bfk.htm - Produced by Pellegrini and Associates, Inc. | 134 Spring Street New York NY 10012 | (212) 925-5151

UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-10339

Name of Fund: BlackRock Municipal Income Trust (BFK)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
Municipal Income Trust, 55 East 52nd Street, New York, NY 10055.

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

Date of fiscal year end: 04/30/2011

Date of reporting period: 07/31/2010

Item 1 – Schedule of Investments


Schedule of Investments July 31, 2010 (Unaudited)

BlackRock Municipal Income Trust (BFK)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
Arizona — 4.9%     
Maricopa County Pollution Control Corp.,     
Refunding RB, Southern California     
Edison Co., Series A, 5.00%, 6/01/35 $  3,360  $ 3,380,530 
Pima County IDA, RB, American Charter     
Schools Foundation, Series A, 5.63%,     
7/01/38  2,290  2,063,061 
Pima County IDA, Refunding IDRB,     
Tucson Electric Power, 5.75%,     
9/01/29  2,185  2,232,130 
Salt River Project Agricultural     
Improvement & Power District, RB,     
Series A, 5.00%, 1/01/38  3,860  4,044,932 
Salt Verde Financial Corp., RB, Senior:     
5.00%, 12/01/32  10,030  9,113,158 
5.00%, 12/01/37  9,460  8,392,439 
    29,226,250 
California — 26.8%     
Bay Area Toll Authority, Refunding RB,     
San Francisco Bay Area, Series F-1,     
5.63%, 4/01/44  4,445  4,860,474 
California County Tobacco Securitization     
Agency, RB, CAB, Stanislaus,     
Sub-Series C, 6.30%, 6/01/55 (a)  17,855  219,974 
California HFA, RB, Home Mortgage,     
Series G, AMT, 5.50%, 8/01/42  6,605  6,506,123 
California State Public Works Board, RB,     
Various Capital Projects,     
Sub-Series I-1, 6.38%, 11/01/34  2,315  2,470,499 
California Statewide Communities     
Development Authority, RB, Health     
Facility, Memorial Health Services,     
Series A, 5.50%, 10/01/33  5,000  5,082,600 
City of Lincoln California, Special Tax     
Bonds, Community Facilities District     
No. 2003-1, 6.00%, 9/01/13 (b)  3,115  3,675,825 
Foothill Eastern Transportation Corridor     
Agency California, Refunding RB,     
CAB (a):     
6.09%, 1/15/32  54,635  12,546,928 
6.09%, 1/15/38  75,000  10,854,000 
Golden State Tobacco Securitization     
Corp. California, RB, Series 2003-A-1,     
6.63%, 6/01/13 (b)  5,000  5,809,350 
Los Angeles Department of Airports, RB,     
Series A, 5.25%, 5/15/39  1,560  1,630,247 

 

    Par   
Municipal Bonds    (000)  Value 
California (concluded)       
Los Angeles Department of Airports,       
Refunding RB, Senior, Los Angeles     
International Airport, Series A, 5.00%,     
5/15/40  $ 11,690  $ 11,888,379 
Los Angeles Regional Airports       
Improvement Corp. California,       
Refunding RB, Facilities, LAXFUEL       
Corp., LA International, AMT (AMBAC),     
5.50%, 1/01/32    13,320  13,362,491 
Los Angeles Unified School District       
California, GO, Series D:       
5.25%, 7/01/24    5,000  5,520,100 
5.25%, 7/01/25    3,490  3,819,945 
5.00%, 7/01/26    1,305  1,391,965 
Murrieta Community Facilities District     
Special Tax California, Special Tax       
Bonds, District No. 2, The Oaks       
Improvement Area A, 6.00%, 9/01/34  5,000  4,703,200 
San Francisco City & County Public       
Utilities Commission, RB, Series B,       
5.00%, 11/01/39    18,550  19,488,073 
State of California, GO, Refunding,       
Various Purpose, 5.00%, 6/01/34    2,060  2,026,051 
State of California, GO, Various Purpose:     
6.00%, 3/01/33    4,970  5,380,025 
6.50%, 4/01/33    20,410  22,953,290 
University of California, RB, Limited       
Project, Series B, 4.75%, 5/15/38    9,840  9,869,815 
West Valley-Mission Community College     
District, GO, Election of 2004,       
Series A (AGM), 4.75%, 8/01/30    4,015  4,054,668 
      158,114,022 
Colorado — 2.3%       
City of Colorado Springs Colorado, RB,     
Subordinate Lien, Improvement,       
Series C (AGM), 5.00%, 11/15/45    2,545  2,622,292 
Colorado Health Facilities Authority,       
Refunding RB, Series A:       
Catholic Healthcare, 5.50%,       
7/01/34    4,205  4,485,515 
Sisters of Leavenworth, 5.00%,       
1/01/40    4,310  4,313,017 

 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated
according to the following list:

ACA  ACA Financial Guaranty Corp.  ERB  Education Revenue Bonds 
AGC  Assured Guaranty Corp.  GO  General Obligation Bonds 
AGM  Assured Guaranty Municipal Corp.  HDA  Housing Development Authority 
AMBAC  American Municipal Bond Assurance Corp.  HFA  Housing Finance Agency 
AMT  Alternative Minimum Tax (subject to)  IDA  Industrial Development Authority 
CAB  Capital Appreciation Bonds  IDRB  Industrial Development Revenue Bonds 
EDA  Economic Development Authority  NPFGC  National Public Finance Guarantee Corp. 
EDC  Economic Development Corp.  RB  Revenue Bonds 

 

BLACKROCK MUNICIPAL INCOME TRUST

JULY 31, 2010

1


Schedule of Investments(continued)

BlackRock Municipal Income Trust (BFK)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Colorado (concluded)       
Park Creek Metropolitan District       
Colorado, Refunding RB, Senior,       
Limited Tax, Property Tax, 5.50%,       
12/01/37  $ 2,530  $ 2,449,900 
      13,870,724 
Connecticut — 0.5%       
Connecticut State Health & Educational     
Facility Authority, RB, Ascension       
Health Senior Credit, 5.00%,       
11/15/40    2,710  2,788,969 
District of Columbia — 7.1%       
District of Columbia Tobacco Settlement     
Financing Corp., Refunding RB,       
Asset-Backed, 6.75%, 5/15/40    23,035  22,769,637 
District of Columbia, RB, CAB,       
Georgetown, Series A (NPFGC),       
6.03%, 4/01/11 (a)(b)    66,785  14,532,950 
District of Columbia, Refunding RB,       
Friendship Public Charter School Inc.     
(ACA), 5.25%, 6/01/33    2,390  2,095,910 
Metropolitan Washington Airports       
Authority, RB, First Senior Lien,       
Series A:       
5.00%, 10/01/39    990  1,020,037 
5.25%, 10/01/44    1,545  1,614,633 
      42,033,167 
Florida — 5.0%       
County of Miami-Dade Florida, RB,       
Water & Sewer System, 5.00%,       
10/01/34    6,625  6,799,966 
County of Miami-Dade Florida,       
Refunding RB, Miami International     
Airport, Series A-1, 5.38%, 10/01/41  2,280  2,320,037 
County of Orange Florida, Refunding RB     
(Syncora), 4.75%, 10/01/32    2,895  2,863,502 
Miami Beach Health Facilities Authority,     
RB, Mount Sinai Medical Center of       
Florida, 6.75%, 11/15/21    7,485  7,796,975 
Stevens Plantation Community       
Development District, Special       
Assessment Bonds, Series A, 7.10%,     
5/01/35    3,710  2,996,196 
Village Community Development District     
No. 6, Special Assessment Bonds,       
5.63%, 5/01/22    6,805  6,709,526 
      29,486,202 
Georgia — 1.9%       
De Kalb Private Hospital Authority,       
Refunding RB, Children's Healthcare,     
5.25%, 11/15/39    1,650  1,707,519 
Metropolitan Atlanta Rapid Transit       
Authority, RB, Third Series, 5.00%,       
7/01/39    5,000  5,260,650 
Richmond County Development       
Authority, Refunding RB, International     
Paper Co. Project, Series A, AMT,       
6.00%, 2/01/25    4,000  4,041,520 
      11,009,689 

 

    Par   
Municipal Bonds    (000)  Value 
Guam — 0.8%       
Territory of Guam, GO, Series A:       
6.00%, 11/15/19  $ 1,245  $ 1,292,907 
6.75%, 11/15/29    1,775  1,903,173 
7.00%, 11/15/39    1,255  1,357,182 
      4,553,262 
Illinois — 5.4%       
Illinois Finance Authority, RB:       
Advocate Health Care, Series C,       
5.38%, 4/01/44    10,630  10,944,542 
MJH Education Assistance IV LLC,     
Sub-Series B, 5.38%,       
6/01/35 (c)(d)    1,675  452,267 
Illinois Finance Authority, Refunding RB:     
Central DuPage Health, Series B,     
5.50%, 11/01/39    3,160  3,297,049 
Elmhurst Memorial Healthcare,       
5.63%, 1/01/28    6,000  5,834,280 
Friendship Village Schaumburg,       
Series A, 5.63%, 2/15/37    845  684,763 
OSF Healthcare System, Series A,     
6.00%, 5/15/39    2,575  2,599,385 
Series 05-A, 5.25%, 7/01/41    760  790,126 
State of Illinois, RB, Build Illinois,       
Series B, 5.25%, 6/15/34    1,240  1,281,676 
Village of Bolingbrook Illinois, GO,       
Refunding, Series B (NPFGC) (a):       
6.01%, 1/01/33    6,820  2,078,872 
6.01%, 1/01/34    14,085  4,053,241 
      32,016,201 
Indiana — 5.9%       
City of Vincennes Indiana, Refunding     
RB, Southwest Indiana Regional Youth     
Village, 6.25%, 1/01/24    2,130  1,798,188 
Indiana Finance Authority, RB, Sisters of     
St. Francis Health, 5.25%, 11/01/39  1,655  1,692,602 
Indiana Health Facility Financing       
Authority, Refunding RB, Methodist     
Hospital Inc., 5.50%, 9/15/31    9,000  7,833,600 
Indiana Municipal Power Agency, RB,     
Indiana Municipal Power Agency,       
Series B, 6.00%, 1/01/39    2,150  2,339,286 
Petersburg Indiana, RB, Indiana Power     
& Light, AMT:       
5.90%, 12/01/24    5,000  5,130,700 
5.95%, 12/01/29    16,000  16,151,200 
      34,945,576 
Kansas — 0.6%       
Kansas Development Finance Authority,     
Refunding RB, Sisters of Leavenworth,     
Series A, 5.00%, 1/01/40    3,275  3,314,136 
Kentucky — 0.4%       
Kentucky Economic Development       
Finance Authority, Refunding RB,       
Owensboro Medical Health System,     
Series A, 6.38%, 6/01/40    1,990  2,073,142 
Kentucky Housing Corp., RB, Series F,     
AMT (Fannie Mae), 5.45%, 1/01/32  235  235,950 
      2,309,092 

 

2 BLACKROCK MUNICIPAL INCOME TRUST

JULY 31, 2010


Schedule of Investments(continued)

BlackRock Municipal Income Trust (BFK)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Louisiana — 1.3%       
Louisiana Local Government       
Environmental Facilities & Community     
Development Authority, RB, Capital     
Projects & Equipment Acquisition       
Program (ACA), 6.55%, 9/01/25  $ 8,430  $ 7,678,466 
Maryland — 0.6%       
Maryland Community Development       
Administration, Refunding RB,       
Residential, Series A, AMT, 4.65%,       
9/01/32    2,465  2,363,047 
Maryland EDC, RB, Transportation       
Facilities Project, Series A, 5.75%,       
6/01/35    855  874,255 
      3,237,302 
Massachusetts — 0.6%       
Massachusetts Health & Educational     
Facilities Authority, Refunding RB,       
Partners Healthcare, Series J1,       
5.00%, 7/01/39    3,535  3,619,168 
Michigan — 0.7%       
Michigan State Hospital Finance       
Authority, Refunding RB, Henry Ford     
Health System, Series A, 5.25%,       
11/15/46    4,230  3,888,385 
Mississippi — 2.6%       
City of Gulfport Mississippi, RB,       
Memorial Hospital at Gulfport Project,     
Series A, 5.75%, 7/01/31    15,325  15,434,574 
Multi-State — 5.2%       
Centerline Equity Issuer Trust (e)(f):       
6.80%, 11/30/50    6,500  6,577,220 
6.80%, 10/31/52    16,000  17,393,760 
MuniMae TE Bond Subsidiary LLC,       
7.50%, 6/30/49 (e)(f)(g)    7,574  7,023,714 
      30,994,694 
Nebraska — 0.7%       
Douglas County Hospital Authority No. 2,     
RB, Health Facilities, Immanuel       
Obligation Group, 5.63%, 1/01/40  3,280  3,333,759 
Lancaster County Hospital Authority       
No. 1, RB, Immanuel Obligation       
Group, 5.63%, 1/01/40    600  609,834 
      3,943,593 
Nevada — 0.8%       
County of Clark Nevada, Refunding RB,     
Alexander Dawson School Nevada       
Project, 5.00%, 5/15/29    4,550  4,581,486 
New Hampshire — 0.6%       
New Hampshire Health & Education       
Facilities Authority, RB, Exeter Project,     
5.75%, 10/01/31    3,500  3,569,405 
New Jersey — 7.4%       
Middlesex County Improvement       
Authority, RB, Subordinate, Heldrich     
Center Hotel, Series B, 6.25%,       
1/01/37    3,680  680,064 
New Jersey EDA, RB:       
Cigarette Tax, 5.75%, 6/15/29    15,500  15,358,020 

 

    Par   
Municipal Bonds    (000)  Value 
New Jersey (concluded)       
New Jersey EDA, RB (concluded):       
Continental Airlines Inc. Project,       
AMT, 7.00%, 11/15/30 (g)  $ 15,410  $ 15,436,814 
New Jersey EDA, Special Assessment     
Bonds, Refunding, Kapkowski Road     
Landfill Project, 6.50%, 4/01/28    8,000  8,805,120 
Tobacco Settlement Financing Corp.       
New Jersey, Refunding RB, Series 1A,     
4.50%, 6/01/23    3,945  3,612,160 
      43,892,178 
New York — 5.3%       
Albany Industrial Development Agency,     
RB, New Covenant Charter School       
Project, Series A, 7.00%,       
5/01/35 (c)(d)    1,820  727,982 
New York City Industrial Development     
Agency, RB, American Airlines Inc.,       
JFK International Airport, AMT (g):       
8.00%, 8/01/28    5,000  5,246,000 
7.75%, 8/01/31    22,140  22,962,722 
New York Liberty Development Corp.,     
Refunding RB, Second Priority, Bank     
of America Tower at One Bryant Park     
Project, 6.38%, 7/15/49    2,400  2,508,192 
      31,444,896 
North Carolina — 4.8%       
Gaston County Industrial Facilities &       
Pollution Control Financing Authority     
North Carolina, RB, Exempt Facilities,     
National Gypsum Co. Project, AMT,     
5.75%, 8/01/35    12,130  9,551,526 
North Carolina Capital Facilities Finance     
Agency, RB, Duke University Project,     
Series B, 5.00%, 10/01/38    10,000  10,598,100 
North Carolina Capital Facilities Finance     
Agency, Refunding RB, Duke       
University Project, Series B, 4.25%,     
7/01/42    3,910  3,892,249 
North Carolina Medical Care       
Commission, RB, Duke University       
Health System, Series A:       
5.00%, 6/01/39    1,240  1,273,790 
5.00%, 6/01/42    2,750  2,814,927 
      28,130,592 
Ohio — 2.9%       
Buckeye Tobacco Settlement Financing     
Authority, RB, Asset-Backed, Senior     
Series A-2, 6.50%, 6/01/47    3,120  2,419,622 
County of Allen Ohio, Refunding RB,       
Catholic Healthcare, Series A, 5.25%,     
6/01/38    6,125  6,295,153 
County of Montgomery Ohio, Refunding     
RB, Catholic Healthcare, Series A,       
5.00%, 5/01/39    5,450  5,640,968 
Pinnacle Community Infrastructure       
Financing Authority, RB, Facilities,       
Series A, 6.25%, 12/01/36    3,760  3,027,364 
      17,383,107 

 

BLACKROCK MUNICIPAL INCOME TRUST

JULY 31, 2010

3


Schedule of Investments(continued)

BlackRock Municipal Income Trust (BFK)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Oklahoma — 1.2%       
Tulsa Airports Improvement Trust, RB,     
Series A, Mandatory Put Bonds, AMT,     
7.75%, 6/01/35 (g)  $ 7,175  $ 7,266,912 
Pennsylvania — 4.7%       
Allegheny County Hospital Development     
Authority, Refunding RB, Health       
System, West Penn, Series A, 5.38%,     
11/15/40    3,000  2,226,960 
Pennsylvania Economic Development     
Financing Authority, RB:       
Amtrak Project, Series A, AMT,       
6.38%, 11/01/41    6,500  6,586,580 
Aqua Pennsylvania Inc. Project,       
5.00%, 11/15/40    3,725  3,827,847 
Reliant Energy, Series A, AMT,       
6.75%, 12/01/36    11,345  11,699,985 
Pennsylvania Turnpike Commission, RB,     
Sub-Series D, 5.13%, 12/01/40    3,100  3,163,209 
      27,504,581 
Puerto Rico — 5.3%       
Commonwealth of Puerto Rico, GO,       
Refunding, Public Improvement,       
Series C, 6.00%, 7/01/39    5,820  6,169,957 
Puerto Rico Sales Tax Financing Corp.,     
RB:       
CAB, Series A, 6.58%, 8/01/31 (a)  10,000  2,679,300 
CAB, Series A, 6.66%, 8/01/33 (a)  12,670  2,940,327 
CAB, Series A, 6.67%, 8/01/36 (a)  40,000  7,523,600 
First Sub-Series A, 6.50%, 8/01/44  10,900  12,081,996 
      31,395,180 
South Carolina — 3.0%       
Lexington County Health Services       
District Inc., Refunding RB, 5.75%,       
11/01/13 (b)    10,000  11,611,700 
South Carolina Jobs-EDA, Refunding RB:     
Palmetto Health Alliance, Series A,     
6.25%, 8/01/31    5,075  5,202,992 
Palmetto Health, Series C, 6.88%,     
8/01/13 (b)    990  1,168,774 
      17,983,466 
Tennessee — 0.9%       
Knox County Health Educational &       
Housing Facilities Board Tennessee,     
Refunding RB, CAB, Series A (AGM),     
5.70%, 1/01/20 (a)    5,055  3,083,045 
Rutherford County Health & Educational     
Facilities Board, RB, Ascension Health     
Senior Credit Group, 5.00%,       
11/15/40    2,015  2,066,060 
      5,149,105 
Texas — 17.7%       
Brazos River Authority, RB, TXU Electric,     
Series A, AMT, 8.25%, 10/01/30    4,370  2,370,769 
Brazos River Authority, Refunding RB,     
TXU Electric Co. Project, Series C,       
Mandatory Put Bonds, AMT, 5.75%,     
5/01/36 (g)    4,125  3,930,259 
City of Dallas Texas, Refunding RB,       
5.00%, 10/01/35    2,970  3,167,386 

 

    Par   
Municipal Bonds    (000)  Value 
Texas (concluded)       
City of Houston Texas, RB, Senior Lien,     
Series A, 5.50%, 7/01/39  $ 3,000  $ 3,220,620 
City of Houston Texas, Refunding RB,     
Combined, First Lien, Series A (AGC),     
6.00%, 11/15/35    16,425  18,904,354 
Harris County-Houston Sports Authority,     
Refunding RB (NPFGC) (a):       
CAB, Junior Lien, Series H, 6.12%,     
11/15/35    5,000  819,500 
CAB, Senior Lien, Series A, 5.94%,     
11/15/38    12,580  1,766,735 
Third Lien, Series A-3, 5.97%,       
11/15/37    26,120  3,710,607 
Lower Colorado River Authority,       
Refunding RB:       
(NPFGC), 5.00%, 5/15/13 (b)    120  134,186 
(NPFGC), 5.00%, 5/15/31    2,275  2,307,965 
LCRA Transmission Services Project     
(AMBAC), 4.75%, 5/15/34    905  905,081 
Series A (NPFGC), 5.00%,       
5/15/13 (b)    5  5,596 
North Texas Tollway Authority, RB, Toll,     
2nd Tier, Series F, 6.13%, 1/01/31  12,180  12,983,393 
San Antonio Energy Acquisition Public     
Facility Corp., RB, Gas Supply, 5.50%,     
8/01/25    6,540  6,805,001 
State of Texas, GO, Transportation       
Community, Mobility Fund, Series A,     
4.75%, 4/01/35    4,000  4,068,400 
Tarrant County Cultural Education       
Facilities Finance Corp., RB, Scott &     
White Healthcare, 6.00%, 8/15/45  7,930  8,370,353 
Texas Private Activity Bond Surface       
Transportation Corp., RB, Senior Lien:     
LBJ Infrastructure, 7.00%, 6/30/40  8,475  8,816,966 
Note Mobility, 6.88%, 12/31/39  7,590  7,877,357 
Texas State Affordable Housing Corp.,     
RB, American Opportunity Housing     
Portfolio, Junior Series B, 8.00%,       
3/01/32 (c)(d)    4,435  220,774 
Texas State Turnpike Authority, RB       
(AMBAC):       
CAB, 6.06%, 8/15/32 (a)    23,355  5,224,981 
CAB, 6.07%, 8/15/33 (a)    32,325  6,681,901 
First Tier, Series A, 5.00%, 8/15/42  2,250  2,156,445 
      104,448,629 
Utah — 1.2%       
City of Riverton Utah, RB, IHC Health       
Services Inc., 5.00%, 8/15/41    7,150  7,316,953 
Virginia — 2.5%       
City of Norfolk Virginia, Refunding RB,     
Series B (AMBAC), 5.50%, 2/01/31  2,635  2,622,167 
Tobacco Settlement Financing Corp.       
Virginia, Refunding RB, Senior       
Series B1, 5.00%, 6/01/47    5,780  3,741,799 
Virginia Commonwealth Transportation     
Board, RB, CAB, Contract, Route 28     
(NPFGC), 5.29%, 4/01/32 (a)    8,105  2,612,890 

 

4 BLACKROCK MUNICIPAL INCOME TRUST

JULY 31, 2010


Schedule of Investments(continued)

BlackRock Municipal Income Trust (BFK)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Virginia (concluded)       
Virginia HDA, RB, Sub-Series H-1       
(NPFGC), 5.35%, 7/01/31  $ 5,775  $ 5,822,124 
      14,798,980 
Wisconsin — 2.3%       
Wisconsin Health & Educational       
Facilities Authority, RB:       
Ascension Health Senior Credit       
Group, 5.00%, 11/15/30    3,210  3,305,979 
Ascension Health Senior Credit       
Group, 5.00%, 11/15/33    1,640  1,668,060 
Aurora Health Care, 6.40%,       
4/15/33    7,500  7,665,000 
Wisconsin Health & Educational       
Facilities Authority, Refunding RB,       
Froedtert & Community Health Inc.,     
5.38%, 10/01/30    1,205  1,225,232 
      13,864,271 
Total Municipal Bonds – 133.9%      791,193,213 
Municipal Bonds Transferred to Tender     
Option Bond Trusts (h)       
Alabama — 0.8%       
Alabama Special Care Facilities       
Financing Authority-Birmingham,       
Refunding RB, Ascension Health       
Senior Credit, Series C-2, 5.00%,       
11/15/36    4,548  4,626,420 
California — 3.2%       
California Educational Facilities       
Authority, RB, University of Southern     
California, Series A, 5.25%, 10/01/18  5,115  5,497,499 
Los Angeles Community College District     
California, GO, Election of 2001,       
Series A (AGM), 5.00%, 8/01/32    4,500  4,617,540 
San Diego Community College District     
California, GO, Election of 2002,       
5.25%, 8/01/33    3,260  3,475,196 
University of California, RB, Series C       
(NPFGC), 4.75%, 5/15/37    5,000  5,016,850 
      18,607,085 
Colorado — 2.1%       
Colorado Health Facilities Authority, RB     
(AGM), Catholic Health:       
Series C-3, 5.10%, 10/01/41    7,600  7,701,308 
Series C-7, 5.00%, 9/01/36    4,860  4,921,965 
      12,623,273 
Connecticut — 3.3%       
Connecticut State Health & Educational     
Facility Authority, RB, Yale University:     
Series T-1, 4.70%, 7/01/29    9,400  9,927,810 
Series X-3, 4.85%, 7/01/37    9,360  9,766,318 
      19,694,128 

 

Municipal Bonds Transferred to Tender  Par   
Option Bond Trusts (h)  (000)  Value 
Illinois — 1.5%     
Chicago Housing Authority, Refunding     
RB (AGM), 5.00%, 7/01/24  $ 8,232  $ 8,648,488 
Massachusetts — 1.2%     
Massachusetts Water Resources     
Authority, Refunding RB, General,     
Series A, 5.00%, 8/01/41  6,770  7,021,979 
New Hampshire — 0.7%     
New Hampshire Health & Education     
Facilities Authority, Refunding RB,     
Dartmouth College, 5.25%, 6/01/39  3,988  4,346,666 
New York — 4.4%     
New York City Municipal Water Finance     
Authority, RB, Series FF-2, 5.50%,     
6/15/40  3,074  3,432,784 
New York State Dormitory Authority,     
ERB, Series F, 5.00%, 3/15/35  16,709  17,264,365 
New York State Environmental Facilities     
Corp., RB, Revolving Funds, New York     
City Municipal Water Project, Series B,     
5.00%, 6/15/31  5,370  5,481,428 
    26,178,577 
Virginia — 1.9%     
University of Virginia, Refunding RB,     
General, 5.00%, 6/01/40  10,750  11,444,127 
Washington — 3.6%     
Central Puget Sound Regional Transit     
Authority, RB, Series A (AGM), 5.00%,     
11/01/32  5,459  5,781,751 
State of Washington, GO, Various     
Purpose, Series E, 5.00%, 2/01/34  14,487  15,394,031 
    21,175,782 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts – 22.7%    134,366,525 
Total Long-Term Investments     
(Cost – $927,690,510) – 156.6%    925,559,738 
Short-Term Securities  Shares   
FFI Institutional Tax-Exempt Fund,     
0.21% (i)(j)  4,910,060  4,910,060 
Total Short-Term Securities     
(Cost – $4,910,060) – 0.8%    4,910,060 
Total Investments     
(Cost – $932,600,570*) – 157.4%    930,469,798 
Other Assets Less Liabilities – 1.1%    6,638,208 
Liability for Trust Certificates, Including Interest   
Expense and Fees Payable – (12.7)%    (75,257,885) 
Preferred Shares, at Redemption Value – (45.8)%  (270,895,642) 
Net Assets Applicable to Common Shares – 100.0%  $ 590,954,479 

 

BLACKROCK MUNICIPAL INCOME TRUST

JULY 31, 2010

5


Schedule of Investments July 31, 2010 (concluded)

BlackRock Municipal Income Trust (BFK)

* The cost and unrealized appreciation (depreciation) of investments as of

July 31, 2010, as computed for federal income tax purposes, were as

Aggregate follows: Cost  $ 856,275,780 
Gross unrealized appreciation  $ 33,365,646 
Gross Net unrealized unrealized depreciation depreciation  $ (34,353,775) (988,129) 

 

(a) Represents a zero-coupon bond. Rate shown reflects the current yield as
of report date.
(b) US 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.
(c) Issuer filed for bankruptcy and/or is in default of interest payments.
(d) Non-income producing security.
(e) 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.
(f) 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.
(g) Variable rate security. Rate shown is as of report date.
(h) 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.
(i) Investments in companies considered to be an affiliate of the Trust,
during the period, for purposes of Section 2(a)(3) of the Investment
Company Act of 1940, as amended, were as follows:

   Shares Held     
    at April 30,  Shares Held at   
Affiliate  2010  Net Activity  July 31, 2010  Income 
FFI Institutional         
Tax-Exempt         
Fund  22,810,780      (17,900,720)     4,910,060 $ 4,141 
(j) Represents the current yield as of report date.     

 

•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
assets and liabilities

•Level 2 — other observable inputs (including, but not limited to: quoted
prices for similar assets or liabilities in markets that are active, quoted
prices for identical or similar assets or liabilities in markets that are not
active, inputs other than quoted prices that are observable for the
assets or liabilities (such as interest rates, yield curves, volatilities,
prepayment speeds, loss severities, credit risks and default rates) or
other market-corroborated inputs)

•Level 3 — unobservable inputs based on the best information available
in the circumstances, to the extent observable inputs are not available
(including the Trust's own assumptions used in determining the fair
value of investments)

The inputs or methodologies 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 July 31, 2010 in
determining the fair valuation of the Trust's investments:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Investments in Securities:       
Long-Term         
Securities1  —       $925,559,738  —    $ 925,559,738 
Short-Term         
Securities  $ 4,910,060  —        —      4,910,060 
Total  $ 4,910,060 $925,559,738  —    $ 930,469,798 

 

1See above Schedule of Investments for values in each state or
political subdivision.

BLACKROCK MUNICIPAL INCOME TRUST

JULY 31, 2010

6


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

By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock Municipal Income Trust

Date: September 27, 2010

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/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer (principal executive officer) of
BlackRock Municipal Income Trust

Date: September 27, 2010

By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Municipal Income Trust

Date: September 27, 2010