76,500
B	700		General Motors Corp., 8.25%, 7/15/23	507,500
B-	25		Goodyear Tire & Rubber Co., 7.857%, 8/15/11	24,625
B+	300		Lear Corp., 8.11%, 5/15/09	294,750
CCC+	450		Metaldyne Corp., 10.00%, 11/01/13	434,250
B	100		Tenneco, Inc., 8.625%, 11/15/14	101,250
BB-	517		TRW Automotive, Inc., 9.375%, 2/15/13	555,775
			Total Automotive	3,101,934
			Basic
Materials3.4%
B+	40		Abitibi-Consolidated Co., 8.375%, 4/01/15 (Canada)	40,400
B+	850		AK Steel Corp., 7.75%, 6/15/12	860,625
B	80	2,4	BCI US Finance Corp./Borden 2 Nova Scotia Finance
ULC, 10.577%, 7/15/10	81,800
BB-	80	2	Bowater, Inc., 7.91%, 3/15/10	80,800
NR	4,330		Caraustar Industries, Inc., 9.875%, 4/01/11	4,557,325
BB+	30		Chemtura Corp., 6.875%, 6/01/16	29,925
			Domtar, Inc.,
B+	60		7.125%, 8/15/15
(Canada)	54,450
B+	180		7.875%, 10/15/11
(Canada)	174,600
B+	150		Donohue Forest Products, 7.625%, 5/15/07 (Canada)	151,313
			Huntsman LLC,
B2	66		11.50%, 7/15/12	75,570
B2	225	2	12.318%, 7/15/11	235,688
BB	70		IMC Global, Inc., 10.875%, 6/01/08	75,425
			Ineos Group Holdings PLC,
B2	285		7.875%, 2/07/16
(United Kingdom) (EUR)	346,522
B-	730	4	8.50%, 2/15/16
(United Kingdom)	690,762
CCC+	1,045		Innophos, Inc., 8.875%, 8/15/14	1,076,350
BBB+	130		Ispat Inland ULC, 9.75%, 4/01/14 (Canada)	145,925
BB+	2,120		Lyondell Chemical Co., 9.50%, 12/15/08	2,204,800
B3	255		NewPage Corp., 10.00%, 5/01/12	273,487
BB+	480	2	Nova Chemicals Corp., 8.405%, 11/15/13 (Canada)	483,000
			Rhodia SA,
CCC+	204		8.875%, 6/01/11 (France)	211,650
B3	16		10.25%, 6/01/10 (France)	17,880
BBB	380		Teck Cominco Ltd., 6.125%, 10/01/35 (Canada)	351,559
			Total Basic Materials	12,219,856
			Building
& Development1.4%
B-	75		Ahern Rentals, Inc., 9.25%, 8/15/13	78,187
B2	200	4	Compression Polymers Corp., 10.50%, 7/01/13	205,000
B-	635		ERICO Intl. Corp., 8.875%, 3/01/12	654,050
B-	640		Goodman Global Holding Co., Inc., 7.875%, 12/15/12	641,600
BB+	3,000		Hovnanian Enterprises, Inc., 10.50%, 10/01/07	3,176,250
			North American Energy Partners, Inc.,
Caa1	55		8.75%, 12/01/11
(Canada)	53,763
B	175		9.00%, 6/01/10
(Canada)	185,500
			Total Building & Development	4,994,350
			Consumer
Products2.2%
B3	90		ALH Finance LLC, 8.50%, 1/15/13	88,200
			Cenveo Corp.,
B-	250		7.875%, 12/01/13	243,750
B+	500		9.625%, 3/15/12	535,000
BBB+	530		Federated Department Stores, Inc., 6.79%, 7/15/27	526,934
B-	280		Finlay Fine Jewelry Corp., 8.375%, 6/01/12	245,700
B	80		Gold Kist, Inc., 10.25%, 3/15/14	84,400
B-	800	4	Knowledge Learning Corp., Inc., 7.75%, 2/01/15	766,000
B-	330		Lazydays RV Center, Inc., 11.75%, 5/15/12	330,413
B	385	2	Levi Strauss & Co., 9.74%, 4/01/12	401,362

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Consumer
Products(contd)
			May Department Stores Co.,
BBB+	$ 30		6.65%, 7/15/24	$ 29,837
BBB+	230		7.875%, 3/01/30	254,255
CCC-	170		Movie Gallery, Inc., 11.00%, 5/01/12	89,250
B3	50	2,4	Nutro Products, Inc., 9.23%, 10/15/13	51,000
B	1,000		Pantry, Inc., 7.75%, 2/15/14	1,015,000
BB-	200		Quiksilver, Inc., 6.875%, 4/15/15	193,000
B-	925	4	Rite Aid Corp., 6.125%, 12/15/08	908,812
B	2,100		Sonic Automotive, Inc., 8.625%, 8/15/13	2,163,000
			Total Consumer Products	7,925,913
			Containers
& Packaging0.8%
B3	240	4	Covalence Specialty Materials Corp., 10.25%, 3/01/16	248,400
B1	250	4	Crown Americas LLC and Crown Americas Capital Corp.,
7.75%, 11/15/15	255,625
CCC+	75		Graham Packaging Co., Inc., 8.50%, 10/15/12	76,687
B	1,500		Owens Brockway, 8.25%, 5/15/13	1,537,500
B-	75	4	Packaging Dynamics Finance Corp., 10.00%, 5/01/16	76,500
CCC+	445	4	Pregis Corp., 12.375%, 10/15/13	466,694
B+	250		Smurfit-Stone Container Enterprises, Inc., 9.75%,
2/01/11	256,875
			Total Containers & Packaging	2,918,281
			Ecological
Services & Equipment0.2%
BB-	230		Allied Waste NA, Inc., 5.75%, 2/15/11	219,650
CCC	590		Waste Services, Inc., 9.50%, 4/15/14	612,125
			Total Ecological Services & Equipment	831,775
			Energy6.4%
			ANR Pipeline Co.,
B	260		7.375%, 2/15/24	267,150
B	810		9.625%, 11/01/21	970,987
B2	270		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)	279,450
B	170	4	Chaparral Energy, Inc., 8.50%, 12/01/15	175,100
BB	20	4	Chesapeake Energy Corp., 6.875%, 11/15/20	19,700
B-	250		Clayton Williams Energy, Inc., 7.75%, 8/01/13	235,625
			CMS Energy Corp.,
BB-	30		7.50%, 1/15/09	30,825
BB-	95		8.50%, 4/15/11	101,888
BB-	30		9.875%, 10/15/07	31,763
BB-	160		Compagnie Generale de Geophysique SA, 7.50%, 5/15/15
(France)	165,200
			Compton Petroleum Finance Corp.,
B	100		7.625%, 12/01/13	99,125
B	255	4	7.625%, 12/01/13
(Canada)	252,769
A1	375		ConocoPhillips Holding Co., 6.95%, 4/15/29	414,531
BBB	1,980		Devon Financing Corp. LLC, 7.875%, 9/30/31	2,329,839
B2	690		Dresser, Inc., 9.375%, 4/15/11	723,638
B	180		Dynegy Danskammer LLC, 7.27%, 11/08/10	183,600
			El Paso Corp.,
B-	100		7.80%, 8/01/31	99,500
B-	65	4	9.625%, 5/15/12	71,825
B-	150	4	10.75%, 10/01/10	167,625
			El Paso Natural Gas Co.,
B	850		7.625%, 8/01/10	877,625
B	225		8.375%, 6/15/32	249,188
B	265		8.625%, 1/15/22	296,469
Ba2	175		Elwood Energy LLC, 8.159%, 7/05/26	184,385
A-	1,000		EnCana Corp., 6.50%, 8/15/34 (Canada)	1,018,028
B-	60		Exco Resources, Inc., 7.25%, 1/15/11	59,250
AA-	950		Florida Power & Light Co., 4.95%, 6/01/35	792,993
BB	80		Grant Prideco, Inc., 6.125%, 8/15/15	76,800
BBB+	175		Halliburton Co., 7.60%, 8/15/96	188,309
			Hilcorp Energy I LP/Hilcorp Finance Corp.,
B	250	4	7.75%, 11/01/15	246,250
B	49	4	10.50%, 9/01/10	53,410

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Energy(contd)
B-	$ 170		KCS Energy, Inc., 7.125%, 4/01/12	$ 171,275
BBB	1,025		Kinder Morgan Fin. Corp., 6.40%, 1/05/36	981,506
B+	94		Midwest Generation LLC, 8.56%, 1/02/16	100,718
			Mirant Americas Generation LLC,
B	40		8.30%, 5/01/11	41,300
B	50		8.50%, 10/01/21	50,375
B	220		9.125%, 5/01/31	231,000
B2	590		Mission Energy Holdings Co., 13.50%, 7/15/08	671,125
			NRG Energy, Inc.,
B1	50		7.25%, 2/01/14	50,250
B1	285		7.375%, 2/01/16	287,138
A-	360		Occidental Petroleum Corp., 7.20%, 4/01/28	399,563
B-	130		Orion Power Holdings, Inc., 12.00%, 5/01/10	147,713
BBB+	790		Peco Energy Capital Trust IV, 5.75%, 6/15/33	682,197
BBB	1,650		Pemex Project Funding Master Trust, 9.375%, 12/02/08	1,786,125
BBB	395		Petro Canada, 5.95%, 5/15/35 (Canada)	366,258
Baa2	850		Progress Energy, Inc., 7.75%, 3/01/31	967,209
			Reliant Energy, Inc.,
BB-	210		6.75%, 12/15/14	191,100
BB-	50		9.25%, 7/15/10	50,875
A-	700		Scottish Power PLC, 5.375%, 3/15/15 (United Kingdom)	669,862
Aa1	290	4	SP PowerAssets Ltd., 5.00%, 10/22/13 (Singapore)	276,982
A-	295		Suncor Energy, Inc., 5.95%, 12/01/34 (Canada)	284,211
BBB+	310		Talisman Energy, Inc., 5.85%, 2/01/37 (Canada)	282,884
B-	320	4	Targa Resources, Inc., 8.50%, 11/01/13	324,800
AA	1,050		Texaco Capital, Inc., 8.875%, 9/01/21	1,368,792
A2	550		Transcanada Pipelines Ltd., 5.85%, 3/15/36 (Canada)	519,594
BBB-	20		Transcontinental Gas Pipe Line Corp., 7.25%, 12/01/26	20,500
B2	45		Whiting Petroleum Corp., 7.00%, 2/01/14	44,550
BB+	515		Williams Cos., Inc., 8.75%, 3/15/32	592,250
BBB-	950		XTO Energy, Inc., 6.10%, 4/01/36	896,422
			Total Energy	23,119,421
			Entertainment
& Leisure0.9%
B3	185	4	AMC Entertainment, Inc., 11.00%, 2/01/16	197,950
B	1,000		Circus & Eldorado Joint Venture, 10.125%, 3/01/12	1,070,000
B-	150		Gaylord Entertainment Co., 6.75%, 11/15/14	143,625
B3	360	4	Greektown Holdings LLC, 10.75%, 12/01/13	377,100
B	110		Poster Financial Group, Inc., 8.75%, 12/01/11	116,050
B	1,000		Resorts Intl. Hotel & Casino, Inc., 11.50%,
3/15/09	1,095,000
B+	100	4	San Pasqual Casino, 8.00%, 9/15/13	101,000
BB-	260		Seneca Gaming Corp., 7.25%, 5/01/12	260,000
B+	40		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
6.625%, 12/01/14	38,800
			Total Entertainment & Leisure	3,399,525
			Financial
Institutions20.9%
AA	550	4,5	Allstate Financial Global Funding II, 2.625%,
10/22/06	542,507
BB	320		American Real Estate Partners LP/American Real Estate
Finance Corp., 7.125%, 2/15/13	318,400
Aa2	1,645		Bank of America Corp., 4.50%, 8/01/10	1,592,244
Aa2	325		Bank One Corp., 3.70%, 1/15/08	317,023
Aa2	1,400		BankBoston NA, 6.375%, 3/25/08-4/15/08	1,427,886
AA+	4,970	2	Barclays Bank PLC NY, 4.90%, 3/13/09	4,970,000
B	40		BCP Crystal US Holdings Corp., 9.625%, 6/15/14
(Luxembourg)	44,000
AA	350	4	Belvoir Land LLC, 5.27%, 12/15/47	305,812
			Berkshire Hathaway Finance Corp.,
AAA	1,200		3.40%, 7/02/07	1,172,628
AAA	1,075		4.75%, 5/15/12	1,027,534
AA+	600		CitiFinancial, 6.25%, 1/01/08	609,240

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Financial
Institutions(contd)
			Citigroup, Inc.,
AA+	$ 3,010		3.625%, 2/09/09	$ 2,883,980
AA+	5,470		4.125%, 2/22/10	5,232,262
AA+	1,960		4.25%, 7/29/09	1,897,721
AA+	525		6.875%, 2/15/98	546,676
BB	1,080		Crum & Forster Holdings Corp., 10.375%, 6/15/13	1,123,200
AAA	1,100	4	Depfa ACS Bank, 4.25%, 8/16/10 (Ireland)	1,053,869
AA-	900	2	Deutsche Bank AG, 3.843%, 3/15/07	885,600
B+	100		E*Trade Financial Corp., 7.375%, 9/15/13	101,750
BB	180		Fairfax Financial Holdings Ltd., 7.75%, 4/26/12
(Canada)	171,000
Aaa	525	4	Fort Irwin Land LLC, 5.03%, 12/15/25	469,639
AAA	3,625	2	General Electric Capital Corp., 3.45%, 1/15/08	3,611,770
BB	460		General Motors Acceptance Corp., 6.875%, 8/28/12	425,393
AA-	1,415		Goldman Sachs Group, Inc., 5.35%, 1/15/16	1,358,285
			HBOS Treasury Services PLC,
AA+	855	4	3.60%, 8/15/07
(United Kingdom)	838,088
AA+	825	4	3.75%, 9/30/08
(United Kingdom)	794,992
AA-	775		HSBC Bank USA, Inc., 5.875%, 11/01/34	734,495
			HSBC Finance Corp.,
AA-	1,820		4.75%, 5/15/09	1,787,331
AA-	635		6.375%, 8/01/10	653,183
AA	1,500	4	Irwin Land LLC, 5.40%, 12/15/47	1,315,388
Aa3	600		JP Morgan Chase & Co., 5.35%, 3/01/07	598,903
B-	255		K&F Acquisition, Inc., 7.75%, 11/15/14	260,738
AA	1,150	4	Metropolitan Global Funding I, 4.25%, 7/30/09	1,110,778
AA-	4,405	2	Morgan Stanley Group, Inc., 4.91%, 3/07/08	4,403,681
AA	2,125	4	Nationwide Building Society, 3.50%, 7/31/07 (United
Kingdom)	2,080,216
B2	645	4	Nell AF SARL, 8.375%, 8/15/15 (Luxembourg)	638,550
AAA	850	4	New York Life Global Funding, 3.875%, 1/15/09	819,045
AA	350		Ohana Military Communities LLC, 6.193%, 4/01/49	353,027
A	500		Prudential Financial, Inc., 5.90%, 3/17/36	468,690
AA-	1,000	4	Prudential Funding LLC, 6.60%, 5/15/08	1,023,099
AAA	5,550	2,4	Rabobank Nederland Global, 5.01%, 4/06/09	5,548,638
			Rainbow National Services LLC,
B+	200	4	8.75%, 9/01/12	213,500
B+	1,455	4	10.375%, 9/01/14	1,633,237
Caa1	685		Standard Aero Holdings, Inc., 8.25%, 9/01/14	606,225
AA+	3,255	7	Structured Asset Receivable Trust, 1.649%, 1/21/10	3,254,801
Aa2	1,265		SunTrust Bank, 4.415%, 6/15/09	1,227,683
			SunTrust Banks, Inc.,
Aa3	1,635		3.625%, 10/15/07	1,598,465
Aa3	995		4.00%, 10/15/08	965,869
AAA	235	4	TIAA Global Markets, Inc., 3.875%, 1/22/08	229,686
Aa2	375		U.S. Bancorp, 3.95%, 8/23/07	368,977
B-	50	2	Universal City Florida Holding Co. I/II, 9.899%,
5/01/10	51,875
			US Bank NA,
Aa1	1,380		2.87%, 2/01/07	1,354,117
Aa2	2,790		6.50%, 2/01/08	2,846,938
AAA	495	4	USAA Capital Corp., 4.00%, 12/10/07	485,215
A+	1,985	2	Wachovia Capital Trust III, 5.80%, 3/15/42	1,948,402
			Wells Fargo & Co.,
Aa1	1,031		3.12%, 8/15/08	983,444
Aa1	355		4.20%, 1/15/10	341,219
Aa1	1,665		4.625%, 8/09/10	1,615,496
Aa1	435		4.875%, 1/12/11	425,037
Aa3	50		Western Financial Bank, 9.625%, 5/15/12	55,500
			Total Financial Institutions	75,722,947

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

Rating 1			Description	Value
			Health
Care1.3%
B	$ 440	4	Angiotech Pharmaceuticals, Inc., 7.75%, 4/01/14
(Canada)	$ 442,200
NR	20	6	Curative Health Services, Inc., 10.75%, 5/01/11	12,500
CCC	250		MedQuest, Inc., 11.875%, 8/15/12	208,750
B3	170		Select Medical Corp., 7.625%, 2/01/15	155,125
B	445		Tenet Healthcare Corp., 6.875%, 11/15/31	366,012
B	2,000		United Surgical Partners Intl., Inc., 10.00%,
12/15/11	2,130,000
A	325		UnitedHealth Group, Inc., 5.80%, 3/15/36	297,088
B-	410		Universal Hospital Services, Inc., 10.125%, 11/01/11	426,912
A-	85		WellPoint, Inc., 5.95%, 12/15/34	79,361
A	675		Wyeth, 6.00%, 2/15/36	641,699
			Total Health Care	4,759,647
			Industrials1.2%
B-	390		NationsRent Cos., Inc., 9.50%, 5/01/15	422,175
CCC+	420		Park-Ohio Industries, Inc., 8.375%, 11/15/14	396,900
B3	480	4	Sunstate Equipment Co. LLC, 10.50%, 4/01/13	508,800
B	2,000		Terex Corp., 9.25%, 7/15/11	2,130,000
CCC+	210		Trimas Corp., 9.875%, 6/15/12	198,450
Caa1	655		United Rentals NA, Inc., 7.00%, 2/15/14	630,438
			Total Industrials	4,286,763
			Media4.9%
			Affinion Group, Inc.,
B-	365	4	10.125%, 10/15/13	377,499
B-	200	4	11.50%, 10/15/15	205,000
B-	430		Allbritton Communications Co., 7.75%, 12/15/12	432,150
CCC	295		American Media Operations, Inc., 10.25%, 5/01/09	278,406
			AOL Time Warner, Inc.,
BBB+	90		6.625%, 5/15/29	87,254
BBB+	3,040		7.57%, 2/01/24	3,216,946
BBB+	205	5	7.625%, 4/15/31	221,256
BBB+	85		7.70%, 5/01/32	92,718
BBB	55	4	BSKYB Finance UK PLC, 6.50%, 10/15/35 (United
Kingdom)	51,323
B+	180	2	Cablevision Systems Corp., 9.62%, 4/01/09	190,800
			Charter Communications Holdings II, LLC/Charter
Communications Holdings II Capital Corp.,
Caa1	130	4	10.25%, 9/15/10	130,488
Caa1	710		10.25%, 9/15/10	718,875
			Comcast Corp.,
BBB+	1,840		6.45%, 3/15/37	1,756,825
BBB+	625		6.50%, 11/15/35	601,166
BB-	270		CSC Holdings, Inc., 7.875%, 12/15/07	275,400
			Echostar DBS Corp.,
BB-	175		5.75%, 10/01/08	172,375
BB-	75	4	7.125%, 2/01/16	73,125
BB-	125	2	8.24%, 10/01/08	127,500
B	250		General Cable Corp., 9.50%, 11/15/10	269,375
B+	180		Medianews Group, Inc., 6.875%, 10/01/13	163,800
B2	170	4	Network Communications, Inc., 10.75%, 12/01/13	174,675
			News America Holdings, Inc.,
BBB	985		7.625%, 11/30/28	1,043,725
BBB	825		7.70%, 10/30/25	877,470
BBB	625		8.45%, 8/01/34	716,088
B3	260		Nexstar Finance, Inc., 7.00%, 1/15/14	244,400
B2	600	2,4	Paxson Communications Corp., 8.318%, 1/15/12	615,750
			Primedia, Inc.,
B2	80		8.00%, 5/15/13	73,000
B2	440	2	10.545%, 5/15/10	451,000
BB-	250	4	Quebecor World, Inc., 8.75%, 3/15/16 (Canada)	242,470
B	800	4	RH Donnelley Corp., 8.875%, 1/15/16	823,000
Caa1	190		Sirius Satellite Radio, Inc., 9.625%, 8/01/13	185,725

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Media(contd)
			TCI Communications, Inc.,
BBB+	$ 200		7.125%, 2/15/28	$ 200,943
BBB+	610		7.875%, 2/15/26	654,259
BBB+	10		7.875%, 8/01/13	10,893
BBB+	70		Time Warner Cos., Inc., 6.95%, 1/15/28	69,750
CCC+	100	4	Unity Media GmbH, 10.375%, 2/15/15 (Germany)	99,000
			Vertis, Inc.,
B3	645		9.75%, 4/01/09	657,900
CCC	225		10.875%, 6/15/09	216,000
Caa2	905		Young Broadcasting, Inc., 10.00%, 3/01/11	830,337
			Total Media	17,628,666
			Real
Estate1.9%
BB	3,165		American Real Estate Partners, 8.125%, 6/01/12	3,267,863
			AvalonBay Communities, Inc.,
BBB+	350		6.625%, 9/15/11	365,205
BBB+	775		8.25%, 7/15/08	817,531
			Rouse Co.,
BB+	895		3.625%, 3/15/09	832,630
BB+	1,650		5.375%, 11/26/13	1,526,692
			Total Real Estate	6,809,921
			Technology1.4%
CCC+	410		Amkor Technology, Inc., 9.25%, 2/15/08	432,550
B+	250		Celestica, Inc., 7.625%, 7/01/13 (Canada)	250,000
			MagnaChip Semiconductor SA/MagnaChip Semiconductor
Finance Co.,
B2	20		8.00%, 12/15/14
(Luxembourg)	18,600
Ba3	170	2	8.16%, 12/15/11
(Luxembourg)	170,850
A-	1,230	4	Oracle Corp. and Ozark Holding, Inc., 5.25%, 1/15/16	1,163,018
B2	190	4	Sensata Technologies BV, 8.00%, 5/01/14	191,900
CCC+	280	4	SS&C Technologies, Inc., 11.75%, 12/01/13	298,900
BB	40		STATS ChipPAC Ltd., 7.50%, 7/19/10 (Singapore)	40,500
			Sungard Data Systems, Inc.,
B-	120	4	9.125%, 8/15/13	128,400
B-	340	2,4	9.431%, 8/15/13	362,100
B-	560	4	10.25%, 8/15/15	599,200
B	895		Superior Essex Communications LLC/Essex Group, Inc.,
9.00%, 4/15/12	901,712
B-	330		UGS Corp., 10.00%, 6/01/12	361,350
			Total Technology	4,919,080
			Telecommunications5.6%
A	1,700		Bellsouth Telecommunications, 6.65%, 12/15/95	775,450
BB-	210		Cincinnati Bell, Inc., 7.25%, 7/15/13	214,200
			Deutsche Telekom Intl. Finance BV,
A-	3,000		5.75%, 3/23/16	2,897,368
A-	25		8.25%, 6/15/30
(Netherlands)	29,904
B3	190	4	Hawaiian Telcom Communications, Inc., 10.789%,
5/01/13	195,700
			Intelsat Ltd.,
B2	65		8.25%, 1/15/13
(Bermuda)	66,300
B2	295		8.625%, 1/15/15
(Bermuda)	307,169
B2	325	2	9.614%, 1/15/12
(Bermuda)	330,688
			Lucent Technologies, Inc.,
B1	155		6.45%, 3/15/29	137,175
B1	805		6.50%, 1/15/28	706,387
B+	770	4	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16	800,800
B2	70		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)	65,363
B1	155		PanAmSat Corp., 9.00%, 8/15/14	163,138
			Qwest Corp.,
BB+	200		7.875%, 9/01/11	209,500
BB+	470	2	8.16%, 6/15/13	512,300
BB+	155		Rogers Wireless, Inc., 7.25%, 12/15/12 (Canada)	160,038
A	780		SBC Communications, Inc., 6.45%, 6/15/34	759,147

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Telecommunications(contd)
A-	$ 1,715		Sprint Capital Corp., 6.875%, 11/15/28	$ 1,763,566
BBB+	1,550		Telecom Italia Capital SA, 6.00%, 9/30/34
(Luxembourg)	1,384,016
BBB+	725		Telefonica Europe BV, 7.75%, 9/15/10 (Netherlands)	778,408
A+	70		Verizon Global Funding Corp., 7.75%, 12/01/30	77,337
A+	125		Verizon Maryland, Inc., 5.125%, 6/15/33	95,940
			Verizon New Jersey, Inc.,
A+	230		7.85%, 11/15/29	239,324
A+	335		Ser. A, 5.875%,
1/17/12	330,314
A+	3,150		Verizon Virginia, Inc., 4.625%, 3/15/13	2,832,066
			Vodafone Group PLC,
A+	1,465	2	5.05%, 12/28/07
(United Kingdom)	1,465,486
A+	2,504		7.75%, 2/15/10
(United Kingdom)	2,678,560
B+	350	4	Wind Acquisition Finance SA, 10.75%, 12/01/15
(Luxembourg)	384,125
			Total Telecommunications	20,359,769
			Transportation0.3%
Ba3	115		American Airlines, Inc., 7.324%, 4/15/11	111,550
A-	350		Canadian National Railway Co., 6.25%, 8/01/34
(Canada)	356,473
B	405		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)	412,087
BB-	60	4	Hertz Corp., 8.875%, 1/01/14	63,825
B3	47		Horizon Lines LLC, 9.00%, 11/01/12	48,939
B+	50		OMI Corp., 7.625%, 12/01/13	51,375
			Total Transportation	1,044,249
			Total Corporate Bonds	202,142,145
			U.S.
Government and Agency Securities2.0%
	1,670		Aid to Israel, 5.50%, 4/26/24-9/18/33	1,606,483
	1,050		Resolution Funding Corp., Zero Coupon,
7/15/18-10/15/18	543,346
			Tennessee Valley Authority,
	1,655		Ser. C, 5.88%,
4/01/36	1,710,257
	2,650	3	Ser. D, 4.875%,
12/15/16	2,614,809
	1,725		U.S. Treasury Strip Principal, Zero Coupon, 11/15/21	755,765
			Total U.S. Government and Agency Securities	7,230,660
			Foreign
Government Bonds1.0%
			United Mexican States,
Baa1	400		6.75%, 9/27/34	403,000
Baa1	2,255		8.00%, 9/24/22	2,587,613
Baa1	500		8.125%, 12/30/19	576,250
			Total Foreign Government Bonds	3,566,863
			Total Long-Term Investments (cost $368,360,495)	358,379,790
			SHORT-TERM
INVESTMENTS1.5%
			Foreign
Government Bond1.1%
			France Treasury Bill,
	545	8	2.565%, 7/13/06	684,038
	2,632	8	2.52%, 7/13/06	3,303,406
			Total Foreign Government Bond	3,987,444
			U.S.
Government and Agency Zero Coupon Bonds0.4%
	300	8	Federal National Mortgage Assoc. Disc. Notes, 4.71%,
5/10/06	299,648
	700	5,8	U.S. Treasury Bills, 4.494%, 5/04/06	699,738
	200	5,8	U.S. Treasury Bills, 4.542%, 5/18/06	199,573
			Total U.S. Government and Agency Zero Coupon Bonds	1,198,959
			Total Short-Term Investments (cost $5,186,403)	5,186,403

See Notes to Financial Statements.

BlackRock Core Bond Trust (BHK) (continued)

Notional Amount (000)	Description	Value
	OUTSTANDING
OPTIONS PURCHASED0.3%
	Interest Rate Swaps,
$ 5,200	Trust pays
3-month LIBOR, Trust receives 5.26%, expires 3/02/16	$ 147,680
5,200	Trust pays 5.26%,
Trust receives 3-month LIBOR, expires 3/02/16	305,760
5,300	Trust pays
3-month LIBOR, Trust receives 5.50%, expires 12/11/15	235,850
5,300	Trust pays 5.50%,
Trust receives 3-month LIBOR, expires 12/11/15	380,010
	Total Outstanding Options Purchased (cost $1,172,060)	1,069,300
	Total
Investments before borrowed bond and outstanding options written100.7% (cost $374,718,958 9 )	364,635,493

Principal Amount (000)
		BORROWED
BOND1.0%
3,782	10	U.S. Treasury Bonds, 5.375%, 5/04/06 (cost
$3,781,731)	3,781,731

Contracts/ Notional Amount (000)
		OUTSTANDING
OPTIONS WRITTEN(0.7)%
		Interest Rate Swaps,
(5,300	)	Trust pays
3-month LIBOR, Trust receives 5.135%, expires 4/21/08	(297,595	)
(5,300	)	Trust pays
5.135%, Trust receives 3-month LIBOR, expires 4/21/08	(92,061	)
(13,300	)	Trust pays
3-month LIBOR, Trust receives 4.725%, expires 6/13/07	(934,857	)
(13,300	)	Trust pays
4.725%, Trust receives 3-month LIBOR, expires 6/13/07	(60,648	)
(11,500	)	Trust pays
3-month LIBOR, Trust receives 5.67%, expires 1/04/10	(419,750	)
(11,500	)	Trust pays 5.67%,
Trust receives 3-month LIBOR, expires 1/04/10	(518,650	)
(74	)	U.S. Treasury Notes Future, expiring 5/26/06	(56,078	)
(64	)	U.S. Treasury Notes Future, expiring 8/25/06	(43,500	)
		Total Outstanding Options Written (premium received
$2,748,069)	(2,423,139	)
		Total
Investments net of borrowed bond and outstanding options written101.0%	$ 365,994,085
		Liabilities in excess of other assets(1.0)%	(3,712,678	)
		Net
Assets100%	$ 362,281,407

| 1 | Using the higher of
S&Ps, Moodys or Fitchs rating. |
| --- | --- |
| 2 | Variable rate security.
Rate shown is interest rate as of April 30, 2006. |
| 3 | Entire or partial principal
amount pledged as collateral for reverse repurchase agreements. See Note 4 in
the Notes to Financial Statements for details of open reverse repurchase
agreements. |
| 4 | 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 April 30, 2006, the Trust held 9.2% of its net
assets, with a current market value of $33,449,198, in securities restricted
as to resale. |
| 5 | Security, or a portion
thereof, pledged as collateral with a value of $1,764,818 on 1,711 long U.S.
Treasury Bond futures contracts expiring June 2006 to September 2006, 70
short Eurodollar futures contracts expiring June 2006 to September 2006 and
898 short U.S. Treasury Note futures contracts expiring September 2006. The
notional value of such contracts on April 30, 2006 was $72,193,350, with an
unrealized gain of $697,757. |
| 6 | Issuer is in default and/or
bankruptcy. |
| 7 | Illiquid security. As of
April 30, 2006, the Trust held 0.9% of its net assets, with a current market
value of $3,254,801 in these securities. |
| 8 | Rate shown is the yield to
maturity as of April 30, 2006. |
| 9 | Cost for Federal income tax
purposes is $376,278,421. The net unrealized depreciation on a tax basis is
$11,642,928, consisting of $1,835,307 gross unrealized appreciation and
$13,478,235 gross unrealized depreciation. |
| 10 | The interest rate and
maturity date shown represent the terms of the bond borrowed transaction, not
the security borrowed (see Note 1). A category in the Corporate Bonds section
may contain multiple industries as defined by the SECs Standard Industry
Codes. |

KEY TO ABBREVIATIONS
EUR
European Monetary Unit TBA To Be Announced

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS (unaudited) APRIL 30, 2006

BlackRock High Yield Trust (BHY)

Rating 1	Principal Amount (000)		Description	Value
			LONG-TERM
INVESTMENTS137.2%
			Corporate
Bonds133.1%
			Aerospace
& Defense6.4%
			AAR Corp.,
BB-	$ 435		6.875%, 12/15/07	$ 436,631
NR	350		Ser. A2, 8.39%,
5/15/11	353,500
B	375		Argo-Tech Corp., 9.25%, 6/01/11	395,625
B+	125		Armor Holdings, Inc., 8.25%, 8/15/13	133,437
			BE Aerospace, Inc.,
BB-	735		8.50%, 10/01/10	783,694
B	65		8.875%, 5/01/11	67,844
NR	1,500	2	Condor Systems, Inc., 11.875%, 5/01/09
B-	745		DI Finance/DynCorp. Intl., 9.50%, 2/15/13	778,525
B	100		DRS Technologies, Inc., 7.625%, 2/01/18	102,000
			Sequa Corp.,
BB	40		9.00%, 8/01/09	43,000
BB	19		Ser. B, 8.875%,
4/01/08	19,855
			Total Aerospace & Defense	3,114,111
			Automotive3.6%
BB+	65		ArvinMeritor, Inc., 8.75%, 3/01/12	66,463
			Autonation, Inc.,
BB+	90	3	7.00%, 4/15/14	90,450
BB+	80	3,4	7.045%, 4/15/13	81,400
			Avis Budget Car Rental LLC,
BB-	20	3,4	7.576%, 5/15/14	20,575
BB-	20	3	7.75%, 5/15/16	20,400
Caa2	150	4	Delco Remy Intl., Inc., 9.068%, 4/15/09	143,250
CCC	50		Dura Operating Corp., 8.625%, 4/15/12	42,500
BB	60		General Motors Acceptance Corp., 6.875%, 9/15/11	56,244
B	390		General Motors Corp., 8.25%, 7/15/23	282,750
B-	10		Goodyear Tire & Rubber Co., 7.857%, 8/15/11	9,850
B+	105		Lear Corp., 8.11%, 5/15/09	103,162
CCC+	455		Metaldyne Corp., 10.00%, 11/01/13	439,075
CCC+	300		Stanadyne Corp., 10.00%, 8/15/14	276,000
B	95		Tenneco, Inc., 8.625%, 11/15/14	96,187
			Total Automotive	1,728,306
			Basic
Materials15.2%
B+	60		Abitibi-Consolidated Co., 8.375%, 4/01/15 (Canada)	60,600
B+	165		AK Steel Corp., 7.75%, 6/15/12	167,063
B-	205		Alpha Natural Resources LLC/Alpha Natural Resources
Capital Corp., 10.00%, 6/01/12	224,987
BB-	150		Arch Western Finance LLC, 6.75%, 7/01/13	148,500
B	70	3,4	BCI US Finance Corp./Borden 2 Nova Scotia Finance
ULC, 10.577%, 7/15/10	71,575
BB-	130	4	Bowater, Inc., 7.91%, 3/15/10	131,300
NR	600		Caraustar Industries, Inc., 9.875%, 4/01/11	631,500
BB-	175		Cascades, Inc., 7.25%, 2/15/13 (Canada)	166,688
B+	170		Catalyst Paper Corp., 7.375%, 3/01/14 (Canada)	159,375
BB-	305		Century Alum Co., 7.50%, 8/15/14	316,437
BB+	50		Chemtura Corp., 6.875%, 6/01/16	49,875
			Domtar, Inc.,
B+	40		7.125%, 8/15/15
(Canada)	36,300
B+	180		7.875%, 10/15/11
(Canada)	174,600
B+	90		Donohue Forest Products, 7.625%, 5/15/07 (Canada)	90,788
			Equistar Chemicals LP/Equistar Funding Corp.,
BB-	50		8.75%, 2/15/09	52,250
BB-	115		10.125%, 9/01/08	123,338
BB-	100		10.625%, 5/01/11	108,750

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Basic
Materials(contd)
			Huntsman LLC,
B2	$ 95		11.50%, 7/15/12	$ 108,775
Ba3	365		11.625%, 10/15/10	411,537
B2	175	4	12.318%, 7/15/11	183,312
BB	35		IMC Global, Inc., 10.875%, 6/01/08	37,713
B-	310	3	Ineos Group Holdings PLC, 8.50%, 2/15/16 (United
Kingdom)	293,337
CCC+	645		Innophos, Inc., 8.875%, 8/15/14	664,350
Baa3	325		Ipsco, Inc., 8.75%, 6/01/13 (Canada)	351,812
BBB+	366		Ispat Inland ULC, 9.75%, 4/01/14 (Canada)	410,835
			Lyondell Chemical Co.,
BB+	260		10.50%, 6/01/13	291,200
BB+	230		Ser. A, 9.625%,
5/01/07	237,475
B-	340		Nalco Co., 8.875%, 11/15/13	351,050
B3	375		NewPage Corp., 10.00%, 5/01/12	402,187
BB+	400	4	Nova Chemicals Corp., 8.405%, 11/15/13 (Canada)	402,500
NR	2,000	2	Republic Technologies Intl. LLC, 13.75%, 7/15/09
			Rhodia SA,
CCC+	169		8.875%, 6/01/11
(France)	175,338
B3	153		10.25%, 6/01/10
(France)	170,978
B-	50		Rockwood Specialties Group, Inc., 7.50%, 11/15/14	49,875
BB	125		Russel Metals, Inc., 6.375%, 3/01/14 (Canada)	122,500
			Total Basic Materials	7,378,700
			Building
& Development5.1%
B-	250		Ahern Rentals, Inc., 9.25%, 8/15/13	260,625
B+	40	4	Ainsworth Lumber Co. Ltd., 8.71%, 10/01/10 (Canada)	40,400
B2	150	3	Compression Polymers Corp., 10.50%, 7/01/13	153,750
B-	575		ERICO Intl. Corp., 8.875%, 3/01/12	592,250
			Goodman Global Holding Co., Inc.,
B2	45	4	7.491%, 6/15/12	45,844
B-	310		7.875%, 12/15/12	310,775
BB+	250		K Hovnanian Enterprises, Inc., 6.25%, 1/15/15	229,688
			North American Energy Partners, Inc.,
Caa1	335		8.75%, 12/01/11
(Canada)	327,462
B	375		9.00%, 6/01/10
(Canada)	397,500
Ba3	125		WCI Communities, Inc., 7.875%, 10/01/13	118,906
			Total Building & Development	2,477,200
			Business
Equipment & Services0.1%
BB+	60		Xerox Corp., 6.875%, 8/15/11	61,125
			Consumer
Products6.9%
B3	50		ALH Finance LLC, 8.50%, 1/15/13	49,000
B	175		B&G Foods, Inc., 8.00%, 10/01/11	179,156
			Cenveo Corp.,
B-	150		7.875%, 12/01/13	146,250
B+	200		9.625%, 3/15/12	214,000
B-	265		Finlay Fine Jewelry Corp., 8.375%, 6/01/12	232,537
B	294		Gold Kist, Inc., 10.25%, 3/15/14	310,170
B-	380	3	Knowledge Learning Corp., Inc., 7.75%, 2/01/15	363,850
B-	500		Lazydays RV Center, Inc., 11.75%, 5/15/12	500,625
B	50	4	Levi Strauss & Co., 9.74%, 4/01/12	52,125
CCC-	380		Merisant Co., 9.50%, 7/15/13	251,750
CCC-	120		Movie Gallery, Inc., 11.00%, 5/01/12	63,000
C	1,200	5	Nebco Evans Holding Co., 12.375%, 7/15/07
B2	95	3	Neiman-Marcus Group, Inc., 9.00%, 10/15/15	100,938
B3	30	3,4	Nutro Products, Inc., 9.23%, 10/15/13	30,600
B	265		Pantry, Inc., 7.75%, 2/15/14	268,975
BB-	100		Quiksilver, Inc., 6.875%, 4/15/15	96,500
B-	435	3	Rite Aid Corp., 6.125%, 12/15/08	427,387
BB	75		Smithfield Foods, Inc., 7.00%, 8/01/11	74,063
			Total Consumer Products	3,360,926

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Containers
& Packaging3.7%
B3	$ 150	3	Covalence Specialty Materials Corp., 10.25%, 3/01/16	$ 155,250
B1	160	3	Crown Americas LLC and Crown Americas Capital Corp.,
7.75%, 11/15/15	163,600
B	540		Crown Cork & Seal, Inc., 8.00%, 4/15/23	522,450
B	115		Crown European Holdings SA, 7.375%, 12/15/26	106,663
CCC+	150		Graham Packaging Co., Inc., 8.50%, 10/15/12	153,375
B-	85	3	Packaging Dynamics Finance Corp., 10.00%, 5/01/16	86,700
CCC+	240	3	Pregis Corp., 12.375%, 10/15/13	251,700
B+	350		Smurfit-Stone Container Enterprises, Inc., 9.75%,
2/01/11	359,625
			Total Containers & Packaging	1,799,363
			Ecological
Services & Equipment0.8%
			Allied Waste NA, Inc.,
BB-	115		Ser. B, 5.75%, 2/15/11	109,825
BB-	80		Ser. B, 8.50%, 12/01/08	84,200
CCC	185		Waste Services, Inc., 9.50%, 4/15/14	191,938
			Total Ecological Services & Equipment	385,963
			Energy24.2%
B+	137		AES Red Oak LLC, 8.54%, 11/30/19	147,918
B	195		ANR Pipeline Co., 9.625%, 11/01/21	233,756
B2	115		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)	119,025
Ba1	228		CE Generation LLC, 7.416%, 12/15/18	234,724
B	100	3	Chaparral Energy, Inc., 8.50%, 12/01/15	103,000
			Chesapeake Energy Corp.,
BB	55		6.50%, 8/15/17	52,938
BB	20	3	6.875%, 11/15/20	19,700
BB	250		7.00%, 8/15/14	251,875
B-	200		Clayton Williams Energy, Inc., 7.75%, 8/01/13	188,500
			CMS Energy Corp.,
BB-	10		7.50%, 1/15/09	10,275
BB-	45		8.50%, 4/15/11	48,263
BB-	10		9.875%, 10/15/07	10,588
B	40	3	Colorado Interstate Gas Co., 6.80%, 11/15/15	40,450
			Compagnie Generale de Geophysique SA,
BB-	90		7.50%, 5/15/15 (France)	92,925
BB-	50	3	7.50%, 5/15/15 (France)	51,750
			Compton Petroleum Finance Corp.,
B	150		7.625%, 12/01/13	148,687
B	175	3	7.625%, 12/01/13 (Canada)	173,469
B	100	3	Copano Energy LLC, 8.125%, 3/01/16	102,500
B2	60		Dresser, Inc., 9.375%, 4/15/11	62,925
B	435		Dynegy Danskammer LLC, 7.27%, 11/08/10	443,700
			El Paso Corp.,
B-	60	3	7.75%, 6/15/10	61,500
B-	250	3	9.625%, 5/15/12	276,250
B-	215	3	10.75%, 10/01/10	240,262
B	65		El Paso Natural Gas Co., 7.625%, 8/01/10	67,113
Ba2	770		Elwood Energy LLC, 8.159%, 7/05/26	812,172
B-	275		Exco Resources, Inc., 7.25%, 1/15/11	271,562
B1	200		Foundation Pennsylvania Coal Co., 7.25%, 8/01/14	201,500
BB-	65		Frontier Oil Corp., 6.625%, 10/01/11	64,594
BB	50		Grant Prideco, Inc., 6.125%, 8/15/15	48,000
B	195		Hanover Compressor Co., 8.625%, 12/15/10	203,287
			Hilcorp Energy I LP/Hilcorp Finance Corp.,
B	115	3	7.75%, 11/01/15	113,275
B	170	3	10.50%, 9/01/10	185,300
BBB-	98		Homer City Funding LLC, 8.734%, 10/01/26	111,370
BB-	5		Hornbeck Offshore Services, Inc., 6.125%, 12/01/14	4,800
B-	400		KCS Energy, Inc., 7.125%, 4/01/12	403,000
			Midwest Generation LLC,
B+	228		8.56%, 1/02/16	244,601
Ba3	95		8.75%, 5/01/34	102,600

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Energy(contd)
			Mirant Americas Generation LLC,
B	$ 215		8.30%, 5/01/11	$ 221,987
B	135		8.50%, 10/01/21	136,013
B	325		9.125%, 5/01/31	341,250
B2	685		Mission Energy Holdings Co., 13.50%, 7/15/08	779,187
			Newfield Exploration Co.,
BB-	30		6.625%, 9/01/14	29,663
BB-	20		8.375%, 8/15/12	21,475
			NRG Energy, Inc.,
B1	130		7.25%, 2/01/14	130,650
B1	465		7.375%, 2/01/16	468,487
B-	50	3	Ocean Rig AS, 8.375%, 7/01/13 (Norway)	52,625
B-	380		Orion Power Holdings, Inc., 12.00%, 5/01/10	431,775
BB-	70		Plains Exploration & Production Co., 7.125%,
6/15/14	71,225
B+	100		Pogo Producing Co., 6.875%, 10/01/17	97,500
Ba2	210		Pride Intl., Inc., 7.375%, 7/15/14	217,875
B	185		Range Resources Corp., 7.375%, 7/15/13	188,700
			Reliant Energy, Inc.,
BB-	390		6.75%, 12/15/14	354,900
BB-	180		9.25%, 7/15/10	183,150
Ba2	40		Sithe Independence Funding, 9.00%, 12/30/13	43,139
B-	200	3	Targa Resources, Inc., 8.50%, 11/01/13	203,000
B	160		Tennessee Gas Pipeline Co., 8.375%, 6/15/32	178,000
			Transcontinental Gas Pipe Line Corp.,
BBB-	65		7.25%, 12/01/26	66,625
BBB-	400		Ser. B, 8.875%,
7/15/12	451,500
BBB-	130		TXU Corp., 6.55%, 11/15/34	117,211
B3	75	3	Verasun Energy Corp., 9.875%, 12/15/12	79,875
			Whiting Petroleum Corp.,
B2	140		7.00%, 2/01/14	138,600
B2	250		7.25%, 5/01/13	250,000
			Williams Cos., Inc.,
BB+	355		7.625%, 7/15/19	374,525
BB+	125		8.75%, 3/15/32	143,750
			Total Energy	11,720,841
			Entertainment
& Leisure5.0%
B3	150	3	AMC Entertainment, Inc., 11.00%, 2/01/16	160,500
B-	75	3	French Lick Resorts & Casino LLC, 10.75%, 4/15/14	73,875
			Gaylord Entertainment Co.,
B-	280		6.75%, 11/15/14	268,100
B-	40		8.00%, 11/15/13	41,050
B3	210	3	Greektown Holdings LLC, 10.75%, 12/01/13	219,975
			MGM Mirage,
BB	270		6.00%, 10/01/09	265,950
BB	60		6.75%, 9/01/12	59,400
B	305		Poster Financial Group, Inc., 8.75%, 12/01/11	321,775
B-	185		Riddell Bell Holdings, Inc., 8.375%, 10/01/12	184,538
B+	60	3	San Pasqual Casino, 8.00%, 9/15/13	60,600
BB-	140		Seneca Gaming Corp., 7.25%, 5/01/12	140,000
Ba3	100	3	Station Casinos, Inc., 6.625%, 3/15/18	95,000
B	435		Virgin River Casino, 9.00%, 1/15/12	441,525
B+	70		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
6.625%, 12/01/14	67,900
			Total Entertainment & Leisure	2,400,188
			Financial
Institutions17.5%
B+	186		AES Ironwood LLC, 8.857%, 11/30/25	206,237
BB	185		American Real Estate Partners LP/American Real Estate
Finance Corp., 7.125%, 2/15/13	184,075
B	303		BCP Crystal US Holdings Corp., 9.625%, 6/15/14
(Luxembourg)	333,300
Ba2	1,000	3	Capital Guardian High Yield CBO Ltd., 11.45%, 5/24/13
(Cayman Islands)	1,003,200
BB	340		Crum & Forster Holdings Corp., 10.375%, 6/15/13	353,600
B	30		Crystal US Holdings 3 LLC/Crystal US Sub. 3 Corp.,
10.50%, 10/01/14	23,550

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Financial
Institutions(contd)
			E*Trade Financial Corp.,
B+	$ 90		7.375%, 9/15/13	$ 91,575
B+	70		7.875%, 12/01/15	74,025
			Fairfax Financial Holdings Ltd.,
BB	50		6.875%, 4/15/08
(Canada)	48,750
BB	383		7.75%, 4/26/12
(Canada)	363,850
BB	50		8.30%, 4/15/26
(Canada)	44,000
Ba3	2,500	3	First Dominion Funding II, 11.614%, 4/25/14 (Cayman
Islands)	2,371,500
			Ford Motor Credit Co.,
BB	35		5.70%, 1/15/10	30,665
BB	175		7.25%, 10/25/11	156,878
BB	310		General Motors Acceptance Corp., 6.875%, 8/28/12	286,781
B-	400		K&F Acquisition, Inc., 7.75%, 11/15/14	409,000
B2	625	3	Nell AF SARL, 8.375%, 8/15/15 (Luxembourg)	618,750
			Rainbow National Services LLC,
B+	310	3	8.75%, 9/01/12	330,925
B+	490	3	10.375%, 9/01/14	550,025
Caa1	650		Standard Aero Holdings, Inc., 8.25%, 9/01/14	575,250
B-	30	4	Universal City Florida Holding Co. I/II, 9.899%,
5/01/10	31,125
Aa3	70		Western Financial Bank, 9.625%, 5/15/12	77,700
C	2,676	3	Zais Investment Grade Ltd., 9.95%, 9/23/14 (Cayman
Islands)	316,882
			Total Financial Institutions	8,481,643
			Health
Care3.2%
B	280	3	Angiotech Pharmaceuticals, Inc., 7.75%, 4/01/14
(Canada)	281,400
			Coventry Health Care, Inc.,
BBB-	80		5.875%, 1/15/12	78,400
BBB-	80		6.125%, 1/15/15	78,200
NR	50	2	Curative Health Services, Inc., 10.75%, 5/01/11	31,250
BB+	150		HCA, Inc., 5.50%, 12/01/09	146,051
CCC	35		MedQuest, Inc., 11.875%, 8/15/12	29,225
B-	135		Norcross Safety Products LLC/Norcross Capital Corp.,
9.875%, 8/15/11	141,413
B3	110		Select Medical Corp., 7.625%, 2/01/15	100,375
B	195		Tenet Healthcare Corp., 6.875%, 11/15/31	160,388
B-	505		Universal Hospital Services, Inc., 10.125%, 11/01/11	525,831
			Total Health Care	1,572,533
			Industrials6.1%
B	368		Blount, Inc., 8.875%, 8/01/12	382,720
B-	195		Concentra Operating Corp., 9.125%, 6/01/12	204,750
B+	163		JLG Industries, Inc., 8.375%, 6/15/12	171,965
B-	370		NationsRent Cos., Inc., 9.50%, 5/01/15	400,525
CCC+	210		Park-Ohio Industries, Inc., 8.375%, 11/15/14	198,450
BB-	250		Rent-A-Center, Inc., 7.50%, 5/01/10	248,125
B3	450	3	Sunstate Equipment Co. LLC, 10.50%, 4/01/13	477,000
B	55		Terex Corp., 7.375%, 1/15/14	55,825
CCC+	210		Trimas Corp., 9.875%, 6/15/12	198,450
			United Rentals NA, Inc.,
Caa1	515		7.00%, 2/15/14	495,687
Caa1	130		7.75%, 11/15/13	130,650
			Total Industrials	2,964,147
			Media12.4%
			Affinion Group, Inc.,
B-	175	3	10.125%, 10/15/13	180,906
B-	160	3	11.50%, 10/15/15	164,000
B-	265		Allbritton Communications Co., 7.75%, 12/15/12	266,325
CCC	170		American Media Operations, Inc., 10.25%, 5/01/09	160,438
B+	175	4	Cablevision Systems Corp., 9.62%, 4/01/09	185,500
			Charter Communications Holdings II, LLC/Charter
Communications Holdings II Capital Corp.,
Caa1	605		10.25%, 9/15/10	612,562
Caa1	60	3	10.25%, 9/15/10	60,225

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Media(contd)
			CSC Holdings, Inc.,
BB-	$ 425	3	7.25%, 4/15/12	$ 423,937
BB-	150		7.875%, 12/15/07	153,000
BB-	45		Ser. B, 7.625%,
4/01/11	45,675
BB	55		DirecTV Holdings LLC, 6.375%, 6/15/15	53,763
			Echostar DBS Corp.,
BB-	85		6.375%, 10/01/11	82,875
BB-	260	3	7.125%, 2/01/16	253,500
BB-	60	4	8.24%, 10/01/08	61,200
B2	90		Fisher Communications, Inc., 8.625%, 9/15/14	94,500
B	325		General Cable Corp., 9.50%, 11/15/10	350,187
B+	165		Medianews Group, Inc., 6.875%, 10/01/13	150,150
B2	100	3	Network Communications, Inc., 10.75%, 12/01/13	102,750
B3	240		Nexstar Finance, Inc., 7.00%, 1/15/14	225,600
B2	125	3,4	Paxson Communications Corp., 8.318%, 1/15/12	128,281
			Primedia, Inc.,
B2	105		8.00%, 5/15/13	95,813
B2	75		8.875%, 5/15/11	72,563
B2	275	4	10.545%, 5/15/10	281,875
BB-	150	3	Quebecor World, Inc., 8.75%, 3/15/16 (Canada)	145,482
B	615	3	RH Donnelley Corp., 8.875%, 1/15/16	632,681
BB+	165		Scholastic Corp., 5.00%, 4/15/13	142,100
CCC+	75	3	Unity Media GmbH, 10.375%, 2/15/15 (Germany)	74,250
			Vertis, Inc.,
B3	280		9.75%, 4/01/09	285,600
CCC	145		10.875%, 6/15/09	139,200
Caa2	400		Young Broadcasting, Inc., 10.00%, 3/01/11	367,000
			Total Media	5,991,938
			Real
Estate0.6%
BB	300		American Real Estate Partners, 8.125%, 6/01/12	309,750
			Technology7.6%
CCC+	170		Amkor Technology, Inc., 9.25%, 2/15/08	179,350
B+	350		Celestica, Inc., 7.625%, 7/01/13 (Canada)	350,000
BB+	60		Flextronics Intl. Ltd., 6.50%, 5/15/13 (Singapore)	59,400
BBB-	100	4	Freescale Semiconductor, Inc., 7.818%, 7/15/09	102,000
B+	60	3	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South
Korea)	66,225
			MagnaChip Semiconductor SA/MagnaChip Semiconductor
Finance Co., (Luxembourg)
Ba3	85		6.875%, 12/15/11	81,175
B2	110		8.00%, 12/15/14	102,300
Ba3	465	4	8.16%, 12/15/11	467,325
B2	110	3	Sensata Technologies BV, 8.00%, 5/01/14	111,100
CCC+	210	3	SS&C Technologies, Inc., 11.75%, 12/01/13	224,175
			STATS ChipPAC Ltd.,
BB	215		6.75%, 11/15/11
(Singapore)	210,163
BB	220		7.50%, 7/19/10
(Singapore)	222,750
			Sungard Data Systems, Inc.,
B-	95	3	9.125%, 8/15/13	101,650
B-	230	3,4	9.431%, 8/15/13	244,950
B-	445	3	10.25%, 8/15/15	476,150
B	395		Superior Essex Communications LLC/Essex Group, Inc.,
9.00%, 4/15/12	397,962
B-	275		UGS Corp., 10.00%, 6/01/12	301,125
			Total Technology	3,697,800
			Telecommunications11.8%
NR	1	2	Adelphia Business Solutions, 12.875%, 10/15/07
NR	2,000	2	Asia Global Crossing Ltd., 13.375%, 10/15/10
(Bermuda)	95,000
A	182		AT&T Corp., 7.30%, 11/15/11	196,559
B3	455		Centennial Communications Corp., 8.125%, 2/01/14	468,650
BB-	405		Cincinnati Bell, Inc., 7.25%, 7/15/13	413,100
BB-	260		Dobson Cellular Systems, Inc., 8.375%, 11/01/11	275,600

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Telecommunications(contd)
B3	$ 100	3	Hawaiian Telcom Communications, Inc., 10.789%,
5/01/13	$ 103,000
			Intelsat Ltd.,
Caa1	60		6.50%, 11/01/13	47,100
B2	55		8.25%, 1/15/13
(Bermuda)	56,100
B2	245		8.625%, 1/15/15
(Bermuda)	255,106
B2	345	4	9.614%, 1/15/12
(Bermuda)	351,037
			Lucent Technologies, Inc.,
B1	135		6.45%, 3/15/29	119,475
B1	387		6.50%, 1/15/28	339,593
B+	445	3	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16	462,800
B2	205		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)	191,419
			PanAmSat Corp.,
Ba3	210		6.875%, 1/15/28	189,000
B1	270		9.00%, 8/15/14	284,175
NR	600	2	PF Net Communications, Inc., 13.75%, 5/15/10	60
			Qwest Corp.,
BB+	600		7.875%, 9/01/11	628,500
BB+	230	4	8.16%, 6/15/13	250,700
BB+	125		8.875%, 3/15/12	137,188
			Rogers Wireless, Inc., (Canada)
BB+	35		7.25%, 12/15/12	36,138
BB-	395		8.00%, 12/15/12	414,256
B+	375	3	Wind Acquisition Finance SA, 10.75%, 12/01/15
(Luxembourg)	411,562
			Total Telecommunications	5,726,118
			Transportation2.9%
Ba3	140		American Airlines, Inc., 7.324%, 4/15/11	135,800
B	270		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)	274,725
BB-	75	3	Hertz Corp., 8.875%, 1/01/14	79,781
B3	430		Horizon Lines LLC, 9.00%, 11/01/12	447,737
B+	140		OMI Corp., 7.625%, 12/01/13	143,850
BB+	350		Overseas Shipholding Group, Inc., 7.50%, 2/15/24	347,813
			Total Transportation	1,429,706
			Total Corporate Bonds	64,600,358
			Bank
Loans3.6%
			Consumer
Products1.0%
			Dunkin Brands, Inc.,
	139		LIBOR + 5.60%,
3/01/07	139,099
	351		LIBOR + 4.30%,
3/01/07	349,626
			Total Consumer Products	488,725
			Financial
Institutions2.6%
			Navistar Financial Corp.,
	130		LIBOR + 4.75%,
2/28/09	130,506
	787		LIBOR + 5.00%,
2/28/09	789,681
	327		NTL, Inc., LIBOR, 3/23/11	326,633
			Total Financial Institutions	1,246,820
			Total Bank Loans	1,735,545
	Shares
			Common
Stocks0.5%
			Comsumer
Products0.0%
	14,992	5	Mattress Discounters Corp.
			Technology0.5%
	68,358		Globix Corp.	231,050
			Total Common Stocks	231,050

See Notes to Financial Statements.

BlackRock High Yield Trust (BHY) (continued)

Units (000)		Description	Value
		Warrants0.0%
1	3,5,6,7	Mattress Discounters Corp., expires 7/15/07, strike
price $0.01, 4.85 shares of 1 warrant	$
54	6,7	Neon Communications, Inc., expires 12/02/12	1
1	3,6,7	PF. Net Communications, Inc., expires 5/15/10, strike
price $0.01, 36.87243 shares for 1 warrant
		Total Warrants	1
		Total Long-Term Investments (cost $75,713,386 9 )	66,566,954

Principal Amount (000)
		SHORT-TERM
INVESTMENT1.6%
		U.S.
Government and Agency Zero Coupon Bond1.6%
$ 800	8	Federal Home Loan Bank Discount Notes, 4.71%, 5/01/06
(cost $800,000)	800,000
		Total
Investments138.8% (cost $76,513,386 9 )	$ 67,366,954
		Liabilities in excess of other assets(38.8)%	(18,847,047	)
		Net
Assets100%	$ 48,519,907

| 1 | Using the higher of
S&Ps, Moodys or Fitchs rating. |
| --- | --- |
| 2 | Issuer is in default and/or
bankruptcy. |
| 3 | 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 April 30, 2006, the Trust held 31.0% of its net assets, with a current
market value of $15,021,505, in securities restricted as to resale. |
| 4 | Variable rate security. Rate
shown is interest rate as of April 30, 2006. |
| 5 | Security is fair valued. |
| 6 | Non-income producing
security. |
| 7 | Illiquid security. As of
April 30, 2006, the Trust held less than 0.1% of its net assets, with a
current market value of $1 in these securities. |
| 8 | Rate shown is the yield to
maturity as of April 30, 2006. |
| 9 | Cost for Federal income tax
purposes is $76,541,156. The net unrealized depreciation on a tax basis is
$9,174,202, consisting of $1,191,253 gross unrealized appreciation and
$10,365,455 gross unrealized depreciation. |

A category in the Corporate Bonds section may contain multiple industries as defined by the SECs Standard Industry Codes.

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS (unaudited) APRIL 30, 2006

BlackRock Income Opportunity Trust (BNA)

Rating 1			Description	Value
			LONG-TERM INVESTMENTS109.0%
			Mortgage Pass-Through Securities11.0%
			Federal Home Loan
Mortgage Corp.,
$	1,106	2	4.359%, 1/01/35	$ 1,094,838
	2,039	2	5.152%, 1/01/35	1,988,766
			Federal National
Mortgage Assoc.,
	432	3	5.50%,
12/01/13-12/01/32	422,110
	36,745		5.50%, 5/18/35	36,008,454
	966		6.00%,
3/01/16-7/01/35	980,667
	187		7.00%,
2/01/24-10/01/28	191,804
	200		TBA, 6.00%,
5/01/36	199,062
	114		Government
National Mortgage Assoc., 4/15/24-11/15/25	121,988
			Total Mortgage
Pass-Through Securities	41,007,689
			Federal Housing Administration Securities1.2%
			General Motors
Acceptance Corp. Projects,
	347		Ser. 37, 7.43%,
5/01/22	346,626
	198		Ser. 44, 7.43%,
8/01/22	197,358
			Merrill Projects,
	155		Ser. 29, 7.43%,
10/01/20	154,921
	52		Ser. 42, 7.43%,
9/01/22	52,347
	1,827		Reilly Project,
7.40%, 4/01/21	1,823,416
	1,836		Westmore Project,
7.25%, 4/01/21	1,823,301
			Total Federal
Housing Administration Securities	4,397,969
			Agency Multiple Class Mortgage Pass-Through
Securities9.6%
			Federal Home Loan
Mortgage Corp.,
	3,572		Ser. 82, Class
HJ, 5.50%, 9/25/32	3,524,451
	6,000		Ser. 2874, Class
BC, 5.00%, 10/15/19	5,586,568
	1,390		Ser. 2883, Class
DR, 5.00%, 11/15/19	1,283,470
	3,744		Ser. 2922, Class
GA, 5.50%, 5/15/34	3,687,363
	2,057		Ser. 2927, Class
BA, 5.50%, 10/15/33	2,030,112
	2,018		Ser. 2933 Class
HD, 5.50%, 2/15/35	1,997,094
	1,725		Ser. 2968, Class
EG, 6.00%, 10/15/34	1,701,844
			Federal National
Mortgage Assoc.,
	3,687		Ser. 5, Class PK,
5.00%, 12/25/34	3,597,355
	2,278		Ser. 27, Class
PC, 5.50%, 5/25/34	2,240,430
	1,855	2	Ser. 118, Class
FD, 5.359%, 12/25/33	1,865,828
	6,500		TBA, 5.50%,
5/01/21	6,449,222
	1,751		Government
National Mortgage Assoc., 6.00%, 6/20/15	1,767,742
			Total Agency
Multiple Class Mortgage Pass-Through Securities	35,731,479
			Non-Agency Multiple Class Mortgage Pass-Through
Securities2.4%
AAA	8,544		Residential
Funding Securities Corp., 8.50%, 5/25/33	9,042,261
AAA	11	2,4	Summit Mortgage
Trust, 6.241%, 12/28/12	10,531
			Total Non-Agency
Multiple Class Mortgage Pass-Through Securities	9,052,792
			Inverse Floating Rate Mortgage Securities0.7%
			Federal Home Loan
Mortgage Corp.,
	9	2	Ser. 1043, Class
H, 21.938%, 2/15/21	10,211
	749	2	Ser. 1611, Class
JC, 10.00%, 8/15/23	767,474
			Federal National
Mortgage Assoc.,
	1,808	2	Ser. 23, Class
PS, 8.863%, 4/25/23	1,821,249
		2	Ser. 46, Class S,
1,381.156%, 5/25/21	1,979
		2	Ser. 49, Class S,
518.05%, 12/25/21	1,569
	75	2	Ser. 87, Class S,
13.515%, 8/25/21	89,439
		2	Ser. 145, Class
S, 18.659%, 10/25/06	139
			Total Inverse Floating Rate Mortgage Securities	2,692,060

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

Rating 1	Principal Amount (000)		Description
			Asset-Backed Securities9.7%
AAA	$ 3,025		Capital Auto
Receivables Asset Trust, 5.03%, 10/15/09	$ 3,009,403
AAA	3,125		Citibank Credit
Card Issuance Trust, 4.85%, 2/10/11	3,094,150
			Countrywide
Asset-Backed Certificates,
AAA	2,818	2	Ser. 15, Class
2AV1, 5.059%, 4/25/36	2,818,775
AAA	2,956	2	Ser. 16, Class
4AV1, 5.059%, 1/25/35	2,957,068
AAA	3,150		DaimlerChrysler
Auto Trust, 5.00%, 5/08/10	3,137,101
AAA	3,400		Ford Credit Auto
Owner Trust, 5.05%, 11/15/09	3,388,514
AAA	3,075		MBNA Credit Card
Master Note Trust, 4.90%, 7/15/11	3,050,546
AAA	2,414	2	Merrill Lynch
Mortgage Investors, Inc., 5.069%, 9/25/36	2,415,206
AAA	2,884	2	New Century Home
Equity Loan Trust, 5.039%, 1/25/36	2,885,158
			SLM Student Loan
Trust,
AAA	886	2	Ser. 9, Class A2,
5.12%, 10/25/12	885,682
AAA	2,508	2	Ser. 10, Class
A1, 5.07%, 4/25/12	2,506,992
AAA	2,924	2	Structured Asset
Investment Loan Trust, 5.039%, 1/25/36	2,926,484
AAA	3,075		USAA Auto Owner
Trust, 5.01%, 9/15/10	3,061,598
			Total
Asset-Backed Securities	36,136,677
			Interest Only Asset-Backed Securities1.2%
AAA	1,238	2,4	Morgan Stanley
Capital Trust I, 1.756%, 6/15/17	9,547
			Sterling Coofs
Trust,
NR	28,253		Ser. 1, 2.362%,
4/15/29	1,977,731
NR	32,945		Ser. 2, 1.00%,
3/30/30	2,306,150
			Total Interest
Only Asset-Backed Securities	4,293,428
			Interest Only Mortgage-Backed Securities0.8%
			Federal Home Loan
Mortgage Corp.,
			Ser. 176, Class
M, 1,010.00%, 7/15/21	42
		2	Ser. 192, Class
U, 1,009.033%, 2/15/22	5
			Ser. 200, Class
R, 98,500.338%, 12/15/22	190
		2	Ser. 1054, Class
I, 435.32%, 3/15/21	171
			Ser. 1056, Class
KD, 1,084.50%, 3/15/21	1,139
			Ser. 1057, Class
J, 1,008.001%, 3/15/21	2,311
		2	Ser. 1148, Class
E, 592.552%, 10/15/21	527
			Ser. 1179, Class
O, 1,009.389%, 11/15/21	135
			Ser. 1221, Class
H, 1,006.50%, 3/15/07	40
	224		Ser. 1254, Class
Z, 8.50%, 4/15/22	371
	427		Ser. 1831, Class
PG, 6.50%, 3/15/11	37,976
	7,231		Ser. 2611, Class
QI, 5.50%, 9/15/32	1,331,487
			Federal National Mortgage Assoc.,
	109		Ser. 5, Class H,
9.00%, 1/25/22	19,198
	8		Ser. 7, Class 2,
8.50%, 4/01/17	1,562
	23	2	Ser. 7, Class S,
584.13%, 3/25/21	2,740
	1	2	Ser. 10, Class S,
565.227%, 5/25/21	7,496
	1	2	Ser. 12, Class S,
597.224%, 5/25/21	6,263
		2	Ser. 17, Class S,
570.485%, 6/25/21	3,720
			Ser. 33, Class
PV, 1,078.42%, 10/25/21	12,487
			Ser. 38, Class N,
1,008.50%, 4/25/21	396
	4		Ser. 46, Class H,
1,042.50%, 12/25/09	66,638
	475	2	Ser. 50, Class
SI, 1.20%, 4/25/23	14,401
			Ser. 84, Class H,
1,100.633%, 8/25/06	1
	13		Ser. 89, Class 2,
8.00%, 6/01/18	2,747
	32,031	2	Ser. 90, Class
JH, 1.741%, 11/25/34	1,410,164
	4		Ser. 94, Class 2,
9.50%, 8/01/21	1,033
			Ser. 99, Class L,
930.00%, 8/25/21	2,783
	3		Ser. 123, Class
M, 1,009.50%, 10/25/20	471
		2	Ser. 136, Class
S, 15.12%, 11/25/20	23,056
			Ser. 139, Class
PT, 648.35%, 10/25/21	3,551
	5	2	Ser. 141, Class
SA, 15.125%, 8/25/07	337
	5,729	2,4	Goldman Sachs
Mortgage Securities Corp., 0.999%, 2/19/25	121,316
AAA	3,044	2	Salomon Brothers
Mortgage Securities VII, 0.413%, 3/25/22	1,079
			Total Interest
Only Mortgage-Backed Securities	3,075,833

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

Rating 1			Description	Value
			Principal Only Mortgage-Backed Securities0.1%
$	122	3,5	Federal Home Loan
Mortgage Corp., Zero Coupon, 2/15/24	$ 108,061
			Federal National
Mortgage Assoc.,
	72	5	Ser. 51, Class E,
8.00%, 2/25/23	55,783
	15	5	Ser. 70, Class A,
7.00%, 5/25/23	13,510
	32	5	Ser. 167, Class
D, 8.50%, 10/25/17	30,576
	28	5	Ser. 203, Class
1, 8.00%, 2/01/23	23,069
	18	5	Ser. 228, Class
1, 7.00%, 5/01/23	14,511
			Total Principal
Only Mortgage-Backed Securities	245,510
			Commercial Mortgage-Backed Securities4.4%
AAA	2,320		Bear Stearns
Commercial Mortgage Services, 4.945%, 2/11/41	2,235,900
AAA	2,970		Credit Suisse
First Boston Mortgage Securities Corp., 4.94%, 12/15/35	2,861,454
AAA	2,090		First Union
National Bank Commercial Mortgage Trust, 7.202%, 10/15/32	2,207,709
AAA	2,475		General Motors
Acceptance Corp. Commercial Mortgage Securities, Inc., 4.547%, 12/10/41	2,346,609
			JP Morgan Chase Commercial Mortgage Securities Corp.,
AAA	1,990		Ser. C1, Class
A3, 5.857%, 10/12/35	2,011,989
AAA	2,380		Ser. CBX, Class
A4, 4.529%, 1/12/37	2,261,743
AAA	2,530	2	LB-UBS Commercial
Mortgage Trust, 5.155%, 6/15/29	2,478,213
			Total Commercial
Mortgage-Backed Securities	16,403,617
			Collateralized
Mortgage Obligation Residual Securities0.0%
			Collateralized
Mortgage Obligation Trust,
AAA			Ser. 40, Class R,
580.50%, 4/01/18	229
AAA			Ser. 42, Class R,
6,000.00%, 10/01/14	4,306
			Federal Home Loan
Mortgage Corp.,
			Ser. 19, Class R,
9,757.349%, 3/15/20	1,069
			Ser. 75, Class R,
9.50%, 1/15/21	3
			Ser. 75, Class
RS, 16.26%, 1/15/21	3
			Ser. 173, Class
R, 9.00%, 11/15/21	13
			Ser. 173, Class
RS, 9.086%, 11/15/21	14
NR	6		Painewebber CMO
Trust, 13.80%, 9/01/18
			Total
Collateralized Mortgage Obligation Residual Securities	5,637
			Collateralized Mortgage Obligation
Securities3.8%
AAA	2,620		DLJ Commercial Mortgage Corp., 7.18%, 11/10/33	2,765,410
			Federal Home Loan
Mortgage Corp.,
	397		Ser. 2582, Class
TB, 3.50%, 10/15/21	395,782
	3,409		Ser. 2806, Class
VC, 6.00%, 12/15/19	3,395,696
AA	2,630		First
Union-Lehman Brothers-Bank of America, 6.778%, 11/18/35	2,800,649
AAA	2,310		GE Capital Commercial Mortgage Corp., 6.269%,
12/10/35	2,368,997
AAA	2,580		General Motor
Acceptance Corp. Commercial Mortgage Securities, Inc., 4.93%, 7/10/39	2,482,848
			Total Collateralized
Mortgage Obligation Securities	14,209,382
			Corporate Bonds49.1%
			Aerospace & Defense1.9%
B+	100		Armor Holdings, Inc., 8.25%, 8/15/13	106,750
			BE Aerospace,
Inc.,
BB-	390		8.50%, 10/01/10	415,837
B	145		8.875%, 5/01/11	151,344
B-	1,630		DI
Finance/DynCorp. Intl., 9.50%, 2/15/13	1,703,350
B	80		DRS Technologies,
Inc., 7.625%, 2/01/18	81,600
			Raytheon Co.,
BBB	712		6.15%, 11/01/08	723,993
NR	2,500		7.00%, 5/15/06	2,531,460
BB	100		Sequa Corp.,
8.875%, 4/01/08	104,500
A+	1,250		United
Technologies Corp., 4.875%, 5/01/15	1,176,756
			Total Aerospace
& Defense	6,995,590
			Automotive0.6%
BB+	40		ArvinMeritor,
Inc., 8.75%, 3/01/12	40,900
			Autonation, Inc.,
BB+	170	4	7.00%, 4/15/14	170,850
BB+	160	2,4	7.045%, 4/15/13	162,800

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Automotive(contd)
			Avis Budget Car
Rental LLC,
BB-	$ 30	2,4	7.576%, 5/15/14	$ 30,863
BB-	75	4	7.75%, 5/15/16	76,500
CCC	100		Dura Operating
Corp., 8.625%, 4/15/12	85,000
B	770		General Motors
Corp., 8.25%, 7/15/23	558,250
B-	35		Goodyear Tire
& Rubber Co., 7.857%, 8/15/11	34,475
B+	345		Lear Corp.,
8.11%, 5/15/09	338,962
CCC+	520		Metaldyne Corp.,
10.00%, 11/01/13	501,800
B	110		Tenneco, Inc.,
8.625%, 11/15/14	111,375
			Total Automotive	2,111,775
			Basic
Materials3.4%
B+	70		Abitibi-Consolidated
Co., 8.375%, 4/01/15 (Canada)	70,700
B+	955		AK Steel Corp.,
7.75%, 6/15/12	966,937
B	80	2,4	BCI US Finance
Corp./Borden 2 Nova Scotia Finance ULC, 10.577%, 7/15/10	81,800
BB-	90	2	Bowater, Inc.,
7.91%, 3/15/10	90,900
NR	3,185		Caraustar
Industries, Inc., 9.875%, 4/01/11	3,352,212
BB+	30		Chemtura Corp., 6.875%, 6/01/16	29,925
B+	80		Domtar, Inc.,
7.125%, 8/15/15 (Canada)	72,600
B+	170		Donohue Forest
Products, 7.625%, 5/15/07 (Canada)	171,488
BB-	300		Equistar
Chemicals LP/Equistar Funding Corp., 10.625%, 5/01/11	326,250
			Huntsman LLC,
B2	72		11.50%, 7/15/12	82,440
Ba3	230		11.625%, 10/15/10	259,325
B2	235	2	12.318%, 7/15/11	246,163
BB	70		IMC Global, Inc.,
10.875%, 6/01/08	75,425
B-	750	4	Ineos Group Holdings PLC, 8.50%, 2/15/16 (United
Kingdom)	709,687
CCC+	1,150		Innophos, Inc.,
8.875%, 8/15/14	1,184,500
BBB+	135		Ispat Inland ULC,
9.75%, 4/01/14 (Canada)	151,538
			Lyondell Chemical
Co.,
BB+	130		10.50%, 6/01/13	145,600
BB+	1,785		11.125%, 7/15/12	1,981,350
BB+	465		Ser. A, 9.625%,
5/01/07	480,113
B-	60		Nalco Co.,
8.875%, 11/15/13	61,950
B3	295		NewPage Corp., 10.00%, 5/01/12	316,388
BB+	490	2	Nova Chemicals
Corp., 8.405%, 11/15/13 (Canada)	493,062
Ba3	1,000		Oregon Steel
Mills, Inc., 10.00%, 7/15/09	1,058,750
			Rhodia SA,
(France)
CCC+	204		8.875%, 6/01/11	211,650
B3	26		10.25%, 6/01/10	29,055
BBB	170		Teck Cominco
Ltd., 6.125%, 10/01/35 (Canada)	157,276
			Total Basic Materials	12,807,084
			Building & Development0.6%
B-	80		Ahern Rentals,
Inc., 9.25%, 8/15/13	83,400
B2	230	4	Compression
Polymers Corp., 10.50%, 7/01/13	235,750
B-	780		ERICO Intl.
Corp., 8.875%, 3/01/12	803,400
B-	695		Goodman Global Holding Co., Inc., 7.875%, 12/15/12	696,737
			North American
Energy Partners, Inc., (Canada)
Caa1	55		8.75%, 12/01/11	53,763
B	300		9.00%, 6/01/10	318,000
			Total Building & Development	2,191,050
			Consumer Products2.1%
B3	95		ALH Finance LLC,
8.50%, 1/15/13	93,100
			Cenveo Corp.,
B-	275		7.875%, 12/01/13	268,125
B+	575		9.625%, 3/15/12	615,250
BBB+	560		Federated
Department Stores, Inc., 6.79%, 7/15/27	556,760
B-	335		Finlay Fine
Jewelry Corp., 8.375%, 6/01/12	293,963
B	90		Gold Kist, Inc., 10.25%, 3/15/14	94,950
B-	855	4	Knowledge
Learning Corp., Inc., 7.75%, 2/01/15	818,662

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Consumer Products(contd)
B-	$ 380		Lazydays RV
Center, Inc., 11.75%, 5/15/12	$ 380,475
B	470	2	Levi Strauss
& Co., 9.74%, 4/01/12	489,975
CCC-	150		Movie Gallery,
Inc., 11.00%, 5/01/12	78,750
B3	50	2,4	Nutro Products,
Inc., 9.23%, 10/15/13	51,000
AA-	3,000		Procter &
Gamble Co., 6.875%, 9/15/09	3,140,989
BB-	300		Quiksilver, Inc.,
6.875%, 4/15/15	289,500
B-	790	4	Rite Aid Corp.,
6.125%, 12/15/08	776,175
			Total Consumer
Products	7,947,674
			Containers & Packaging1.2%
B3	240	4	Covalence
Specialty Materials Corp., 10.25%, 3/01/16	248,400
B1	150	4	Crown Americas LLC
& Crown Americas Capital Corp., 7.75%, 11/15/15	153,375
BB-	1,850		Owens-Brockway
Glass Container, Inc., 8.875%, 2/15/09	1,924,000
B-	85	4	Packaging
Dynamics Finance Corp., 10.00%, 5/01/16	86,700
CCC+	430	4	Pregis Corp.,
12.375%, 10/15/13	450,963
B+	280		Smurfit-Stone
Container Enterprises, Inc., 9.75%, 2/01/11	287,700
B+	1,240		Stone Container
Corp., 9.25%, 2/01/08	1,288,050
			Total Containers
& Packaging	4,439,188
			Ecological Services &
Equipment0.9%
BB-	255		Allied Waste NA,
Inc., 5.75%, 2/15/11	243,525
B	2,250		Casella Waste
Systems, Inc., 9.75%, 2/01/13	2,393,438
CCC	600		Waste Services,
Inc., 9.50%, 4/15/14	622,500
			Total Ecological
Services & Equipment	3,259,463
			Energy5.0%
			ANR Pipeline Co.,
B	145		7.375%, 2/15/24	148,988
B	565		9.625%, 11/01/21	677,294
B2	315		Aquila Finance
Corp., 7.75%, 6/15/11 (Canada)	326,025
B	190	4	Chaparral Energy,
Inc., 8.50%, 12/01/15	195,700
BB	20	4	Chesapeake Energy
Corp., 6.875%, 11/15/20	19,700
B-	130		Clayton Williams Energy, Inc., 7.75%, 8/01/13	122,525
			CMS Energy Corp.,
BB-	35		7.50%, 1/15/09	35,963
BB-	115		8.50%, 4/15/11	123,338
BB-	30		9.875%, 10/15/07	31,763
BB-	180		Compagnie Generale de Geophysique SA, 7.50%, 5/15/15
(France)	185,850
			Compton Petroleum
Finance Corp.,
B	135		7.625%, 12/01/13	133,819
B	190	4	7.625%, 12/01/13
(Canada)	188,337
A1	1,970	2	ConocoPhillips
Australia Funding Co., 5.128%, 4/09/09	1,969,382
B2	445		Dresser, Inc.,
9.375%, 4/15/11	466,694
B	200		Dynegy Danskammer LLC, 7.27%, 11/08/10	204,000
			El Paso Corp.,
B-	120		7.80%, 8/01/31	119,400
B-	100	4	9.625%, 5/15/12	110,500
B-	125	4	10.75%, 10/01/10	139,688
			El Paso Natural
Gas Co.,
B	1,000		7.625%, 8/01/10	1,032,500
B	150		8.375%, 6/15/32	166,125
Ba2	258		Elwood Energy
LLC, 8.159%, 7/05/26	272,187
A-	425		EnCana Corp.,
6.50%, 8/15/34 (Canada)	432,662
B-	365		Exco Resources, Inc., 7.25%, 1/15/11	360,437
BBB-	480		FirstEnergy
Corp., 6.45%, 11/15/11	494,971
AA-	575		Florida Power
& Light Co., 4.95%, 6/01/35	479,969
BB	90		Grant Prideco,
Inc., 6.125%, 8/15/15	86,400
BBB+	190		Halliburton Co.,
7.60%, 8/15/96	204,450
			Hilcorp Energy I
LP/Hilcorp Finance Corp.,
B	255	4	7.75%, 11/01/15	251,175
B	136	4	10.50%, 9/01/10	148,240
B-	215		KCS Energy, Inc.,
7.125%, 4/01/12	216,612

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Energy(contd)
BBB+	$ 1,250		Kinder Morgan
Energy Partners LP, 7.30%, 8/15/33	$ 1,321,926
BBB	1,000		Kinder Morgan,
Inc., 6.50%, 9/01/12	1,028,411
B+	112		Midwest
Generation LLC, 8.56%, 1/02/16	119,902
			Mirant Americas
Generation LLC,
B	50		8.30%, 5/01/11	51,625
B	110		8.50%, 10/01/21	110,825
B	250		9.125%, 5/01/31	262,500
B2	1,020		Mission Energy
Holdings Co., 13.50%, 7/15/08	1,160,250
			NRG Energy, Inc.,
B1	50		7.25%, 2/01/14	50,250
B1	285		7.375%, 2/01/16	287,137
B-	110	4	Ocean Rig AS,
8.375%, 7/01/13 (Norway)	115,775
B-	140		Orion Power
Holdings, Inc., 12.00%, 5/01/10	159,075
Baa2	650		Progress Energy,
Inc., 7.75%, 3/01/31	739,631
			Reliant Energy,
Inc.,
BB-	325		6.75%, 12/15/14	295,750
BB-	40		9.25%, 7/15/10	40,700
A-	175		Scottish Power
PLC, 5.375%, 3/15/15 (United Kingdom)	167,465
BBB+	65		Talisman Energy,
Inc., 5.85%, 2/01/37 (Canada)	59,314
B-	360	4	Targa Resources,
Inc., 8.50%, 11/01/13	365,400
AA	325		Texaco Capital,
Inc., 8.875%, 9/01/21	423,674
A2	600		Transcanada
Pipelines Ltd., 5.85%, 3/15/36 (Canada)	566,830
BBB-	30		Transcontinental
Gas Pipe Line Corp., 7.25%, 12/01/26	30,750
B3	120	4	Verasun Energy
Corp., 9.875%, 12/15/12	127,800
B2	55		Whiting Petroleum
Corp., 7.00%, 2/01/14	54,450
BB+	610		Williams Cos.,
Inc., 8.75%, 3/15/32	701,500
BBB-	1,075		XTO Energy, Inc.,
6.10%, 4/01/36	1,014,373
			Total Energy	18,600,007
			Entertainment & Leisure1.8%
B3	185	4	AMC
Entertainment, Inc., 11.00%, 2/01/16	197,950
B-	250		Gaylord
Entertainment Co., 6.75%, 11/15/14	239,375
B3	375	4	Greektown
Holdings LLC, 10.75%, 12/01/13	392,813
Ba3	1,000		MGM Mirage,
9.75%, 6/01/07	1,037,500
BB+	2,000		Park Place
Entertainment Corp., 8.875%, 9/15/08	2,120,000
B	205		Poster Financial
Group, Inc., 8.75%, 12/01/11	216,275
B+	110	4	San Pasqual
Casino, 8.00%, 9/15/13	111,100
BB-	290		Seneca Gaming
Corp., 7.25%, 5/01/12	290,000
BB+	1,930		Starwood Hotels
& Resorts Worldwide, Inc., 7.875%, 5/01/12	2,069,925
B+	25		Wynn Las Vegas
LLC/Wynn Las Vegas Capital Corp., 6.625%, 12/01/14	24,250
			Total
Entertainment & Leisure	6,699,188
			Financial Institutions16.4%
BB	350		American Real
Estate Partners LP/American Real Estate Finance Corp., 7.125%, 2/15/13	348,250
			Bank of America
Corp.,
Aa2	2,000		4.50%, 8/01/10	1,935,859
Aa3	2,450		7.80%, 2/15/10	2,645,645
AA+	5,465	2	Barclays Bank PLC
NY, 4.90%, 3/13/09	5,465,000
B	200		BCP Crystal US
Holdings Corp., 9.625%, 6/15/14 (Luxembourg)	220,000
A+	500		Bear Stearns Co., Inc., 6.50%, 5/01/06	500,019
AAA	2,525		Berkshire
Hathaway Finance Corp., 3.375%, 10/15/08	2,419,385
			Citigroup, Inc.,
AA+	5,975		4.125%, 2/22/10	5,715,314
AA+	550		6.875%, 2/15/98	572,708
			Credit Suisse
First Boston, Inc.,
AA-	700	3	6.125%, 11/15/11	718,902
AA-	1,000		7.125%, 7/15/32	1,121,624
BB	1,090		Crum &
Forster Holdings Corp., 10.375%, 6/15/13	1,133,600
AA-	950	2	Deutsche Bank AG,
3.843%, 3/15/07	934,800
B+	110		E*Trade Financial
Corp., 7.375%, 9/15/13	111,925
BB	180		Fairfax Financial
Holdings Ltd., 7.75%, 4/26/12 (Canada)	171,000

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Financial Institutions(contd)
			Fort Irwin Land
LLC,
AA	$ 780	4	Ser. A, Class II,
5.30%, 12/15/35	$ 694,512
Aaa	575	4	Ser. A-1, 5.03%,
12/15/25	514,366
			General Electric
Capital Corp.,
AAA	3,670	2	3.45%, 1/15/08	3,656,605
AAA	3,000		6.75%, 3/15/32	3,230,951
BB	510		General Motors
Acceptance Corp., 6.875%, 8/28/12	471,631
AA-	1,000		Goldman Sachs
Group, Inc., 6.60%, 1/15/12	1,041,824
AA-	1,035		Household Finance
Corp., 6.375%, 10/15/11	1,071,076
B-	360		K&F
Acquisition, Inc., 7.75%, 11/15/14	368,100
AAA	3,000		KFW Intl.
Finance, Inc., 5.25%, 6/28/06	2,999,748
A+	1,500		Lehman Brothers
Holdings, Inc., 6.625%, 1/18/12	1,568,792
AA-	4,840	2	Morgan Stanley
Group, Inc., 4.91%, 3/07/08	4,838,551
B2	685	4	Nell AF SARL,
8.375%, 8/15/15 (Luxembourg)	678,150
AAA	6,100	2,4	Rabobank
Nederland Global, 5.01%, 4/06/09	6,098,503
			Rainbow National
Services LLC,
B+	225	4	8.75%, 9/01/12	240,188
B+	1,650	4	10.375%, 9/01/14	1,852,125
AA-	395	2	RBS Capital Trust
I, 4.709%, 12/29/49	362,031
Caa1	775		Standard Aero
Holdings, Inc., 8.25%, 9/01/14	685,875
A+	550	2	UBS Capital IX, 6.189%, 3/29/49	544,660
AA	2,000	2	UBS Preferred
Funding Trust I, 8.622%, 10/29/49	2,219,854
B-	50	2	Universal City
Florida Holding Co. I/II, 9.899%, 5/01/10	51,875
A+	580	2	Wachovia Capital
Trust III, 5.80%, 3/15/42	578,007
Aa1	1,000		Wells Fargo &
Co., 4.625%, 8/09/10	970,268
Aa1	2,000		Wells Fargo Bank,
7.55%, 6/21/10	2,152,407
Aa3	50		Western Financial
Bank, 9.625%, 5/15/12	55,500
			Total Financial
Institutions	60,959,630
			Health
Care0.6%
B	475	4	Angiotech
Pharmaceuticals, Inc., 7.75%, 4/01/14 (Canada)	477,375
NR	20	6	Curative Health
Services, Inc., 10.75%, 5/01/11	12,500
CCC	275		MedQuest, Inc., 11.875%, 8/15/12	229,625
B3	210		Select Medical
Corp., 7.625%, 2/01/15	191,625
B	475		Tenet Healthcare
Corp., 6.875%, 11/15/31	390,688
A	350		UnitedHealth Group, Inc., 5.80%, 3/15/36	319,940
B-	450		Universal
Hospital Services, Inc., 10.125%, 11/01/11	468,563
A-	120		WellPoint, Inc.,
5.85%, 1/15/36	110,356
			Total Health Care	2,200,672
			Industrials1.6%
BBB-	2,000		Briggs &
Stratton Corp., 8.875%, 3/15/11	2,200,000
B+	1,306		Manitowoc, Inc.,
10.50%, 8/01/12	1,431,703
B-	470		NationsRent Cos., Inc., 9.50%, 5/01/15	508,775
CCC+	465		Park-Ohio
Industries, Inc., 8.375%, 11/15/14	439,425
B3	530	4	Sunstate
Equipment Co. LLC, 10.50%, 4/01/13	561,800
CCC+	150		Trimas Corp., 9.875%, 6/15/12	141,750
Caa1	770		United Rentals
NA, Inc., 7.00%, 2/15/14	741,125
			Total Industrials	6,024,578
			Media5.6%
			Affinion Group, Inc.,
B-	395	4	10.125%, 10/15/13	398,704
B-	220	4	11.50%, 10/15/15	225,500
B-	460		Allbritton
Communications Co., 7.75%, 12/15/12	462,300
CCC	340		American Media Operations, Inc., 10.25%, 5/01/09	320,875
			AOL Time Warner,
Inc.,
BBB+	1,635		7.57%, 2/01/24	1,730,167
BBB+	3,000		9.125%, 1/15/13	3,434,505
BBB+	1,415		AT&T
Broadband Corp., 8.375%, 3/15/13	1,583,375
BBB	55	4	BSKYB Finance UK
PLC, 6.50%, 10/15/35 (United Kingdom)	51,323
B+	161	2	Cablevision
Systems Corp., 9.62%, 4/01/09	170,660

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Media(contd)
			Charter
Communications Holdings II, LLC/Charter Communications Holdings II Capital
Corp.,
Caa1	$ 645		10.25%, 9/15/10	$ 653,062
Caa1	180	4	10.25%, 9/15/10	180,675
BBB+	1,000		Comcast Cable
Communications, Inc., 6.75%, 1/30/11	1,040,832
BB-	300		CSC Holdings,
Inc., 7.875%, 12/15/07	306,000
			Echostar DBS
Corp.,
BB-	180		5.75%, 10/01/08	177,300
BB-	75	4	7.125%, 2/01/16	73,125
BB-	135	2	8.24%, 10/01/08	137,700
B	250		General Cable
Corp., 9.50%, 11/15/10	269,375
B+	200		Medianews Group,
Inc., 6.875%, 10/01/13	182,000
B2	190	4	Network
Communications, Inc., 10.75%, 12/01/13	195,225
			News America
Holdings, Inc.,
BBB	145		8.15%, 10/17/36	161,888
BBB	2,475		8.45%, 8/01/34	2,835,708
B3	330		Nexstar Finance,
Inc., 7.00%, 1/15/14	310,200
B2	500	2,4	Paxson
Communications Corp., 8.318%, 1/15/12	513,125
			Primedia, Inc.,
B2	90		8.00%, 5/15/13	82,125
B2	460	2	10.545%, 5/15/10	471,500
BB-	285	4	Quebecor World,
Inc., 8.75%, 3/15/16 (Canada)	276,415
B	875	4	RH Donnelley
Corp., 8.875%, 1/15/16	900,156
Caa1	130		Sirius Satellite
Radio, Inc., 9.625%, 8/01/13	127,075
BBB+	1,495		TCI
Communications, Inc., 8.75%, 8/01/15	1,723,812
CCC+	90	4	Unity Media GmbH,
10.375%, 2/15/15 (Germany)	89,100
			Vertis, Inc.,
B3	570		9.75%, 4/01/09	581,400
CCC	255		10.875%, 6/15/09	244,800
Caa2	965		Young
Broadcasting, Inc., 10.00%, 3/01/11	885,387
			Total Media	20,795,394
			Real Estate1.4%
BBB+	1,000		AvalonBay
Communities, Inc., 6.625%, 9/15/11	1,043,443
			EOP Operating LP,
BBB	850		4.65%, 10/01/10	814,534
BBB	1,070		7.25%, 6/15/28	1,104,542
			Rouse Co.,
BB+	725		3.625%, 3/15/09	674,476
BB+	1,715		5.375%, 11/26/13	1,586,835
			Total Real Estate	5,223,830
			Technology1.8%
CCC+	430		Amkor Technology,
Inc., 9.25%, 2/15/08	453,650
B+	555		Celestica, Inc.,
7.625%, 7/01/13 (Canada)	555,000
B+	100	4	Hynix
Semiconductor, Inc., 9.875%, 7/01/12 (South Korea)	110,375
			MagnaChip Semiconductor SA/MagnaChip Semiconductor
Finance Co.,
B2	15		8.00%, 12/15/14
(Luxembourg)	13,950
Ba3	290	2	8.16%, 12/15/11
(Luxembourg)	291,450
BB+	2,000		Seagate
Technology Holdings, 8.00%, 5/15/09 (Cayman Islands)	2,070,000
B2	210	4	Sensata
Technologies BV, 8.00%, 5/01/14	212,100
CCC+	295	4	SS&C Technologies,
Inc., 11.75%, 12/01/13	314,912
			STATS ChipPAC
Ltd.,
BB	350		6.75%, 11/15/11
(Singapore)	342,125
BB	50		7.50%, 7/19/10
(Singapore)	50,625
			Sungard Data
Systems, Inc.,
B-	105	4	9.125%, 8/15/13	112,350
B-	315	2,4	9.431%, 8/15/13	335,475
B-	625	4	10.25%, 8/15/15	668,750
B	960		Superior Essex
Communications LLC/Essex Group, Inc., 9.00%, 4/15/12	967,200
B-	390		UGS Corp.,
10.00%, 6/01/12	427,050
			Total Technology	6,925,012

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Telecommunications3.7%
A	$ 1,700		Bellsouth Telecommunications,
6.65%, 12/15/95	$ 775,450
BB-	270		Cincinnati Bell,
Inc., 7.25%, 7/15/13	275,400
A-	325		Deutsche Telekom
Intl. Finance BV, 5.75%, 3/23/16	313,882
B3	170	4	Hawaiian Telcom
Communications, Inc., 10.789%, 5/01/13	175,100
			Intelsat Ltd.,
(Bermuda)
B2	70		8.25%, 1/15/13	71,400
B2	300		8.625%, 1/15/15	312,375
B2	315	2	9.614%, 1/15/12	320,512
			Lucent
Technologies, Inc.,
B1	170		6.45%, 3/15/29	150,450
B1	895		6.50%, 1/15/28	785,362
B+	935	4	Nordic Telephone
Co. Holdings ApS, 8.875%, 5/01/16	972,400
B2	80		Nortel Networks
Corp., 6.875%, 9/01/23 (Canada)	74,700
B1	160		PanAmSat Corp., 9.00%, 8/15/14	168,400
			Qwest Corp.,
BB+	55		7.875%, 9/01/11	57,612
BB+	375	2	8.16%, 6/15/13	408,750
			Sprint Capital
Corp.,
A-	1,205		6.875%, 11/15/28	1,239,124
A-	1,250		8.75%, 3/15/32	1,551,730
A+	575		Verizon Global Funding Corp., 7.75%, 6/15/32	629,203
			Verizon Maryland,
Inc.,
A+	540		5.125%, 6/15/33	414,461
A+	1,355		Ser. A, 6.125%,
3/01/12	1,348,822
A+	750		Verizon Virginia, Inc., 4.625%, 3/15/13	674,301
			Vodafone Group
PLC,
A+	1,615	2	5.05%, 12/28/07
(United Kingdom)	1,615,536
A+	1,000		7.75%, 2/15/10
(United Kingdom)	1,069,713
B+	3604		Wind Acquisition Finance SA, 10.75%, 12/01/15
(Luxembourg)	395,100
			Total
Telecommunications	13,799,783
			Transportation0.5%
Ba3	120		American
Airlines, Inc., 7.324%, 4/15/11	116,400
A-	1,000		Canadian National Railway Co., 6.375%, 10/15/11
(Canada)	1,040,115
B	450		CHC Helicopter
Corp., 7.375%, 5/01/14 (Canada)	457,875
BB-	70	4	Hertz Corp.,
8.875%, 1/01/14	74,462
B3	47		Horizon Lines
LLC, 9.00%, 11/01/12	48,939
B+	60		OMI Corp., 7.625%, 12/01/13	61,650
			Total
Transportation	1,799,441
			Total Corporate
Bonds	182,779,359
			U.S.
Government and Agency Securities15.0%
			Overseas Private
Investment Corp.,
	336		4.09%, 5/29/12	295,197
	939	2	4.30%, 5/29/12	845,550
	702		4.64%, 5/29/12	640,028
	396		4.68%, 5/29/12	351,191
	2,996		4.87%, 5/29/12	2,757,196
	3,706	2	5.40%, 5/29/12	3,558,763
	6,055	7	Resolution
Funding Corp., Zero Coupon, 4/15/30	1,679,507
	1,152		Small Business
Administration, 6.95%, 11/01/16	1,187,220
			Tennessee Valley
Authority,
	1,800		Ser. C, 5.88%,
4/01/36	1,860,098
	2,900		Ser. D, 4.875%,
12/15/16	2,861,489
			U.S. Treasury
Bonds,
	3,930		5.375%, 2/15/31	3,991,406
	32,000	3,7	6.00%, 2/15/26	34,664,999
	2,000	7	U.S. Treasury Strip Principal, Zero Coupon, 11/15/21	876,250
			Total U.S. Government
and Agency Securities	55,568,894
			Total Long-Term
Investments (cost $414,654,362)	405,600,326

See Notes to Financial Statements.

BlackRock Income Opportunity Trust (BNA) (continued)

Principal Amount (000)		Description	Value
		SHORT-TERM INVESTMENTS0.6%
		U.S. Government and Agency Zero Coupon
Bonds0.6%
$ 500	8	Federal Home Loan
Bank Discount Notes, 4.71%, 5/01/06	$ 500,000
1,700	3,8	U.S. Treasury
Bills, 4.502%, 5/04/06	1,699,365
		Total Short-Term
Investments (cost $2,199,365)	2,199,365
Notional Amount (000)
		OUTSTANDING OPTIONS PURCHASED0.3%
		Interest Rate
Swaps,
5,700		Trust pays
3-month LIBOR, Trust receives 5.26%, expires 3/02/16	161,880
5,700		Trust pays
3-month LIBOR, Trust receives 5.50%, expires 12/11/15	253,650
5,700		Trust pays 5.26%,
Trust receives 3-month LIBOR, expires 3/02/16	335,160
5,700		Trust pays 5.50%,
Trust receives 3-month LIBOR, expires 12/11/15	408,690
		Outstanding Options Purchased (cost $1,270,530)	1,159,380
		Total
investments before TBA sale commitment and outstanding options written109.9%
		(cost
$418,124,258 9 )	408,959,071
Principal Amount (000)
		TBA SALE COMMITMENT(7.1)%
(27,300)		Federal National
Mortgage Assoc. TBA, 5.50%, 5/01/36 (proceeds $26,515,125)	(26,506,607	)
Contracts/ Notional Amount (000)
		OUTSTANDING OPTIONS WRITTEN(0.7)%
		Interest Rate
Swaps,
(5,700)		Trust pays
3-month LIBOR, Trust receives 5.135%, expires 4/21/08	(320,055	)
(5,700)		Trust pays
5.135%, Trust receives 3-month LIBOR, expires 4/21/08	(99,009	)
(14,200)		Trust pays
3-month LIBOR, Trust receives 4.725%, expires 6/13/07	(998,118	)
(14,200)		Trust pays
4.725%, Trust receives 3-month LIBOR, expires 6/13/07	(64,752	)
(12,400)		Trust pays
3-month LIBOR, Trust receives 5.67%, expires 1/04/10	(452,600	)
(12,400)		Trust pays 5.67%,
Trust receives 3-month LIBOR, expires 1/04/10	(559,240	)
(78)		U.S. Treasury
Notes Future, expiring 5/26/06	(59,109	)
(70)		U.S. Treasury
Notes Future, expiring 8/25/06	(47,578	)
		Total outstanding
options written (premium received $2,950,732)	(2,600,461	)
		Total
Investments net of TBA sale commitment and outstanding options written102.1%	$ 379,852,003
		Liabilities in
excess of other assets(2.1)%	(7,725,147	)
		Net
Assets100%	$ 372,126,856

| 1 | Using the higher of
S&Ps, Moodys or Fitchs rating. |
| --- | --- |
| 2 | Variable rate security. Rate
shown is interest rate as of April 30, 2006. |
| 3 | Security, or a portion
thereof, pledged as collateral with a value of $4,530,746 on 1,554 long U.S.
Treasury Bond futures contracts expiring June 2006 to September 2006, 382
long U.S. Treasury Note futures contracts expiring September 2006, 64 short
Eurodollar futures contracts expiring June 2006 to September 2006 and 1,051
short U.S. Treasury Note futures contracts expiring September 2006. The
notional value of such contracts on April 30, 2006 was $81,183,353, with an
unrealized gain of $490,139. |
| 4 | 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 April 30, 2006, the Trust held 6.4% of its net
assets, with a current market value of $23,950,488, in securities restricted
as to resale. |
| 5 | Rate shown is interest rate
or effective yield as of April 30, 2006 of the underlying collateral. |
| 6 | Issuer is in default and/or
bankruptcy. |
| 7 | Entire or partial principal
amount pledged as collateral for reverse repurchase agreements. See Note 4 in
the Notes to Financial Statements for details of open reverse repurchase
agreements. |
| 8 | Rate shown is the yield to
maturity as of April 30, 2006. |
| 9 | Cost for Federal income tax
purposes is $421,002,197. The net unrealized depreciation on a tax basis is
$12,043,126, consisting of $2,236,259 gross unrealized appreciation and
$14,279,385 gross unrealized depreciation. |

A category in the Corporate Bonds section may contain multiple industries as defined by the SECs Standard Industry Codes.

KEY TO ABBREVIATIONS

TBA To Be Announced

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS (unaudited) APRIL 30, 2006

BlackRock Income Trust Inc. (BKT)

Rating 1	Principal Amount (000)		Description	Value
			LONG-TERM
INVESTMENTS118.2%
			Mortgage
Pass-Through Securities27.1%
AAA	$ 3,756	2	CWALT, Inc., 5.689%, 10/25/35	$ 3,807,284
			Federal Home Loan Mortgage Corp.,
	1,127	2	4.173%, 1/01/35	1,110,814
	1,046	2	4.96%, 10/01/34	1,018,913
	39	2	5.28%, 2/01/25	39,166
	10,631		5.50%,
10/01/16-5/01/17	10,547,578
	36	2	5.55%, 11/01/30	35,974
	31	2	6.01%, 11/01/17	30,370
	73		6.50%,
5/01/29-5/01/30	75,163
	5		7.50%, 2/01/23	4,850
	57		8.00%, 11/01/15	56,730
	10		8.50%,
10/01/06-3/01/08	9,785
	181		9.00%, 9/01/20	194,114
			Federal National Mortgage Assoc.,
	26,082		5.00%,
6/01/33-2/01/36	24,736,417
	43,165		5.50%,
12/01/13-10/01/35	42,365,804
	10,412	3	5.50%, 9/01/17	10,345,752
	6,421		6.00%,
11/01/31-8/01/34	6,407,580
	3,159		6.50%, 2/01/26-5/01/31	3,226,129
	5,165		7.00%,
6/01/26-1/01/32	5,317,667
	4		7.50%,
2/01/22-9/01/23	4,360
	210		8.00%,
5/01/08-5/01/22	213,529
	4		9.50%,
1/01/19-9/01/19	4,658
	1,400		TBA, 6.00%,
5/11/36	1,393,437
			Government National Mortgage Assoc.,
	71		7.00%, 10/15/17	73,957
	498		7.50%,
8/15/21-12/15/23	522,127
	254		8.00%,
10/15/22-2/15/29	273,598
	34		9.00%,
6/15/18-9/15/21	38,702
			Total Mortgage Pass-Through Securities	111,854,458
			Federal
Housing Administration Securities2.2%
	508		GMAC Colonial, 7.40%, 12/01/22	507,048
			GMAC Projects,
	302		Ser. 51, 7.43%,
2/01/23	301,743
	907		Ser. 56, 7.43%,
11/01/22	906,042
	52		Merrill Projects, 7.43%, 5/15/23	51,998
	822		Reilly Project, 8.28%, 3/01/20	810,850
			USGI Projects,
	112		Ser. 87, 7.43%,
12/01/22	111,801
	449		Ser. 99, 7.43%,
10/01/23	448,371
	5,790		Ser. 6094, 7.43%,
6/01/21	5,784,064
			Total Federal Housing Administration Securities	8,921,917
			Agency
Multiple Class Mortgage Pass-Through Securities19.0%
			Federal Home Loan Mortgage Corp.,
	5,203	2	Ser. 11, Class
A9, 2.463%, 1/25/28	4,162,625
	987		Ser. 40, Class K,
6.50%, 8/17/24	1,009,696
	3,000		Ser. 1598, Class
J, 6.50%, 10/15/08	3,026,579
	10,200		Ser. 2542, Class
UC, 6.00%, 12/15/22	10,168,835
	12,131		Ser. 2758, Class
KV, 5.50%, 5/15/23	11,638,658
	1,615		Ser. 2765, Class
UA, 4.00%, 3/15/11	1,537,839
			Federal National Mortgage Assoc.,
	1,369	2	Ser. 2, Class KP,
Zero Coupon, 2/25/35	1,315,590
	7,260		Ser. 28, Class
PB, 6.00%, 8/25/28	7,262,102
	2,647		Ser. 29, Class
HC, 7.50%, 7/25/30	2,765,742
	2,129		Ser. 31, Class
ZG, 7.50%, 5/25/34	2,312,371
	8,184		Ser. 32, Class
VT, 6.00%, 9/25/15	8,179,716

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

Rating 1	Principal Amount (000)		Description	Value
			Agency
Multiple Class Mortgage Pass-Through Securities(contd)
			Federal National Mortgage Assoc., (contd)
	$ 101	2	Ser. 38, Class F,
8.325%, 4/25/21	$ 107,148
	2,380		Ser. 43, Class
LC, 6.00%, 3/25/34	438,794
	12,264		Ser. 135, Class
PB, 6.00%, 1/25/34	12,134,211
		2	Ser. 256, Class
F, 6.469%, 11/25/23
	2,954		Freddie Mac Structured Pass-Through, 5.50%, 6/15/35	2,915,388
			Government National Mortgage Assoc.,
	1,386		Ser. 5, Class Z,
7.00%, 5/16/26	1,426,619
	2,500		Ser. 33, Class
PB, 6.50%, 7/20/31	2,545,528
	10,505		Ser. 75, Class
IJ, 5.50%, 7/20/25	491,784
	5,020		Ser. 89. Class
PE, 6.00%, 10/20/34	5,069,102
			Total Agency Multiple Class Mortgage Pass-Through
Securities	78,508,327
			Non-Agency
Multiple Class Mortgage Pass-Through Securities3.1%
	11,961		Residential Funding Securities Corp., 8.50%, 5/25/33	12,659,166
	72	2,4	Summit Mortgage Trust, 6.241%, 12/28/12	72,452
			Total Non-Agency Multiple Class Mortgage Pass-Through
Securities	12,731,618
			Inverse Floating Rate
Mortgage Securities1.2%
			Federal Home Loan Mortgage Corp.,
	20	2	Ser. 1043, Class
H, 21.938%, 2/15/21	21,923
	45	2	Ser. 1160, Class
F, 18.381%, 10/15/21	45,037
	341	2,3	Ser. 1616, Class
SB, 8.50%, 11/15/08	339,543
	1,085	2	Ser. 1688, Class
S, 8.794%, 12/15/13	1,086,935
			Federal National Mortgage Assoc.,
	103	2	Ser. 38, Class
SA, 10.186%, 4/25/21	104,843
		2	Ser. 46, Class S,
1,381.156%, 5/25/21	4,245
		2	Ser. 49, Class S,
518.05%, 12/25/21	3,368
	473	2	Ser. 72, Class S,
8.75%, 5/25/08	470,923
	165	2	Ser. 87, Class S,
13.515%, 8/25/21	195,424
	200	2	Ser. 93, Class S,
8.50%, 5/25/08	202,948
		2	Ser. 145, Class
S, 18.659%, 10/25/06	283
	78	2	Ser. 170, Class
SC, 9.00%, 9/25/08	78,565
	913	2	Ser. 196, Class
SC, 7.433%, 10/25/08	906,986
	355	2	Ser. 214, Class
SH, 5.345%, 12/25/08	343,486
	1,211	2	Ser. 247, Class
SN, 10.00%, 12/25/23	1,212,868
	189	2	Kidder Peabody Acceptance Corp., 7.411%, 8/25/23	182,681
			Total Inverse Floating Rate Mortgage Securities	5,200,058
			Interest
Only Asset-Backed Securities1.2%
AAA	4,115	2,4	Morgan Stanley Capital Trust I, 1.756%, 6/15/17	31,731
			Sterling Coofs Trust,
	35,160		Ser. 1, 2.362%,
4/15/29	2,461,176
	33,705		Ser. 2, 1.00%,
3/30/30	2,359,350
			Total Interest Only Asset-Backed Securities	4,852,257
			Interest
Only Mortgage-Backed Securities8.1%
AAA	2,831		ABN Amro Mortgage Corp., 5.50%, 3/25/33	94,234
Aaa	81,798	2	Commercial Mortgage Acceptance Corp., 0.852%,
11/15/17	1,328,723
AAA	22,189	2,4	Credit Suisse First Boston Mortgage Securities Corp.,
1.917%, 6/20/29	627,522
AAA	185,371	2	CWALT, Inc., 0.42%, 1/25/36	666,176
			Federal Home Loan Mortgage Corp.,
	6,413	2	Ser. 60, Class
HS, 1.00%, 4/25/24	45,958
			Ser. 176, Class
M, 1,010.00%, 7/15/21	90
		2	Ser. 192, Class
U, 1,009.033%, 2/15/22	11
	35		Ser. 200, Class
R, 98,500.338%, 12/15/22	417
	2,272		Ser. 204, 6.00%,
5/01/29	558,137
		2	Ser. 1054, Class
I, 435.32%, 3/15/21	366
			Ser. 1056, Class
KD, 1,084.50%, 3/15/21	2,444
			Ser. 1057, Class
J, 1,008.001%, 3/15/21	4,961
	1	2	Ser. 1148, Class
E, 592.552%, 10/15/21	1,131
			Ser. 1179, Class
O, 1,009.389%, 11/15/21	290

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

Principal Amount (000)		Description
		Interest
Only Mortgage-Backed Securities(contd)
		Federal Home Loan Mortgage Corp., (contd)
$		Ser. 1221, Class
H, 1,006.50%, 3/15/07	$ 85
382		Ser. 1706, Class
IA, 7.00%, 10/15/23	19,288
129		Ser. 1720, Class
PK, 7.50%, 1/15/24	8,215
4,867		Ser. 1914, Class
PC, 0.75%, 12/15/11	57,330
1,207	2	Ser. 2002, Class
HJ, 3.00%, 10/15/08	3,852
1,138	2	Ser. 2296, Class
SA, 2.669%, 3/15/16	57,340
632	2	Ser. 2444, Class
ST, 2.889%, 9/15/29	30,034
476		Ser. 2513, Class
BI, 5.50%, 12/15/15	16,312
1,838		Ser. 2542, Class
MX, 5.50%, 5/15/22	300,495
354		Ser. 2543, Class
IM, 5.00%, 9/15/12	2,349
3,625		Ser. 2545, Class
NI, 5.50%, 3/15/22	492,067
5,4402		Ser. 2559, Class
IO, 0.94%, 8/15/30	28,901
6,133		Ser. 2561, Class
EW, 5.00%, 9/15/16	627,633
13,197		Ser. 2611, Class
QI, 5.50%, 9/15/32	2,430,145
10,189		Ser. 2633, Class
PI, 4.50%, 3/15/12	286,572
4,433		Ser. 2653, Class
MI, 5.00%, 4/15/26	550,306
7,475		Ser. 2658, Class
PI, 4.50%, 6/15/13	450,181
5,662		Ser. 2672, Class
TQ, 5.00%, 3/15/23	355,181
5,477		Ser. 2676, Class
JI, 5.50%, 8/15/13	143,972
3,633		Ser. 2687, Class
IL, 5.00%, 9/15/18	535,567
12,837		Ser. 2687, Class
IQ, 5.50%, 9/15/22	518,188
6,533		Ser. 2693, Class
IB, 4.50%, 6/15/13	417,071
3,444		Ser. 2694, Class
LI, 4.50%, 7/15/19	347,218
6,353		Ser. 2773, Class
OX, 5.00%, 2/15/18	844,734
14,475	2	Ser. 2779, Class
YS, 2.069%, 1/15/33	775,188
20,026	2	Ser. 2780, Class
SM, 0.919%, 4/15/34	397,122
10,756		Ser. 2786, Class
PI, 4.50%, 10/15/10	237,049
6,727		Ser. 2825, Class
NI, 5.50%, 3/15/30	1,784,095
41,296	2	Ser. 2990, Class
WR, 1.529%, 6/15/35	2,071,340
		Federal National Mortgage Assoc.,
282		Ser. 5, Class H,
9.00%, 1/25/22	49,366
16		Ser. 7, Class 2,
8.50%, 4/01/17	3,354
50	2	Ser. 7, Class S,
584.13%, 3/25/21	5,882
1	2	Ser. 10, Class S,
565.227%, 5/25/21	16,093
1		Ser. 12, Class C,
1,016.898%, 2/25/22	14,176
1	2	Ser. 12, Class S,
597.224%, 5/25/21	13,447
8,088		Ser. 13, Class
IG, 5.00%, 10/25/22	483,096
8,978		Ser. 16, Class
PI, 5.00%, 11/25/12	312,022
1	2	Ser. 17, Class S,
570.485%, 6/25/21	7,987
1		Ser. 33, Class
PV, 1,078.42%, 10/25/21	26,806
2,275	2	Ser. 33, Class
SG, 3.131%, 3/25/09	66,017
		Ser. 38, Class N,
1,008.50%, 4/25/21	851
1		Ser. 50, Class G,
1,158.628%, 12/25/21	10,755
949	2	Ser. 50, Class
SI, 1.20%, 4/25/23	28,802
7,372		Ser. 51, Class
IE, 5.50%, 4/25/26	451,043
6,044		Ser. 55, Class
GI, 5.00%, 7/25/19	787,053
798	2	Ser. 60, Class
SB, 1.60%, 10/25/22	22,792
710		Ser. 62, Class
IC, 5.50%, 7/25/15	31,251
6,566		Ser. 66, Class
CI, 5.00%, 7/25/33	1,230,433
3,095	2	Ser. 68, Class
SC, 3.131%, 1/25/24	150,532
5,438		Ser. 71, Class
EI, 5.50%, 8/25/33	1,076,885
18,832	2	Ser. 73, Class
ST, 1.171%, 8/25/35	411,972
1,183		Ser. 82, Class
IR, 5.00%, 9/25/12	14,927
		Ser. 84, Class H,
1,100.633%, 8/25/06	1
13,505		Ser. 88, Class
TI, 4.50%, 11/25/13	612,569
29		Ser. 89, Class 2,
8.00%, 6/01/18	5,899
39,822	2	Ser. 90, Class
JH, 1.741%, 11/25/34	1,753,177
16,699		Ser. 90, Class M,
6.00%, 1/25/28	2,960,605
9		Ser. 94, Class 2,
9.50%, 8/01/21	2,219
		Ser. 99, Class L,
930.00%, 8/25/21	5,977
1,687		Ser. 122, Class
IA, 4.00%, 9/25/09	18,666

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

Principal Amount (000)		Description	Value
		Interest
Only Mortgage-Backed Securities(contd)
		Federal National Mortgage Assoc., (contd)
$ 3,741		Ser. 122, Class
IC, 5.00%, 9/25/18	$ 588,648
		Ser. 123, Class
M, 1,009.50%, 10/25/20	1,011
42	2	Ser. 136, Class
S, 15.12%, 11/25/20	49,501
1		Ser. 139, Class
PT, 648.35%, 10/25/21	7,624
11	2	Ser. 141, Class
SA, 15.125%, 8/25/07	724
2,854	2	Ser. 199, Class
SB, 2.531%, 10/25/23	127,189
5,440		Ser. 602, Class
BI, 5.50%, 10/25/22	799,029
808		Ser. W4, 6.50%,
12/25/28	123,290
115		First Boston Mortgage Securities Corp., 10.965%,
4/25/17	19,012
		First Horizon Alternative Mortgage Securities,
93,712	2	Ser. FA7, Class
1A7, 0.34%, 10/25/35	336,778
238,901	2	Ser. FA9, Class
A2, 1.00%, 12/25/35	821,223
21,850	2	General Motors Acceptance Corp., Commercial Mortgage
Securities, Inc., 1.504%, 7/15/27	641,848
11,389	2,4	Goldman Sachs Mortgage Securities Corp., 0.999%,
2/19/25	241,167
		Government National Mortgage Assoc.,
2,386		Ser. 39, Class
ID, 5.00%, 5/20/33	496,478
2,923		Ser. 58, Class
IT, 5.50%, 7/20/33	357,626
23,380	2	Ser. 89, Classl
SA, 0.819%, 10/16/33	523,957
96		Kidder Peabody Acceptance Corp., 9.50%, 4/22/18	21,743
2,315		Morgan Stanley Cap. Trust I, 5.00%, 5/25/19	323,476
12,672	5	Small Business Administration, 1.381%, 4/01/15	1
114,589	2	Vendee Mortgage Trust, 0.053, 5/15/29	265,834
		Total Interest Only Mortgage-Backed Securities	33,439,104
		Principal
Only Mortgage-Backed Securities5.8%
		Countrywide Home Loans, Inc.,
6,547	6	Ser. 26, 4.944%,
8/25/33	5,072,967
1,195	6	Ser. J4, 5.142%,
6/25/33	924,907
1,715	6	Ser. J5, 4.911%,
7/25/33	1,352,983
1,338	6	Ser. J8, 4.787%,
9/25/23	1,008,983
		Drexel Burnham Lambert, Inc.,
37	6	Ser. K, Class 1,
11.50%, 9/23/17	31,726
438	6	Ser. V, Class 1,
11.50%, 9/01/18	380,899
		Federal Home Loan Mortgage Corp.,
305	6	Ser. 8, Class
A10, 6.3737%, 11/15/28	229,584
207	6	Ser. 1418, Class
M, 7.50%, 11/15/22	190,498
577	6	Ser. 1571, Class
G, 7.50%, 8/15/23	522,361
2,701	6	Ser. 1691, Class
B, 7.50%, 3/15/24	2,227,746
274	6	Ser. 1739, Class
B, 7.50%, 2/15/24	242,163
		Federal National Mortgage Assoc.,
386	6	Ser. 2, Class KB,
8.00%, 1/25/23	305,550
52	6	Ser. 7, Class J,
10.00%, 2/25/21	42,494
1,182	6	Ser. 13, Class
PR, 6.50%, 3/25/32	893,463
154	6	Ser. 51, Class E,
8.00%, 2/25/23	119,766
32	6	Ser. 70, Class A,
7.00%, 5/25/23	29,004
70	6	Ser. 167, Class
D, 8.50%, 10/25/17	65,646
60	6	Ser. 203, Class
1, 8.00%, 2/01/23	49,529
39	6	Ser. 228, Class
1, 7.00%, 5/01/23	31,155
2,271	6	Ser. 249, Class
B, 7.50%, 11/25/23	1,914,695
321	6	Ser. 273, Class
1, 7.00%, 7/01/26	253,155
5,740	6	Ser. 328, Class
1, 6.00%, 11/01/32	4,270,973
4,408	6	Ser. 338, Class
1, 5.50%, 6/01/33	3,158,806
443	6	Ser. W4, 5.985%,
2/25/29	317,849
317	6	MASTR Asset Securitization Trust, 5.65%, 3/25/34	209,033
20	6	Structured Mortgage Asset Residential Trust, 7.031%,
4/25/24	17,342
		Total Principal Only Mortgage-Backed Securities	23,863,277

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

Rating 1			Description	Value
			Collateralized
Mortgage Obligation Residual Securities0.0%
			Collateralized Mortgage Obligation Trust,
$	5		Ser. 40, Class R,
580.50%, 4/01/18	$ 518
	86		Ser. 42, Class R,
6,000.00%, 10/01/14	9,689
			Federal Home Loan Mortgage Corp.,
			Ser. 19, Class R,
9757.349%, 3/15/20	2,384
			Ser. 75, Class R,
9.50%, 1/15/21	6
			Ser. 75, Class
RS, 16.26%, 1/15/21	6
			Ser. 173, Class
R, 9.00%, 11/15/21	30
			Ser. 173, Class
RS, 9.086%, 11/15/21	30
	13		Painewebber CMO Trust, 13.80%, 9/01/18
			Total Collateralized Mortgage Obligation Residual
Securities	12,663
			Collateralized
Mortgage Obligation Securities22.9%
AAA	7,846		CWALT, Inc., 5.50%, 8/25/35	7,764,800
			Federal Home Loan Mortgage Corp.,
	304		Ser. 19, Class F,
8.50%, 3/15/20	303,834
	658		Ser. 1961, Class
H, 6.50%, 5/15/12	662,845
	8,370		Ser. 2218, Class
Z, 8.50%, 3/15/30	9,200,103
	15,385		Ser. 2461, Class
Z, 6.50%, 6/15/32	15,614,929
	2,475		Ser. 2562, Class
PG, 5.00%, 1/15/18	2,369,099
	403		Ser. 2582, Class
TB, 3.50%, 10/15/21	401,088
	2,050		Ser. 2750, Class
TC, 5.25%, 2/15/34	1,937,232
	3,470		Ser. 2806, Class
VC, 6.00%, 12/15/19	3,456,431
	2,212		Ser. 2927, Class
BZ, 5.50%, 2/15/35	1,981,389
			Federal National Mortgage Assoc.,
	3,600		Ser. 46, Class
LW, 5.00%, 6/25/20	3,425,529
	3,780		Ser. 47, Class
AK, 5.00%, 6/25/20	3,578,632
	5,114	2	Ser. 59, Class S,
5.676%, 10/25/22	648,261
	3,266		Ser. 68, Class PC, 5.50%, 7/25/35	3,232,578
	7,401	2	Ser. 73, Class DS, 4.656%, 8/25/35	6,111,409
			GSR Mortgage Loan Trust,
	5,027	2	Ser. 10, Class
2A1, 4.475%, 10/25/33	4,785,156
	4,904	2	Ser. 13, Class
1A1, 4.503%, 10/25/33	4,661,585
	38,425		MASTR Adjustable Rate Mortgages Trust, 0.977%,
4/25/34	959,186
			MASTR Alternative Loan Trust,
	2,081		Ser. 7, Class
4A3, 8.00%, 11/25/18	2,190,421
	1,925		Ser. 9, Class
15X2, 6.00%, 1/25/19	267,003
	8,775		MASTR Asset Securitization Trust, 5.25%, 10/25/14	8,508,590
	208,311	2	Residential Accredit Loans, Inc., 0.70%, 11/25/35	390,583
			Residential Asset Securitization Trust,
	983		Ser. A15, Class
1A8, Zero Coupon, 2/25/36	511,412
	7,463	2	Ser. A8, Class
A2, 5.309%, 10/25/18	7,453,905
	150,584	2	Sequoia Mortgage Trust, 0.771%, 3/20/35	1,129,383
			Structured Adjustable Rate Mortgage Loan Trust,
	7,028	2	Ser. 18, Class
7AX, 5.50%, 9/25/35	1,170,967
	6,763		Ser. 20, Class
3AX, 5.50%, 10/25/35	1,109,263
	1,091		Washington Mutual., Zero Coupon, 11/25/35	780,094
			Total Collateralized Mortgage Obligation Securities	94,605,707
			Corporate
Bond0.9%
			Financial
Institutions0.9%
	3,672		Structured Asset Receivable Trust, 1.649%, 1/21/10	3,671,903
			U.S.
Government and Agency Securities26.7%
			Overseas Private Investment Corp.,
	306		4.09%, 5/29/12	268,360
	853	2	4.30%, 5/29/12	768,682
	638		4.64%, 5/29/12	581,844
	360		4.68%, 5/29/12	319,264
	2,724		4.87%, 5/29/12	2,506,542
	3,369	2	5.40%, 5/29/12	3,235,239

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

Principal Amount (000)		Description	Value
		U.S.
Government and Agency Securities(contd)
$ 13,000		Resolution Funding Corp., Zero Coupon, 4/15/30	$ 3,605,877
		Small Business Administration,
886		Ser. 20C-1, 7.15%,
3/01/17	918,577
1,010		Ser. 20E-1,
7.60%, 5/01/16	1,050,115
1,384		Ser. 20F-1,
7.55%, 6/01/16	1,439,479
960		Ser. 20G-1,
7.70%, 7/01/16	1,001,259
1,255		Ser. 20H-1,
7.25%, 8/01/16	1,299,985
2,181		Ser. 20K-1, 6.95%,
11/01/16	2,247,915
		U.S. Treasury Notes,
2,930	7	2.50%, 5/31/06	2,924,506
21,000	7	3.75%, 3/31/07	20,780,156
19,400	7	4.00%, 8/31/07	19,178,720
129,000	7	U.S. Treasury Strip Principal, Zero Coupon, 11/15/24	48,037,794
		Total U.S. Government and Agency Securities	110,164,314
		Total Long-Term Investments (cost $519,530,065)	487,825,603
Notional Amount (000)
		OUTSTANDING
OPTIONS PURCHASED0.3%
		Interest Rate Swaps,
5,700		Trust pays
3-month LIBOR, Trust receives 5.26%, expires 3/02/16	161,880
5,700		Trust pays
3-month LIBOR, Trust receives 5.50%, expires 12/11/15	253,650
5,700		Trust pays 5.26%,
Trust receives 3-month LIBOR, expires 3/02/16	335,160
5,700		Trust pays 5.50%,
Trust receives 3-month LIBOR, expires 12/11/15	408,690
		Total Outstanding Options Purchased (cost $1,270,530)	1,159,380
		Total
investments before borrowed bonds, investments sold short, TBA sale
commitments and outstanding options written118.5% (cost $520,800,595 8 )	488,984,983
Principal Amount (000)
		BORROWED
BONDS13.7%
		U.S. Treasury Bonds,
13,302	9	5.375%, 5/01/06	13,301,738
17,581	9	6.25%, 5/03/06	17,580,937
		U.S. Treasury Notes,
13,894	9	4.00%, 5/03/06	13,894,250
11,715	9	4.125%, 5/03/06	11,715,000
		Total Borrowed Bonds (cost $56,491,925)	56,491,925
		INVESTMENTS
SOLD SHORT(13.6)%
		U.S.
Government and Agency Securities(13.6)%
		U.S. Treasury Bonds,
(12,930	)	5.375%, 2/15/31	(13,132,030	)
(15,750	)	6.25%, 8/15/23	(17,413,593	)
		U.S. Treasury Notes,
(14,900	)	4.00%, 2/15/15	(13,810,438	)
(12,000	)	4.125%, 8/15/10	(11,643,750	)
		Total Investments Sold Short (proceeds $59,142,549)	(55,999,811	)
		TBA SALE COMMITMENTS(5.6)%
		Federal National Mortgage Assoc., TBA,
(10,000	)	5.00%, 5/01/36	(9,456,250	)
(14,000	)	5.50%, 5/11/36	(13,593,132	)
		Total TBA Sale Commitments (proceeds $23,070,781)	(23,049,382	)

See Notes to Financial Statements.

BlackRock Income Trust Inc. (BKT) (continued)

Contracts/ Notional Amount (000)		Description
		OUTSTANDING OPTIONS WRITTEN(0.6)%
		Interest Rate
Swaps,
$ (5,700	)	Trust pays
3-month LIBOR, Trust receives 5.135%, expires 4/21/08	$ (320,055	)
(5,700	)	Trust pays
5.135%, Trust receives 3-month LIBOR, expires 4/21/08	(99,009	)
(14,100	)	Trust pays
3-month LIBOR, Trust receives 4.725%, expires 6/13/07	(991,089	)
(14,100	)	Trust pays
4.725%, Trust receives 3-month LIBOR, expires 6/13/07	(64,296	)
(12,400	)	Trust pays
3-month LIBOR, Trust receives 5.67%, expires 1/04/10	(452,600	)
(12,400	)	Trust pays 5.67%,
Trust receives 3-month LIBOR, expires 1/04/10	(559,240	)
(78	)	U.S. Treasury
Notes Future, expiring 5/26/06	(59,109	)
(70	)	U.S. Treasury
Notes Future, expiring 8/25/06	(47,578	)
		Total Outstanding
Options Written (premium received $2,942,962)	(2,592,976	)
		Total
Investments net of borrowed bonds, investments sold short, TBA sale
commitments and outstanding options written112.4%	$ 463,834,739
		Liabilities in
excess of other assets(12.4)%	(51,140,226	)
		Net
Assets100%	$ 412,694,513

| 1 | Using the higher of
S&Ps, Moodys or Fitchs rating. |
| --- | --- |
| 2 | Variable rate security. Rate
shown is interest rate as of April 30, 2006. |
| 3 | Security, or a portion
thereof, pledged as collateral with a value of $40,531,144 on 1,538 short
Eurodollar futures contracts expiring June 2006 to December 2008, 761 short
U.S. Treasury Bond futures contracts expiring June 2006 and 365 short U.S.
Treasury Note futures contracts expiring September 2006. The notional value
of such contracts on April 30, 2006 was $482,810,216, with an unrealized gain
of $5,942,425. |
| 4 | 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 April 30, 2006, the Trust held 0.2% of its net assets, with a
current market value of $972,872, in securities restricted as to resale. |
| 5 | Illiquid security. As of
April 30, 2006, the Trust held less than 0.1% of its net assets, with a
current market value of $1 in these securities. |
| 6 | Rate shown is interest rate
or effective yield as of April 30, 2006 of the underlying collateral. |
| 7 | Entire or partial principal
amount pledged as collateral for reverse repurchase agreements. See Note 4 in
the Notes to Financial Statements for details of open reverse repurchase
agreements. |
| 8 | Cost for Federal income tax
purposes is $524,519,650. The net unrealized depreciation on a tax basis is
$35,534,667, consisting of $6,490,414 gross unrealized appreciation and
$42,025,081 gross unrealized depreciation. |
| 9 | The interest rate and
maturity date shown represent the terms of the borrowed transaction, not the
security borrowed. |

KEY TO ABBREVIATIONS
TBA To Be Announced

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS (unaudited) APRIL 30, 2006

BlackRock Limited Duration Income Trust (BLW)

Rating 1	Principal Amount (000)		Description
			LONG-TERM INVESTMENTS145.1%
			Corporate Bonds61.0%
			Aerospace & Defense3.6%
NR	$ 1,560		AAR Corp., 8.39%, 5/15/11	$ 1,575,600
B-	2,249		Aero Invest, 10.634%, 3/22/15 (Norway)	2,936,416
			BE Aerospace, Inc.,
BB-	615		8.50%, 10/01/10	655,744
B	210		8.875%, 5/01/11	219,187
B-	6,220	2	DI Finance/DynCorp. Intl., 9.50%, 2/15/13	6,499,900
B	310		DRS Technologies, Inc., 7.625%, 2/01/18	316,200
NR	4,750		Raytheon Co., 7.00%, 5/15/06	4,809,774
BB	5,350	2	Sequa Corp., 8.875%, 4/01/08	5,590,750
B+	2,755		Transdigm, Inc., 8.375%, 7/15/11	2,892,750
			Total Aerospace & Defense	25,496,321
			Automotive2.6%
BB+	270		ArvinMeritor, Inc., 8.75%, 3/01/12	276,075
			Autonation, Inc.,
BB+	690	3,4	7.04%, 4/15/13	702,075
BB+	690	4	7.00%, 4/15/14	693,450
			Avis Budget Car Rental LLC,
BB-	130	3,4	1.00%, 5/15/14	133,738
BB-	310	4	7.75%, 5/15/16	316,200
A3	7,500	2	DaimlerChrysler NA Holding Corp., 4.05%, 6/04/08	7,265,939
CCC	420		Dura Operating Corp., 8.625%, 4/15/12	357,000
B	3,260		General Motors Corp., 8.25%, 7/15/23	2,363,500
B-	145		Goodyear Tire & Rubber Co., 7.857%, 8/15/11	142,825
B+	945		Lear Corp., 8.11%, 5/15/09	928,462
CCC+	1,825	2	Metaldyne Corp., 10.00%, 11/01/13	1,761,125
B	450		Tenneco, Inc., 8.625%, 11/15/14	455,625
BB-	2,629		TRW Automotive, Inc., 9.375%, 2/15/13	2,826,175
			Total Automotive	18,222,189
			Basic Materials6.3%
B+	390		Abitibi-Consolidated Co., 8.375%, 4/01/15 (Canada)	393,900
B+	1,920		AK Steel Corp., 7.75%, 6/15/12	1,944,000
B	350	3,4	BCI US Finance Corp./Borden 2 Nova Scotia Finance
ULC, 9.099%, 7/15/10	357,875
BB-	670	3	Bowater, Inc., 7.91%, 3/15/10	676,700
NR	4,250		Caraustar Industries, Inc., 9.875%, 4/01/11	4,473,125
BB+	120		Chemtura Corp., 6.875%, 6/01/16	119,700
			Domtar, Inc.,
B+	300		7.125%, 8/15/15
(Canada)	272,250
B+	880		7.875%, 10/15/11
(Canada)	853,600
B+	740		Donohue Forest Products, 7.625%, 5/15/07 (Canada)	746,475
			Huntsman LLC,
B2	800	3	12.32%, 7/15/11	838,000
Ba3	1,950		11.625%, 10/15/10	2,198,625
B2	310		12.00%, 7/15/12	354,950
BB	300		IMC Global, Inc., 10.875%, 6/01/08	323,250
			Ineos Group Holdings PLC,
B2	1,490		7.875%, 2/07/16
(United Kingdom)	1,811,642
B-	2,885 4		8.50%, 2/15/16
(United Kingdom)	2,729,931
CCC+	2,625		Innophos, Inc., 8.875%, 8/15/14	2,703,750
Baa3	5,000		Ipsco, Inc., 8.75%, 6/01/13 (Canada)	5,412,500
			Lyondell Chemical Co.,
BB+	560		10.50%, 6/01/13	627,200
BB+	3,020		11.125%, 7/15/12	3,352,200
BB+	750		Ser. A, 9.625%,
5/01/07	774,375
B-	215		Nalco Co., 8.875%, 11/15/13	221,988

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

Rating 1	Principal Amount (000)		Description
			Basic Materials(contd)
			NewPage Corp.,
B3	$ 1,500	2,3	11.399%, 5/01/12	$ 1,635,000
B3	325		10.00%, 5/01/12	348,563
BB+	2,090	3	Nova Chemicals Corp., 7.561%, 11/15/13 (Canada)	2,103,062
			Rhodia SA,
CCC+	921		8.875%, 6/01/11
(France)	955,537
B3	81		10.25%, 6/01/10
(France)	90,518
			Rockwood Specialties Group, Inc.,
B-	450		7.50%, 11/15/14	448,875
B-	3,645		10.625%, 5/15/11	3,954,825
Ba1	3,250		US Steel LLC, 10.75%, 8/01/08	3,550,625
			Total Basic Materials	44,273,041
			Building & Development1.6%
B-	350		Ahern Rentals, Inc., 9.25%, 8/15/13	364,875
B2	7504		Compression Polymers Corp., 10.50%, 7/01/13	768,750
BBB-	3,000	2	DR Horton, Inc., 5.875%, 7/01/13	2,866,521
B-	2,665		ERICO Intl. Corp., 8.875%, 3/01/12	2,744,950
			Goodman Global Holding Co., Inc.,
B2	375	3	7.491%, 6/15/12	382,031
B-	3,000		7.875%, 12/15/12	3,007,500
			North American Energy Partners, Inc.,
Caa1	150		8.75%, 12/01/11
(Canada)	146,625
B	550		9.00%, 6/01/10
(Canada)	583,000
			Total Building & Development	10,864,252
			Conglomerates1.1%
Baa3	7,500	2	Tyco Intl. Group SA, 6.125%, 11/01/08 (Luxembourg)	7,577,843
			Consumer Products6.0%
B3	300		ALH Finance LLC, 8.50%, 1/15/13	294,000
B+	5,510	2	Cenveo Corp., 9.625%, 3/15/12	5,895,700
Caa1	1,610	3	Duane Reade, Inc., 7.91%, 12/15/10	1,612,012
B-	1,333		Finlay Fine Jewelry Corp., 8.375%, 6/01/12	1,169,708
B	2,140		Gold Kist, Inc., 10.25%, 3/15/14	2,257,700
B+	5,000	2	Group 1 Automotive, Inc., 8.25%, 8/15/13	5,100,000
BBB-	4,400		JC Penney Co., Inc., 8.00%, 3/01/10	4,744,246
B-	3,345	4	Knowledge Learning Corp., Inc., 7.75%, 2/01/15	3,202,837
B-	1,550		Lazydays RV Center, Inc., 11.75%, 5/15/12	1,551,938
B	2,075	3	Levi Strauss & Co., 7.73%, 4/01/12	2,163,187
CCC-	1,750		Movie Gallery, Inc., 11.00%, 5/01/12	918,750
B2	223	4	Neiman-Marcus Group, Inc., 9.00%, 10/15/15	236,938
B3	210	3,4	Nutro Products, Inc., 10/15/13	214,200
BB-	600		Quiksilver, Inc., 6.875%, 4/15/15	579,000
			Rite Aid Corp.,
B-	635	4	6.125%, 12/15/08	623,888
BB-	5,000		8.125%, 5/01/10	5,131,250
B1	2,500		Sheridan Group, Inc., 10.25%, 8/15/11	2,575,000
B	3,500		Sonic Automotive, Inc., 8.625%, 8/15/13	3,605,000
			Total Consumer Products	41,875,354
			Containers & Packaging0.9%
B3	875	4	Covalence Specialty Materials Corp., 10.25%, 3/01/16	905,625
B1	1,385	4	Crown Americas LLC and Crown Americas Capital Corp.,
7.75%, 11/15/15	1,416,163
CCC+	585		Graham Packaging Co., Inc., 8.50%, 10/15/12	598,163
B-	250	4	Packaging Dynamics Finance Corp., 10.00%, 5/01/16	255,000
CCC+	1,670	4	Pregis Corp., 12.375%, 10/15/13	1,751,412
B+	1,500		Smurfit-Stone Container Enterprises, Inc., 9.75%,
2/01/11	1,541,250
			Total Containers & Packaging	6,467,613
			Ecological Services &
Equipment0.6%
B	2,000		Casella Waste Systems, Inc., 9.75%, 2/01/13	2,127,500
CCC	2,065		Waste Services, Inc., 9.50%, 4/15/14	2,142,438
			Total Ecological Services & Equipment	4,269,938

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

Rating 1	Principal Amount (000)		Description
			Energy6.7%
BB+	$ 5,500	2,4	AES Corp., 8.75%, 5/15/13	$ 5,940,000
			ANR Pipeline Co.,
B	460		7.375%, 2/15/24	472,650
B	1,780		9.625%, 11/01/21	2,133,775
B2	1,040		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)	1,076,400
B	810	4	Chaparral Energy, Inc., 8.50%, 12/01/15	834,300
			Chesapeake Energy Corp.,
BB	100	4	6.875%, 11/15/20	98,500
BB	4,000		7.50%, 9/15/13	4,155,000
B-	1,095		Clayton Williams Energy, Inc., 7.75%, 8/01/13	1,032,037
			CMS Energy Corp.,
BB-	150		7.50%, 1/15/09	154,125
BB-	220		8.50%, 4/15/11	235,950
BB-	140		9.875%, 10/15/07	148,225
BB-	750		Compagnie Generale de Geophysique SA, 7.50%, 5/15/15
(France)	774,375
			Compton Petroleum Finance Corp.,
B	525		7.625%, 12/01/13	520,406
B	790	4	7.625%, 12/01/13
(Canada)	783,087
B	800		Dynegy Danskammer LLC, 7.27%, 11/08/10	816,000
			El Paso Corp.,
B-	400		7.80%, 8/01/31	398,000
B-	525	4	9.625%, 5/15/12	580,125
B-	225	4	10.75%, 10/01/10	251,438
B	400		El Paso Natural Gas Co., 8.875%, 6/15/32	443,000
Ba2	225		Elwood Energy LLC, 8.159%, 7/05/26	237,066
B-	220		Exco Resources, Inc., 7.25%, 1/15/11	217,250
BB	380		Grant Prideco, Inc., 6.125%, 8/15/15	364,800
			Hilcorp Energy I LP/Hilcorp Finance Corp.,
B	930	4	7.75%, 11/01/15	916,050
B	2,434	4	10.50%, 9/01/10	2,653,060
B-	725		KCS Energy, Inc., 7.125%, 4/01/12	730,438
B+	5,665	2	Midwest Generation LLC, 8.56%, 1/02/16	6,089,588
			Mirant Americas Generation LLC,
B	175		8.30%, 5/01/11	180,688
B	480		8.50%, 10/01/21	483,600
B	910		9.125%, 5/01/31	955,500
B2	500		Mission Energy Holdings Co., 13.50%, 7/15/08	568,750
			NRG Energy, Inc.,
B1	210		7.25%, 2/01/14	211,050
B1	1,185		7.375%, 2/01/16	1,193,887
B-	450	4	Ocean Rig AS, 8.375%, 7/01/13 (Norway)	473,625
B-	580		Orion Power Holdings, Inc., 12.00%, 5/01/10	659,025
			Reliant Energy, Inc.,
BB-	1,035		6.75%, 12/15/14	941,850
BB-	170		9.25%, 7/15/10	172,975
B	5,000	2	Swift Energy Co., 9.375%, 5/01/12	5,337,500
B-	725	4	Targa Resources, Inc., 8.50%, 11/01/13	735,875
BBB-	100		Transcontinental Gas Pipe Line Corp., 7.25%, 12/01/26	102,500
B3	500	4	Verasun Energy Corp., 9.875%, 12/15/12	532,500
B2	190		Whiting Petroleum Corp., 7.00%, 2/01/14	188,100
			Williams Cos., Inc.,
BB+	1,000		7.125%, 9/01/11	1,025,000
BB+	1,285		8.75%, 3/15/32	1,477,750
			Total Energy	47,295,820
			Entertainment & Leisure1.2%
B3	505	4	AMC Entertainment, Inc., 11.00%, 2/01/16	540,350
B3	1,580	4	Greektown Holdings LLC, 10.75%, 12/01/13	1,655,050
Ba3	5,425	2	MGM Mirage, 9.75%, 6/01/07	5,628,437
B	250		Poster Financial Group, Inc., 8.75%, 12/01/11	263,750

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

Rating 1	Principal Amount (000)		Description
			Entertainment & Leisure(contd)
B+	$ 460	4	San Pasqual Casino, 8.00%, 9/15/13	$ 464,600
B+	100		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
6.625%, 12/01/14	97,000
			Total Entertainment & Leisure	8,649,187
			Financial Institutions6.9%
BB	1,480		American Real Estate Partners LP/American Real Estate
Finance Corp., 7.125%, 2/15/13	1,472,600
B	1,733		BCP Crystal US Holdings Corp., 9.625%, 6/15/14
(Luxembourg)	1,906,300
BB	3,360		Crum & Forster Holdings Corp., 10.375%, 6/15/13	3,494,400
B+	465		E*Trade Financial Corp., 7.375%, 9/15/13	473,138
BB	890	2	Fairfax Financial Holdings Ltd., 7.75%, 4/26/12
(Canada)	845,500
			Ford Motor Credit Co.,
BB	500		7.25%, 10/25/11	448,222
BB	2,800	2	7.375%, 2/01/11	2,538,082
			General Motors Acceptance Corp.,
BB	3,000	3	5.97%, 1/16/07	2,954,179
BB	5,620	2	6.875%, 8/28/12	5,199,067
B-	900		K&F Acquisition, Inc., 7.75%, 11/15/14	920,250
Baa2	5,000	4	Kazkommerts Intl. BV, 10.125%, 5/08/07 (Netherlands)	5,187,500
BBB	200	3	Marsh & McLennan Cos., Inc., 7/13/07	199,730
B2	2,460	4	Nell AF SARL, 8.375%, 8/15/15 (Luxembourg)	2,435,400
			Rainbow National Services LLC,
B+	925	4	8.75%, 9/01/12	987,438
B+	4,835	4	10.375%, 9/01/14	5,427,287
Caa1	2,175		Standard Aero Holdings, Inc., 8.25%, 9/01/14	1,924,875
AA+	6,614	5	Structured Asset Receivable Trust, 5.11%, 1/21/10	6,613,922
B-	220	3	Universal City Florida Holding Co. I/II, 7.96%,
5/01/10	228,250
Aa3	4,425	2	Western Financial Bank, 9.625%, 5/15/12	4,911,750
			Total Financial Institutions	48,167,890
			Health Care2.8%
B	1,975	4	Angiotech Pharmaceuticals, Inc., 7.75%, 4/01/14 (Canada)	1,984,875
B-	5,000	2	Concentra Operating Corp., 9.50%, 8/15/10	5,262,500
NR	80	6	Curative Health Services, Inc., 10.75%, 5/01/11	50,000
CCC	350		MedQuest, Inc., 11.875%, 8/15/12	292,250
B-	3,000		Norcross Safety Products LLC/Norcross Capital Corp.,
9.875%, 8/15/11	3,142,500
B3	965		Select Medical Corp., 7.625%, 2/01/15	880,562
B	1,360		Tenet Healthcare Corp., 6.875%, 11/15/31	1,118,600
B	4,500		United Surgical Partners Intl., Inc., 10.00%,
12/15/11	4,792,500
B-	1,880		Universal Hospital Services, Inc., 10.125%, 11/01/11	1,957,550
			Total Health Care	19,481,337
			Industrials1.9%
B-	4,000		Fasten Tech, Inc., 11.50%, 5/01/11	4,080,000
B-	1,880		NationsRent Cos., Inc., 9.50%, 5/01/15	2,035,100
CCC+	1,955		Park-Ohio Industries, Inc., 8.375%, 11/15/14	1,847,475
B3	2,240	4	Sunstate Equipment Co. LLC, 10.50%, 4/01/13	2,374,400
CCC+	1,415		Trimas Corp., 9.875%, 6/15/12	1,337,175
Caa1	2,000		United Rentals NA, Inc., 7.00%, 2/15/14	1,925,000
			Total Industrials	13,599,150
			Media8.5%
			Affinion Group, Inc.,
B-	1,400	4	10.125%, 10/15/13	1,447,250
B-	850	4	11.50%, 10/15/15	871,250
B-	740		Allbritton Communications Co., 7.75%, 12/15/12	743,700
CCC	1,300		American Media Operations, Inc., 10.25%, 5/01/09	1,226,875
B+	800	3	Cablevision Systems Corp., 8.716%, 4/01/09	848,000
CCC+	3,500		CBD Media Inc., 8.625%, 6/01/11	3,556,875
			Charter Communications Holdings II, LLC/Charter
Communications Holdings II Capital Corp.,
Caa1	755		10.25%, 9/15/10	764,437
Caa1	865	4	10.25%, 9/15/10	868,244

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

Rating 1	Principal Amount (000)		Description
			Media(contd)
BBB+	$ 6,685	2	Comcast Cable Communications, Inc., 6.875%, 6/15/09	$ 6,926,663
BB-	6,000	2	CSC Holdings, Inc., 7.875%, 12/15/07	6,120,000
B	1,300		Dex Media West LLC/Dex Media Finance Co., 9.875%,
8/15/13	1,430,000
			Echostar DBS Corp.,
BB-	2,800		5.75%, 10/01/08	2,758,000
BB-	5,100	2,3	5.81%, 10/01/08	5,202,000
BB-	200	4	7.125%, 2/01/16	195,000
CCC+	5,000		Houghton Mifflin Co., 9.875%, 2/01/13	5,362,500
B+	820		Medianews Group, Inc., 6.875%, 10/01/13	746,200
B2	810	4	Network Communications, Inc., 10.75%, 12/01/13	832,275
B3	1,400		Nexstar Finance, Inc., 7.00%, 1/15/14	1,316,000
B2	2,000	3,4	Paxson Communications Corp., 8.32%, 1/15/12	2,052,500
			Primedia, Inc.,
B2	400		8.00%, 5/15/13	365,000
B2	1,200	3	9.165%, 5/15/10	1,230,000
BB-	970	4	Quebecor World, Inc., 8.75%, 3/15/16 (Canada)	940,782
B	4,000	4	RH Donnelley Corp., 8.875%, 1/15/16	4,115,000
B2	2,000		Salem Communications Corp., 7.75%, 12/15/10	2,040,000
B	460		Sinclair Broadcast Group, Inc., 4.875%, 7/15/18	405,961
Caa1	530		Sirius Satellite Radio, Inc., 9.625%, 8/01/13	518,075
CCC+	300	4	Unity Media GmbH, 10.375%, 2/15/15 (Germany)	297,000
			Vertis, Inc.,
B3	2,390		9.75%, 4/01/09	2,437,800
CCC	865		10.875%, 6/15/09	830,400
Caa2	3,280		Young Broadcasting, Inc., 10.00%, 3/01/11	3,009,400
			Total Media	59,457,187
			Real Estate1.1%
BB	5,860	2	American Real Estate Partners, 8.125%, 6/01/12	6,050,450
BB+	2,000		Rouse Co., 5.375%, 11/26/13	1,850,536
			Total Real Estate	7,900,986
			Technology3.0%
			Amkor Technology, Inc.,
CCC+	1,958		7.75%, 5/15/13	1,864,995
CCC+	1,100		9.25%, 2/15/08	1,160,500
B+	1,965		Celestica, Inc., 7.625%, 7/01/13 (Canada)	1,965,000
BB+	2,012		Flextronics Intl. Ltd., 6.50%, 5/15/13 (Singapore)	1,991,880
B+	430	4	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South
Korea)	474,613
			MagnaChip Semiconductor SA/MagnaChip Semiconductor
Finance Co.,
Ba3	810	3	7.741%, 12/15/11
(Luxembourg)	814,050
B2	135		8.00%, 12/15/14
(Luxembourg)	125,550
B2	890	4	Sensata Technologies BV, 8.00%, 5/01/14	898,900
CCC+	910	4	SS&C Technologies, Inc., 11.75%, 12/01/13	971,425
BB	200		STATS ChipPAC Ltd., 7.50%, 7/19/10 (Singapore)	202,500
			Sungard Data Systems, Inc.,
B-	1,735	3,4	8.525%, 8/15/13	1,847,775
B-	665	4	9.125%, 8/15/13	711,550
B-	2,430	4	10.25%, 8/15/15	2,600,100
B	3,615		Superior Essex Communications LLC/Essex Group, Inc.,
9.00%, 4/15/12	3,642,112
B-	1,530		UGS Corp., 10.00%, 6/01/12	1,675,350
			Total Technology	20,946,300
			Telecommunications5.5%
NR	386		Centennial Cellular Operating Co., Zero Coupon,
2/09/11	391,006
BB-	1,420		Cincinnati Bell, Inc., 7.25%, 7/15/13	1,448,400
A-	5,000	2	Deutsche Telekom Intl. Finance BV, 8.00%, 6/15/10
(Netherlands)	5,421,422
B3	860	4	Hawaiian Telcom Communications, Inc., 5/01/13	885,800
			Intelsat Ltd.,
B2	460		8.25%, 1/15/13
(Bermuda)	469,200
B2	1,470		8.625%, 1/15/15
(Bermuda)	1,530,638
B2	2,360	3	9.614%, 1/15/12
(Bermuda)	2,401,300

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

Rating 1	Principal Amount (000)		Description
			Telecommunications(contd)
			Lucent Technologies, Inc.,
B1	$ 105		6.45%, 3/15/29	$ 92,925
B1	3,830		6.50%, 1/15/28	3,360,825
B+	3,850	4	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16	4,004,000
B2	200		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)	186,750
B1	3,517		PanAmSat Corp., 9.00%, 8/15/14	3,701,642
BB	4,000	3	Qwest Communications Intl., Inc., 6.768%, 2/15/09	4,090,000
			Qwest Corp.,
BB+	2,500	3	7.741%, 6/15/13	2,725,000
BB+	1,000		7.875%, 9/01/11	1,047,500
BB+	3,675		9.125%, 3/15/12	4,033,312
BB+	460		Rogers Wireless, Inc., 7.25%, 12/15/12 (Canada)	474,950
B2	375	3	Rural Cellular Corp., 8.991%, 3/15/10	382,969
B+	1,500	4	Wind Acquisition Finance SA, 10.75%, 12/01/15
(Luxembourg)	1,646,250
			Total Telecommunications	38,293,889
			Transportation0.7%
Ba3	520		American Airlines, Inc., 7.324%, 4/15/11	504,400
B	1,715		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)	1,745,012
BB-	655	4	Hertz Corp., 8.875%, 1/01/14	696,756
B3	111		Horizon Lines LLC, 9.00%, 11/01/12	115,579
B+	190		OMI Corp., 7.625%, 12/01/13	195,225
BB+	1,650		Overseas Shipholding Group, Inc., 8.75%, 12/01/13	1,802,625
			Total Transportation	5,059,597
			Total Corporate Bonds	427,897,894
			Bank Loans51.1%
			Aerospace & Defense0.8%
	980		Arinc, Inc., Loan B, LIBOR + 2.00%, 2/15/11	981,225
	895		Camp Acquisition Co., Loan A, LIBOR + 3.25%, 8/30/11	897,486
	1,980		Dyncorp International LLC, Loan B, LIBOR + 2.75%,
1/31/11	2,003,100
	1,458		Transdigm, Inc., LIBOR + 2.25%, 4/12/11	1,475,061
			Total Aerospace & Defense	5,356,872
			Automotive1.5%
	500		Dana Corp., LIBOR, 4/12/08	503,750
	1,224		Dayco Products, LLC, Loan B, LIBOR + 3.00%, 6/30/10	1,236,745
			Goodyear Tire & Rubber Co. (The),
	500		LIBOR + 2.75%,
4/01/10	506,667
	2,000		LIBOR + 3.50%,
4/01/11	2,027,500
	748		IAP Worldwide Services, Inc., LIBOR + 3.00%, 12/31/12	755,606
	1,000		Lear Corp., LIBOR + 2.50%, 3/23/12	1,003,000
	926		Metaldyne Co. LLC, Loan D, LIBOR + 4.50%, 12/31/09	942,196
	498		Precision Parts Intl., Loan B, LIBOR + 3.75%,
10/15/11	498,744
	517		Tenneco Automotive, Inc., Loan B1, LIBOR + 2.25%,
12/12/10	523,254
	2,469		TRW Automotive Acquisitions Corp., Loan B, LIBOR +
1.50%, 6/30/12	2,472,865
			Total Automotive	10,470,327
			Basic Materials4.8%
			Basell NV,
	500		Loan B2, LIBOR +
2.50%, 9/30/13	507,083
	500		Loan C2, LIBOR +
3.00%, 9/30/14	507,083
	993		Berry Plastics Corp., LIBOR + 2.00%, 7/22/10	1,000,358
	877		Boise Cascade Corp., Loan D, LIBOR + 1.75%, 10/31/11	887,357
	2,190		Celanese, AG, LIBOR + 2.00%, 6/03/11	2,221,741
	3,000		Cognis Deutschland, LIBOR + 4.75%, 11/15/13	3,052,500
	969		Compass Minerals Group, Inc., LIBOR + 1.50%, 12/31/12	974,451
	4,239		Huntsman Intl. LLC, Loan B, LIBOR + 1.75%, 8/15/12	4,261,039
			Ineos Group Ltd.,
	3,250		Loan A4, LIBOR + 2.25%,
12/16/12-12/16/13	3,281,707
	1,750		Loan A4, LIBOR +
2.75%, 12/16/14	1,774,339

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

Principal Amount (000)	Description
	Basic Materials(contd)
	Invista B.V.,
$ 1,359	Loan B1, LIBOR +
1.75%, 4/30/11	$ 1,370,054
691	Loan B2, LIBOR +
1.75%, 4/30/11	694,140
2,000	ISP Chemco, Inc., LIBOR + 1.75%, 2/28/13	2,015,626
600	John Maneely Co., Loan B, LIBOR + 3.00%, 3/31/13	609,250
2,474	Nalco Co., Loan B, LIBOR + 1.75%, 11/01/10	2,500,425
495	PQ Corp., LIBOR + 2.00%, 2/28/12	501,394
990	Rockwood Specialties Group, Inc., Loan E, LIBOR +
2.00%, 8/15/12	1,001,602
	SP Newsprint,
601	LIBOR + 2.25%,
1/08/10	608,203
1,611	Loan B, LIBOR +
2.25%, 1/09/10	1,631,250
4,000	UPC Technology Corp., LIBOR + 2.00%, 12/31/13	4,030,416
	Total Basic Materials	33,430,018
	Building & Development1.4%
239	Atrium Companies, Inc., LIBOR + 3.25%, 12/30/11	239,620
1,500	Custom Building Products, Inc., LIBOR + 5.00%,
4/30/12	1,503,750
250	Euramax International, Inc., LIBOR + 7.00%, 7/15/13	248,750
1,250	Harmon Koval, 3.25%, 12/31/06	1,253,125
479	Maxim Crane Works LP, LIBOR + 2.00%, 1/28/10	484,808
	Nacco Industries, Inc.,
500	LIBOR + 2.00%,
3/31/13	504,375
500	LIBOR + 2.00%,
4/15/13	500,000
492	Nortek, Inc., Loan B, LIBOR + 2.00%, 8/24/11	495,842
	Ply Gem Industries, Inc.,
94	CND, LIBOR +
2.25%, 8/15/11	94,570
1,406	USD, LIBOR +
2.25%, 8/15/11	1,418,555
950	Rhodes Ranch, LIBOR + 3.25%, 11/15/10	954,750
1,995	United Subcontractors, Inc., LIBOR + 3.00%, 12/31/12	1,995,000
	Total Building & Development	9,693,145
	Conglomerates3.5%
500	AGY Holding Corp., LIBOR + 2.75%, 4/30/12	503,438
	Atlantis Plastics, Inc.,
995	LIBOR + 7.25%,
9/30/11	1,004,950
495	PRIME + 0.75%,
9/30/11	501,806
1,080	Blount Intl., Loan B, LIBOR + 1.75%, 8/15/10	1,087,807
1,975	Colfax Corp., Loan B, LIBOR + 2.00%, 11/30/11	2,000,165
3,107	Fidelity National Information Solutions, Inc., Loan
B, LIBOR + 1.75%, 3/30/13	3,124,431
500	Gentek, Inc., 0.50%, 3/15/12	502,500
1,474	Honeywell Security, Loan B, LIBOR + 3.25%, 6/28/10	1,482,985
	Invensys Intl. Holdings Ltd.,
4,693	0.50%,
3/05/09-11/30/09	4,764,841
1,113	Loan B1, LIBOR +
3.50%, 8/30/09	1,124,335
	Jarden Corp.,
991	Loan B2, PRIME +
0.75%, 1/15/12	1,000,218
1,192	PRIME + 1.00%,
1/24/12	1,199,129
995	Mueller Group, Inc., Loan B, LIBOR + 2.25%, 9/30/12	1,007,438
367	Penn Engineering & Manufacturing, LIBOR + 2.50%,
4/30/11	370,295
1,345	Sensus Metering Systems, Inc., Loan B1, LIBOR +
2.50%, 12/30/09	1,353,023
872	St. John Knits International, Inc., Loan B, LIBOR +
2.50%, 3/30/12	880,266
2,481	Sungard Data Systems, Inc., Loan B, LIBOR + 2.50%,
1/05/13	2,508,943
	Total Conglomerates	24,416,570
	Consumer Products9.5%
1,000	Aearo Technologies, Inc., LIBOR + 6.50%, 9/30/13	1,020,000
1,000	24 Hour Fitness Worldwide, Inc., Loan B, LIBOR +
3.00%, 6/30/12	1,011,667
465	Adams Outdoor Advertising LP, LIBOR + 2.00%, 10/15/12	470,770
1,050	Alimentation Couche-Tard, Inc., LIBOR + 1.75%,
12/31/10	1,060,500
496	Arbys Restaurant Group, Inc., Loan B, LIBOR + 2.25%,
7/31/12	501,419
	Berkline Bench Craft,
1,000	LIBOR + 10.0%,
4/30/12	750,000
938	Loan B, LIBOR +
3.75%, 10/31/11	885,938

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

Principal Amount (000)	Description
	Consumer Products(contd)
$ 500	Buffets, Inc., LIBOR + 0.10%, 6/28/09	$ 502,500
1,995	Burger King Corp., Loan B1, LIBOR + 1.50%, 2/28/13	2,001,395
1,500	Burlington Coat Factory Warehouse Corp., Loan B,
LIBOR, 4/15/13	1,494,000
496	Centerplate, Inc., PRIME + 1.25%, 10/15/10	499,962
1,500	Central Garden & Pet Co., Loan B, LIBOR + 1.50%,
9/30/12	1,507,500
496	Chiquita Brands Intl., Inc., Loan C, LIBOR + 2.00%,
7/15/13	500,592
856	CKE Restaurants, Inc., LIBOR + 2.00%, 5/17/09	863,994
999	Coinmach Corp., Loan B1, LIBOR + 2.50%, 12/15/12	1,014,393
1,731	Commonwealth Brands, Inc., LIBOR + 2.25%, 12/15/12	1,751,381
1,000	Dennys Corp., LIBOR + 5.13%, 9/25/10	1,030,000
494	Douglas Dynamics, LLC, LIBOR + 1.75%, 12/16/10	498,696
2,901	Dr. Pepper Bottling Co. of Texas, Inc., Loan B, LIBOR
+ 2.00%, 12/30/10	2,915,526
	Dunkin Brands, Inc.,
858	LIBOR + 4.25%,
3/01/07	855,992
2,157	LIBOR + 5.63%,
3/01/07	2,151,546
878	Eastman Kodak Co., Loan B2, 1.50%, 10/15/12	887,001
1,000	Easton Bell Sports, Inc., Loan B, LIBOR + 1.75%,
3/31/12	1,010,417
1,481	Eight OClock Coffee, Loan B, LIBOR + 3.00%, 12/15/06	1,492,359
648	Hertz Corp., LIBOR + 2.25%, 12/31/12	654,422
792	Keystone Foods Holdings LLC, LIBOR + 1.75%, 6/30/11	800,639
438	Knoll, Inc., LIBOR + 1.75%, 10/15/12	442,832
867	Language Line, Inc., Loan B, LIBOR + 4.25%, 6/14/11	868,832
1,645	Le-Natures, Inc., Loan B, LIBOR + 3.00%, 5/30/10	1,665,562
1,311	Maidenform, Inc., LIBOR + 1.75%, 5/14/10	1,317,716
500	MD Beauty, Inc., LIBOR + 7.00%, 7/10/13	502,500
2,738	Michael Foods, Inc., Loan B1, LIBOR + 2.00%, 11/30/10	2,766,779
646	Movie Gallery, Inc., Loan B, LIBOR + 5.25%, 4/30/11	594,652
1,661	Neiman-Marcus Group, Inc., LIBOR + 2.50%, 4/15/13	1,682,901
1,712	New Page, Loan B, LIBOR + 3.00%, 4/30/12	1,714,281
925	Nice Pak Products, LIBOR + 3.75%, 6/15/10	926,156
	Olympus Cable Holdings LLC,
2,000	Loan A, PRIME +
1.25%, 6/30/10	1,944,376
3,500	Loan B, PRIME +
2.00%, 9/30/10	3,421,250
1,500	Orchard Supply Hardware Stores Corp., Loan B2, LIBOR
+ 2.50%, 12/09/07	1,500,000
	Oriental Trading Co., Inc.,
500	LIBOR + 4.75%,
1/08/11	502,500
2,559	Loan B, LIBOR +
2.25%, 6/30/09	2,571,624
2,955	OSI Group LLC, Loan B, LIBOR + 2.00%, 9/15/11	2,985,782
748	Pantry, Inc., LIBOR + 1.75%, 12/29/11	755,139
948	PBM Products LLC, Loan B, LIBOR + 3.00%, 7/31/11	956,576
713	Pierre Foods, Inc., Loan B, LIBOR + 2.00%, 7/15/10	720,467
750	Pivotal Promontory LLC, LIBOR + 6.50%, 9/15/11	749,375
1,470	Prestige Brands Holdings, Inc., Loan B, LIBOR +
2.25%, 4/07/11	1,486,538
478	Propex Fabric, Inc., Loan B, LIBOR + 2.25%, 8/30/12	480,274
3,452	R.H. Donnelley, Inc., Loan D2, LIBOR + 1.50%,
12/31/11	3,464,483
398	Sealy Mattress Co., Loan D, LIBOR + 1.75%, 8/06/12	402,586
603	Synventive Acquisition, Inc., LIBOR + 14.00%, 2/17/14	584,942
499	Travelcenters of America, Inc., Loan B, LIBOR +
1.75%, 6/30/11-11/30/11	503,364
948	Tupperware Corp., LIBOR + 1.50%, 11/07/12	948,387
500	Warnaco, Inc., Loan B, LIBOR + 1.50%, 1/31/12	500,625
	Waterpik Technologies, Inc.,
750	PRIME + 5.50%,
10/15/13	761,250
500	PRIME + 1.25%,
4/15/13	502,500
	Total Consumer Products	66,356,858
	Containers & Packaging2.3%
735	Bway Corp., LIBOR + 2.00%, 6/30/11	742,702
200	Covalence Specialty Materials Corp., LIBOR + 3.25%,
8/15/13	203,813
344	Flexsol Packaging Corp., LIBOR + 3.25%, 11/30/11	344,146
3,494	Georgia-Pacific Corp., LIBOR + 3.00%, 2/28/13-2/28/14	3,527,567

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

Principal Amount (000)	Description
	Containers & Packaging(contd)
	Graham Packaging Co. LP,
$ 1,975	Loan B, LIBOR +
2.25%, 10/01/11	$ 1,995,984
1,429	Loan C, LIBOR +
4.25%, 4/01/12	1,459,524
1,324	Graphic Packaging Intl., Inc., Loan C, LIBOR + 2.50%,
8/08/10	1,343,096
	Owens-Illinois Group, Inc.,
3,170	Loan A1, LIBOR +
2.75%, 6/30/07	3,172,666
589	Loan C1, LIBOR +
1.75%, 3/15/08	590,219
499	Ranpak Corp., Loan B, LIBOR + 2.50%, 12/31/11	503,114
568	Smurfit-Stone Container Corp., 0.50%, 11/15/10	574,741
1,960	Solo Cup, Inc., LIBOR + 2.50%, 2/27/11	1,978,783
	Total Containers & Packaging	16,436,355
	Ecological Services &
Equipment0.1%
500	Envirosolutions, Inc., LIBOR + 3.50%, 7/15/12	505,625
	Energy3.4%
429	AES Corp., LIBOR + 1.75%, 4/30/08	431,786
746	Boart Longyear Co., LIBOR + 3.00%, 11/30/12	755,578
993	Cellnet Technology, Inc., Loan B, LIBOR + 3.00%,
4/30/12	1,006,147
1,493	Coffeyville Resources LLC, LIBOR + 2.50%, 7/15/12	1,512,866
365	Cogentrix Delaware Holdings, Inc., LIBOR + 1.75%,
4/30/12	368,589
249	Complete Production Services, Inc., Loan B, PRIME +
1.50%, 8/31/12	251,626
923	El Paso Corp., 0.50%, 11/30/09	932,622
1,496	Key Energy Services, Inc., Loan B, LIBOR + 3.25%,
8/15/12	1,513,707
1,000	LSP General Finance Company LLC, LIBOR, 4/15/13	1,006,250
500	MEG Energy Corp., Loan B, LIBOR, 4/15/13	505,250
340	MGG Holdings, LIBOR + 2.00%, 12/15/10	343,891
6,000	NRG Energy, LIBOR + 2.00%, 1/31/13	6,064,261
998	Petro Geological Services, Loan B, LIBOR + 2.50%,
12/31/12	1,006,851
389	Petrohawk, LIBOR + 4.50%, 7/31/10	393,750
274	Pike Electric, Inc., Loan B, LIBOR + 1.50%, 6/30/12	276,760
1,000	Plum Point Energy Associates, Loan B, LIBOR + 3.25%,
3/14/14	1,008,750
1,990	Reliant Energy, Inc., LIBOR + 2.38%, 4/30/10	1,987,082
	SemCrude LP,
693	CND, LIBOR +
2.25%, 2/28/11	693,866
293	USD, LIBOR +
2.25%, 2/28/11	293,351
1,500	Trinidad Energy Services Income Trust, PRIME + 2.50%,
4/15/11	1,503,750
990	Universal Compression, Inc., LIBOR + 1.50%, 1/15/15	998,357
994	Wolf Hollow I LP, LIBOR + 2.25%, 6/15/12-6/22/12	1,002,538
	Total Energy	23,857,628
	Entertainment & Leisure2.7%
983	Boyd Gaming Corp., Loan B, LIBOR + 1.50%, 5/14/11	991,711
3,237	CCM Merger, Inc., Loan B, LIBOR + 2.00%, 7/31/12	3,255,460
1,000	Century Theatres, Inc., LIBOR + 1.88%, 3/01/13	1,010,000
2,000	Greektown Casino LLC, Loan B, LIBOR + 2.50%, 12/15/12	2,030,000
490	Green Valley Ranch Gaming LLC, Loan B, LIBOR + 2.00%,
12/01/10	494,335
498	Hit Entertainment Ltd., LIBOR + 2.25%, 8/31/12	500,485
1,234	Isle of Capri Casinos, Inc., LIBOR + 1.75%, 1/31/11	1,248,879
5,000	Metro-Goldwyn-Mayer Studios, Inc., Loan B, LIBOR +
2.25%, 4/15/12	5,051,875
1,990	Penn National Gaming, Inc., Loan B, LIBOR + 1.75%,
5/31/12	2,013,631
1,099	Wyndham Intl., Inc., Loan E, LIBOR + 4.50%, 9/11/07	1,099,350
1,000	Wynn Las Vegas LLC, 1.00%, 12/31/11	1,009,167
	Yellowstone Mountain Club,
4	TBD	4,272
478	LIBOR + 2.38%,
10/15/10	478,197
	Total Entertainment & Leisure	19,187,362

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

Principal Amount (000)	Description
	Financial Institutions4.7%
$ 1,000	Advantage Sales & Marketing, Inc., LIBOR + 2.00%,
4/15/13	$ 1,007,500
750	Ameritrade, Loan B, LIBOR + 1.50%, 1/31/13	752,625
1,020	Arias Acquisitions, Inc., LIBOR + 3.75%, 7/30/11	1,014,900
500	CCC Information Services Group, Inc., Loan B, LIBOR +
2.50%, 2/15/13	506,041
4,000	Century Corp., PRIME + 2.00%, 12/31/09	3,900,000
1,280	Global Cash Access LLC, LIBOR + 1.75%, 3/15/10	1,293,221
994	Jostens, Inc., Loan C, LIBOR + 2.00%, 10/15/11	1,005,167
	N.E.W. Holdings I LLC,
843	LIBOR + 3.00%,
7/15/11	851,454
250	LIBOR + 7.00%,
7/15/12	253,750
	Navistar Financial Corp.,
2,264	LIBOR + 5.00%,
2/28/09	2,272,491
3,236	LIBOR + 5.00%,
2/28/09	3,248,633
3,000	NTL, Inc., Loan A, LIBOR, 3/23/11	3,000,000
1,247	Professional Service, Inc., Loan B, LIBOR + 3.00%,
10/31/12	1,253,109
	Roller Bearing Co. of America,
2	TBD	1,667
259	Loan B, LIBOR +
2.75%, 7/30/11	259,167
6,000	Rouse Co., LIBOR + 1.30%, 8/21/06	6,000,000
1,000	Targa Resources, Inc., LIBOR + 2.25%, 10/31/07	1,000,417
	TPG Springs,
1,000	TBD, 3/22/13	1,816,985
1,000	Loan C, TBD,
3/22/14	1,826,103
450	Universal American Financial Corp., LIBOR + 2.25%,
5/25/09	451,125
910	USI Holdings Corp., Loan B, LIBOR + 2.30%, 7/30/08	917,629
	Total Financial Institutions	32,631,984
	Health Care4.4%
1,995	CCS Medical, Loan B, LIBOR + 3.25%, 10/31/12	1,981,284
2,955	Community Health Systems, Inc., LIBOR + 1.75%,
8/15/11	2,981,471
2,337	Concentra Operating Corp., Loan B, LIBOR + 2.00%,
9/30/11	2,360,282
1,883	Davita, Inc., Loan B, LIBOR + 2.00%, 6/30/12	1,901,478
1,500	DJ Orthopedics, Inc., LIBOR + 1.50%, 4/15/13	1,505,625
796	Duloxetine Royalty Sub., LIBOR + 4.50%, 10/15/13	804,287
990	Eye Care Centers of America, Inc., LIBOR + 3.00%,
2/28/12	999,900
500	Global Healthcare Exchange LLC, Loan B, PRIME +
0.25%, 3/15/13	501,250
2,000	HealthSouth Corp., Loan B, LIBOR + 3.25%, 3/15/13	2,021,428
983	IASIS Healthcare Corp., Loan B, LIBOR + 2.25%,
6/30/11	994,577
2,898	Jean Coutu Group, Inc., Loan B, LIBOR + 2.50%,
6/30/11	2,922,578
647	Kinetic Concepts, Inc., Loan B2, LIBOR + 1.75%,
8/05/10	653,943
1,000	Multiplan, Inc., LIBOR + 2.00%, 4/15/13	1,010,833
1,000	National Renal Institutes, Inc., Loan B, PRIME +
1.25%, 4/15/13	1,008,750
	Quintiles Transnational Corp.,
250	LIBOR + 2.00%,
3/31/14	254,141
1,000	LIBOR + 4.00%,
3/31/13	1,006,563
500	Radnet Management, Inc., Loan B, LIBOR + 4.00%,
3/15/11	498,750
990	Select Medical Corp., Loan B, LIBOR + 1.75%, 2/28/12	980,787
500	Triumph Healthcare, Inc., LIBOR + 8.50%, 9/15/12	470,000
995	Vanguard Health Holding Co. II, LIBOR + 2.25%,
9/30/11	1,006,822
	Warner Chilcott Corp.,
530	LIBOR + 2.75%,
1/18/11	532,997
2,162	Loan B, LIBOR +
2.75%, 1/18/11	2,174,157
871	Loan C, LIBOR +
2.75%, 1/18/11	876,079
402	Loan D, LIBOR +
2.75%, 1/18/11	404,724
983	Wellcare Holdings, LLC, LIBOR + 2.50%, 5/13/09	986,799
	Total Health Care	30,839,505

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

Principal Amount (000)	Description
	Industrials1.7%
$ 998	Acosta, Inc., LIBOR + 2.25%, 12/15/12	$ 1,007,475
213	Alderwoods Group, Inc., Loan B2, LIBOR + 2.00%,
9/29/09	214,348
998	Bolthouse Farms, Inc., LIBOR + 2.50%, 12/01/12	1,012,463
3,182	Buhrmann U.S., Inc., Loan D1, LIBOR + 1.75%, 12/30/10	3,215,881
2,000	Drummond Co., Inc., LIBOR + 1.25%, 2/15/12	1,998,750
658	Novelis, Inc., Loan B, LIBOR + 1.75%, 12/30/11	664,167
625	QTC Acquisition, Inc., LIBOR + 6.50%, 5/04/13	624,219
1,748	Trimas Corp., Loan B, LIBOR + 3.75%, 12/31/09	1,772,503
1,049	United Rentals NA, Inc., LIBOR + 2.00%, 2/12/11	1,059,279
323	Worldspan LP, LIBOR + 2.75%, 6/30/07	324,025
	Total Industrials	11,893,110
	Media4.7%
1,719	American Lawyers Media, Inc., 0.75%, 3/15/10	1,725,706
	Bresnan Communications Group LLC,
2	TBD	1,841
998	LIBOR + 2.00%,
10/15/13	1,010,659
4,000	Cablevision Systems Corp., LIBOR, 3/31/13	4,016,456
3,434	Charter Communications Operating LLC, Loan B, LIBOR +
3.25%, 4/30/11	3,439,027
	Dex Media West LLC,
874	Loan B1, LIBOR +
1.50%, 9/09/10	876,516
3,476	Loan B2, LIBOR +
1.50%, 9/01/09	3,488,671
2,333	DirecTV Holdings LLC, Loan B, LIBOR + 1.50%, 3/06/10	2,350,833
1,294	Emmis Communications Co., Loan B, PRIME + 0.75%,
5/15/12	1,300,777
2,568	Insight Midwest Holdings LLC, Loan C, LIBOR + 2.00%,
12/31/09	2,595,011
500	Liberty Cablevision of Puerto Rico Ltd., LIBOR +
2.25%, 2/15/13	503,750
1,980	Mediacom Communications Corp., Loan C, LIBOR + 2.00%,
9/30/10	1,987,116
1,975	Mediacom Illinois LLC, Loan B, LIBOR + 1.75%, 3/31/13	1,983,025
1,936	Mission Broadcasting, Inc., Loan B, LIBOR + 1.75%,
8/14/12	1,942,639
500	NEP Supershooters LP, LIBOR + 8.00%, 8/01/11	495,000
1,926	Nexstar Broadcasting, Inc., Loan B, LIBOR + 1.75%,
8/14/12	1,932,289
750	Puerto Rico Cable Acquisition Co., LIBOR + 6.25%,
7/31/11	758,438
998	Triple Crown Media, Inc., LIBOR + 3.25%, 12/30/12	995,006
500	Wide Open West Finance LLC	500,000
1,957	WMG Acquisition Corp., LIBOR + 2.00%, 4/08/11	1,974,796
	Total Media	33,877,556
	Publishing0.1%
748	Endurance Business Media, Loan B, LIBOR + 2.25%,
3/15/12	750,930
	Real Estate0.9%
	Kyle Acquisition Group LLC,
300	LIBOR + 2.00%,
7/31/10	302,625
431	Loan B, LIBOR +
2.00%, 7/31/08	435,122
1,000	Landsource Communities Development LLC, Loan B, LIBOR
+ 2.50%, 3/31/10	1,003,750
	Masonite Intl. Corp.,
247	CND, LIBOR +
2.00%, 3/31/13	245,316
248	USD, LIBOR +
2.00%, 3/31/13	245,733
606	Stewart Enterprises, Inc., Loan B, LIBOR + 1.75%,
11/30/11	610,526
2,250	Trizec Properties LLC, LIBOR + 1.40%, 4/06/07	2,248,594
1,000	Williams Scotsman, Inc., Loan B, LIBOR + 2.25%,
6/30/10	1,006,667
	Total Real Estate	6,098,333
	Technology1.0%
750	Affiliated Computer Services, Inc., Loan B, LIBOR +
2.00%, 3/31/13	755,860
377	Coinstar, Inc., LIBOR + 2.25%, 7/15/11	381,404
495	Federal IT Systems, Inc., LIBOR + 2.75%, 4/30/11	499,022
1,000	Nuance Communications, Inc., LIBOR + 2.00%, 12/29/13	1,006,667
2,500	Sensata Technologies BV, LIBOR + 1.75%, 4/30/13	2,513,282
1,434	Verifone, Inc., Loan B, LIBOR + 1.75%, 6/30/11	1,441,081
216	Westcom Corp., Loan B, LIBOR + 2.75%, 12/31/10	216,031
		6,813,347

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

Principal Amount (000)		Description
		Telecommunications3.1%
$ 1,000		Alaska Communications Systems Holdings, Inc., LIBOR +
1.75%, 1/31/12	$ 1,008,000
1,000		Atlantic Broadband Finance LLC, Loan B1, LIBOR +
2.75%, 1/30/11	1,014,375
650		Cavalier Telecom, Loan B, LIBOR + 4.50%, 3/31/12	662,187
991		Centennial Cellular Operating Co., LIBOR + 2.25%,
2/09/11	1,003,945
		Communication Supply Corp.,
96		LIBOR + 0.75%,
2/28/12	96,394
404		LIBOR + 2.75%,
2/28/12	404,856
1,481		Consolidated Communications, Inc., Loan D, LIBOR +
1.75%, 4/07/12	1,494,211
500		Country Road Communications LLC, LIBOR, 6/30/13	506,250
750		Fairpoint Communications, Inc., LIBOR + 1.75%,
2/15/12	754,125
988		Intelsat Zeus Ltd., 0.75%, 7/31/11	994,598
2,000		Iowa Telecommunications Services, Inc., Loan B, LIBOR
+ 1.75%, 11/30/11	2,017,084
		IPC Acquisition Corp.,
959		LIBOR + 2.75%,
8/15/11	972,056
500		LIBOR + 7.25%,
8/15/12	507,916
1,000		Madison River Capital LLC, Loan B1, LIBOR + 2.25%,
7/31/12	1,010,938
2,273		Nextel Partners Operating Corp., Loan D, LIBOR +
1.50%, 5/31/12	2,273,200
		Ntelos, Inc.,
1,493		LIBOR + 2.50%,
2/24/10	1,512,649
748		LIBOR + 5.00%,
2/24/12	760,984
2,000		Qwest Corp., Loan A, LIBOR + 4.75%, 6/30/07	2,044,584
1,933		Valor Telecommunication Enterprises II LLC, Loan B,
LIBOR + 1.75%, 2/28/12	1,935,750
1,000		Wind Acquisition Finance SA, TBD, 6/17/12	1,259,347
		Total Telecommunications	22,233,449
		Transportation0.5%
875		Delta Air Lines, Inc., Loan A, LIBOR + 2.75%, 4/15/08	888,437
721		Sirva Worldwide, Inc., LIBOR + 4.50%, 11/30/10	718,145
606		Transport Industries LP, Loan B, LIBOR + 2.50%,
9/30/11	614,563
		UAL Corp.,
125		LIBOR + 3.75%,
6/30/06	126,813
875		Loan B, LIBOR +
3.75%, 1/31/12	887,688
		Total Transportation	3,235,646
		Total Bank Loans	358,084,620
		Mortgage Pass-Through
Securities20.9%
		Federal National Mortgage Assoc.,
38		5.00%,
6/01/20-7/01/20	37,084
896	2	5.00%, 8/01/20	873,256
494		5.50%,
12/01/28-10/01/33	481,117
9,773	2	5.50%, 11/01/33	9,519,280
17,000	2	7.25%, 1/15/10	18,122,928
120,700		TBA, 5.00%,
5/16/21	117,493,967
		Total Mortgage Pass-Through Securities	146,527,632
		Interest Only Asset-Backed
Securities1.0%
		Sterling Coofs Trust,
48,972		Ser. 1, 2.362%,
4/15/29	3,428,067
54,298		Ser. 2, 1.00%,
3/30/30	3,800,841
		Total Interest Only Asset-Backed Securities	7,228,908
		Asset-Backed Securities1.5%
2,379	2	Honda Auto Receivables Class A3, 2.30%, 10/18/07	2,362,514
7,910	2	MBNA Credit Card Master Note Trust, 5.75%, 10/15/08	7,912,249
		Total Asset-Backed Securities	10,274,763
		Collateralized Mortgage
Obligations1.9%
		GSR Mortgage Loan Trust,
7,181	2,3	Ser. 10, Class
2A1, 4.506%, 10/25/33	6,835,937
7,160	2,3	Ser. 13, Class
1A1, 4.531%, 10/25/33	6,805,234
		Total Collateralized Mortgage Obligations	13,641,171

See Notes to Financial Statements.

BlackRock Limited Duration Income Trust (BLW) (continued)

Rating 1			Description
			U.S. Government and Agency
Securities5.3%
			U.S. Treasury Notes,
$	20,425	2	3.375%, 9/15/09	$ 19,643,425
	10,000	2	3.75%, 3/31/07	9,895,313
	6,000	2	3.875%, 5/15/09	5,832,188
	1,815	2	4.25%, 8/15/15	1,707,234
			Total U.S. Government and Agency Securities	37,078,160
			Foreign Government Bonds2.4%
BB-	952		Bolivarian Republic of Venezuela, 4.563%, 12/18/07	952,319
BB	5,000	2	Republic of Colombia, 9.75%, 4/23/09	5,505,000
BB	5,000		Republic of Peru, 9.125%, 2/21/12	5,555,000
BB-	5,000		Republic of Turkey, 11.375%, 11/27/06	5,162,500
			Total Foreign Government Bonds	17,174,819
	Units (000)
			Warrants0.0%
	10	7,8	Reliant Resources, Inc., Expires 8/25/08, strike
price $0.001, 1 share for 1 warrant	62,769
			Total Long-Term Investments (cost $1,013,480,006)	1,017,970,736
	Principal Amount (000)
			SHORT-TERM INVESTMENTS0.9%
			Commercial Paper0.9%
	2,760	9	Ford Motor Credit Co., 4.84%, 5/02/06	2,760,000
	3,620	9	General Motors Acceptance Corp., 4.84%, 5/02/06	3,620,000
			Total Short-Term Investments (cost $6,380,000)	6,380,000
			Total Investments146.0% (cost $1,019,860,006 10 )	$ 1,024,350,736
			Liabilities in excess of other assets(46.0)%	(322,870,026	)
			Net Assets100%	$ 701,480,710

| 1 | Using the higher of S&Ps, Moodys or Fitchs
rating. |
| --- | --- |
| 2 | Entire or partial principal amount pledged as
collateral for reverse repurchase agreements. See Note 4 in the Notes to
Financial Statements for details of open reverse repurchase agreements. |
| 3 | Variable rate security. Rate shown is interest rate
as of April 30, 2006. |
| 4 | 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 April 30,
2006, the Trust held 10.8% of its net assets, with a current market value of
$75,520,012, in securities restricted as to resale. |
| 5 | Illiquid security. As of April 30, 2006, the Trust
held 0.9% of its net assets, with a current market value of $6,613,922 in
these securities. |
| 6 | Issuer is in default and/or bankruptcy. |
| 7 | Security is fair valued. |
| 8 | Non-income producing security. |
| 9 | Rate shown is the yield to maturity as of April 30,
2006. |
| 10 | Cost for Federal income tax purposes is
$1,020,072,728. The net unrealized appreciation on a tax basis is $4,278,008,
consisting of $13,603,272 gross unrealized appreciation and $9,325,264 gross
unrealized depreciation. |

A category in the Corporate Bonds and Bank Loans sections may contain multiple industries as defined by the SECs Standard Industry Codes.

| KEY TO
ABBREVIATIONS |
| --- |
| CND Canadian Dollar |
| TBA To Be Announced |
| TBD To Be Determined |
| USD U.S. Dollar |

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS (unaudited) APRIL 30, 2006

BlackRock Strategic Bond Trust (BHD)

Rating 1	Principal Amount (000)		Description
			LONG-TERM
INVESTMENTS121.9%
			Corporate
Bonds114.7%
			Aerospace
& Defense7.9%
NR	$ 250		AAR Corp., 8.39%, 5/15/11	$ 252,500
			BE Aerospace, Inc.,
BB-	195		8.50%, 10/01/10	207,919
B	65		8.875%, 5/01/11	67,844
B-	1,275		DI Finance/DynCorp. Intl., 9.50%, 2/15/13	1,332,375
B	80		DRS Technologies, Inc., 7.625%, 2/01/18	81,600
A-	2,000		Lockheed Martin Corp., 8.50%, 12/01/29	2,527,455
BBB+	1,000		Northrop Grumman Corp., 7.125%, 2/15/11	1,060,409
BBB	650		Raytheon Co., 4.85%, 1/15/11	629,453
BB	350		Sequa Corp., 8.875%, 4/01/08	365,750
A+	1,000		United Technologies Corp., 6.35%, 3/01/11	1,035,829
			Total Aerospace & Defense	7,561,134
			Automotive3.0%
BB+	35		ArvinMeritor, Inc., 8.75%, 3/01/12	35,788
			Autonation, Inc.,
BB+	110	2	7.00%, 4/15/14	110,550
BB+	110	2,3	7.045%, 4/15/13	111,925
			Avis Budget Car Rental LLC,
BB-	20	2,3	7.576%, 5/15/14	20,575
BB-	55	2	7.75%, 5/15/16	56,100
A3	1,000	4	DaimlerChrysler NA Holding Corp., 7.30%, 1/15/12	1,053,616
CCC	60		Dura Operating Corp., 8.625%, 4/15/12	51,000
B	500		General Motors Corp., 8.25%, 7/15/23	362,500
B-	30		Goodyear Tire & Rubber Co., 7.857%, 8/15/11	29,550
B+	145		Lear Corp., 8.11%, 5/15/09	142,462
CCC+	310		Metaldyne Corp., 10.00%, 11/01/13	299,150
B	70		Tenneco, Inc., 8.625%, 11/15/14	70,875
BB-	492		TRW Automotive, Inc., 9.375%, 2/15/13	528,900
			Total Automotive	2,872,991
			Basic
Materials6.9%
B+	30		Abitibi-Consolidated Co., 8.375%, 4/01/15 (Canada)	30,300
B+	280		AK Steel Corp., 7.75%, 6/15/12	283,500
B	80	2,3	BCI US Finance Corp./Borden 2 Nova Scotia Finance
ULC, 10.577%, 7/15/10	81,800
BB-	60	3	Bowater, Inc., 7.91%, 3/15/10	60,600
NR	2,175		Caraustar Industries, Inc., 9.875%, 4/01/11	2,289,187
BB+	20		Chemtura Corp., 6.875%, 6/01/16	19,950
			Domtar, Inc., (Canada)
B+	40		7.125%, 8/15/15	36,300
B+	140		7.875%, 10/15/11	135,800
B+	120		Donohue Forest Products, 7.625%, 5/15/07 (Canada)	121,050
			Huntsman LLC,
B2	99		11.50%, 7/15/12	113,355
Ba3	50		11.625%, 10/15/10	56,375
B2	185	3	12.318%, 7/15/11	193,787
BB	70		IMC Global, Inc., 10.875%, 6/01/08	75,425
B-	595	2	Ineos Group Holdings PLC, 8.50%, 2/15/16 (United
Kingdom)	563,019
CCC+	1,155		Innophos, Inc., 8.875%, 8/15/14	1,189,650
			Lyondell Chemical Co.,
BB+	177		9.50%, 12/15/08	184,080
BB+	130		10.50%, 6/01/13	145,600
B-	55		Nalco Co., 8.875%, 11/15/13	56,788
B3	210		NewPage Corp., 10.00%, 5/01/12	225,225
BB+	355	3	Nova Chemicals Corp., 8.405%, 11/15/13 (Canada)	357,219

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

Rating 1	Principal Amount (000)		Description
			Basic
Materials(contd)
			Rhodia SA, (France)
CCC+	$ 235		8.875%, 6/01/11	$ 243,812
B3	20		10.25%, 6/01/10	22,350
BBB	169		Weyerhaeuser Co., 6.125%, 3/15/07	170,036
			Total Basic Materials	6,655,208
			Building
& Development2.9%
B-	75		Ahern Rentals, Inc., 9.25%, 8/15/13	78,187
BB+	1,000		Beazer Homes USA, Inc., 8.625%, 5/15/11	1,038,750
B2	150	2	Compression Polymers Corp., 10.50%, 7/01/13	153,750
B-	595		ERICO Intl. Corp., 8.875%, 3/01/12	612,850
B-	665		Goodman Global Holding Co., Inc., 7.875%, 12/15/12	666,662
			North American Energy Partners, Inc., (Canada)
Caa1	55		8.75%, 12/01/11	53,763
B	200		9.00%, 6/01/10	212,000
			Total Building & Development	2,815,962
			Conglomerates0.4%
A+	325		Honeywell Intl., Inc., 7.50%, 3/01/10	347,693
			Consumer
Products8.3%
B3	90		ALH Finance LLC, 8.50%, 1/15/13	88,200
B+	2,245		Cenveo Corp., 9.625%, 3/15/12	2,402,150
B-	265		Finlay Fine Jewelry Corp., 8.375%, 6/01/12	232,537
BBB+	1,000		General Mills, Inc., 5.125%, 2/15/07	997,850
B	320		Gold Kist, Inc., 10.25%, 3/15/14	337,600
B-	580	2	Knowledge Learning Corp., Inc., 7.75%, 2/01/15	555,350
B-	380		Lazydays RV Center, Inc., 11.75%, 5/15/12	380,475
B	270	3	Levi Strauss & Co., 9.74%, 4/01/12	281,475
CCC-	105		Movie Gallery, Inc., 11.00%, 5/01/12	55,125
B3	30	2,3	Nutro Products, Inc., 9.23%, 10/15/13	30,600
B	500		Pantry, Inc., 7.75%, 2/15/14	507,500
BB-	100		Quiksilver, Inc., 6.875%, 4/15/15	96,500
B-	540	2	Rite Aid Corp., 6.125%, 12/15/08	530,550
B	1,400		Sonic Automotive, Inc., 8.625%, 8/15/13	1,442,000
			Total Consumer Products	7,937,912
			Containers
& Packaging1.3%
B1	400	2	Crown Americas LLC and Crown Americas Capital Corp.,
7.75%, 11/15/15	409,000
CCC+	55		Graham Packaging Co., Inc., 8.50%, 10/15/12	56,238
B-	70	2	Packaging Dynamics Finance Corp., 10.00%, 5/01/16	71,400
CCC+	515	2	Pregis Corp., 12.375%, 10/15/13	540,106
B+	180		Smurfit-Stone Container Enterprises, Inc., 9.75%,
2/01/11	184,950
			Total Containers & Packaging	1,261,694
			Ecological
Services & Equipment2.5%
BB-	265		Allied Waste NA, Inc., 5.75%, 2/15/11	253,075
B	1,500		Casella Waste Systems, Inc., 9.75%, 2/01/13	1,595,625
CCC	550		Waste Services, Inc., 9.50%, 4/15/14	570,625
			Total Ecological Services & Equipment	2,419,325
			Energy13.7%
			ANR Pipeline Co.,
B	185		7.375%, 2/15/24	190,088
B	655		9.625%, 11/01/21	785,181
B2	245		Aquila Finance Corp., 7.75%, 6/15/11 (Canada)	253,575
B	130	2	Chaparral Energy, Inc., 8.50%, 12/01/15	133,900
BB	20	2	Chesapeake Energy Corp., 6.875%, 11/15/20	19,700
B-	270		Clayton Williams Energy, Inc., 7.75%, 8/01/13	254,475
			CMS Energy Corp.,
BB-	95		7.50%, 1/15/09	97,613
BB-	85		8.50%, 4/15/11	91,163
BB-	90		9.875%, 10/15/07	95,288
BB-	120		Compagnie Generale de Geophysique SA, 7.50%, 5/15/15
(France)	123,900

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

Rating 1	Principal Amount (000)		Description
			Energy(contd)
			Compton Petroleum Finance Corp.,
B	$ 150		7.625%, 12/01/13	$ 148,688
B	250	2	7.625%, 12/01/13
(Canada)	247,812
A1	1,000		ConocoPhillips Holding Co., 6.95%, 4/15/29	1,105,415
BBB+	1,000	4	Dominion Resources, Inc., 5.70%, 9/17/12	987,211
B2	470		Dresser, Inc., 9.375%, 4/15/11	492,912
BBB	250		DTE Energy Co., 7.05%, 6/01/11	261,631
B	130		Dynegy Danskammer LLC, 7.27%, 11/08/10	132,600
			El Paso Corp.,
B-	165		7.75%, 1/15/32	164,588
B-	205		7.80%, 8/01/31	203,975
B-	165	2	9.625%, 5/15/12	182,325
B-	100	2	10.75%, 10/01/10	111,750
B	175		El Paso Natural Gas Co., 8.375%, 6/15/32	193,812
Ba2	33		Elwood Energy LLC, 8.159%, 7/05/26	35,121
B-	215		Exco Resources, Inc., 7.25%, 1/15/11	212,312
BBB-	1,075		FirstEnergy Corp., 7.375%, 11/15/31	1,168,006
BB	60		Grant Prideco, Inc., 6.125%, 8/15/15	57,600
			Hilcorp Energy I LP/Hilcorp Finance Corp.,
B	100	2	7.75%, 11/01/15	98,500
B	97	2	10.50%, 9/01/10	105,730
B-	195		KCS Energy, Inc., 7.125%, 4/01/12	196,462
			Midwest Generation LLC,
B+	561		8.56%, 1/02/16	602,741
Ba3	370		8.75%, 5/01/34	399,600
			Mirant Americas Generation LLC,
B	50		8.30%, 5/01/11	51,625
B	110		8.50%, 10/01/21	110,825
B	280		9.125%, 5/01/31	294,000
B2	120		Mission Energy Holdings Co., 13.50%, 7/15/08	136,500
			NRG Energy, Inc.,
B1	50		7.25%, 2/01/14	50,250
B1	285		7.375%, 2/01/16	287,137
A-	250		Occidental Petroleum Corp., 6.75%, 1/15/12	265,555
B-	110	2	Ocean Rig AS, 8.375%, 7/01/13 (Norway)	115,775
B-	140		Orion Power Holdings, Inc., 12.00%, 5/01/10	159,075
Baa2	1,000		Progress Energy, Inc., 7.75%, 3/01/31	1,137,893
			Reliant Energy, Inc.,
BB-	285		6.75%, 12/15/14	259,350
BB-	130		9.25%, 7/15/10	132,275
B-	400	2	Targa Resources, Inc., 8.50%, 11/01/13	406,000
BBB-	30		Transcontinental Gas Pipe Line Corp., 7.25%, 12/01/26	30,750
B3	120	2	Verasun Energy Corp., 9.875%, 12/15/12	127,800
B2	60		Whiting Petroleum Corp., 7.00%, 2/01/14	59,400
			Williams Cos., Inc.,
BB+	100		7.125%, 9/01/11	102,500
BB+	210		8.75%, 3/15/32	241,500
			Total Energy	13,121,884
			Entertainment
& Leisure4.0%
B3	200	2	AMC Entertainment, Inc., 11.00%, 2/01/16	214,000
B3	250	2	Greektown Holdings LLC, 10.75%, 12/01/13	261,875
BB	195		MGM Mirage, 6.00%, 10/01/09	192,075
B	55		Poster Financial Group, Inc., 8.75%, 12/01/11	58,025
B	1,000		Resorts Intl. Hotel & Casino, Inc., 11.50%,
3/15/09	1,095,000
BBB-	1,500		Royal Caribbean Cruises Ltd., 8.75%, 2/02/11
(Liberia)	1,650,000
B+	70	2	San Pasqual Casino, 8.00%, 9/15/13	70,700
BB-	190		Seneca Gaming Corp., 7.25%, 5/01/12	190,000
B+	140		Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
6.625%, 12/01/14	135,800
			Total Entertainment & Leisure	3,867,475

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

Rating 1	Principal Amount (000)		Description
			Financial
Institutions 24.0%
AA	$ 185	2	Allstate Financial Global Funding LLC, 5.25%, 2/01/07	$ 184,959
BB	230		American Real Estate Partners LP/American Real Estate
Finance Corp., 7.125%, 2/15/13	228,850
Aa3	650	2	Barclays Bank PLC, 8.55%, 9/29/49 (United Kingdom)	724,554
B	190		BCP Crystal US Holdings Corp., 9.625%, 6/15/14
(Luxembourg)	209,000
A+	325		Bear Stearns Co., Inc., 6.50%, 5/01/06	325,012
B2	2,000		Bluewater Finance Ltd., 10.25%, 2/15/12 (Cayman
Islands)	2,095,000
AA+	3,000	4	Citigroup, Inc., 5.75%, 5/10/06	3,000,436
BB	590		Crum & Forster Holdings Corp., 10.375%, 6/15/13	613,600
B+	110		E*Trade Financial Corp., 7.375%, 9/15/13	111,925
			Fairfax Financial Holdings Ltd., (Canada)
BB	300		6.875%, 4/15/08	292,500
BB	180		7.75%, 4/26/12	171,000
			Ford Motor Credit Co.,
BB	750		5.80%, 1/12/09	679,251
BB	1,600	3	6.638%, 1/15/10	1,448,766
BB	75		7.25%, 10/25/11	67,233
AAA	2,000	4	General Electric Capital Corp., 3.45%, 7/16/07	1,958,342
BB	330		General Motors Acceptance Corp., 6.875%, 8/28/12	305,173
AA	1,500	4	HSBC Bank USA, Inc., 3.875%, 9/15/09	1,434,252
B-	225		K&F Acquisition, Inc., 7.75%, 11/15/14	230,063
AAA	850	4	KFW Intl. Finance, Inc., 5.25%, 6/28/06	849,928
A	325		MetLife, Inc., 6.125%, 12/01/11	333,018
B2	565	2	Nell AF SARL, 8.375%, 8/15/15 (Luxembourg)	559,350
			Rainbow National Services LLC,
B+	210	2	8.75%, 9/01/12	224,175
B+	2,245	2	10.375%, 9/01/14	2,520,013
Caa1	655		Standard Aero Holdings, Inc., 8.25%, 9/01/14	579,675
AA+	855	5	Structured Asset Receivable Trust, 1.649%, 1/21/10	855,429
AAA	1,000	2	TIAA Global Markets, Inc., 3.875%, 1/22/08	977,386
B-	50	3	Universal City Florida Holding Co. I/II, 9.899%,
5/01/10	51,875
Aa1	2,000	4	Wells Fargo & Co., 3.50%, 4/04/08	1,937,382
Aa3	50		Western Financial Bank, 9.625%, 5/15/12	55,500
			Total Financial Institutions	23,023,647
			Health
Care5.6%
B	280	2	Angiotech Pharmaceuticals, Inc., 7.75%, 4/01/14
(Canada)	281,400
NR	10	6	Curative Health Services, Inc., 10.75%, 5/01/11	6,250
CCC	65		MedQuest, Inc., 11.875%, 8/15/12	54,275
AA	1,000	4	Merck & Co., Inc., 4.375%, 2/15/13	918,974
B3	110		Select Medical Corp., 7.625%, 2/01/15	100,375
B	215		Tenet Healthcare Corp., 6.875%, 11/15/31	176,838
B	1,500		United Surgical Partners Intl., Inc., 10.00%,
12/15/11	1,597,500
B-	290		Universal Hospital Services, Inc., 10.125%, 11/01/11	301,962
A-	1,000		WellPoint, Inc., 5.95%, 12/15/34	933,662
A	1,000		Wyeth, 6.50%, 2/01/34	1,016,586
			Total Health Care	5,387,822
			Industrials2.6%
B-	300		NationsRent Cos., Inc., 9.50%, 5/01/15	324,750
CCC+	700		Park-Ohio Industries, Inc., 8.375%, 11/15/14	661,500
B3	350	2	Sunstate Equipment Co. LLC, 10.50%, 4/01/13	371,000
CCC+	440		Trimas Corp., 9.875%, 6/15/12	415,800
Caa1	775		United Rentals NA, Inc., 7.00%, 2/15/14	745,937
			Total Industrials	2,518,987
			Media13.0%
NR	1,000	6	Adelphia Communications Corp., 10.50%, 7/15/04	485,000
			Affinion Group, Inc.,
B-	345	2	10.125%, 10/15/13	356,644
B-	140	2	11.50%, 10/15/15	143,500
B-	165		Allbritton Communications Co., 7.75%, 12/15/12	165,825
CCC	355		American Media Operations, Inc., 10.25%, 5/01/09	335,031

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

Rating 1	Principal Amount (000)		Description
			Media(contd)
BBB+	$ 1,000		AOL Time Warner, Inc., 7.70%, 5/01/32	$ 1,090,804
B+	120	3	Cablevision Systems Corp., 9.62%, 4/01/09	127,200
			Charter Communications Holdings II, LLC/Charter
Communications Holdings II Capital Corp.,
Caa1	315		10.25%, 9/15/10	318,938
Caa1	105	2	10.25%, 9/15/10	105,394
BBB+	1,000	4	Comcast Cable Communications, Inc., 6.875%, 6/15/09	1,036,150
BB-	200		CSC Holdings, Inc., 7.875%, 12/15/07	204,000
			Echostar DBS Corp.,
BB-	550		5.75%, 10/01/08	541,750
BB-	45	2	7.125%, 2/01/16	43,875
BB-	200	3	8.24%, 10/01/08	204,000
B+	130		Medianews Group, Inc., 6.875%, 10/01/13	118,300
B2	130	2	Network Communications, Inc., 10.75%, 12/01/13	133,575
BBB	1,500	4	News America, Inc., 6.20%, 12/15/34	1,374,593
B3	350		Nexstar Finance, Inc., 7.00%, 1/15/14	329,000
B2	500	2,3	Paxson Communications Corp., 8.318%, 1/15/12	513,125
			Primedia, Inc.,
B2	80		8.00%, 5/15/13	73,000
B2	270	3	10.545%, 5/15/10	276,750
BB-	230	2	Quebecor World, Inc., 8.75%, 3/15/16 (Canada)	223,072
B	990	2	RH Donnelley Corp., 8.875%, 1/15/16	1,018,462
B	70		Sinclair Broadcast Group, Inc., 4.875%, 7/15/18	61,777
Caa1	200		Sirius Satellite Radio, Inc., 9.625%, 8/01/13	195,500
BBB+	1,000		TCI Communications, Inc., 7.875%, 2/15/26	1,072,556
CCC+	75	2	Unity Media GmbH, 10.375%, 2/15/15 (Germany)	74,250
			Vertis, Inc.,
B3	445		9.75%, 4/01/09	453,900
CCC	370		10.875%, 6/15/09	355,200
BBB	85		Viacom, Inc., 6.625%, 5/15/11	87,600
Caa2	980		Young Broadcasting, Inc., 10.00%, 3/01/11	899,150
			Total Media	12,417,921
			Real
Estate2.6%
BB	860		American Real Estate Partners, 8.125%, 6/01/12	887,950
A	500		ERP Operating LP, 6.95%, 3/02/11	526,603
Ba3	1,000		Felcore Lodging LP, 8.50%, 6/01/11	1,075,000
			Total Real Estate	2,489,553
			Technology5.0%
			Amkor Technology, Inc.,
CCC	70		5.00%, 3/15/07	69,137
CCC+	370		9.25%, 2/15/08	390,350
B+	565		Celestica, Inc., 7.625%, 7/01/13 (Canada)	565,000
B+	100	2	Hynix Semiconductor, Inc., 9.875%, 7/01/12 (South
Korea)	110,375
			MagnaChip Semiconductor SA/MagnaChip Semiconductor
Finance Co., (Luxembourg)
Ba3	160		6.875%, 12/15/11	152,800
B2	20		8.00%, 12/15/14	18,600
Ba3	300	3	8.16%, 12/15/11	301,500
B2	140	2	Sensata Technologies BV, 8.00%, 5/01/14	141,400
CCC+	295	2	SS&C Technologies, Inc., 11.75%, 12/01/13	314,913
BB	50		STATS ChipPAC Ltd., 7.50%, 7/19/10 (Singapore)	50,625
			Sungard Data Systems, Inc.,
B-	160	2	9.125%, 8/15/13	171,200
B-	410	2,3	9.431%, 8/15/13	436,650
B-	580	2	10.25%, 8/15/15	620,600
B	990		Superior Essex Communications LLC/Essex Group, Inc.,
9.00%, 4/15/12	997,425
B-	370		UGS Corp., 10.00%, 6/01/12	405,150
			Total Technology	4,745,725
			Telecommunications9.3%
BB-	190		Cincinnati Bell, Inc., 7.25%, 7/15/13	193,800
B3	130	2	Hawaiian Telcom Communications, Inc., 10.789%,
5/01/13	133,900

See Notes to Financial Statements.

BlackRock Strategic Bond Trust (BHD) (continued)

Rating 1	Principal Amount (000)		Description
			Telecommunications(contd)
			Intelsat Ltd., (Bermuda)
B2	$ 50		8.25%, 1/15/13	$ 51,000
B2	240		8.625%, 1/15/15	249,900
B2	295	3	9.614%, 1/15/12	300,162
			Lucent Technologies, Inc.,
B1	25		6.45%, 3/15/29	22,125
B1	905		6.50%, 1/15/28	794,137
B+	500	2	Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16	520,000
B2	160		Nortel Networks Corp., 6.875%, 9/01/23 (Canada)	149,400
B1	125		PanAmSat Corp., 9.00%, 8/15/14	131,563
			Qwest Corp.,
BB+	200		7.875%, 9/01/11	209,500
BB+	3403		8.16%, 6/15/13	370,600
BB+	85		Rogers Wireless, Inc., 7.25%, 12/15/12 (Canada)	87,763
A	1,500	4	SBC Communications, Inc., 6.45%, 6/15/34	1,459,898
BBB+	1,000		Telecom Italia Capital SA, 4.95%, 9/30/14
(Luxembourg)	914,857
A+	2,000	4	Verizon New England, Inc., 6.50%, 9/15/11	2,029,823
A+	1,000		Vodafone Group PLC, 7.75%, 2/15/10 (United Kingdom)	1,069,713
B+	250	2	Wind Acquisition Finance SA, 10.75%, 12/01/15
(Luxembourg)	274,375
			Total Telecommunications	8,962,516
			Transportation1.7%
Ba3	125		American Airlines, Inc., 7.324%, 4/15/11	121,250
A-	500		Canadian National Railway Co., 6.90%, 7/15/28
(Canada)	547,537
B	475		CHC Helicopter Corp., 7.375%, 5/01/14 (Canada)	483,312
BB-	40	2	Hertz Corp., 8.875%, 1/01/14	42,550
B3	39		Horizon Lines LLC, 9.00%, 11/01/12	40,609
B+	50		OMI Corp., 7.625%, 12/01/13	51,375
BB+	300		Overseas Shipholding Group, Inc., 8.25%, 3/15/13	317,250
			Total Transportation	1,603,883
			Total Corporate Bonds	110,011,332
			U.S.
Government and Agency Securities5.1%
	410		U.S. Treasury Bonds, 5.375%, 2/15/31	416,406
			U.S. Treasury Notes,
	1,010	4	2.50%, 5/31/06	1,008,106
	933	4	2.625%, 11/15/06	921,192
	810	4	4.125%, 8/15/10	785,953
	1,000	4	4.25%, 8/15/13	954,219
	75		4.25%, 8/15/15	70,547
	710	4	4.75%, 5/15/14	696,909
			Total U.S. Government and Agency Securities	4,853,332
			Foreign
Government Bond1.2%
Baa1	1,000		United Mexican States, 8.125%, 12/30/19	1,152,500
			Supranational0.9%
AAA	850	4	European Investment Bank, 4.875%, 9/06/06
(Luxembourg)	848,863
			Total Investments121.9% (cost $117,648,668 7 )	$ 116,866,027
			Liabilities in excess of other assets(21.9)%	(20,991,212	)
			Net Assets100%	$ 95,874,815

| 1 | Using the higher of
S&Ps, Moodys or Fitchs rating. |
| --- | --- |
| 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 April 30, 2006, the Trust held 17.3% of its net assets, with a
current market value of $16,551,289, in securities restricted as to resale. |
| 3 | Variable rate security. Rate
shown is interest rate as of April 30, 2006. |
| 4 | Entire or partial principal
amount pledged as collateral for reverse repurchase agreements. See Note 4 in
the Notes to Financial Statements for details of open reverse repurchase
agreements. |
| 5 | Illiquid security. As of
April 30, 2006, the Trust held 0.9% of its net assets, with a current market
value of $855,428 in these securities. |
| 6 | Issuer is in default and/or
bankruptcy. |
| 7 | Cost for Federal income tax
purposes is $117,709,536. The net unrealized depreciation on a tax basis is
$843,509, consisting of $2,224,866 gross unrealized appreciation and
$3,068,375 gross unrealized depreciation. |

A category in the Corporate Bonds section may contain multiple industries as defined by the SECs Standard Industry Codes.

See Notes to Financial Statements.

STATEMENTS OF ASSETS AND LIABILITIES (unaudited) April 30, 2006

	Broad Investment Grade 2009 Term Trust Inc. 1 (BCT)
Assets
Investments at value 2	$ 42,475,879	$	364,635,493
Investment in affiliates	21,008		78,040
Cash	34,885		15,953
Foreign currency at value 3			3,943,936
Receivable from investments sold			3,717,673
Variation margin receivable			138,425
Deposits with brokers as collateral for borrowed bonds			3,781,731
Interest receivable	421,886		5,732,457
Unrealized appreciation on interest rate swaps			1,271,645
Other assets	249		2,927
	42,953,907		383,318,280
Liabilities
Reverse repurchase agreement			6,238,469
Payable to custodian
Payable for investments purchased			9,420,649
Payable for dollar rolls			1,358,654
Variation margin payable
Unrealized loss on foreign currency exchange contracts			87,119
Loan payable
Investments sold short at value 4
Outstanding options written at value 5			2,423,139
TBA sale commitments
Unrealized depreciation on credit default swaps			25,729
Interest payable			1,089,591
Interest rate floors at value
Investment advisory fee payable	19,311		143,469
Administration fee payable	5,267
Deferred Trusteesfees	21,008		78,040
Payable to affiliates	9,873		33,704
Other accrued expenses	183,539		138,310
	238,998		21,036,873
Net
Assets	$ 42,714,909	$	362,281,407
Composition of Net Assets:
Par value	$ 29,571	$	27,019
Paid-in capital in excess of par	41,775,250		386,195,641
Cost of shares held in treasury 7
Undistributed (distributions in excess of) net investment
income	4,621,859		(3,822,436	)
Accumulated net realized loss	(3,086,503	)	(6,750,360	)
Net unrealized appreciation (depreciation)	(625,268	)	(13,368,457	)
Net assets, April 30, 2006	$ 42,714,909	$	362,281,407
Net asset value 8	$ 14.44	$	13.41
1 Consolidated
Statement of Assets and Liabilities
2 Investments at
cost	$ 43,101,147	$	374,718,958
3 Foreign
currency at cost			3,964,702
4 Proceeds
received
5 Premium
received			2,748,069
6 Proceeds for
TBA sale commitments
7 Shares held in
treasury
8 Shares
outstanding	2,957,093		27,018,774

See Notes to Financial Statements.

High Yield Trust (BHY) — $ 67,366,954	$	408,959,071	$	488,984,983	$	1,024,350,736	$	116,866,027
30,048		147,162		175,389		71,824		16,091
52,144		1,279				65,449		92,654
						5,243,625
1,008,478		28,157,924		23,228,059		2,766,049		244,199
		158,721
				56,491,925
1,671,980		6,307,534		5,374,973		14,512,352		2,253,575
		1,495,232		882,655
405		23,732		3,384		27,242		694
70,130,009		445,250,655		575,141,368		1,047,037,277		119,473,240
		10,073,888		74,729,625		190,267,010		21,709,642
				81,827
1,162,262		32,198,633		1,398,177		36,544,085		1,707,137
						117,191,633
				336,845
						380,718
20,250,000
				55,999,811
		2,600,461		2,592,976
		26,506,607		23,049,382
		28,725
71,474		1,151,417		1,817,881		504,961		29,962
				1,775,077
41,448		184,725		220,928		451,399		54,341
1,856		64,276		94,677
30,048		147,162		175,389		71,824		16,091
1,273		26,898		72,642				9,776
51,741		141,007		101,618		144,937		71,476
21,610,102		73,123,799		162,446,855		345,556,567		23,598,425
$ 48,519,907	$	372,126,856	$	412,694,513	$	701,480,710	$	95,874,815
$ 6,413	$	344,497	$	639,425	$	36,768	$	7,058
92,953,912		406,532,068		525,523,492		700,832,170		98,695,235
		(17,377,850	)
(86,097	)	665,352		(2,357,127	)	3,442,279		(173,367	)
(35,207,889	)	(5,703,315	)	(91,704,526	)	(6,970,474	)	(1,871,470	)
(9,146,432	)	(12,333,896	)	(19,406,751	)	4,139,967		(782,641	)
$ 48,519,907	$	372,126,856	$	412,694,513	$	701,480,710	$	95,874,815
$ 7.57	$	10.80	$	6.45	$	19.08	$	13.58
$ 76,513,386	$	418,124,258	$	520,800,595	$	1,019,860,006	$	117,648,668
						5,160,474
				59,142,549
		2,950,732		2,942,962
		26,515,125		23,070,781
		1,757,400
6,413,025		34,449,693		63,942,536		36,768,498		7,058,402

STATEMENTS OF OPERATIONS (unaudited) For the six months ended April 30, 2006

	Broad Investment Grade 2009 Term Trust Inc. 1 (BCT)
Investment
Income
Interest income	$ 1,416,653	$	12,360,137
Income from affiliates	667		3,152
Total investment income	1,417,320		12,363,289
Expenses
Investment advisory	117,171		1,158,212
Administration	31,956
Transfer agent	5,381		7,421
Custodian	35,657		118,065
Reports to shareholders	15,800		52,106
Directors/Trustees	6,491		23,625
Registration	905		10,534
Independent accountants	15,573		31,169
Legal	6,587		41,806
Insurance	1,320		15,303
Deferred Trustees fee	667		3,152
Miscellaneous	5,583		28,530
Total expenses excluding interest expense	243,091		1,489,923
Interest expense			811,474
Total expenses	243,091		2,301,397
Less fees waived by Advisor
Less fees paid indirectly			(4,165	)
Net expenses	243,091		2,297,232
Net investment income	1,174,229		10,066,057
Realized
and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments	(410,099	)	(7,160,472	)
Foreign currency			(275,726	)
Futures			476,720
Swaps			(93,546	)
Options written			32,156
Short sales
	(410,099	)	(7,020,868	)
Net change in unrealized appreciation/depreciation on:
Investments	5,643		833,211
Foreign currency			44,886
Futures			(4,909,357	)
Interest rate floors
Swaps	(176	)	(567,414	)
Options written			149,247
Short sales
	5,467		(4,449,427	)
Net gain (loss)	(404,632	)	(11,470,295	)
Net
Increase (Decrease) in Net Assets Resulting from Operations	$ 769,597	$	(1,404,238	)

1 Consolidated Statement of Operations.

See Notes to Financial Statements.

High Yield Trust (BHY) — $ 3,099,052	$	14,558,942		Income Trust Inc. (BKT) — $ 19,402,060	$	32,802,787	$	4,633,675
2,947		2,567		8,024		3,142		551
3,101,999		14,561,509		19,410,084		32,805,929		4,634,226
361,799		1,159,884		1,344,271		2,681,434		460,058
34,457		193,314		310,216
7,964		14,480		37,105		8,869		7,421
54,054		137,298		134,547		242,900		52,180
19,711		55,998		77,319		88,125		15,954
6,431		28,278		23,951		35,756		7,039
10,534		10,505		22,082		11,250		10,534
18,473		37,664		33,947		25,489		18,275
5,222		37,599		37,833		56,957		10,458
2,116		18,264		17,864		30,086		3,772
1,429		2,567		8,024		3,142		551
5,927		30,117		34,787		30,749		7,779
528,117		1,725,968		2,081,946		3,214,757		594,021
508,127		1,559,715		4,990,462		3,580,988		599,944
1,036,244		3,285,683		7,072,408		6,795,745		1,193,965
								(122,682	)
(3,063	)	(3,326	)	(13,726	)	(32,942	)	(3,326	)
1,033,181		3,282,357		7,058,682		6,762,803		1,067,957
2,068,818		11,279,152		12,351,402		26,043,126		3,566,269
(664,711	)	(4,516,079	)	(4,354,535	)	(4,961,151	)	(1,114,598	)
						48,800
		(1,167,912	)	5,731,356
		(62,051	)	(21,862	)
24,255		34,894				156,854
		(178,937	)	127,133
(640,456	)	(5,890,085	)	1,482,092		(4,755,497	)	(1,114,598	)
1,281,345		(3,772,560	)	(9,897,703	)	4,714,881		603,909
						(458,789	)
		(3,839,385	)	258,791
				2,608,823
		(564,481	)	(416,775	)	(4,008	)
		161,502		161,801
		(865,035	)	1,869,484
1,281,345		(8,879,959	)	(5,415,579	)	4,252,084		603,909
640,889		(14,770,044	)	(3,933,487	)	(503,413	)	(510,689	)
$ 2,709,707	$	(3,490,892	)	$ 8,417,915	$	25,539,713	$	3,055,580

STATEMENTS OF CASH FLOWS (unaudited) For the six months ended April 30, 2006

	Broad Investment Grade 2009 Term Trust Inc. 1 (BCT)
Reconciliation of Net Increase (Decrease) in Net Assets Resulting from Operations to Net Cash Flows Provided by Operating Activities
Net Increase (Decrease) in
net assets resulting from operations	$ 769,597	$	(1,404,238	)
Purchases of long-term
investments	(745,043	)	(1,058,379,654	)
Proceeds from sales of
long-term investments	3,232,147		1,182,296,960
Net proceeds (purchases) of
short-term investments	(2,430,755	)	(5,055,903	)
Decrease (Increase) in
deposits with brokers as collateral for borrowed bonds			(3,781,731	)
Net amortization of premium
and discount on investments	152,441		1,975,673
Net realized loss on
investments	410,099		7,160,472
Decrease (Increase) in
unrealized appreciation/depreciation on investments	(5,644	)	(833,211	)
Net effect of exchange rates
on foreign currency			(275,726	)
Decrease in investments sold
short
Decrease in outstanding
options written			(117,931	)
Increase (Decrease) in TBA
sale commitments
Decrease in interest rate
floors
Decrease in interest rate
swaps			573,973
Decrease in credit default
swaps	176		27,969
Increase in investments in
affiliates	(2,167	)	(17,756	)
Decrease (Increase) in
receivable for investments sold			28,039,294
Decrease in foreign currency
exchange contracts			136,396
Increase in variation margin
receivable			(66,269	)
Decrease in interest
receivable	87,724		2,282,961
Decrease in other assets	3,553		21,076
Increase (Decrease) in
payable for investments purchased			(44,128,779	)
Decrease in payable for
dollar rolls			(5,914,216	)
Increase in variation margin
payable
Increase (Decrease) in
interest payable	(4,386	)	(56,760	)
Decrease in investment
advisory fee payable	(1,178	)	(58,494	)
Decrease in administration
fee payable	(321	)
Increase in deferred
Directors/Trustees fees	2,167		17,756
Increase in payable to
affiliates	1,810		12,308
Increase (Decrease) in
accrued expenses	(186,391	)	(20,004	)
Total adjustments	514,232		103,838,404
Net cash provided by
operating activities	$ 1,283,829	$	102,434,166
Increase
(Decrease) in Cash and Foreign Currency
Net cash provided by
operating activities	$ 1,283,829	$	102,434,166
Cash used for financing
activities:
Capital contributions
Increase (Decrease) in reverse repurchase agreements			(80,637,587	)
Decrease in loan payable
Cash dividends paid	(1,330,692	)	(21,828,144	)
Net cash used for financing
activities	(1,330,692	)	(102,465,731	)
Net increase (decrease) in cash	(46,863	)	(31,565	)
Cash and foreign currency at beginning of period	81,748		3,991,454
Cash and foreign currency (overdraft) at end of period	$ 34,885	$	3,959,889

1 Consolidated Statement of Cash Flows.

See Notes to Financial Statements.

High Yield Trust (BHY) — $ 2,709,707	$	(3,490,892	)	Income Trust Inc. (BKT) — $ 8,417,915		Limited Duration Income Trust (BLW) — $ 25,539,713	$	3,055,580
(29,831,588	)	(1,521,764,979	)	(506,589,117	)	(997,994,938	)	(31,765,553	)
29,115,588		1,713,047,482		585,695,018		956,548,869		39,752,259
947,816		368,023		746,357		(2,316,641	)	711,567
				16,605,100		8,670,825
(12,362	)	(449,551	)	6,624,846		1,116,183		103,900
664,711		4,516,079		4,354,535		4,961,151		1,114,598
(1,281,345	)	3,772,560		9,897,703		(4,714,881	)	(603,909	)
						48,800
				(16,102,372	)
		(128,168	)	(87,307	)
		(95,589,254	)	1,544,378
				1,775,077
		571,946		416,775
		31,082				4,008
(3,813	)	(18,736	)	(26,587	)	(25,923	)	(3,291	)
(630,310	)	167,095,278		23,036,092		(916,974	)	(179,464	)
						458,430
		(41,868	)
24,423		1,796,664		21,109		52,619		313,862
6,336		1,572		21,059		20,505		9,007
879,236		(137,042,626	)	(47,549,504	)	29,190,224		1,453,618
						(2,518,249	)
				204,144
(5,701	)	(138,672	)	(198,670	)	154,679		(15,503	)
(2,332	)	(20,288	)	(10,551	)	(19,178	)	(6,212	)
(222	)	(3,382	)	(2,435	)
3,813		18,736		26,587		25,923		3,291
1,240		12,721		15,416				3,074
(17,377	)	(54,936	)	(63,278	)	9,998		(21,953	)
(141,887	)	135,979,683		80,354,375		(7,244,570	)	10,869,291
$ 2,567,820	$	132,488,791		$ 88,772,290		$ 18,295,143	$	13,924,871
$ 2,567,820	$	132,488,791		$ 88,772,290		$ 18,295,143	$	13,924,871
15,047
		(110,105,312	)	(74,828,625	)	14,256,748		(10,172,906	)
(500,000	)
(2,128,680	)	(22,460,305	)	(14,113,526	)	(29,020,420	)	(3,726,836	)
(2,613,633	)	(132,565,617	)	(88,942,151	)	(14,763,672	)	(13,899,742	)
(45,813	)	(76,826	)	(169,861	)	3,531,471		25,129
97,957		78,105		88,034		1,777,603		67,525
$ 52,144	$	1,279		$ (81,827	)	$ 5,309,074	$	92,654

STATEMENTS OF CHANGES IN NET ASSETS For the six months ended April 30, 2006 (unaudited) and the year ended October 31, 2005

	Broad Investment Grade 2009 Term Trust Inc. 1 (BCT) — 2006	2005		2006			2005
Increase (Decrease) in Net Assets
Operations:
Net investment income	$ 1,174,229	$	2,365,140	$	10,066,057		$ 20,946,361
Net realized gain (loss)	(410,099	)	785,483		(7,020,868	)	17,026,631
Net change in unrealized appreciation/depreciation	5,467		(3,333,736	)	(4,449,427	)	(26,925,832	)
Net increase (decrease) in net assets resulting from
operations	769,597		(183,113	)	(1,404,238	)	11,047,160
Dividends and Distributions:
Net investment income 2	(1,330,692	)	(3,053,790	)	(14,403,952	)	(27,245,732	)
Net realized gain			(742,526	)	(7,424,192	)	(9,450,897	)
Tax return of capital
Total dividends and distributions	(1,330,692	)	(3,796,316	)	(21,828,144	)	(36,696,629	)
Capital Share Transactions:
Reinvestment of dividends
Total increase (decrease)	(561,095	)	(3,979,429	)	(23,232,382	)	(25,649,469	)
Net Assets
Beginning of period	43,276,004		47,255,433		385,513,789		411,163,258
End of period	$ 42,714,909	$	43,276,004	$	362,281,407		$ 385,513,789
End of period undistributed (distributions in excess of) net
investment income	$ 4,621,859	$	4,778,321	$	(3,822,436	)	$ 515,459

| 1 | Consolidated Statement of
Changes in Net Assets. |
| --- | --- |
| 2 | A portion of the dividends
from net investment income for the six months ended April 30, 2006 may be
deemed a tax return of capital or net realized gain at fiscal year end. |

See Notes to Financial Statements.

High Yield Trust (BHY) — 2006		2005		Income Opportunity Trust (BNA) — 2006	2005		2006			2005
$ 2,068,818		$ 4,365,000		$ 11,279,152	$	24,695,470	$	12,351,402		$ 28,144,451
(640,456	)	863,475		(5,890,085	)	14,315,363		1,482,092		(15,436,336	)
1,281,345		(3,198,856	)	(8,879,959	)	(30,139,747	)	(5,415,579	)	(3,057,050	)
2,709,707		2,029,619		(3,490,892	)	8,871,086		8,417,915		9,651,065
(2,128,680	)	(5,087,371	)	(12,794,617	)	(27,821,573	)	(14,113,526	)	(30,667,298	)
				(9,665,688	)	(9,614,909	)
										(4,798,184	)
(2,128,680	)	(5,087,371	)	(22,460,305	)	(37,436,482	)	(14,113,526	)	(35,465,482	)
15,047		67,545								1,569,925
596,074		(2,990,207	)	(25,951,197	)	(28,565,396	)	(5,695,611	)	(24,244,492	)
47,923,833		50,914,040		398,078,053		426,643,449		418,390,124		442,634,616
$ 48,519,907		$ 47,923,833		$ 372,126,856	$	398,078,053	$	412,694,513		$ 418,390,124
$ (86,097	)	$ (26,235	)	$ 665,352	$	2,180,817	$	(2,357,127	)	$ (595,003	)

STATEMENTS OF CHANGES IN NET ASSETS (continued) For the six months ended April 30, 2006 (unaudited) and the year ended October 31, 2005

	Limited Duration Income Trust (BLW) — 2006	2005		2006			2005
Increase (Decrease) in Net Assets
Operations:
Net investment income	$ 26,043,126	$	53,638,295	$	3,566,269		$ 7,734,392
Net realized loss	(4,755,497	)	(2,199,531	)	(1,114,598	)	(324,159	)
Net change in unrealized appreciation/depreciation	4,252,084		(32,007,565	)	603,909		(7,608,367	)
Net increase (decrease) in net assets resulting from
operations	25,539,713		19,431,199		3,055,580		(198,134	)
Dividends and Distributions:
Net investment income 1	(29,020,420	)	(49,020,501	)	(3,726,836	)	(7,935,935	)
Net realized gain			(5,497,247	)
Tax return of capital							(1,898,203	)
Total dividends and distributions	(29,020,420	)	(54,517,748	)	(3,726,836	)	(9,834,138	)
Capital Share Transactions:
Reinvestment of dividends			822,572				145,218
Total decrease	(3,480,707	)	(34,263,977	)	(671,256	)	(9,887,054	)
Net Assets
Beginning of period	704,961,417		739,225,394		96,546,071		106,433,125
End of period	$ 701,480,710	$	704,961,417	$	95,874,815		$ 96,546,071
End of period undistributed (distributions in excess of) net
investment income	$ 3,442,279	$	6,419,573	$	(173,367	)	$ (12,800	)

1 A portion of the dividends from net investment income for the six months ended April 30, 2006 may be deemed a tax return of capital or net realized gain at fiscal year end.

See Notes to Financial Statements.

CONSOLIDATED FINANCIAL HIGHLIGHTS

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)


April 30, 2006
(unaudited)		2005		2004		2003		2002		2001
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 14.63	$	15.98	$	16.02	$	17.33	$	16.05	$	13.64
Investment operations:
Net investment income	0.40		0.80		0.61		1.28		2.01		1.17
Net realized and unrealized gain (loss)	(0.14	)	(0.87	)	0.25		(1.40	)	0.04		2.01
Net increase (decrease) from investment operations	0.26		(0.07	)	0.86		(0.12	)	2.05		3.18
Dividends and distributions from:
Net investment income	(0.45	)	(1.03	)	(0.90	)	(1.19	)	(0.77	)	(0.77	)
Net realized gains			(0.25	)
Total dividends and distributions	(0.45	)	(1.28	)	(0.90	)	(1.19	)	(0.77	)	(0.77	)
Net asset value, end of period	$ 14.44	$	14.63	$	15.98	$	16.02	$	17.33	$	16.05
Market price, end of period	$ 15.20	$	15.86	$	15.80	$	15.85	$	16.18	$	14.39
TOTAL INVESTMENT RETURN 1	(1.32	)%	8.74	%	5.45	%	5.32	%	18.34	%	27.66	%
RATIOS TO AVERAGE NET ASSETS:
Total expenses	1.14	% 2	2.37	%	2.48	%	2.43	%	2.50	%	3.52	%
Net expenses	1.14	% 2	2.37	%	2.48	%	2.43	%	2.50	%	3.52	%
Net expenses excluding interest expense and excise tax	1.14	% 2	1.19	%	1.11	%	1.18	%	1.16	%	1.16	%
Net investment income	5.51	% 2	5.23	%	3.83	%	7.54	%	12.22	%	7.93	%
SUPPLEMENTAL DATA:
Average net assets	$ 42,961	$	45,264	$	47,191	$	49,882	$	48,731	$	43,701
Portfolio turnover	2	%	116	%	20	%	39	%	35	%	19	%
Net assets, end of period (000)	$ 42,715	$	43,276	$	47,255	$	47,381	$	51,244	$	47,466
Reverse repurchase agreements outstanding, end of period
(000)	$	$		$	19,263	$	19,953	$	23,669	$	13,373
Asset coverage, end of period 3	$	$		$	3,453	$	3,375	$	3,165	$	4,550
Reverse repurchase agreements average daily balance (000)	$	$	7,865	$	22,055	$	19,409	$	18,388	$	18,080
Reverse repurchase agreements weighted average interest
rate		%	2.32	%	1.20	%	1.21	%	1.82	%	4.94	%

| 1 | Total investment return is
calculated assuming a purchase of a share at the current market price on the
first day and a sale at the current market price on the last day of each
period reported. Dividends and distributions, if any, are assumed for
purposes of this calculation to be reinvested at prices obtained under the
Trusts dividend reinvestment plan. Total investment returns do not reflect
brokerage commissions. Past performance is not a guarantee of future results. |
| --- | --- |
| 2 | Annualized. |
| 3 | Per $1,000 of reverse
repurchase agreements outstanding. |

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trusts common shares.

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Core Bond Trust (BHK)


Six Months Ended		Year Ended October 31						November 30, 2001 1
April 30, 2006								through
(unaudited)		2005		2004		2003		October 31, 2002
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 14.27	$	15.22	$	14.75	$	14.33	$	14.33	2
Investment operations:
Net investment income	0.37		0.78		0.92		0.83		0.99
Net realized and unrealized gain (loss)	(0.43	)	(0.37	)	0.66		0.77		0.04
Net increase (decrease) from investment operations	(0.06	)	0.41		1.58		1.60		1.03
Dividends and distributions from:
Net investment income	(0.53	) 3	(1.01	)	(0.86	)	(1.00	)	(1.00	)
Net realized gains	(0.27	)	(0.35	)	(0.25	)	(0.18	)
Total dividends and distributions	(0.80	)	(1.36	)	(1.11	)	(1.18	)	(1.00	)
Capital charges with respect to issuance of shares									(0.03	)
Net asset value, end of period	$ 13.41	$	14.27	$	15.22	$	14.75	$	14.33
Market price, end of period	$ 12.81	$	13.69	$	14.02	$	13.57	$	13.82
TOTAL INVESTMENT RETURN 4	(0.62	)%	7.46	%	11.93	%	6.62	%	(1.02	)%
RATIOS TO AVERAGE NET ASSETS:
Total expenses	1.23	% 5	1.50	%	1.32	%	1.05	%	1.04	% 5
Net expenses	1.23	% 5	1.50	%	1.32	%	1.05	%	1.04	% 5
Net expenses excluding interest expense	0.79	% 5	0.85	%	0.92	%	0.87	%	0.93	% 5
Net investment income	5.38	% 5	5.20	%	6.20	%	5.58	%	7.67	% 5
SUPPLEMENTAL DATA:
Average net assets	$ 377,526	$	402,783	$	401,212	$	401,049	$	380,277
Portfolio turnover	47	%	220	%	398	%	161	%	73	%
Net assets, end of period (000)	$ 362,281	$	385,514	$	411,163	$	398,540	$	387,238
Reverse repurchase agreements outstanding, end of period
(000)	$ 6,238	$	86,876	$	102,474	$	91,668	$	165,215
Asset coverage, end of period 6	$ 59,072	$	5,438	$	5,012	$	5,348	$	3,342
Reverse repurchase agreements average daily balance (000)	$ 38,309	$	91,130	$	145,094	$	67,591	$	35,207
Reverse repurchase agreements weighted average interest
rate	4.27	%	2.86	%	1.11	%	1.05	%	1.04	%

| 1 | Commencement of investment
operations. This information includes the initial investment by BlackRock
Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning
of period, reflects a deduction of $0.675 per share sales charge from the
initial offering price of $15.00 per share. |
| 3 | A portion of the dividends
from net investment income for the six months ended April 30, 2006 may be
deemed a tax return of capital or net realized gain at fiscal year end. |
| 4 | Total investment return is
calculated assuming a purchase of a share at the current market price on the
first day and a sale at the current market price on the last day of each year
reported. Dividends and distributions, if any, are assumed for purposes of
this calculation to be reinvested at prices obtained under the Trusts
dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not
annualized. Past performance is not a guarantee of future results. |
| 5 | Annualized. |
| 6 | Per $1,000 of reverse
repurchase agreements outstanding. |

FINANCIAL HIGHLIGHTS

BlackRock High Yield Trust (BHY)


April 30, 2006
(unaudited)		2005		2004		2003		2002		2001
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 7.48	$	7.95	$	6.96	$	6.13	$	7.20	$	10.60
Investment operations:
Net investment income	0.32		0.68		0.92		1.06		1.20		1.32
Net realized and unrealized gain (loss)	0.10		(0.36	)	1.02		0.89		(0.98	)	(3.13	)
Net increase (decrease) from investment operations	0.42		0.32		1.94		1.95		0.22		(1.81	)
Dividends and distributions from:
Net investment income	(0.33	) 1	(0.79	)	(0.92	)	(1.07	)	(1.20	)	(1.48	)
Tax return of capital					(0.03	)	(0.05	)	(0.09	)	(0.11	)
Total dividends and distributions	(0.33	)	(0.79	)	(0.95	)	(1.12	)	(1.29	)	(1.59	)
Net asset value, end of period	$ 7.57	$	7.48	$	7.95	$	6.96	$	6.13	$	7.20
Market price, end of period	$ 8.10	$	7.36	$	9.30	$	10.25	$	8.68	$	9.18
TOTAL INVESTMENT RETURN 2	14.96	%	(13.49	)%	0.28	%	32.87	%	7.97	%	(11.31	)%
RATIOS TO AVERAGE NET ASSETS:
Total expenses	4.34	% 3	3.52	%	2.69	%	3.07	%	3.45	%	4.90	%
Net expenses	4.33	% 3	3.51	%	2.68	%	3.07	%	3.45	%	4.90	%
Net expenses excluding interest expense	2.20	% 3	2.10	%	1.96	%	2.22	%	2.20	%	2.03	%
Net investment income	8.67	% 3	8.71	%	12.16	%	16.37	%	16.29	%	14.23	%
SUPPLEMENTAL DATA:
Average net assets	$ 48,142	$	50,104	$	48,186	$	41,326	$	46,751	$	58,553
Portfolio turnover	44	%	102	%	156	%	30	%	147	%	71	%
Net assets, end of period (000)	$ 48,520	$	47,924	$	50,914	$	44,438	$	38,953	$	45,520
Loan outstanding, end of period (000)	$ 20,250	$	20,750	$	19,250	$	19,250	$	19,250	$	23,000
Asset coverage, end of period 4	$ 3,396	$	3,310	$	3,645	$	3,308	$	3,024	$	2,893
Loan average daily balance (000)	$ 20,999	$	20,425	$	19,250	$	19,250	$	22,664	$	28,449
Loan weighted average interest rate	2.39	%	2.87	%	1.80	%	1.96	%	2.65	%	5.90	%

| 1 | A portion of the dividends
from net investment income for the six months ended April 30, 2006 may be
deemed a tax return of capital or net realized gain at fiscal year end. |
| --- | --- |
| 2 | Total investment return is
calculated assuming a purchase of a share at the current market price on the
first day and a sale at the current market price on the last day of each
period reported. Dividends and distributions, if any, are assumed for
purposes of this calculation to be reinvested at prices obtained under the
Trusts dividend reinvestment plan. Total investment returns do not reflect
brokerage commissions. Past performance is not a guarantee of future results. |
| 3 | Annualized. |
| 4 | Per $1,000 of loan
outstanding. |

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Income Opportunity Trust (BNA)

	Six Months Ended
	April 30, 2006
	(unaudited)	2005		2004		2003		2002		2001
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 11.56	$	12.38	$	11.93	$	11.83	$	11.47	$	11.03
Investment operations:
Net investment income	0.33		0.72		0.76		0.84		1.15		0.87
Net realized and unrealized gain (loss)	(0.44	)	(0.45	)	0.53		0.31		(0.05	)	0.34
Net increase (decrease) from investment operations	(0.11	)	0.27		1.29		1.15		1.10		1.21
Dividends and distributions from:
Net investment income	(0.37	) 1	(0.81	)	(0.84	)	(0.81	)	(0.75	)	(0.23	)
Net realized gains	(0.28	)	(0.28	)			(0.24	)
Tax return of capital											(0.54	)
Total dividends and distributions	(0.65	)	(1.09	)	(0.84	)	(1.05	)	(0.75	)	(0.77	)
Increase resulting from Trust shares repurchased									0.01
Net asset value, end of period	$ 10.80	$	11.56	$	12.38	$	11.93	$	11.83	$	11.47
Market price, end of period	$ 10.34	$	10.90	$	11.38	$	10.95	$	10.50	$	10.41
TOTAL INVESTMENT RETURN 2	0.64	%	5.53	%	12.04	%	14.71	%	8.44	%	15.09	%
RATIOS TO AVERAGE NET ASSETS:
Total expenses	1.70	% 3	1.72	%	1.11	%	1.29	%	1.40	%	3.62	%
Net expenses	1.70	% 3	1.72	%	1.11	%	1.29	%	1.40	%	3.62	%
Net expenses excluding interest expense	0.89	% 3	0.87	%	0.84	%	0.89	%	0.93	%	1.01	%
Net investment income	5.83	% 3	5.97	%	6.29	%	6.99	%	10.04	%	7.76	%
SUPPLEMENTAL DATA:
Average net assets	$ 389,832	$	413,777	$	415,131	$	413,543	$	394,495	$	388,478
Portfolio turnover	23	%	396	%	300	%	46	%	153	%	83	%
Net assets, end of period (000)	$ 372,127	$	398,078	$	426,643	$	410,981	$	407,480	$	397,756
Reverse repurchase agreements outstanding, end of period
(000)	$ 10,074	$	120,179	$	94,644	$	103,378	$	85,704	$	136,385
Asset coverage, end of period 4	$ 37,940	$	4,312	$	5,508	$	4,976	$	5,755	$	3,916
Reverse repurchase agreements average daily balance (000)	$ 75,066	$	122,457	$	97,264	$	136,172	$	36,153	$	151,804
Reverse repurchase agreements weighted average interest
rate	4.19	%	2.87	%	1.14	%	1.22	%	1.93	%	4.92	%

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Income Trust Inc. (BKT)


April 30, 2006
(unaudited)		2005		2004		2003		2002		2001
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$ 6.54	$	6.95	$	7.21	$	8.13	$	8.06	$	7.23
Investment operations:
Net investment income	0.19		0.44		0.51		0.61		0.99		0.56
Net realized and unrealized gain (loss)	(0.06	)	(0.30	)	(0.16	)	(0.52	)	(0.35	)	0.83
Net increase from investment operations	0.13		0.14		0.35		0.09		0.64		1.39
Dividends and distributions from:
Net investment income	(0.22	) 1	(0.48	)	(0.61	)	(1.01	)	(0.57	)	(0.56	)
Tax return of capital			(0.07	)
Total dividends and distributions	(0.22	)	(0.55	)	(0.61	)	(1.01	)	(0.57	)	(0.56	)
Net asset value, end of period	$ 6.45	$	6.54	$	6.95	$	7.21	$	8.13	$	8.06
Market price, end of period	$ 6.19	$	5.90	$	7.50	$	7.71	$	8.07	$	7.26
TOTAL INVESTMENT RETURN 2	8.61	%	(14.63	)%	5.97	%	15.41	%	15.35	%	23.23	%
RATIOS TO AVERAGE NET ASSETS:
Total expenses	3.42	% 3	2.80	%	1.37	%	1.36	%	2.05	%	2.54	%
Net expenses	3.41	% 3	2.79	%	1.37	%	1.36	%	2.05	%	2.54	%
Net expenses excluding interest expense	1.00	% 3	0.99	%	0.97	%	1.02	%	1.03	%	1.03	%
Net investment income	5.97	% 3	6.54	%	7.13	%	8.18	%	12.28	%	7.43	%
SUPPLEMENTAL DATA:
Average net assets	$ 417,050	$	430,035	$	447,984	$	472,676	$	506,533	$	470,185
Portfolio turnover	40	%	60	%	120	%	64	%	125	%	32	%
Net assets, end of period (000)	$ 412,695	$	418,390	$	442,635	$	457,301	$	511,385	$	506,764
Reverse repurchase agreements outstanding, end of period
(000)	$ 74,730	$	149,558	$	223,736	$	121,767	$	205,792	$	118,634
Asset coverage, end of period 4	$ 6,523	$	3,798	$	2,978	$	4,756	$	3,485	$	5,272
Reverse repurchase agreements average daily balance (000)	$ 153,871	$	180,553	$	158,278	$	135,804	$	173,501	$	148,204
Reverse repurchase agreements weighted average interest
rate	4.33	%	2.81	%	1.12	%	1.17	%	1.81	%	4.78	%

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Limited Duration Income Trust (BLW)

| | Six
Months Ended April 30, 2006 (unaudited) | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Year
Ended October 31, | | | | | | |
| | | 2005 | | 2004 | | | | |
| PER SHARE OPERATING PERFORMANCE: | | | | | | | | |
| Net asset value, beginning of period | $ 19.17 | $ | 20.13 | $ | 19.74 | $ | 19.10 | 2 |
| Investment operations: | | | | | | | | |
| Net investment income | 0.71 | | 1.46 | | 1.46 | | 0.33 | |
| Net realized and unrealized gain (loss) | (0.01 | ) | (0.94 | ) | 0.43 | | 0.60 | |
| Net increase from investment operations | 0.70 | | 0.52 | | 1.89 | | 0.93 | |
| Dividends and distributions from: | | | | | | | | |
| Net investment income | (0.79 | ) | (1.33 | ) | (1.49 | ) | (0.25 | ) |
| Net realized gains | | | (0.15 | ) | (0.01 | ) | | |
| Total dividends and distributions | (0.79 | ) | (1.48 | ) | (1.50 | ) | (0.25 | ) |
| Capital charges with respect to issuance of shares | | | | | | | (0.04 | ) |
| Net asset value, end of period | $ 19.08 | $ | 19.17 | $ | 20.13 | $ | 19.74 | |
| Market price, end of period | $ 17.89 | $ | 17.48 | $ | 19.95 | $ | 18.80 | |
| TOTAL INVESTMENT RETURN 3 | 6.94 | % | (5.30 | )% | 14.64 | % | (4.77 | )% |
| RATIOS TO AVERAGE NET ASSETS: | | | | | | | | |
| Total expenses | 1.95 | % 4 | 1.71 | % | 1.26 | % | 0.82 | % 4 |
| Net expenses | 1.94 | % 4 | 1.71 | % | 1.25 | % | 0.82 | % 4 |
| Net expenses excluding interest expense | 0.91 | % 4 | 0.92 | % | 0.90 | % | 0.79 | % 4 |
| Net investment income | 7.47 | % 4 | 7.42 | % | 7.34 | % | 6.87 | % 4 |
| SUPPLEMENTAL DATA: | | | | | | | | |
| Average net assets (000) | $ 703,127 | $ | 722,668 | $ | 730,369 | $ | 686,655 | |
| Portfolio turnover | 25 | % | 70 | % | 215 | % | 127 | % |
| Net assets, end of period (000) | $ 701,481 | $ | 704,961 | $ | 739,225 | $ | 724,747 | |
| Reverse repurchase agreements outstanding, end of period
(000) | $ 190,267 | $ | 176,010 | $ | 159,416 | $ | 118,993 | |
| Asset coverage, end of period 5 | $ 4,687 | $ | 5,005 | $ | 5,637 | $ | 7,091 | |
| Reverse repurchase agreements average daily balance (000) | $ 164,219 | $ | 186,660 | $ | 195,845 | $ | 26,591 | |
| Reverse repurchase agreements weighted average interest
rate | 4.48 | % | 3.08 | % | 1.32 | % | 0.76 | % |

| 1 | Commencement of investment
operations. This information includes the initial investment by BlackRock
Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning
of period, reflects a deduction of $0.90 per share sales charge from the
initial offering price of $20.00 per share. |
| 3 | Total investment return is
calculated assuming a purchase of a share at the current market price on the
first day and a sale at the current market price on the last day of each year
reported. Dividends and distributions, if any, are assumed for purposes of
this calculation to be reinvested at prices obtained under the Trusts
dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not
annualized. Past performance is not a guarantee of future results. |
| 4 | Annualized. |
| 5 | Per $1,000 reverse
repurchase agreements outstanding. |

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

BlackRock Strategic Bond Trust (BHD)

| | Six
Months Ended April 30, 2006 (unaudited) | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Year
Ended October 31, | | | | | | | | |
| | | 2005 | | 2004 | | 2003 | | | | |
| PER SHARE OPERATING PERFORMANCE: | | | | | | | | | | |
| Net asset value, beginning of period | $ 13.68 | $ | 15.10 | $ | 15.07 | $ | 12.63 | $ | 14.33 | 2 |
| Investment operations: | | | | | | | | | | |
| Net investment income | 0.51 | | 1.10 | | 1.39 | | 1.59 | | 0.98 | |
| Net realized and unrealized gain (loss) | (0.08 | ) | (1.13 | ) | 0.25 | | 2.34 | | (1.77 | ) |
| Net increase (decrease) from investment operations | 0.43 | | (0.03 | ) | 1.64 | | 3.93 | | (0.79 | ) |
| Dividends and distributions from: | | | | | | | | | | |
| Net investment income | (0.53 | ) 3 | (1.12 | ) | (1.61 | ) | (1.49 | ) | (0.84 | ) |
| Tax return of capital | | | (0.27 | ) | | | | | | |
| Total dividends and distributions | (0.53 | ) | (1.39 | ) | (1.61 | ) | (1.49 | ) | (0.84 | ) |
| Capital charges with respect to issuance of shares | | | | | | | | | (0.07 | ) |
| Net asset value, end of period | $ 13.58 | $ | 13.68 | $ | 15.10 | $ | 15.07 | $ | 12.63 | |
| Market price, end of period | $ 12.30 | $ | 12.45 | $ | 16.70 | $ | 15.27 | $ | 12.35 | |
| TOTAL INVESTMENT RETURN 4 | 3.04 | % | (18.11 | )% | 21.54 | % | 37.36 | % | (12.34 | )% |
| RATIOS TO AVERAGE NET ASSETS: | | | | | | | | | | |
| Total expenses | 2.49 | % 5 | 2.14 | % | 1.49 | % | 2.01 | % | 2.57 | % 5 |
| Net expenses | 2.23 | % 5 | 1.87 | % | 1.23 | % | 1.71 | % | 2.26 | % 5 |
| Net expenses excluding interest expense and excise tax | 0.98 | % 5 | 0.92 | % | 0.89 | % | 1.01 | % | 1.25 | % 5 |
| Net investment income | 7.44 | % 5 | 7.58 | % | 9.23 | % | 11.32 | % | 10.68 | % 5 |
| SUPPLEMENTAL DATA: | | | | | | | | | | |
| Average net assets | $ 96,683 | $ | 101,990 | $ | 106,330 | $ | 98,498 | $ | 95,675 | |
| Portfolio turnover | 26 | % | 51 | % | 31 | % | 32 | % | 22 | % |
| Net assets, end of period (000) | $ 95,875 | $ | 96,546 | $ | 106,433 | $ | 106,045 | $ | 88,594 | |
| Reverse repurchase agreements outstanding, end of period
(000) | $ 21,710 | $ | 31,883 | $ | 13,188 | $ | 45,872 | $ | 44,223 | |
| Asset coverage, end of period 6 | $ 5,416 | $ | 4,028 | $ | 9,071 | $ | 3,312 | $ | 3,003 | |
| Reverse repurchase agreements average daily balance (000) | $ 26,863 | $ | 30,406 | $ | 27,652 | $ | 46,036 | $ | 44,889 | |
| Reverse repurchase agreements weighted average interest
rate | 4.50 | % | 3.20 | % | 1.33 | % | 1.51 | % | 1.45 | % |

See Notes to Financial Statements.

NOTES TO FINANCIAL STATEMENTS (unaudited)

Note 1. Organization & Accounting Policies

BlackRock Broad Investment Grade 2009 Term Trust Inc. (Broad Investment Grade), BlackRock Core Bond Trust (Core Bond), BlackRock High Yield Trust (High Yield), BlackRock Income Opportunity Trust (Income Opportunity), BlackRock Income Trust Inc. (Income Trust), BlackRock Limited Duration Income Trust (Limited Duration) and BlackRock Strategic Bond Trust (Strategic Bond) (collectively, the Trusts) are registered as diversified, closed-end management investment companies under the Investment Company Act of 1940, as amended. Broad Investment Grade, Income Opportunity and Income Trust are organized as Maryland corporations. Core Bond, High Yield, Limited Duration and Strategic Bond are organized as Delaware statutory trusts.

On December 3, 1999, Broad Investment Grade transferred a substantial portion of its total assets to a 100% owned regulated investment company subsidiary called BCT Subsidiary, Inc. The financial statements and these notes to the financial statements for Broad Investment Grade are consolidated and include the operations of both Broad Investment Grade and its wholly owned subsidiary after elimination of all intercompany transactions and balances.

Under the Trusts organizational documents, their officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trusts. In addition, in the normal course of business, the Trusts enter into contracts with their vendors and others that provide for general indemnifications. The Trusts maximum exposure under these arrangements are unknown as this would involve future claims that may be made against the Trusts. However, based on experience, the Trusts consider the risk of loss from such claims to be remote.

The following is a summary of significant accounting policies followed by the Trusts.

Investment Valuation: The Trusts value most of their investments on the basis of current market quotations provided by dealers or pricing services selected under the supervision of each Trusts Board (the Board) of Directors/Trustees (the Trustees). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, market transactions in comparable investments, various relationships observed in the market between investments, and calculated yield measures based on valuation technology commonly employed in the market for such investments. Exchange-traded options are valued at their last sales price as of the close of options trading on applicable exchanges. In the absence of a last sale, options are valued at the average of the quoted bid and asked prices as of the close of business. A futures contract is valued at the last sale price as of the close of the commodities exchange on which it trades. Swap quotations are provided by dealers selected under the supervision of the Board. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value per share. Investments or assets for which such current market quotations are not readily available are valued at fair value (Fair Value Assets) as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trusts Board. The investment advisor and/or sub-advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The valuation committee may accept, modify or reject any recommendations. The pricing of all Fair Value Assets shall be subsequently reported to the Board.

When determining the price for a Fair Value Asset, the investment advisor and/or sub-advisor shall seek to determine the price that the Trust might reasonably expect to receive from the current sale of that asset in an arms-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant.

Investment Transactions and Investment Income: Investment transactions are recorded on the trade date. The cost of investments sold and the related gain or loss is determined by use of the specific identification method, generally first-in, first out, for both financial reporting and federal income tax purposes. Each Trust records interest income on an accrual basis and amortizes premium and/or accretes discount on securities purchased using the interest method.

Each Trust may from time to time purchase in the secondary market certain mortgage pass-through securities packaged or master serviced by affiliates or mortgage-related securities containing loans or mortgages originated by PNC Bank or its affiliates, including Midland Loan Services, Inc., each of which is an affiliate of BlackRock Advisors, Inc. It is possible under certain circumstances, that PNC Mortgage Securities Corp. or its affiliates, including Midland Loan Services, Inc., could have interests that are in conflict with the holders of these mortgage-backed securities, and such holders could have rights against PNC Mortgage Securities Corp. or its affiliates, including Midland Loan Services, Inc.

Repurchase Agreements: In connection with transactions in repurchase agreements, a Trusts custodian takes possession of the underlying collateral securities, the value of which at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to ensure the adequacy of the collateral. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by a Trust may be delayed or limited.

Reverse Repurchase Agreements: The Trusts may enter into reverse repurchase agreements with qualified third-party broker-dealers as determined by and under the direction of the Trusts Board. Interest on the value of reverse repurchase agreements issued and outstanding is based upon competitive market rates at the time of issuance. At the time a Trust enters into a reverse repurchase agreement, it will establish and maintain a segregated account with the lender, containing liquid investment grade securities having a value not less than the repurchase price, including accrued interest of the reverse repurchase agreement.

Dollar Rolls: The Trusts may enter into dollar rolls in which a Trust sells securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon and maturity) securities on a specified future date. During the roll period the Trusts forgo principal and interest paid on the securities. The Trusts will be compensated by the interest earned on the cash proceeds of the initial sale and/or by the lower repurchase price at the future date.

Loan Payable: High Yield has a $32 million committed credit facility (the facility). Under the terms of the facility, the Trust borrows at the London Interbank Offered Rate (LIBOR) plus facility and administrative fees. In addition, the Trust pays a liquidity fee on the unused

portion of the facility. The Trust may borrow up to 33 1/3% of its total assets up to the committed amount. In accordance with the terms of the facility, the Trust has pledged its portfolio assets as collateral for the borrowing.

Bank Loans: In the process of buying, selling and holding bank loans, a Trust may receive and/or pay certain fees. These fees are in addition to interest payments received and may include facility fees, commitment fees, amendment fees, commissions and prepayment penalty fees. When a Trust buys a bank loan it may receive a facility fee and when it sells a bank loan it may pay a facility fee. On an ongoing basis, a Trust may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a bank loan. In certain circumstances, a Trust may receive a prepayment penalty fee upon the prepayment of a bank loan by a borrower. Other fees received by a Trust may include covenant waiver fees and covenant modification fees.

Option Writing/Purchasing: When a Trust writes or purchases an option, an amount equal to the premium received or paid by the Trust is recorded as an asset or a liability and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by the Trust on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or the proceeds from the sale in determining whether a Trust has realized a gain or a loss on investment transactions. A Trust, as writer of an option, may have no control over whether the underlying securities may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option.

Options, when used by the Trusts, help in maintaining a targeted duration. Duration is a measure of the price sensitivity of a security or a portfolio to relative changes in interest rates. For instance, a duration of one means that a portfolios or a securitys price would be expected to change by approximately one percent with a one percent change in interest rates, while a duration of five would imply that the price would move approximately five percent in relation to a one percent change in interest rates.

Option writing and purchasing may be used by the Trusts as an attempt to manage the duration of positions, or collections of positions, so that changes in interest rates do not adversely affect the targeted duration of the portfolio unexpectedly. A call option gives the purchaser of the option the right (but not obligation) to buy, and obligates the seller to sell (when the option is exercised), the underlying position at the exercise price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying position at the exercise price at any time or at a specified time during the option period. Put or call options can be purchased or sold to help manage the targeted duration of the portfolio.

The main risk that is associated with purchasing options is that the option expires without being exercised. In this case, the option expires worthless and the premium paid for the option is considered the loss. The risk associated with writing call options is that a Trust may forgo the opportunity for a profit if the market value of the underlying position increases and the option is exercised. The risk in writing put options is that a Trust may incur a loss if the market value of the underlying position decreases and the option is exercised. In addition, the Trust risks not being able to enter into a closing transaction for the written option as the result of an illiquid market.

Stripped Mortgage-Backed Securities: Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. In certain cases, one class will receive all of the interest (the interest-only or IO class), while the other class will receive all of the principal (the principal-only or PO class). The yield to maturity on IOs is sensitive to the rate of principal repayments (including prepayments) on the related underlying mortgage assets, and principal payments may have a material effect on yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, a Trust may not fully recoup its initial investment in IOs. Such securities will be considered liquid only if so determined in accordance with guidelines established by the Trustees.

Credit Default Swaps: Credit default swaps are agreements in which one party pays fixed periodic payments to a counterparty in consideration for a guarantee from the counterparty to make a specific payment should a negative credit event take place. Risks arise from the possible inability of the counterparties to meet the terms of their contracts.

During the term of the swap, changes in the value of the swap are recognized as unrealized gains or losses by marking-to-market to reflect the market value of the swap. When the swap is terminated, a Trust will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts basis in the contract, if any.

The Trusts are exposed to credit loss in the event of non-performance by the other party to the swap. However, the Trusts closely monitor swaps and do not anticipate non-performance by any counterparty.

Total Return Swaps: Total return swaps are agreements in which one party commits to pay interest in exchange for a market-linked return. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Trust will receive a payment from or make a payment to the counterparty.

Interest Rate Swaps: Interest rate swaps are agreements in which one party pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, a party may pay a fixed rate and receive a floating rate. Interest rate swaps are efficient as asset/liability management tools. In more complex swaps, the notional principal amount may decline (or amortize) over time.

Swap Options: Swap options are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swap option is granting or buying the right to enter into a previously agreed upon interest rate swap agreement at any time before the expiration of the option. Premiums received or paid from writing or purchasing options are recorded as liabilities or assets and are subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by a Trust on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commission, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or the proceeds from the sale in determining whether a Trust has realized a gain or loss on investment transactions.

The main risk that is associated with purchasing swap options is that the swap option expires without being exercised. In this case, the option expires worthless and the premium paid for the swap option is considered the loss. The main risk that is associated with the writing of a swap option is the market risk of an unfavorable change in the value of the interest rate swap underlying the written swap option.

Swap options may be used by the Trusts to manage the duration of the Trusts portfolios in a manner similar to more generic options described above.

Interest Rate Caps: Interest rate caps are similar to interest rate swaps, except that one party agrees to pay a fee, while the other party pays the excess, if any, of a floating rate over a specified fixed or floating rate.

Interest rate caps are intended to both manage the duration of the Trusts portfolios and their exposure to changes in short-term interest rates. Owning interest rate caps reduces a portfolios duration, making it less sensitive to changes in interest rates from a market value perspective. The effect on income involves protection from rising short-term interest rates, which the Trusts experience primarily in the form of leverage.

The Trusts are exposed to credit loss in the event of non-performance by the other party to the interest rate cap. However, the Trusts do not anticipate non-performance by any counterparty.

Transaction fees paid or received by the Trusts are recognized as assets or liabilities and amortized or accreted into interest expense or income over the life of the interest rate cap. The asset or liability is subsequently adjusted to the current market value of the interest rate cap purchased or sold. Changes in the value of the interest rate cap are recognized as unrealized gains and losses.

Interest Rate Floors: Interest rate floors are similar to interest rate swaps, except that one party agrees to pay a fee, while the other party pays the deficiency, if any, of a floating rate under a specified fixed or floating rate.

Interest rate floors are used by the Trusts to both manage the duration of the portfolios and their exposure to changes in short-term interest rates. Selling interest rate floors reduces a portfolios duration, making it less sensitive to changes in interest rates from a market value perspective. The Trusts leverage provides extra income in a period of falling rates. Selling floors reduces some of that extra income by partially monetizing it as an up-front payment which the Trusts receive.

The Trusts are exposed to credit loss in the event of non-performance by the other party to the interest rate floor. However, the Trusts do not anticipate non-performance by any counterparty.

Transaction fees paid or received by the Trusts are recognized as assets or liabilities and amortized or accreted into interest expense or income over the life of the interest rate floor. The asset or liability is subsequently adjusted to the current market value of the interest rate floor purchased or sold. Changes in the value of the interest rate floor are recognized as unrealized gains and losses.

Financial Futures Contracts: A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by marking-to-market on a daily basis to reflect the market value of the contract at the end of each days trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, a Trust records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts basis in the contract.

Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts may attempt to manage the duration of positions so that changes in interest rates do not change the duration of the portfolio unexpectedly.

Forward Currency Contracts: The Trusts enter into forward currency contracts primarily to facilitate settlement of purchases and sales of foreign securities and to help manage the overall exposure to foreign currency. A forward contract is a commitment to purchase or sell a foreign currency at a future date (usually the security transaction settlement date) at a negotiated forward rate. In the event that a security fails to settle within the normal settlement period, the forward currency contract is renegotiated at a new rate. The gain or loss arising from the difference between the settlement value of the original and renegotiated forward contracts is isolated and is included in net realized gains (losses) from foreign currency transactions. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contract.

Forward currency contracts, when used by the Trusts, help to manage the overall exposure to the foreign currency backing some of the investments held by the Trusts. Forward currency contracts are not meant to be used to eliminate all of the exposure to the foreign currency, rather they allow the Trusts to limit their exposure to foreign currency within a narrow band consistent with the objectives of the Trusts.

Foreign Currency Translation: Foreign currency amounts are translated into United States dollars on the following basis:

| (i) | market value of investment
securities, assets and liabilities at the current rate of exchange. |
| --- | --- |
| (ii) | purchases and sales of
investment securities, income and expensesat the rates of exchange
prevailing on the respective dates of such transactions. |

The Trusts isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Trusts isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of portfolio securities sold during the period.

Net realized and unrealized foreign exchange gains and losses includes realized foreign exchange gains and losses from sales and maturities of foreign portfolio securities, maturities of foreign reverse repurchase agreements, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of interest and discount recorded on the Trusts books and the U.S. dollar equivalent amounts actually received or paid and changes in unrealized foreign exchange gains and losses in the value of portfolio securities and other assets and liabilities arising as a result of changes in the exchange rate.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.

Short Sales: The Trusts may make short sales of securities as a method of managing potential price declines in similar securities owned. When a Trust makes a short sale, it may borrow the security sold short and deliver it to the broker-dealer through which it made the short sale as collateral for its obligation to deliver the security upon conclusion of the sale. The Trusts may have to pay a fee to borrow the particular securities and may be obligated to pay over any payments received on such borrowed securities. A gain, limited to the price at which a Trust sold the security short, or a loss, unlimited as to dollar amount, will be recognized upon the termination of a short sale if the market price is greater or less than the proceeds originally received.

Bonds Borrowed Agreements: In a bonds borrowed agreement, the Trust borrows securities from a third party, with the commitment that they will be returned to the lender on an agreed-upon date. Bonds borrowed agreements are primarily entered into to settle short positions. In a bonds borrowed agreement, the Trusts prime broker or third party broker takes possession of the underlying collateral securities or cash to settle such short positions. The value of the underlying collateral securities or cash approximates the principal amount of the bonds borrowed transaction, including accrued interest. To the extent that bonds borrowed transactions exceed one business day, the value of the collateral with any counterparty is marked-to-market on a daily basis to ensure the adequacy of the collateral. If the lender defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the lender of the security, realization of the collateral by the Trust may be delayed or limited.

Segregation: In cases in which the Investment Company Act of 1940, as amended (the 1940 Act), and the interpretive positions of the Securities and Exchange Commission (the Commission) require a Trust to segregate assets in connection with certain investments (e.g., when-issued securities, reverse repurchase agreements or futures contracts), each Trust will, consistent with certain interpretive letters issued by the Commission, designate on its books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.

Federal Income Taxes: It is each Trusts intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient amounts of their taxable income to shareholders. Therefore, no federal income tax provisions have been recorded. As part of a tax planning strategy, Broad Investment Grade has retained a portion of its taxable income and will pay excise tax on the undistributed amounts.

Dividends and Distributions: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and if necessary other sources. Net long-term capital gains, if any, in excess of loss carry-forwards may be distributed in accordance with the 1940 Act. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America.

Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and such differences may be material.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trusts Board, non-interested Trustees are required to defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end funds selected by the Trustees. These amounts are shown on the Statements of Assets and Liabilities as Investments in affiliates. This has the same economic effect for the Trustees as if the Trustees had invested the deferred amounts in such Trusts.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in common shares of those Trusts selected by the Trustees in order to match its deferred compensation obligations.

Other: Expenses that are directly related to one of the Trusts are charged directly to that Trust. Other operating expenses are generally prorated to the Trusts on the basis of relative net assets of all of the BlackRock Closed-End Trusts.

Note 2. Agreements

Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the Advisor), which is a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc. (BFM), a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to the Trusts. BlackRock, Inc. is an indirect, majority owned subsidiary of The PNC Financial Services Group, Inc.

Broad Investment Grade, High Yield, Income Opportunity and Income Trust each have an Administration Agreement with the Advisor. The Investment Management Agreement for Core Bond, Limited Duration and Strategic Bond covers both investment advisory and administration services.

Each Trusts investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.55% for Broad Investment Grade, 0.60% for Income Opportunity and 0.65% for Income Trust, of each Trusts average net assets and 0.55% for Core Bond and Limited Duration, 1.05% for High Yield and 0.75% for Strategic Bond, of each Trusts average weekly managed assets. Managed assets means the total assets of a Trust (including any assets attributable to any borrowing that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fees or other expenses on Strategic Bond as a percentage of its average weekly managed assets as follows: 0.20% for the first five years of the Trusts operations, 0.15% in year six, 0.10% in year seven and 0.05% in year eight.

The Advisor pays BFM fees for its sub-advisory services.

The administration fee paid to the Advisor by Broad Investment Grade, High Yield, Income Opportunity and Income Trust is computed weekly and payable monthly based on an annual rate of 0.15%, 0.10%, 0.10%, and 0.15%, respectively of the Trusts average weekly managed assets.

Pursuant to the Investment Management and Administration agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor, as well as occupancy and certain clerical and accounting costs of each Trust. Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for cost of employees that provide pricing, secondary market support, and compliance services to each Trust. For the six months ended April 30, 2006, the Trusts reimbursed the Advisor the following amounts:

Trust	Amount	Trust	Amount
Broad Investment Grade	$ 1,810	Income Trust	$ 15,416
Core Bond	12,308	Limited Duration	12,308
High Yield	1,240	Strategic Bond	3,074
Income Opportunity	12,721

Pursuant to the terms of each Trusts custody agreement, each Trust may receive earnings credits from its custodian for positive cash balances maintained, which are used to offset custody fees. These credits are shown on the Statements of Operations as fees paid indirectly.

Note 3. Portfolio Investments

Purchases and sales of investment securities, other than short-term investments, dollar rolls and U.S. government securities, for the six months ended April 30, 2006 aggregated as follows:

Trust	Purchases	Sales	Trust	Purchases	Sales
Broad Investment Grade	$ 745,043	$ 1,532,147	Income Trust	$ 219,612,080	$ 257,643,221
Core Bond	144,923,988	126,123,948	Limited Duration	284,728,115	245,433,084
High Yield	29,831,578	29,115,588	Strategic Bond	29,976,664	37,961,637
Income Opportunity	54,557,912	261,304,878

Purchases and sales of U.S. government securities for the six months ended April 30, 2006 aggregated as follows:

Trust	Purchases	Sales	Trust	Purchases	Sales
Broad Investment Grade	$	$ 1,700,000	Income Trust	$ 13,270,156	$ 54,405,378
Core Bond	73,314,807	215,852,225	Strategic Bond	1,788,888	1,790,622
Income Opportunity	66,680,965	190,368,090

Details of open forward currency contracts at April 30, 2006 were as follows:

Trust	Foreign Currency	Settlement Date	Contract to Purchase / Receive		Value at Settlement Date	Value at April 30, 2006	Unrealized Depreciation
Core Bond	Sold:
	Euro	6/13/06	1,903,360		$ 2,321,467	$ 2,408,586	$ 87,119
Limited Duration	Sold:
	Euro	6/13/06	6,586,400		8,033,221	8,334,689	301,467
	British
Pounds	6/15/06	2,000,500	£	3,571,157	3,650,408	79,251
							$ 380,718

Income Trust held interest rate floors at April 30, 2006. Under the agreement, Income Trust pays the excess, if any, of a fixed rate over a floating rate. Income Trust received a transaction fee for the floor. Transaction fees are amortized through the termination of the agreement. Details of open interest rate floors held at April 30, 2006 were as follows:

Notional Amount (000) — $225,000	4.80 %	3-month LIBOR	03/25/11	Amortized Cost — $ (2,490,000	)	Value at April 30, 2006 — $ (1,107,787	)	Unrealized Appreciation — $ 1,382,213
177,000	4.95	3-month LIBOR	03/25/11	(1,893,900	)	(667,290	)	1,226,610
				(4,383,900	)	(1,775,077	)	2,608,823

Details of open interest rate swaps at April 30, 2006 were as follows:

Trust — Core Bond	Notional Amount (000) — $ 5,600	Fixed Rate — 4.415	% (b)	3-month LIBOR	09/27/08	Unrealized Appreciation (Depreciation) — $ (114,646	)
	19,435	3.215	(b)	3-month LIBOR	06/14/06	(41,777	)
	14,300	3.210	(b)	3-month LIBOR	06/17/06	(37,263	)
	800	4.780	(b)	3-month LIBOR	10/27/19	(66,390	)
	41,200	4.510	(a)	3-month LIBOR	10/29/14	2,812,079
	50,000	3.000	(a)	3-month LIBOR	04/16/07	1,056,232
	14,100	4.305	(b)	3-month LIBOR	06/17/10	(548,834	)
	20,000	4.458	(b)	3-month LIBOR	04/18/10	(636,029	)
	2,800	4.500	(a)	3-month LIBOR	05/26/15	210,168
	4,800	4.372	(b)	3-month LIBOR	06/30/15	(409,716	)
	17,500	4.385	(b)	3-month LIBOR	08/02/07	6,871
	6,200	4.725	(b)	3-month LIBOR	08/02/15	(369,664	)
	24,400	4.444	(b)	3-month LIBOR	08/17/07	(259,172	)
	4,600	5.000	(b)	3-month LIBOR	11/07/10	(69,618	)
	5,000	4.870	(b)	3-month LIBOR	01/25/16	(260,596	)
						1,271,645
Income
Opportunity Trust	$ 7,800	4.415	% (b)	3-month LIBOR	09/27/08	(159,686	)
	50,000	3.000	(a)	3-month LIBOR	04/16/07	1,056,232
	20,735	3.215	(b)	3-month LIBOR	06/14/06	(44,571	)
	15,300	3.210	(b)	3-month LIBOR	06/17/06	(39,869	)
	27,500	4.399	(a)	3-month LIBOR	10/25/14	2,086,467
	900	4.780	(b)	3-month LIBOR	10/27/19	(74,689	)
	13,800	4.510	(a)	3-month LIBOR	10/29/14	941,910
	13,300	4.305	(b)	3-month LIBOR	06/17/10	(517,695	)
	10,000	4.458	(b)	3-month LIBOR	04/18/10	(318,014	)
	3,000	4.500	(a)	3-month LIBOR	05/26/15	225,180
	5,200	4.372	(b)	3-month LIBOR	06/30/15	(443,859	)
	10,375	4.368	(b)	3-month LIBOR	07/15/10	(397,578	)
	18,800	4.385	(b)	3-month LIBOR	08/02/07	7,382
	22,200	4.444	(b)	3-month LIBOR	08/17/07	(235,804	)
	8,000	4.670	(b)	3-month LIBOR	09/20/15	(514,503	)
	5,000	5.000	(b)	3-month LIBOR	11/07/10	(75,671	)
						1,495,232
Income Trust	24,000	3.55	% (b)	3-month LIBOR	10/24/06	(194,092	)
	11,000	4.415	(b)	3-month LIBOR	09/27/08	(225,198	)
	2,800	5.940	(b)	3-month LIBOR	12/07/15	73,809
	50,000	3.000	(a)	3-month LIBOR	04/16/07	1,056,232
	19,000	4.889	(a)	3-month LIBOR	04/22/14	756,828
	22,295	3.215	(b)	3-month LIBOR	06/14/06	(47,924	)
	16,400	3.210	(b)	3-month LIBOR	06/17/06	(42,735	)
	12,500	4.399	(a)	3-month LIBOR	10/25/14	948,394
	900	4.780	(b)	3-month LIBOR	10/27/19	(74,689	)
	9,400	4.902	(a)	3-month LIBOR	03/17/15	427,327
	25,000	4.883	(b)	3-month LIBOR	03/21/15	(1,180,497	)
	16,000	4.925	(a)	3-month LIBOR	03/22/15	680,561
	3,000	4.500	(a)	3-month LIBOR	05/26/15	225,180
	4,500	4.442	(a)	3-month LIBOR	07/11/15	(356,337	)
	10,210	4.368	(b)	3-month LIBOR	07/15/10	(391,255	)
	18,300	4.385	(b)	3-month LIBOR	08/02/07	7,185
	12,000	4.320	(b)	3-month LIBOR	09/08/10	(493,479	)
	5,500	4.870	(b)	3-month LIBOR	01/25/16	(286,655	)
						882,655

| (a) | Trust pays floating
interest rate and receives fixed rate. |
| --- | --- |
| (b) | Trust pays fixed interest
rate and receives floating rate. |

The terms of the open credit default swap agreements at April 30, 2006 were to receive the quarterly notional amount multiplied by 0.40% and pay Barclays Bank, upon default event of Dow Jones CDX, the par value of the notional amount of Dow Jones CDX. Details of open credit default swaps at April 30, 2006 were as follows:

Trust	Notional Amount (000)		Termination Date	Unrealized Depreciation
Core Bond	$ (10,750	)	06/20/11	$ (15,835	)
	(10,750	)	06/20/11	(9,894	)
				(25,729	)
Income
Opportunity Trust	(12,000	)	06/20/11	$ (17,680	)
	(12,000	)	06/20/11	(11,045	)
				(28,725	)

Transactions in options written during the six months ended April 30, 2006 were as follows:

| Trust — Core Bond | Options outstanding at October 31,
2005 | Contracts/ Notional Amount — $ 60,200,070 | $ | 2,716,753 | |
| --- | --- | --- | --- | --- | --- |
| | Options written | 138 | | 69,239 | |
| | Options expired | | | | |
| | Options terminated in closing purchase
transactions | (70 | ) | (37,923 | ) |
| | Options outstanding at April 30, 2006 | $ 60,200,138 | $ | 2,748,069 | |
| Income
Opportunity Trust | Options outstanding at October 31,
2005 | $ 64,600,076 | $ | 2,917,398 | |
| | Options written | 148 | | 74,492 | |
| | Options expired | | | | |
| | Options terminated in closing purchase
transactions | (76 | ) | (41,158 | ) |
| | Options outstanding at April 30, 2006 | $ 64,600,148 | $ | 2,950,732 | |
| Income Trust | Options outstanding at October 31,
2005 | $ 64,400,000 | $ | 2,868,468 | |
| | Options written | 148 | | 74,494 | |
| | Options expired | | | | |
| | Options terminated in closing purchase
transactions | | | | |
| | Options outstanding at April 30, 2006 | $ 64,400,148 | $ | 2,942,962 | |

Note 4. Borrowings Details of open reverse repurchase agreements at April 30, 2006 were as follows (please see Corresponding Underlying Collateral Chart on pages 88-90):

Trust/Counter Party	Rate	Trade Date	Maturity Date	Net Closing Amount	Par
Core Bond
Lehman Brothers	4.800%	04/10/06	05/05/06	$ 3,589,983	$ 3,578,531
	4.950	04/28/06	05/16/06	2,666,521	2,659,938
					6,238,469
Income Opportunity
Lehman Brothers	4.760	04/10/06	05/05/06	892,824	890,000
	4.730	04/24/06	05/05/06	4,435,238	4,430,000
	4.750	04/10/06	05/04/06	3,007,035	2,997,938
	4.820	04/10/06	05/04/06	1,761,357	1,755,950
					10,073,888
Income Trust
Lehman Brothers	4.770	04/26/06	05/12/06	20,857,622	20,816,250
	4.730	04/26/06	05/12/06	19,316,745	19,278,750
	4.840	04/13/06	05/17/06	33,592,609	33,525,000
	4.850	04/28/06	05/16/06	1,179,904	1,109,625
					74,729,625
Limited Duration
Credit Suisse First Boston
LLC	4.940	03/10/06	05/02/06	9,278,997	9,212,000
	4.840	03/10/06	05/02/06	5,346,830	5,309,000
	4.625	04/03/06	05/02/06	16,591,971	16,532,500
	4.670	03/04/06	05/02/06	5,946,521	5,925,000
	4.550	04/03/06	05/02/06	9,897,402	9,862,500
	4.950	04/25/06	05/02/06	2,802,312	2,402,000
					49,243,000

| Trust/Counter
Party | Rate | Trade Date | Maturity Date | Net Closing Amount | Par |
| --- | --- | --- | --- | --- | --- |
| Limited Duration (cont) | | | | | |
| Lehman Brothers | 1.500% | 01/04/06 | TBD | $ 1,557,000 | $ 1,557,000 |
| | 3.250 | 01/09/06 | TBD | 1,384,000 | 1,384,000 |
| | 4.770 | 03/10/06 | 05/15/06 | 9,379,864 | 9,302,214 |
| | 5.000 | 03/22/06 | 05/10/06 | 909,020 | 903,000 |
| | 4.850 | 04/08/06 | 05/15/06 | 364,040 | 361,701 |
| | 2.750 | 03/27/06 | TBD | 737,000 | 737,000 |
| | 4.850 | 03/27/06 | 05/15/06 | 746,070 | 741,376 |
| | 4.730 | 04/03/06 | 05/02/06 | 3,282,908 | 3,270,875 |
| | 4.625 | 04/03/06 | 05/02/06 | 1,741,837 | 1,735,594 |
| | 5.100 | 04/06/06 | 05/02/06 | 1,410,175 | 1,405,000 |
| | 4.920 | 04/10/06 | 05/11/06 | 10,317,128 | 10,275,000 |
| | 5.100 | 04/10/06 | 05/12/06 | 5,782,283 | 5,757,000 |
| | 5.100 | 04/11/06 | 05/10/06 | 3,366,300 | 3,353,000 |
| | 5.100 | 04/11/06 | 05/10/06 | 885,374 | 882,000 |
| | 5.200 | 04/12/06 | 05/19/06 | 4,848,307 | 4,826,000 |
| | 3.400 | 04/25/06 | 05/02/06 | 13,261,413 | 13,223,000 |
| | 5.000 | 04/19/06 | 05/12/06 | 21,551,652 | 21,486,000 |
| | 5.250 | 04/19/06 | 05/04/06 | 5,731,678 | 5,720,000 |
| | 5.050 | 04/19/06 | 05/04/06 | 4,659,132 | 4,650,000 |
| | 4.790 | 04/24/06 | 05/12/06 | 18,510,653 | 18,508,750 |
| | 5.150 | 04/24/06 | 05/16/06 | 21,001,904 | 20,939,000 |
| | 5.050 | 04/26/06 | 05/16/06 | 3,034,065 | 3,026,000 |
| | 5.200 | 04/26/06 | 05/16/06 | 4,680,137 | 4,668,000 |
| | 5.020 | 04/27/06 | 05/12/06 | 2,317,015 | 2,312,500 |
| | | | | | 141,024,010 |
| Strategic Bond | | | | | |
| Credit Suisse First Boston
LLC | 4.980 | 04/20/06 | 05/16/06 | 4,326,912 | 4,312,000 |
| | 4.870 | 04/20/06 | 05/04/06 | 9,646,031 | 9,633,000 |
| | | | | | 13,945,000 |
| Lehman Brothers | 4.920 | 04/10/06 | 05/04/06 | 1,197,916 | 1,194,000 |
| | 4.920 | 04/10/06 | 05/04/06 | 897,813 | 895,000 |
| | 4.920 | 04/11/06 | 05/04/06 | 287,863 | 287,000 |
| | 4.790 | 04/12/06 | 05/19/06 | 3,719,525 | 3,703,755 |
| | 4.800 | 04/20/06 | 05/19/06 | 713,541 | 710,887 |
| | 5.000 | 04/26/06 | 05/01/06 | 287,120 | 287,000 |
| | 5.100 | 04/28/06 | 05/16/06 | 688,752 | 687,000 |
| | | | | | 7,764,642 |

Details of underlying collateral for open reverse repurchase agreements at April 30, 2006 were as follows:

| Trust /
Counter Party | Description | Rate | Maturity Date | | | |
| --- | --- | --- | --- | --- | --- | --- |
| Core Bond | | | | | | |
| Lehman Brothers | Federal National Mortgage Assoc. | 2.350% | 05/05/07 | $ 3,675,000 | $ 3,675,000 | $ 3,582,072 |
| | Tennessee Valley Authority | 4.875 | 12/15/16 | 2,650,000 | 2,650,000 | 2,614,809 |
| | | | | | | 6,196,881 |
| Income Opportunity | | | | | | |
| Lehman Brothers | U.S. Treasury Strip | 0.000 | 11/15/21 | 2,000,000 | 2,000,000 | 876,250 |
| | U.S. Treasury Bond | 6.000 | 02/15/26 | 6,710,000 | 6,710,000 | 7,268,817 |
| | Resolution Funding Corp. | 0.000 | 05/15/30 | 6,055,000 | 6,055,000 | 1,679,507 |
| | | | | | | 9,824,574 |
| Income Trust | | | | | | |
| Lehman Brothers | U.S. Treasury Notes | 3.750 | 03/31/07 | 21,000,000 | 21,000,000 | 20,780,156 |
| | U.S. Treasury Notes | 4.000 | 08/31/07 | 19,400,000 | 19,400,000 | 19,178,719 |
| | U.S. Treasury Strip | 0.000 | 11/15/24 | 90,000,000 | 90,000,000 | 33,514,740 |
| | U.S. Treasury Notes | 2.500 | 05/31/06 | 1,100,000 | 1,100,000 | 438,799 |
| | | | | | | 73,912,414 |

Trust / Counter Party	Description	Rate	Maturity Date
Limited Duration
Credit Suisse First Boston
LLC	General Motors Acceptance Corp.	6.875 %	08/28/12	$ 7,500,000	$ 7,500,000	$ 6,938,257
	Deutsche Telekom Intl. Finance BV	8.000	06/15/10	5,000,000	5,000,000	5,421,422
	U.S. Treasury Notes	3.375	12/15/08	17,000,000	17,000,000	16,378,437
	U.S. Treasury Notes	3.875	05/15/09	6,000,000	6,000,000	5,832,188
	U.S. Treasury Notes	3.750	03/31/07	10,000,000	10,000,000	9,895,313
	Ford Motor Credit Co.	7.375	02/01/11	5,800,000	5,800,000	5,257,456
						49,723,073
Lehman Brothers	Metaldyne Corp.	10.000	11/01/13	1,825,000	1,825,000	1,761,125
	New Page Corp.	11.399	04/01/12	1,500,000	1,500,000	1,635,000
	Federal National Mortgage Assoc.	5.500	09/01/33	6,335,498	3,802,594	3,703,248
	Federal National Mortgage Assoc.	5.000	06/01/20	657,205	614,014	598,702
	Federal National Mortgage Assoc.	5.500	07/01/33	2,207,045	1,286,170	1,252,567
	Federal National Mortgage Assoc.	5.500	06/01/33	800,952	444,464	432,852
	Federal National Mortgage Assoc.	5.500	03/01/32	1,100,000	410,794	400,062
	Federal National Mortgage Assoc.	5.500	03/01/33	1,006,453	336,201	327,418
	Federal National Mortgage Assoc.	5.500	08/01/33	1,212,613	585,905	570,598
	Federal National Mortgage Assoc.	5.500	10/01/33	3,379,155	1,827,099	1,779,699
	Federal National Mortgage Assoc.	5.000	08/01/20	306,253	285,600	278,170
	Echostar DBS Corp.	5.810	10/01/08	1,000,000	1,000,000	1,020,000
	Federal National Mortgage Assoc.	5.500	04/01/29	636,638	130,544	127,372
	Federal National Mortgage Assoc.	5.500	02/01/32	397,360	130,351	126,987
	Federal National Mortgage Assoc.	5.500	04/01/33	248,208	111,657	108,740
	Fairfax Financial Holdings Ltd.	7.750	04/26/12	890,000	890,000	845,500
	Federal National Mortgage Assoc.	5.500	12/01/28	129,812	26,983	26,341
	Federal National Mortgage Assoc.	5.500	01/01/33	263,772	123,072	119,895
	Federal National Mortgage Assoc.	5.500	05/01/33	1,132,320	629,185	612,747
	Federal National Mortgage Assoc.	5.500	11/01/33	188,819	88,816	86,495
	U.S. Treasury Notes	3.375	09/15/09	3,425,000	3,425,000	3,264,988
	U.S. Treasury Notes	4.250	08/15/15	1,815,000	1,815,000	1,707,234
	Cenveo Corp.	9.625	03/15/12	1,500,000	1,500,000	1,605,000
	Honda Auto Receivables	2.300	10/18/07	7,125,000	7,125,000	2,838,156
	MBNA Credit Card Master Note Trust	5.750	10/15/08	7,910,000	7,910,000	7,912,249
	Sequa Corp.	8.875	04/01/08	5,350,000	5,350,000	5,590,750
	Republic of Colombia	9.750	04/23/09	900,000	900,000	990,900
	Group 1 Automotive Inc.	8.250	08/15/13	4,800,000	4,800,000	4,896,000
	Swift Energy Co.	9.375	05/01/12	5,000,000	5,000,000	5,337,500
	GSR Mortgage Loan Trust	4.475	10/25/33	10,000,000	7,211,239	6,864,871
	GSR Mortgage Loan Trust	4.698	10/25/33	10,000,000	7,214,101	6,856,801
	Tyco Intl. Group SA	6.125	11/01/08	7,500,000	7,500,000	7,577,843
	DaimlerChrysler NA Holding Corp.	4.050	06/04/08	7,500,000	7,500,000	7,265,939
	Comcast Cable Communications, Inc.	6.875	06/15/09	6,685,000	6,685,000	6,926,663
	DI Finance	9.500	02/15/13	6,220,000	6,220,000	6,499,900
	American Real Estate Partnership	8.125	06/01/12	5,100,000	5,100,000	5,265,750
	Federal National Mortgage Assoc.	7.250	01/15/10	17,000,000	17,000,000	18,122,928
	CSC Holdings, Inc.	7.875	12/15/07	6,000,000	6,000,000	6,120,000
	Midwest Generation LLC	8.560	01/02/16	6,365,000	5,664,733	6,089,588
	AES Corp.	8.750	05/15/13	5,000,000	5,000,000	5,400,000
	MGM Mirage	9.750	06/01/07	5,425,000	5,425,000	5,628,438
	Western Financial Bank	9.625	05/15/12	3,000,000	3,000,000	3,330,000
	Concentra Operating Corp.	9.500	08/15/10	5,000,000	5,000,000	5,262,500
	DR Horton Inc.	5.875	07/01/13	2,500,000	2,500,000	2,388,767
						149,556,283

Trust / Counter Party	Description	Rate	Maturity Date
Strategic Bond
Credit Suisse First Boston LLC	Wells Fargo & Co.	3.500%	04/04/08	$ 2,000,000	$ 2,000,000	$ 1,937,382
	HSBC Bank USA, Inc.	3.875	09/15/09	1,500,000	1,500,000	1,434,252
	Comcast Cable Communications, Inc.	6.875	06/15/09	1,000,000	1,000,000	1,036,150
	SBC Communications, Inc.	6.450	06/15/34	1,500,000	1,500,000	1,459,898
	Dominion Resources, Inc.	5.700	09/17/12	1,000,000	1,000,000	987,211
	DaimlerChrysler NA Holding Corp.	7.300	01/15/12	1,000,000	1,000,000	1,053,616
	Citigroup, Inc.	5.750	05/10/06	500,000	500,000	500,073
	General Electric Cap. Corp.	3.450	07/16/07	2,000,000	2,000,000	1,958,342
	Verizon New England, Inc.	6.500	09/15/11	2,000,000	2,000,000	2,029,823
	Merck & Co., Inc.	4.375	02/15/13	1,000,000	1,000,000	918,974
	News America, Inc.	6.200	12/15/34	1,000,000	1,000,000	916,395
						14,232,116
Lehman Brothers	Citigroup, Inc.	5.750	05/10/06	2,100,000	2,100,000	2,100,306
	European Investment Bank	4.875	09/06/06	600,000	600,000	599,198
	U.S. Treasury Notes	4.250	08/15/13	1,000,000	1,000,000	954,219
	U.S. Treasury Notes	2.625	11/15/06	933,000	933,000	921,192
	U.S. Treasury Notes	2.500	05/31/06	1,010,000	1,010,000	1,008,106
	U.S. Treasury Notes	4.125	08/15/10	810,000	810,000	785,953
	U.S. Treasury Notes	4.750	05/15/14	710,000	710,000	696,909
	KFW Intl. Finance	5.250	06/28/06	700,000	700,000	699,940
						7,765,823

| Note 5. Commitments Bridge Debt Commitments: At April 30, 2006,
High Yield and Limited Duration had $2,712,188 and $16,690,389, respectively,
in commitments outstanding to fund high yield bridge debt. The Trusts are
entitled to a fee upon the expiration of the commitment period, generally
within six months of the initial commitment date. The bridge debt terms
approximate market rates at the time the commitment is entered into. |
| --- |
| Note 6. Income
Tax Information The tax
character of distributions paid during the year ended October 31, 2005 were
as follows: |

| Distributions
Paid from: | Year ended October 31, 2005 — Ordinary Income | Non-taxable Return of Capital | Long-term Capital Gains | Total Distributions |
| --- | --- | --- | --- | --- |
| Broad Investment Grade | $ 3,271,251 | $ | $ 525,065 | $ 3,796,316 |
| Core Bond | 27,245,722 | | 9,450,907 | 36,696,629 |
| High Yield | 5,087,371 | | | 5,087,371 |
| Income Opportunity | 28,509,597 | | 8,926,885 | 37,436,482 |
| Income Trust | 30,667,298 | 4,798,184 | | 35,465,482 |
| Limited Duration | 52,882,982 | | 1,634,766 | 54,517,748 |
| Strategic Bond | 7,935,935 | 1,898,203 | | 9,834,138 |

For Federal income tax purposes, the following Trusts had capital loss carryforwards as of their last respective tax year end. These amounts may be used to offset future realized capital gains, if any:

Trust	Capital Loss Carryforward Amount	Expires
Broad
Investment Grade	$ 2,518,895	2011
	684,360	2012
	$ 3,203,255
High Yield	$ 2,558,868	2007
	3,270,311	2008
	15,159,280	2009
	8,468,860	2010
	4,771,417	2011
	316,410	2012
	$ 34,545,146

Trust	Capital Loss Carryforward Amount	Expires
Income Trust	$ 33,107,952	2007
	1,352,206	2008
	13,940,898	2009
	21,960,613	2011
	10,100,201	2012
	3,861,222	2013
	$ 84,323,092
Limited
Duration	$ 2,008,113	2013
Strategic
Bond	$ 432,713	2011
	318,492	2013
	$ 751,205

Note 7. Capital There are 200 million of $0.01 par value common shares authorized for each of the Broad Investment Grade, Income Opportunity and Income Trusts. There are an unlimited number of $0.001 par value common shares authorized for Core Bond, High Yield, Limited Duration and Strategic Bond. At April 30, 2006, the shares owned by affiliates of the Advisor of Limited Duration were 6,021.

During the six months ended April 30, 2006, High Yield issued additional shares under its dividend reinvestment plan of 1,921. During the year ended October 31, 2005, High Yield, Income Trust, Limited Duration and Strategic Bond issued additional shares under their dividend reinvestment plans of 7,498, 227,068, 41,211, and 9,684, respectively.

Note 8. Dividends Subsequent to April 30, 2006, the Board of each of the Trusts declared dividends per common share payable May 31, 2006 to shareholders of record on May 15, 2006. The per share common dividends declared were as follows:

Trust	Common Dividend Per Share
Broad
Investment Grade	$ 0.075000
Core Bond	0.077100
High Yield	0.055333
Income
Opportunity	0.061900
Income Trust	0.036787
Limited
Duration	0.121800
Strategic
Bond	0.088000

DIVIDEND REINVESTMENT PLANS

Pursuant to each Trusts respective Dividend Reinvestment Plan (the Plan), shareholders of Broad Investment Grade, Income Opportunity and Income Trust may elect, while shareholders of Core Bond, High Yield, Limited Duration and Strategic Bond are automatically enrolled, to have all distributions of dividends and capital gains reinvested by Computershare Trust Company, N.A. (the Plan Agent) in the respective Trusts shares pursuant to the Plan. Shareholders who do not participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.

After Broad Investment Grade and/or Income Opportunity Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants account, by the purchase of outstanding shares on the open market, on the Trusts primary exchange or elsewhere (open market purchases). The Trust will not issue any new shares under the Plan.

After Core Bond, High Yield, Income Trust, Limited Duration and/or Strategic Bond declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants account, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (newly issued shares) or (ii) by open market purchases. If, on the dividend payment date, the NAV is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as market premium), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participants account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as market discount), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases.

The Plan Agents fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agents open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any Federal income tax that may be payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants who request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commisson. All correspondence concerning the Plan should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021 or (800) 699-1BFM.

ADDITIONAL INFORMATION

On February 15, 2006, BlackRock, Inc. (BlackRock) and Merrill Lynch & Co., Inc. (Merrill Lynch) announced that they had entered into an agreement pursuant to which Merrill Lynch would contribute its investment management business, Merrill Lynch Investment Managers, to BlackRock, one of the largest publicly traded investment management firms in the United States, to form a new asset management company that will be one of the worlds preeminent, diversified global money management organizations with approximately $1 trillion in assets under management. Based in New York, BlackRock currently manages assets for institutional and individual investors worldwide through a variety of equity, fixed income, cash management and alternative investment products. The new company will operate under the BlackRock name and be governed by a board of directors with a majority of independent members. The new company will offer a full range of equity, fixed income, cash management and alternative investment products with strong representation in both retail and institutional channels, in the U.S. and in non-U.S. markets. It will have over 4,500 employees in 18 countries and a major presence in most key markets, including the United States, the United Kingdom, Asia, Australia, the Middle East and Europe. Merrill Lynch will own no more than 49.8% of the total issued and outstanding capital stock of the new company and it will own no more than 45% of the new companys common stock, and The PNC Financial Services Group, Inc. (PNC), which currently holds a majority interest in BlackRock, will retain approximately 34% of the new companys common stock. Each of Merrill Lynch and PNC has agreed that it will vote all of its shares on all matters in accordance with the recommendation of BlackRocks board. Completion of the transaction is subject to various regulatory approvals, client consents, approval by BlackRock shareholders and customary conditions. The transaction has been approved by the boards of directors of Merrill Lynch, BlackRock and PNC and is expected to close at the end of the third quarter of 2006.

The Trusts listed for trading on the New York Stock Exchange (NYSE) has filed with the NYSE its chief executive officer certification regarding compliance with the NYSEs listing standards and each Trust listed for trading on the American Stock Exchange (AMEX) has filed with the AMEX its corporate governance certification regarding compliance with the AMEXs listing standards. All of the Trusts have filed with the Securities and Exchange Commission the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

The Trusts do not make available copies of their respective Statements of Additional Information because the Trustsshare are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of such Trusts offering and the information contained in each Trusts Statement of Additional Information may have become outdated.

During the period, there were no material changes in the Trusts investment objective or policies or to their charters or by-laws that have not been approved by shareholders or in the principal risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts portfolio.

Quarterly performance and other information regarding the Trusts may be found on BlackRocks website, which can be accessed at http://www.blackrock.com/indiv/products/closedendfunds/funds.html. This reference to BlackRocks website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate BlackRocks website into this report.

Certain officers of the Trusts listed on the inside back cover of this Report to Shareholders are also officers of the Advisor or Sub-Advisor. They serve in the following capacities for the Advisor or Sub-Advisor: Robert S. KapitoDirector and Vice Chairman of the Advisor and the Sub-Advisor, Henry Gabbay, Anne Ackerley and Bartholomew BattistaManaging Directors of the Advisor and the Sub-Advisor, James Kong and Vincent TrittoManaging Directors of the Sub-Advisor, and Jeff Gary and Brian P. KindelanManaging Director of the Advisor.

SECTION 19 NOTICES

Set forth below is a summary of notices sent by each Trust, if any, pursuant to Section 19 of the Invesment Company Act of 1940. Section 19 requires each Trust to accompany dividend payments with a notice if any part of that payment is from a source other than accumulated net income, not including profits or losses from the sale of securities or other properties. These notices are not for tax reporting purposes and were provided only for informational purposes in order to comply with the requirements of Section 19 of the Investment Company Act of 1940. In January 2007, after the completion of each Trusts tax year, shareholders will receive a Form 1099-DIV which will reflect the amount of income, capital gain and return of capital paid by the Trust taxable in calendar year 2006 and reportable on your 2006 federal and other income tax returns.

| | | from
proceeds | Distributions | |
| --- | --- | --- | --- | --- |
| Total | Net
Investment | from the
sale | from
return | |
| Distributions | Income | of
securities | of capital | |
| Core Bond | | | | |
| Nov-05 | $ 0.07710 | $ 0.05490 | $ | $ 0.02220 |
| Dec-05 | $ 0.07710 | $ 0.06824 | $ | $ 0.00886 |
| Dec-05 | $ 0.26057 | $ | $ 0.26057 | $ |
| Apr-06 | $ 0.07710 | $ 0.05028 | $ | $ 0.02682 |
| High Yield | | | | |
| Feb-06 | $ 0.05533 | $ 0.05037 | $ | $ 0.00496 |
| Income Opportunity | | | | |
| Dec-05 | $ 0.26057 | $ | $ 0.26057 | $ |
| Income Trust | | | | |
| Mar-06 | $ 0.03679 | $ 0.03469 | $ | $ 0.00210 |
| Apr-06 | $ 0.03679 | $ 0.02674 | $ | $ 0.01005 |
| Strategic Bond | | | | |
| Feb-06 | $ 0.08800 | $ 0.06096 | $ | $ 0.02704 |
| Mar-06 | $ 0.08800 | $ 0.04932 | $ | $ 0.03868 |

[THIS PAGE INTENTIONALLY LEFT BLANK]

BlackRock Closed-End Funds

Directors/Trustees	Transfer Agent
Ralph L. Schlosstein, Chairman	Computershare Trust Company, N.A.
Andrew F. Brimmer, Lead Trustee	250 Royall Street
Richard E. Cavanagh	Canton, MA 02021
Kent Dixon	(800) 699-1BFM
Frank J. Fabozzi	Independent Registered Public Accounting Firm
R. Glenn Hubbard	Deloitte & Touche LLP
Robert S. Kapito	200 Berkeley Street
Officers	Boston, MA 02116
Robert S. Kapito, President	Legal Counsel
Henry Gabbay, Treasurer	Skadden, Arps, Slate, Meagher & Flom
LLP
Bartholomew Battista, Chief
Compliance Officer	4 Times Square
Anne Ackerley, Vice President	New York, NY 10036
Jeff Gary, Vice President	Legal Counsel Independent Directors/Trustees
James Kong, Assistant Treasurer	Debevoise & Plimpton LLP
Vincent B. Tritto, Secretary	919 Third Avenue
Brian P. Kindelan, Assistant
Secretary	New York, NY 10022
Investment Advisor	This
report is for shareholder information. This is not a prospectus intended for
use in the purchase or sale of Trust shares. Statements and other information
contained in this report are as dated and are subject to change.
BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
Sub-Advisor 1	BlackRock Closed-End Funds
BlackRock Financial Management, Inc.	c/o BlackRock Advisors,
Inc.
40 East 52nd Street	100 Bellevue Parkway
New York, NY 10022	Wilmington, DE 19809
Accounting Agent and Custodian	(800) 227-7BFM
State Street Bank and Trust Company
2 Avenue de Lafayette
Boston, MA 02111
1 For Core Bond, Limited Duration and Strategic Bond.

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called householding and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 699-1BFM.

The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisors proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (800) 699-1BFM. These policies and procedures are also available on the website of the Securities and Exchange Commission (the Commission) at http://www.sec.gov.

Information on how proxies relating to the Trusts voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available without charge, upon request, by calling (800) 699-1BFM or on the website of the Commission at http://www.sec.gov.

The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trusts Form N-Q will be available on the Commissions website at http://www.sec.gov. Each Trusts Form N-Q may be reviewed and copied at the Commissions Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Each Trusts Form N-Q may also be obtained, upon request, by calling (800) 699-1BFM.

| This report is for
shareholder information. This is not a prospectus intended for use in the
purchase or sale of Trust shares. Statements and other information contained
in this report are as dated and are subject to change. |
| --- |
| CEF-SEMI-3 |

Item 2. Code of Ethics. Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert. Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services. Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants. Not applicable for semi-annual reports.

Item 6. Schedule of Investments. The Registrants Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable for semi-annual reports.

Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable for semi-annual reports.

Item 9. Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers. No such purchases were made during the period covered by this report.

Item 10. Submission of Matters to a Vote of Security Holders. No matters were voted on by shareholders during the period covered by this report.

Item 11. Controls and Procedures. (a) The Registrant's principal executive officer and principal financial officer have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrants disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported within the required time periods and that information required to be disclosed by the Registrant in this Form N-CSR was accumulated and communicated to the Registrants 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 Investment Company Act of 1940 (17 CFR 270.30a -3(d))) that occurred during the Registrants last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a) (1) Not applicable.

(a) (2) Separate certifications of the Principal Executive and Financial Officers pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.CERT.

(b) Certification of Principal Executive and Financial Officers pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.906 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 Income Trust, Inc. By: /s/ Henry Gabbay Name: Henry Gabbay Title: Treasurer Date: July 6, 2006

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.

By: /s/ Robert S. Kapito Name: Robert S. Kapito Title: Principal Executive Officer Date: July 6, 2006 By: /s/ Henry Gabbay Name: Henry Gabbay Title: Principal Financial Officer Date: July 6, 2006

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