BLACKROCK MUNICIPAL INCOME TRUST

Regulatory Filings • Sep 29, 2006

N-Q 1 c44395_nq.htm

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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-10339

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

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

Robert S. Kapito, President BlackRock Municipal Income Trust

| 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: July 31, 2006

Item 1. Schedule of Investments.

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

PORTFOLIO OF INVESTMENTS (unaudited) JULY 31, 2006

BlackRock Municipal Income Trust (BFK)

	Principal
	Amount			Option Call
Rating 1	(000)		Description	Provisions 2	Value
			LONG-TERM INVESTMENTS—153.8%
			Alabama—2.7%
AAA	$ 1,865		Birmingham Wtr. Wks. & Swr. Brd.
RB, Ser. A, 4.50%, 1/01/35, FSA	01/16 @ 100	$ 1,812,463
A2	15,000		Huntsville Hlth. Care Auth. RB, Ser.
B, 5.75%, 6/01/32	06/12 @ 101	15,947,550
					17,760,013
			Arizona—1.2%
A3	7,000	3	Scottsdale Ind. Dev. Auth. RB, Scottsdale
Hlth. Care Proj., 5.80%, 12/01/11	N/A	7,712,110
			California—16.9%
A+	7,000		California St. GO, 5.00%, 6/01/34	12/14 @ 100	7,142,870
			Cnty. Tobacco Sec. Agcy. RB,
BBB-	3,385		Ser. B, Zero Coupon, 6/01/46	06/16 @ 17.602	290,636
BB	17,855		Ser. C, Zero Coupon, 6/01/55	06/16 @ 8.9	694,917
NR	22,825		Stanislaus Cnty., Ser. D, Zero
Coupon, 6/01/55	06/16 @ 6.219	595,048
			Foothill/Eastn. Transp. Corridor
Agcy. RB,
BBB	54,635		Toll Road, Zero Coupon, 1/15/32	01/10 @ 27.37	12,179,780
BBB	20,535		Toll Road, Zero Coupon, 1/15/34	01/10 @ 24.228	4,048,680
BBB	75,000		Toll Road, Zero Coupon, 1/15/38	01/10 @ 19.014	11,585,250
			Golden St. Tobacco Sec. Corp. RB,
AAA	10,180		5.00%, 6/01/45, AMBAC	06/15 @ 100	10,383,193
A	5,000		Ser. A, 5.00%, 6/01/45	06/15 @ 100	5,023,400
BBB	10,000		Ser. A-1, 6.625%, 6/01/40	06/13 @ 100	11,143,100
NR	3,500		Lincoln ST, Cmnty. Facs. Dist., 6.00%,
9/01/34	09/13 @ 102	3,704,645
AAA	13,320		Los Angeles Regl. Arpt. Impvt. Corp.
Lease RB, Facs. Laxfuel Corp., L.A. Intl., 5.50%,
			1/01/32, AMBAC	01/12 @ 100	13,816,836
NR	5,000		Murrieta Cmnty. Facs. Dist. ST, No.
2, The Oaks Impvt. Area A, 6.00%, 9/01/34	09/14 @ 100	5,191,500
A+	5,000		Statewide Cmnty. Dev. Auth. RB Mem.
Hlth. Svcs. Proj., Ser. A, 5.50%, 10/01/33	04/13 @ 100	5,226,150
			Univ. of California RB,
AA-	10,565		Ltd. Proj., Ser. B, 4.75%,
5/15/38	05/13 @ 101	10,571,128
AAA	5,000		Ser. C, 4.75%, 5/15/37, MBIA	05/13 @ 101	5,022,300
AAA	4,015		West Valley-Mission Cmnty. Coll.
Dist. GO, Election 2004 A, 4.75%, 8/01/30, FSA	08/16 @ 100	4,034,031
					110,653,464
			Colorado—1.3%
AAA	2,545		Colorado Springs Utils. RB Sub.,
Ser. C, 5.00%, 11/15/45, FSA	11/15 @ 100	2,592,134
BBB	3,500		Denver Hlth. & Hosp. Auth., Hlth.
Care RB, Ser. A, 6.00%, 12/01/31	12/11 @ 100	3,636,780
Baa2	2,530		Park Creek Met. Dist. RB, Ppty. Tax,
5.50%, 12/01/37	12/15 @ 101	2,583,484
					8,812,398
			District of Columbia—6.3%
			District of Columbia RB,
A	2,390		Friendship Pub. Charter Sch.
Income Proj., 5.25%, 6/01/33, ACA	06/14 @ 100	2,412,729
AAA	15,600		Georgetown Univ. Proj., Ser.
A, Zero Coupon, 4/01/36, MBIA	04/11 @ 22.875	2,812,992
AAA	51,185		Georgetown Univ. Proj., Ser.
A, Zero Coupon, 4/01/37, MBIA	04/11 @ 21.546	8,689,677
BBB	25,535		Tobacco Settlement Fin. Corp. RB,
6.75%, 5/15/40	05/11 @ 101	27,525,964
					41,441,362
			Florida—13.9%
NR	3,945		Bellalago Edu. Fac. Benefit Dist.
SA, Ser. B, 5.80%, 5/01/34	05/14 @ 100	3,998,652
Baa3	4,600		Escambia Cnty. PCRB, Champion Intl.
Corp. Proj., 6.40%, 9/01/30	09/06 @ 102	4,703,546
NR	1,975		Heritage Isle at Viera Cmnty. Dev.
Dist. SA, Ser. A, 6.00%, 5/01/35	05/12 @ 101	2,015,962
A+	9,670	3	Highlands Cnty. Hlth. Facs. Auth.
RB, Adventist/Sunbelt Hosp. Proj., Ser. A, 6.00%, 11/15/11	N/A	10,738,632
			JEA RB,
AAA	11,035		Elec. Sys., Ser. 3A, 4.75%,
10/01/34, FSA	04/10 @ 100	11,037,979
AAA	3,070		Wtr. & Swr. Sys., Ser.
A, 4.75%, 10/01/36, MBIA	04/11 @ 100	3,060,053
AAA	2,900		Wtr. & Swr. Sys., Ser.
A, 4.75%, 10/01/41, MBIA	04/11 @ 100	2,889,995
BB+	9,000		Martin Cnty. Indl. Dev. Auth. RB,
Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25	08/06 @ 101	9,136,350
BB+	11,685		Miami Beach Hlth. Facs. Auth. RB,
Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21	11/14 @ 100	13,052,846
NR	6,000		New Port Tampa Bay Cmnty. Dev. Dist.
SA, Ser. A, 5.875%, 5/01/38	05/16 @ 100	6,039,720
AAA	10,830		Orange Cnty. Tourist Dev. Tax RB,
4.75%, 10/01/32, XLCA	10/16 @ 100	10,872,670
NR	3,925		Stevens Plantation Cmnty. Dev. Dist.
SA, Ser. A, 7.10%, 5/01/35	05/14 @ 100	4,082,824
NR	9,545		Vlg. Cmnty. Dev. Dist. No. 6 SA,
5.625%, 5/01/22	05/13 @ 100	9,656,486
					91,285,715

1

BlackRock Municipal Income Trust (BFK) (continued)

	Principal
	Amount			Option Call
Rating 1	(000)		Description	Provisions 2	Value
			Georgia—0.6%
BBB	$ 4,000		Richmond Cnty. Dev. Auth. RB, Env.
Impvt., Intl. Paper Co. Proj., Ser. A, 6.00%, 2/01/25	02/12 @ 101	$ 4,194,640
			Idaho—2.7%
AAA	16,970		Univ. of Idaho RB, Student Fee Hsg.
Impvt. Proj., 5.40%, 4/01/41, FGIC	04/11 @ 100	17,626,400
			Illinois—12.9%
NR	4,630	4	Centerpoint Intermodal Ctr. Prog.
Trust TA, Ser. A, 8.00%, 6/15/23	No Opt. Call	4,643,288
			Edl. Facs. Auth. RB,
AA+	760		Bal Union Chicago Proj., Ser.
A, 5.25%, 7/01/41	07/11 @ 101	792,467
BBB	10,000		Student Hsg., Edl. Advancement
Fund Univ. Ctr. Proj., 6.25%, 5/01/30	05/12 @ 101	10,791,600
BBB	7,000		Student Hsg., Edl. Advancement
Fund Univ. Ctr. Proj., 6.25%, 5/01/34	05/07 @ 100	7,110,180
			Fin. Auth. RB,
A+	7,145	3	Adventist Hlth. Sys. Sunbelt
Oblig. Proj., 5.65%, 11/15/09	N/A	7,591,634
BB+	1,685		Evangelical Retirement Homes
Proj., Ser. A, 5.625%, 2/15/37	02/15 @ 100	1,697,570
AA+	3,700		Northwestern Mem. Hosp. Proj.,
Ser. A, 5.50%, 8/15/43	08/14 @ 100	3,906,201
Baa2	2,100		Student Hsg., MJH Ed. Asst.
Living Proj., Ser. A, 5.125%, 6/01/35	06/14 @ 100	2,106,300
Baa3	1,675		Student Hsg., MJH Ed. Asst.
Living Proj., Ser. B, 5.375%, 6/01/35	06/14 @ 100	1,679,707
			Hlth. Facs. Auth. RB, Elmhurst Mem.
Hosp. Proj.,
A	5,000		5.50%, 1/01/22	01/13 @ 100	5,190,950
A	6,000		5.625%, 1/01/28	01/13 @ 100	6,246,600
AAA	40,000		Met. Pier & Exposition Auth.
RB, Dedicated St. Tax, McCormick Place Expansion Proj.,
			Ser. A, Zero Coupon, 12/15/34,
MBIA	No Opt. Call	9,909,600
AAA	10,090		Mun. Elec. Agcy. Pwr. Sply. RB, 4.50%,
2/01/35, FGIC	02/16 @ 100	9,683,070
AAA	7,645		O’Hare Intl. Arpt. RB, Ser.
C-2, 5.25%, 1/01/30, FSA	01/14 @ 100	7,900,420
			Vlg. of Bolingbrook GO,
AAA	7,120		Ser. B, Zero Coupon, 1/01/33,
FGIC	No Opt. Call	1,932,083
AAA	14,085		Ser. B, Zero Coupon, 1/01/34,
FGIC	No Opt. Call	3,637,874
					84,819,544
			Indiana—7.1%
A-	9,000		Hlth. Fac. Fin. Auth. RB, Methodist
Hosp., Inc. Proj., 5.50%, 9/15/31	09/11 @ 100	9,216,720
AAA	7,750		Mun. Pwr. Agcy., Pwr. Sply. Sys.
RB, Ser. A, 4.50%, 1/01/32, AMBAC	01/16 @ 100	7,454,493
			Petersburg PCRB, Indianapolis Pwr.
& Lt. Conv.,
BBB+	10,000		5.90%, 12/01/24	08/11 @ 102	10,584,000
BBB+	16,000		5.95%, 12/01/29	08/11 @ 102	16,932,960
NR	2,470		Vincennes Econ. Dev. RB, Southwest
Indiana Regl. Youth Proj., 6.25%, 1/01/24	01/09 @ 102	2,412,424
					46,600,597
			Kentucky—1.4%
AAA	9,060		Hsg. Corp. RB, Ser. F, 5.45%, 1/01/32	07/11 @ 100	9,275,900
			Louisiana—1.8%
A	10,510		Local Gov’t. Env. Facs. &
Cmnty. Dev. Auth. RB, Cap. Projs. & Equip. Acquisition,
			6.55%, 9/01/25, ACA	No Opt. Call	11,527,263
			Maryland—0.7%
BBB+	4,205		Hlth. & Higher Edl. Facs. Auth.
RB, Medstar Hlth., Inc. Proj., 5.50%, 8/15/33	08/14 @ 100	4,365,168
			Massachusetts—1.1%
AA	6,770		Wtr. Res. Auth. RB, Ser. A, 5.00%,
8/01/41	08/16 @ 100	6,946,765
			Michigan—1.6%
AAA	1,680		Detroit Wtr. Sply. Sys. RB, Ser.
C, 5.00%, 7/01/33, FSA	07/16 @ 100	1,734,281
			St. Hosp. Fin. Auth. RB, Henry Ford
Hlth. Sys. Proj.,
A1	4,230		Ser. A, 5.00%, 11/15/38	11/16 @ 100	4,266,928
A1	4,230		Ser. A, 5.25%, 11/15/46	11/16 @ 100	4,344,717
					10,345,926
			Mississippi—2.9%
A	18,680		Gulfport Hosp. Fac. RB, Mem. Hosp.
at Gulfport Proj., Ser. A, 5.75%, 7/01/31	07/11 @ 100	19,103,102
			Missouri—0.1%
AAA	695		Joint Mun. Elec. Util. Comm. RB,
Plum Point Proj., 4.60%, 1/01/36, MBIA	01/16 @ 100	694,972

2

BlackRock Municipal Income Trust (BFK) (continued)

	Principal
	Amount			Option Call
Rating 1	(000)		Description	Provisions 2	Value
			Multi-State—7.0%
			Charter Mac Equity Issuer Trust,
A3	$ 1,000	4	Ser. A, 6.625%, 6/30/49	No Opt. Call	$ 1,057,830
A3	11,000	4	Ser. A-2, 6.30%, 6/30/49	No Opt. Call	11,539,660
A3	16,000	4	Ser. A-3, 6.80%, 10/01/52	No Opt. Call	17,924,800
Baa1	6,500	4	Ser. B-1, 6.80%, 11/30/50	No Opt. Call	6,910,475
A3	8,000	4	MuniMae TE Bond Subsidiary LLC, Ser.
A, 6.875%, 6/30/49	06/09 @ 100	8,516,640
					45,949,405
			Nebraska—1.1%
AA	6,990		Omaha Pub. Pwr. Dist. RB, Elec. Sys.,
Ser. A, 4.75%, 2/01/44	02/14 @ 100	6,869,772
			Nevada—1.6%
AAA	5,000		Clark Cnty. Arpt. RB, Jet Aviation
Fuel Tax, Ser. C, 5.00%, 7/01/40, AMBAC	07/15 @ 100	5,122,600
A+	5,260		Clark Cnty. Econ. Dev. RB, Alexander
Dawson Sch. Proj., 5.00%, 5/15/29	05/16 @ 100	5,308,234
					10,430,834
			New Hampshire—1.2%
Aaa	4,000		Bus. Fin. Auth. PCRB, Pub. Svc. Co.
Proj., Ser. B, 4.75%, 5/01/21, MBIA	06/13 @ 102	4,019,960
A+	3,500		Hlth. & Edl. Facs. Auth. RB,
Exeter Hosp. Proj., 5.75%, 10/01/31	10/11 @ 101	3,675,910
					7,695,870
			New Jersey—7.4%
			Econ. Dev. Auth. RB,
BBB	18,500		Cigarette Tax, 5.75%, 6/15/29	06/14 @ 100	19,553,760
B	15,410		Continental Airlines, Inc.
Proj., 7.00%, 11/15/30	11/10 @ 101	15,938,717
Baa3	8,000		Econ. Dev. Auth. SA, Kapkowski Rd.
Landfill Proj., 6.50%, 4/01/28	No Opt. Call	9,462,960
NR	3,680		Middlesex Cnty. Impvt. Auth. RB,
Heldrich Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37	01/15 @ 100	3,742,781
					48,698,218
			New York—15.1%
NR	1,820		Albany Indl. Dev. Agcy. RB, New Covenant
Charter Sch. Proj., Ser. A, 7.00%, 5/01/35	05/15 @ 102	1,773,390
AA-	43,015		Liberty Dev. Corp. RB, 5.25%, 10/01/35	No Opt. Call	47,110,028
AAA	7,115		Met. Transp. Auth. RB Svc. Contract,
Ser. A, 5.00%, 7/01/30, AMBAC	07/12 @ 100	7,312,441
			New York City Indl. Dev. Agcy. RB,
B	27,400		American Airlines, JFK Intl.
Arpt. Proj., 7.75%, 8/01/31	08/16 @ 101	31,518,494
B	5,000		American Airlines, JFK Intl.
Arpt. Proj., 8.00%, 8/01/28	08/16 @ 101	5,866,300
AAA	5,375		St. Env. Facs. Corp., St. Clean Wtr.
& Drinking Wtr. RB, NYC Mun. Wtr. Proj., Ser. B,
			5.00%, 6/15/31	06/12 @ 100	5,537,056
					99,117,709
			North Carolina—1.9%
NR	12,130		Gaston Cnty. Indl. Facs. Fin. Auth.
PCRB, 5.75%, 8/01/35	08/15 @ 100	12,711,876
			Ohio—7.9%
			Air Qual. Dev. Auth. PCRB,
BBB	14,500		Cleveland Elec. Illuminating
Co. Proj., Ser. B, 6.00%, 8/01/20	08/07 @ 102	14,999,525
AAA	23,820		Dayton Pwr. & Lt. Co. Proj.,
4.80%, 1/01/34, FGIC	07/15 @ 100	23,819,047
NR	3,760		Pinnacle Cmnty. Infrastructure Fin.
Auth. RB, Ohio Facs., Ser. A, 6.25%, 12/01/36	12/14 @ 101	3,914,837
AAA	9,000		St. Wtr. Dev. Auth. PCRB, Dayton
Pwr. & Lt. Co. Proj., Ser. A, 4.80%, 1/01/34, FGIC	07/15 @ 100	9,032,040
					51,765,449
			Oklahoma—1.2%
B	7,175		Tulsa Mun. Arpt. Trust RB, Ser. A,
7.75%, 6/01/35	No Opt. Call	7,920,195
			Pennsylvania—4.9%
			Econ. Dev. Fin. Auth. RB,
A3	6,500		Amtrak Proj., Ser. A, 6.375%,
11/01/41	05/11 @ 101	6,995,430
BB-	19,750		Exempt Facs., Reliant Energy
Conv. Proj., Ser. A, 6.75%, 12/01/36	12/09 @ 103	21,184,640
BBB+	4,000		Higher Edl. Facs. Auth. RB, La Salle
Univ. Proj., 5.50%, 5/01/34	05/13 @ 100	4,171,080
					32,351,150
			South Carolina—4.9%
			Jobs Econ. Dev. Auth., Hosp. Facs.
RB,
BBB+	8,010	3	Palmetto Hlth. Alliance Proj.,
6.875%, 8/01/13	N/A	9,413,672
BBB+	990		Palmetto Hlth. Alliance Proj.,
6.875%, 8/01/27	08/13 @ 100	1,124,670
BBB+	5,075		Palmetto Hlth. Alliance Proj.,
Ser. A, 6.25%, 8/01/31	08/13 @ 100	5,454,864
			Lexington Cnty. Hlth. Svcs. Dist.,
Hosp. RB,
A	5,000		5.50%, 11/01/32	11/13 @ 100	5,249,050
A	10,000		5.75%, 11/01/28	11/13 @ 100	10,707,300
					31,949,556

3

BlackRock Municipal Income Trust (BFK) (continued)

	Principal
	Amount			Option Call
Rating 1	(000)		Description	Provisions 2	Value
			Tennessee—1.5%
AAA	$ 20,825		Knox Cnty. Hlth. Edl. & Hsg.
Facs. Brd., Hosp. Facs. RB, Ser. A, Zero Coupon, 1/01/20, FSA	01/13 @ 67.474	$ 10,129,905
			Texas—14.3%
			Affordable Hsg. Corp., Multi-Fam.
Hsg. RB,
NR	4,435	5	Amer. Oppty. Hsg. Portfolio,
Ser. B, 8.00%, 3/01/32	09/12 @ 102	665,250
B	6,375	5	So. Texas Pptys. Corp., Ser.
B, 8.00%, 3/01/32	09/12 @ 102	5,661,128
AAA	3,805		Dallas Area Rapid Trans. RB, 5.00%,
12/01/31, AMBAC	12/11 @ 100	3,875,963
			Harris Cnty. Houston Sports Auth.
RB,
AAA	12,580		Ser. A, Zero Coupon, 11/15/38,
MBIA	11/30 @ 61.166	2,206,909
AAA	26,120		Ser. A-3, Zero Coupon, 11/15/37,
MBIA	11/24 @ 46.545	4,755,930
AAA	5,000		Ser. H, Zero Coupon, 11/15/35,
MBIA	11/31 @ 78.178	1,072,800
			Lower Colorado River Auth. RB,
AAA	5	3	Ser. A, 5.00%, 5/15/13, MBIA	N/A	5,331
AAA	2,395		Ser. A, 5.00%, 5/15/31, MBIA	05/13 @ 100	2,454,324
AAA	13,305		Lower Colorado River Auth. RB, Transm.
Svcs. Proj., 4.75%, 5/15/34, AMBAC	05/11 @ 100	13,304,069
AAA	1,700		Montgomery Cnty. Mun. Util. Dist.
No. 46, Wtr. Wks. & Swr. Sys. GO, 4.75%, 3/01/30, MBIA	03/14 @ 100	1,692,775
AAA	9,085		North Texas Tollway Auth. RB, 5.00%,
1/01/40, FSA	01/15 @ 100	9,272,151
AAA	5,060		Pearland GO, 4.75%, 3/01/29, FGIC	03/16 @ 100	5,075,281
			St. Tpke. Auth. RB, Central Sys.,
AAA	35,000		Zero Coupon, 8/15/32, AMBAC	08/12 @ 30.846	8,098,650
AAA	62,325		Zero Coupon, 8/15/33, AMBAC	08/12 @ 28.997	13,548,209
AAA	65,040		Zero Coupon, 8/15/34, AMBAC	08/12 @ 27.31	13,305,883
AAA	8,390		Ser. A, 5.00%, 8/15/42, AMBAC	08/12 @ 100	8,520,716
					93,515,369
			Virginia—0.4%
AAA	8,105		Comnwlth. Transp. Brd. RB, Zero Coupon,
4/01/32, MBIA	04/12 @ 34.99	2,101,464
NR	425		Suffolk Indl. Dev. Auth. RB, Lake
Prince Ctr. Proj., 5.30%, 9/01/31	09/16 @ 100	420,929
					2,522,393
			Washington—2.0%
A-	2,190	3	Energy Northwest RB, Wind Proj.,
Ser. B, 6.00%, 1/01/07	N/A	2,274,009
AAA	680		King Cnty. Swr. GO, 5.00%, 1/01/35,
FGIC	01/15 @ 100	696,381
AAA	3,615		King Cnty. Swr. RB, 5.00%, 1/01/36,
FSA	01/16 @ 100	3,710,400
AAA	6,730		St. Hlth. Care Facs. Auth. RB, Providence
Hlth. Care Svcs. Proj., Ser. A, 4.625%, 10/01/34, FGIC	10/16 @ 100	6,599,707
					13,280,497
			West Virginia—0.3%
AAA	2,070		Econ. Dev. Auth. RB, Correctional
Juvenile Safety, Ser. A, 5.00%, 6/01/29, MBIA	06/14 @ 100	2,137,523
			Wisconsin—5.9%
			Hlth. & Edl. Facs. Auth. RB,
A-	7,500		Aurora Hlth. Care Proj., 6.40%,
4/15/33	04/13 @ 100	8,243,025
AA-	12,545	3	Froedtert & Cmnty. Hlth.
Oblig. Grp., 5.375%, 10/01/11	N/A	13,571,808
AA-	1,205		Froedtert & Cmnty. Hlth.
Oblig. Grp., 5.375%, 10/01/30	10/11 @ 101	1,249,296
A	15,000	3	Wheaton Franciscan Svcs., 5.75%,
8/15/30	02/12 @ 101	15,867,750
					38,931,879
			Total Long-Term Investments (cost
$960,712,537)		1,009,142,939
			SHORT-TERM INVESTMENTS—2.1%
			Puerto Rico—0.0%
A-1+	100	6	Gov’t. Dev. Bank RB, 3.53%,
8/02/06, MBIA, FRWD	N/A	100,000
			Texas—0.0%
A-1+	50	6	Wtr. Dev. Board RB, 3.67%, 8/01/06,
FRDD	N/A	50,000
	Shares
	(000)
			Money Market Fund—2.1%
NR	13,900		AIM Tax Free Investment Co. Cash
Reserve Portfolio	N/A	13,900,000
			Total Short-Term Investments (cost
$14,050,000)		14,050,000

4

BlackRock Municipal Income Trust (BFK) (continued)

Description	Value
Total Investments—155.9%
(cost $974,762,537 7 )	$1,023,192,939
Other assets in excess of liabilities—1.3%	8,249,274
Preferred shares at redemption value,
including dividends payable—(57.2)%	(375,290,321	)
Net Assets—100%	$ 656,151,892

| 1 | Using the highest of Standard &
Poor’s, Moody’s Investment Services or Fitch’s ratings. |
| --- | --- |
| 2 | Date (month/year) and price of the
earliest optional call or redemption. There may be other call provisions at varying
prices at later dates. |
| 3 | This bond is prerefunded. U.S. government
securities, held in escrow, are used to pay interest on this security, as well as
retire the bond in full at the date indicated, typically at a premium to par. |
| 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 July 31,
2006, the Trust held 7.7% of its net assets, with a current market value of $50,592,693,
in securities restricted as to resale. |
| 5 | Illiquid security. As of July 31,
2006, the Trust held 1.0% of its net assets, with a current market value of $6,326,378
in these securities. |
| 6 | For purposes of amortized cost valuation,
the maturity date of this instrument is considered to be the earlier of the next
date on which the security can be redeemed at par, or the next date on which the
rate of interest is adjusted. Rate shown is rate as of July 31, 2006. |
| 7 | Cost for Federal income tax purposes
is $974,611,988. The net unrealized appreciation on a tax basis is $48,580,951,
consisting of $54,861,473 gross unrealized appreciation and $6,280,522 gross unrealized
depreciation. |

KEY TO ABBREVIATIONS — ACA	—	American Capital Access	MBIA	—	Municipal Bond Insurance Assoc.
AMBAC	—	American Municipal Bond Assurance Corp.	PCRB	—	Pollution Control Revenue Bond
FGIC	—	Financial Guaranty Insurance Co.	RB	—	Revenue Bond
FRDD	—	Floating Rate Daily Demand	SA	—	Special Assessment
FRWD	—	Floating Rate Weekly Demand	ST	—	Special Tax
FSA	—	Financial Security Assurance	TA	—	Tax Allocation
GO	—	General Obligation	XLCA	—	XL Capital Assurance

5

Item 2. Controls and Procedures.

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

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

Item 3. Exhibits.

Separate certifications of the Registrant’s Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as EX-99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) BlackRock Municipal Income Trust

By: /s/ Henry Gabbay Name: Henry Gabbay Title: Treasurer and Principal Financial Officer Date: September 27, 2006

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

By: /s/ Robert S. Kapito Name: Robert S. Kapito Title: President and Principal Executive Officer Date: September 27, 2006

By: /s/ Henry Gabbay Name: Henry Gabbay Title: Treasurer and Principal Financial Officer Date: September 27, 2006