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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21126

Name of Fund: BlackRock Municipal Income Trust II (BLE)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Municipal Income Trust II, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

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

Date of fiscal year end: 08/31/2008

Date of reporting period: 09/01/2008 – 11/30/2008

Item 1 – Schedule of Investments

BlackRock Municipal Income Trust II  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
State Municipal Bonds   (000 )   Value
Arizona - 4.4% Pima County, Arizona, IDA, Education Revenue Bonds (American Charter          
  Schools Foundation), Series A, 5.625%, 7/01/38 $ 2,525   $ 1,711,874
  Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5%,          
  12/01/32   5,635     3,682,980
  Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5%,          
  12/01/37   7,890     5,001,708
            10,396,562
California - Agua Caliente Band of Cahuilla Indians, California, Casino Revenue          
12.2% Bonds, 6%, 7/01/18   2,250     1,988,415
  California County Tobacco Securitization Agency, Tobacco          
  Revenue Bonds (Stanislaus County Tobacco Funding Corporation),          
  Sub-Series C, 6.30%, 6/01/55 (a)   9,710     71,271
  California Health Facilities Financing Authority Revenue Bonds          
  (Sutter Health), Series A, 5.25%, 11/15/46   3,000     2,400,780
  California Mobile Home Park Finance Authority Revenue Bonds (Palomar          
  Estates East and West), Series A, 5.25%, 3/15/34 (b)   3,500     2,275,105
  California State, GO, Refunding, 5%, 6/01/32   5,000     4,301,200
  California State, GO, Refunding, 5%, 6/01/34   2,700     2,294,514
  California Statewide Communities Development Authority, Health Facility          
  Revenue Bonds (Memorial Health Services), Series A, 5.50%, 10/01/33   5,000     4,209,450
  Sacramento County, California, Airport System Revenue Bonds,          
  AMT, Senior Series B, 5.25%, 7/01/39 (c)   3,480     2,593,087
  San Francisco, California, City and County Redevelopment Agency, Community          
  Facilities District Number 1, Special Tax Bonds (Mission Bay South Public          
  Improvements Project), 6.625%, 8/01/27   4,620     3,844,718
  University of California Revenue Bonds, Series B, 4.75%, 5/15/38   5,755     4,759,097
            28,737,637
Colorado - 9.0% Colorado Health Facilities Authority Revenue Bonds (Catholic          
  Health Initiatives), Series A, 5.50%, 3/01/32 (d)   10,000     10,037,500
  Colorado Health Facilities Authority, Revenue Refunding Bonds          
  (Poudre Valley Health Care), 5.20%, 3/01/31 (c)   790     717,344
  Colorado Health Facilities Authority, Revenue Refunding Bonds (Poudre Valley          
  Health Care), Series B, 5.25%, 3/01/36 (c)   1,580     1,398,663
  Colorado Health Facilities Authority, Revenue Refunding Bonds (Poudre Valley          
  Health Care), Series C, 5.25%, 3/01/40 (c)   2,750     2,404,105
  Colorado Springs, Colorado, Utilities System Improvement Revenue Bonds,          
  Subordinate Lien, Series C, 5%, 11/15/45 (c)   1,375     1,242,835
           
Portfolio Abbreviations          

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the list below.
           
AMT   Alternative Minimum Tax (subject to) IDA   Industrial Development Authority
EDA   Economic Development Authority IDR   Industrial Development Revenue Bonds
EDR   Economic Development Revenue Bonds M/F   Multi-Family
GO   General Obligation Bonds PCR   Pollution Control Revenue Bonds
HDA   Housing Development Authority      

1

BlackRock Municipal Income Trust II  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
State Municipal Bonds   (000 )   Value
  Northwest Parkway Public Highway Authority, Colorado, Senior          
  Revenue Bonds, Series A, 5.25%, 6/15/11 (c)(e) $ 4,000   $ 4,333,960
  Park Creek Metropolitan District, Colorado, Senior Limited Tax          
  Supported Revenue Refunding Bonds, 5.50%, 12/01/37   1,375     983,565
            21,117,972
District of District of Columbia, Revenue Refunding Bonds (Friendship Public          
Columbia - 6.5% Charter School, Inc.), 5.25%, 6/01/33 (b)   1,265     817,405
  District of Columbia Tobacco Settlement Financing Corporation, Asset-Backed          
  Revenue Refunding Bonds, 6.50%, 5/15/33   7,500     5,402,925
  District of Columbia Tobacco Settlement Financing Corporation, Asset-Backed          
  Revenue Refunding Bonds, 6.75%, 5/15/40   11,500     9,149,400
            15,369,730
Florida - 17.4% Leesburg, Florida, Hospital Revenue Bonds (Leesburg Regional          
  Medical Center Project), 5.50%, 7/01/32   2,650     1,980,928
  Live Oak Community Development District Number 001, Florida, Special          
  Assessment Bonds, Series A, 6.30%, 5/01/34   3,125     2,439,937
  Miami Beach, Florida, Health Facilities Authority, Hospital          
  Revenue Refunding Bonds (Mount Sinai Medical Center of Florida),          
  6.75%, 11/15/21   5,275     4,405,469
  Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami          
  International Airport), AMT, Series A, 5.25%, 10/01/38 (f)   2,855     2,163,947
  Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds          
  (Adventist Health System), 5.625%, 11/15/12 (e)   6,850     7,650,285
  Orange County, Florida, Tourist Development, Tax Revenue          
  Refunding Bonds, 4.75%, 10/01/32 (g)   2,005     1,528,913
  Pinellas County, Florida, Health Facilities Authority Revenue Bonds          
  (BayCare Health System, Inc.), 5.50%, 5/15/13 (e)   14,000     15,641,080
  Stevens Plantation Community Development District, Florida, Special          
  Assessment Revenue Bonds, Series A, 7.10%, 5/01/35   2,015     1,474,779
  Sumter County, Florida, IDA, IDR (North Sumter Utility Company          
  LLC), AMT, 6.90%, 10/01/34   4,405     3,632,407
            40,917,745
Georgia - 4.0% Main Street Natural Gas, Inc., Georgia, Gas Project Revenue          
  Bonds, Series A, 6.375%, 7/15/38 (h)(i)   1,270     215,925
  Milledgeville-Baldwin County, Georgia, Development Authority Revenue Bonds          
  (Georgia College and State University Foundation), 5.625%,          
  9/01/14(e)   5,000     5,746,400
  Private Colleges and Universities Authority, Georgia, Revenue Refunding Bonds          
  (Emory University Project), Series C, 5%, 9/01/38   3,575     3,329,183
            9,291,508
Illinois - 13.7% Centerpoint Intermodal Center Program Trust, Illinois, Tax          
  Allocation Bonds, Class A, 8%, 6/15/23 (j)   2,470     1,973,826
  Chicago, Illinois, O'Hare International Airport Revenue Refunding Bonds, Third          
  Lien, AMT, Series C-2, 5.25%, 1/01/30 (c)   4,285     3,263,842
  Illinois Health Facilities Authority, Revenue Refunding Bonds          
  (Elmhurst Memorial Healthcare), 5.50%, 1/01/22   8,000     6,858,720

2

BlackRock Municipal Income Trust II  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
State Municipal Bonds   (000 )   Value
  Illinois Municipal Electric Agency, Power Supply Revenue Bonds,          
  4.50%, 2/01/35 (k)(l) $ 4,340   $ 3,308,773
  Illinois Sports Facilities Authority, State Tax Supported Revenue          
  Bonds, 5.546%, 6/15/30 (m)(n)   15,000     12,661,050
  Illinois State Finance Authority Revenue Bonds (Friendship Village          
  of Schaumburg), Series A, 5.625%, 2/15/37   910     570,861
  Illinois State Finance Authority Revenue Bonds (Monarch Landing,          
  Inc. Project), Series A, 7%, 12/01/37   1,585     1,210,972
  Illinois State Finance Authority Revenue Bonds (Northwestern Memorial          
  Hospital), Series A, 5.50%, 8/15/14 (e)   1,880     2,130,830
  Illinois State Finance Authority, Student Housing Revenue Bonds (MJH          
  Education Assistance IV LLC), Sub-Series B, 5.375%, 6/01/35 (h)   900     161,478
            32,140,352
Indiana - 2.1% Indiana Health Facilities Financing Authority, Revenue Refunding Bonds          
  (Ascension Health Credit Group), Series F, 5.375%, 11/15/25   5,000     5,024,300
Maryland - 0.4% Maryland State Health and Higher Educational Facilities Authority Revenue          
  Bonds (Union Hospital of Cecil County), 5.625%, 7/01/32   1,000     855,530
Michigan - 0.7% Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Henry          
  Ford Health System), Series A, 5.25%, 11/15/46   2,305     1,572,356
Missouri - 2.0% Highway 370/Missouri Bottom Road/Taussig Road Transportation Development          
  District Revenue Bonds, 7.20%, 5/01/33   6,000     4,802,220
Nevada - 1.0% Clark County, Nevada, EDR, Refunding (Alexander Dawson School          
  of Nevada Project), 5%, 5/15/29   2,855     2,416,843
New Jersey - New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/31 (o)   9,000     6,174,450
12.2% New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75%, 6/15/34   4,000     2,782,160
  New Jersey EDA, EDR (Kapkowski Road Landfill Reclamation Improvement          
  District Project), AMT, Series B, 6.50%, 4/01/31   10,000     7,720,400
  New Jersey EDA, EDR, Refunding (Kapkowski Road Landfill Reclamation          
  Improvement District Project), 6.50%, 4/01/28   7,475     5,971,179
  New Jersey EDA, Special Facility Revenue Bonds (Continental          
  Airlines, Inc. Project), AMT, 7.20%, 11/15/30   10,100     6,105,652
            28,753,841
New Mexico - New Mexico Region III Housing Authority, M/F Housing Revenue Bonds (Villa Del          
2.5% Oso Apartments), Series A, 6%, 1/01/13 (e)   5,200     5,964,504
New York - 6.7% Albany, New York, IDA, Civic Facility Revenue Bonds (New Covenant Charter          
  School Project), Series A, 7%, 5/01/35   985     643,865
  New York City, New York, City IDA, Special Facility Revenue Bonds (Continental          
  Airlines, Inc. Project), AMT, 7.75%, 8/01/31   6,700     4,600,287
  New York City, New York, City Transitional Finance Authority, Building Aid          
  Revenue Refunding Bonds, Series S-1, 4.50%, 1/15/38   1,100     843,810
  New York Liberty Development Corporation Revenue Bonds          
  (Goldman Sachs Headquarters), 5.25%, 10/01/35   1,225     882,000
  New York State Dormitory Authority, Non-State Supported Debt          
  Revenue Bonds (Columbia University), 5%, 7/01/38   5,000     4,741,200

3

BlackRock Municipal Income Trust II  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
State Municipal Bonds   (000 )   Value
  Port Authority of New York and New Jersey, Special Obligation Revenue Bonds          
  (Continental Airlines, Inc. - LaGuardia Project), AMT, 9%, 12/01/10 $ 3,980   $ 3,935,902
            15,647,064
North Carolina - Gaston County, North Carolina, Industrial Facilities and Pollution Control          
1.7% Financing Authority, Revenue Bonds (National Gypsum Company Project), AMT,          
  5.75%, 8/01/35   7,500     4,068,150
Ohio - 4.8% American Municipal Power, Inc., Ohio, Revenue Refunding Bonds (Prairie State          
  Energy Campus Project), Series A, 5%, 2/15/38   2,985     2,590,383
  Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement          
  Asset-Backed Bonds, Series A-2, 6.50%, 6/01/47   1,190     811,854
  Ohio State Air Quality Development Authority, Revenue Refunding Bonds          
  (Dayton Power and Light Company Project), Series B, 4.80%, 1/01/34 (k)(p)   9,140     7,782,893
            11,185,130
Oklahoma - 1.4% Tulsa, Oklahoma, Municipal Airport Trust, Revenue Refunding          
  Bonds, Series A, 7.75%, 6/01/35   3,925     3,325,849
Pennsylvania - Monroe County, Pennsylvania, Hospital Authority Revenue Bonds          
6.3% (Pocono Medical Center), 6%, 1/01/14 (e)   5,000     5,695,650
  Pennsylvania Economic Development Financing Authority, Exempt          
  Facilities Revenue Bonds (Amtrak Project), AMT,          
  Series A, 6.375%, 11/01/41   5,175     3,962,032
  Pennsylvania Economic Development Financing Authority, Exempt          
  Facilities Revenue Bonds (Reliant Energy), AMT,          
  Series A, 6.75%, 12/01/36   8,425     5,223,331
            14,881,013
South Carolina - Greenwood County, South Carolina, Hospital Facilities Revenue          
6.9% Bonds (Self Memorial Hospital), 5.50%, 10/01/26   3,280     2,765,073
  Greenwood County, South Carolina, Hospital Facilities Revenue          
  Bonds (Self Memorial Hospital), 5.50%, 10/01/31   3,250     2,601,040
  South Carolina Jobs EDA, Hospital Facilities Revenue Bonds          
  (Georgetown Memorial Hospital), 5.375%, 2/01/30 (o)   3,750     2,874,712
  South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds          
  (Palmetto Health Alliance), Series A, 6.25%, 8/01/31   2,640     2,247,062
  South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds          
  (Palmetto Health Alliance), Series C, 6.875%, 8/01/13 (e)   5,000     5,772,748
            16,260,635
Tennessee - 4.2% Knox County, Tennessee, Health, Educational and Housing          
  Facilities Board, Hospital Facilities Revenue Refunding Bonds          
  (Covenant Health), Series A, 5.77%, 1/01/21 (a)(c)   20,405     9,995,389
Texas - 23.3% Brazos River Authority, Texas, PCR, Refunding (TXU Energy          
  Company LLC Project), AMT, Series A, 8.25%, 10/01/30   2,400     1,729,272
  Dallas-Fort Worth, Texas, International Airport, Joint Revenue          
  Bonds, AMT, Series B, 6%, 11/01/23 (l)   2,000     1,811,320
  Gulf Coast Waste Disposal Authority, Texas, Revenue Refunding Bonds          
  (International Paper Company), AMT, Series A, 6.10%, 8/01/24   20,000     13,862,200

4

BlackRock Municipal Income Trust II  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
State Municipal Bonds   (000 )   Value
  Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds,          
  Third Lien, Series A-3, 5.96%, 11/15/36 (a)(l) $ 25,375   $ 2,954,411
  Lower Colorado River Authority, Texas, Revenue Refunding Bonds,          
  5%, 5/15/13 (e)(l)   30     32,929
  Lower Colorado River Authority, Texas, Revenue Refunding Bonds,          
  5%, 5/15/31 (l)   1,270     1,144,765
  Lower Colorado River Authority, Texas, Revenue Refunding Bonds,          
  Series A, 5%, 5/15/13 (e)(l)   5     5,488
  Montgomery County, Texas, Municipal Utility District Number 46, Waterworks          
  and Sewer System, GO, 4.75%, 3/01/30 (l)   930     804,348
  North Texas Tollway Authority, System Revenue Refunding Bonds,          
  Second Tier, Series F, 6.125%, 1/01/31   6,790     6,182,974
  San Antonio Energy Acquisition Public Facilities Corporation,          
  Texas, Gas Supply Revenue Bonds, 5.50%, 8/01/24   3,600     2,589,624
  Texas State Turnpike Authority, Central Texas Turnpike System          
  Revenue Bonds, 6.09%, 8/15/36 (a)(m)   73,370     9,433,915
  Texas State Turnpike Authority, Central Texas Turnpike System          
  Revenue Bonds, 6.10%, 8/15/37 (a)(m)   65,000     7,718,750
  Texas State Turnpike Authority, Central Texas Turnpike System          
  Revenue Bonds, 6.10%, 8/15/38 (a)(m)   27,600     3,025,788
  Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds,          
  First Tier, Series A, 5%, 8/15/42 (m)   4,575     3,670,706
            54,966,490
Virginia - 3.1% Halifax County, Virginia, IDA, Exempt Facility Revenue Refunding Bonds (Old          
  Dominion Electric Cooperative Project), AMT, 5.625%, 6/01/28 (m)   9,000     7,396,290
Washington - King County, Washington, Sewer Revenue Refunding Bonds, 5%,          
2.3% 1/01/36(c)   1,960     1,764,235
  Washington State Health Care Facilities Authority, Revenue Refunding Bonds          
  (Providence Health System), Series A, 4.625%, 10/01/34 (k)(l)   4,820     3,579,814
            5,344,049
West Virginia - West Virginia EDA, Lease Revenue Bonds (Correctional, Juvenile and Public          
0.4% Safety Facilities), Series A, 5%, 6/01/29 (l)   1,115     996,520
Wisconsin - 1.4% Wisconsin State Health and Educational Facilities Authority Revenue Bonds          
  (Aurora Health Care, Inc.), 6.40%, 4/15/33   3,930     3,320,654
Wyoming - 0.6% Wyoming Municipal Power Agency, Power Supply Revenue Bonds,          
  Series A, 5.50%, 1/01/33   800     693,648
  Wyoming Municipal Power Agency, Power Supply Revenue Bonds,          
  Series A, 5.50%, 1/01/38   750     633,690
            1,327,338
Multi State - 5.4% Charter Mac Equity Issuer Trust, 5.75%, 4/30/15 (j)(q)   1,000     1,007,050
  Charter Mac Equity Issuer Trust, 6%, 4/30/15 (j)(q)   5,000     5,177,500
  Charter Mac Equity Issuer Trust, 6%, 4/30/19 (j)(q)   3,500     3,468,780
  Charter Mac Equity Issuer Trust, 6.30%, 4/30/19 (j)(q)   3,000     3,035,280
            12,688,610

5

BlackRock Municipal Income Trust II  
Schedule of Investments November 30, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par        
State Municipal Bonds   (000 )   Value  
Puerto Rico - Puerto Rico Commonwealth Highway and Transportation Authority,            
1.6% Transportation Revenue Refunding Bonds, Series N, 5.25%, 7/01/36 (f) $ 4,370   $ 3,845,207  
  Total Municipal Bonds - 158.2%         372,609,488  
  Municipal Bonds Transferred to Tender Option Bond Trusts (r)            
Alabama - Birmingham, Alabama, Special Care Facilities Financing Authority, Revenue            
0.9% Refunding Bonds (Ascension Health Credit), Series C-2, 5%, 11/15/36   2,519     2,018,207  
Colorado - 2.6% Colorado Health Facilities Authority Revenue Bonds (Catholic Health), Series C-            
  3, 5.10%, 10/01/41 (c)   4,230     3,713,475  
  Colorado Health Facilities Authority Revenue Bonds (Catholic Health), Series C-            
  7, 5%, 9/01/36 (c)   2,710     2,385,369  
            6,098,844  
Connecticut - Connecticut State Health and Educational Facilities Authority Revenue Bonds            
4.0% (Yale University), Series T-1, 4.70%, 7/01/29   5,170     4,820,611  
  Connecticut State Health and Educational Facilities Authority Revenue Bonds            
  (Yale University), Series X-3, 4.85%, 7/01/37   5,130     4,735,144  
            9,555,755  
Massachusetts - Massachusetts State Water Resource Authority, General Revenue            
1.2% Refunding Bonds, Series A, 5%, 8/01/41   3,150     2,799,122  
New York - New York State Environmental Facilities Corporation, State Clean            
1.1% Water and Drinking Revenue Bonds (New York City Water Project),            
  Series B, 5%, 6/15/31   2,850     2,688,120  
Virginia - 3.9% University of Virginia, Revenue Refunding Bonds, 5%, 6/01/40   5,910     5,605,162  
  Virginia State, HDA, Commonwealth Mortgage Revenue Bonds,            
  Series H, Sub-Series H-1, 5.35%, 7/01/31 (l)   3,750     3,480,975  
            9,086,137  
Washington - Central Puget Sound Regional Transportation Authority, Washington,            
1.2% Sales and Use Tax Revenue Bonds, Series A, 5%, 11/01/32 (c)   3,029     2,776,294  
  Total Municipal Bonds Transferred to            
  Tender Option Bond Trusts - 14.9%         35,022,479  
  Total Long-Term Investments (Cost - $491,391,926) - 173.1%         407,631,967  
  Short-Term Securities   Shares        
  Merrill Lynch Institutional Tax-Exempt Fund, 1.08% (s)(t)   8,108,696     8,108,696  
  Total Short-Term Securities (Cost - $8,108,696) - 3.4%         8,108,696  
  Total Investments (Cost - $499,500,622*) - 176.5%         415,740,663  
  Other Assets Less Liabilities - 3.0%         7,062,474  
  Liability for Trust Certificates, Including Interest Expense and            
  Fees Payable - (9.0)%         (21,128,894 )
  Preferred Shares, at Redemption Value - (70.5)%         (166,108,302 )
  Net Assets Applicable to Common Shares - 100.0%       $ 235,565,941  

6

BlackRock Municipal Income Trust II
Schedule of Investments November 30, 2008 (Unaudited)
  The cost and unrealized appreciation (depreciation) of investments as of November 30, 2008, as computed for federal income tax purposes, were as follows:
  Aggregate cost $ 476,683,941    
  Gross unrealized appreciation $ 7,539,585    
  Gross unrealized depreciation   (89,311,234 )
  Net unrealized depreciation $ (81,771,649 )
(a)      Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.
(b)      ACA Insured.
(c)      FSA Insured.
(d)      Security is collateralized by Municipal or U.S. Treasury Obligations.
(e)      U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.
(f)      Assured Guaranty Insured.
(g)      XL Capital Insured.
(h)      Non-income producing security.
(i)      Issuer filed for bankruptcy and/or is in default of interest payments.
(j)      Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(k)      FGIC Insured.
(l)      MBIA Insured.
(m)      AMBAC Insured.
(n)      Represents a step bond. Rate shown is as of report date.
(o)      Radian Insured.
(p)      BHAC Insured.
(q)      Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.
(r)      Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.
(s)      Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:
    Net        
  Affiliate Activity     Income  
  Merrill Lynch Institutional Tax-Exempt Fund 5,407,675   $ 35,308  
(t) Represents the current yield as of report date.

7

BlackRock Municipal Income Trust II
Schedule of Investments November 30, 2008 (Unaudited)
Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:
 
  Level 1 - price quotations in active markets/exchanges for identical securities
 
  Level 2 - other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)
 
  Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust's own assumption used in determining the fair value of investments)
 
  The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust's policy regarding valuation of investments and other significant accounting policies, please refer to the Trust's most recent financial statements as contained in its annual report.
 
  The following table summarizes the inputs used as of November 30, 2008 in determining the fair valuation of the Trust's investments:
  Valuation   Investments in  
  Inputs   Securities  
  Level 1 $ 8,108,696  
  Level 2   407,631,967  
  Level 3   -  
  Total $ 415,740,663  

8

Item 2 – Controls and Procedures
   
2(a) – The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
   
2(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
   
Item 3 – Exhibits
   
  Certifications – Attached hereto
   
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
   
  BlackRock Municipal Income Trust II
   
  By:
/s/ Donald C. Burke
    Donald C. Burke
    Chief Executive Officer of
    BlackRock Municipal Income Trust II
   
  Date: January 20, 2009
   
  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/ Donald C. Burke
    Donald C. Burke
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Income Trust II
   
  Date: January 20, 2009
   
  By:
/s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Income Trust II
   
  Date: January 20, 2009