c49409_nq.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

 

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: 
     811-21036               

               BlackRock Municipal Bond 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 Bond 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:
     August 31, 2007     
Date of reporting period: 
     May 31, 2007     

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)
MAY 31, 2007
BlackRock Municipal Bond Trust (BBK)
(Percentages shown are based on Net Assets)

 Principal            
  Amount     Option Call      
  (000)   Description Provisions1   Value   
      LONG-TERM INVESTMENTS—147.8%        
      Alabama—6.0%        
$ 7,500 2 Huntsville Hlth. Care Auth., Hlth., Hosp. & Nursing Home RB, Ser. A, 5.75%, 6/01/11 N/A $ 8,064,900   
      Birmingham Spl. Care Facs. Fing. Auth., Hlth., Hosp. & Nursing Home RB, Ascension        
      Hlth. Proj.,        
  1,135      Ser. C-2, 5.00%, 11/15/36 11/16@ 100   1,160,731   
  815      Ser. C-2, 5.00%, 11/15/39 11/16@ 100   831,976   
            10,057,607   
      Arizona—1.6%        
  1,408   Pima Cnty. Indl. Dev. Auth., Local or Gtd. Hsg. RB, 4.89%, 2/04/12, AMT 06/07@ 100   1,408,000   
      San Luis Fac. Dev. Corp., Correctional Fac. Impvts. Misc. RB, Regl. Detention        
      Ctr. Proj.,        
  300      6.25%, 5/01/15 05/10@ 107   302,904   
  300      7.00%, 5/01/20 05/10@ 107   302,940   
  600      7.25%, 5/01/27 05/10@ 107   609,174   
            2,623,018   
      California—6.6%        
  1,800   California GO, 5.00%, 6/01/34 12/14@ 100   1,858,608   
      Cnty. Tobacco Sec. Agcy., Tobacco Settlement Funded RB,        
  850      Ser. B, Zero Coupon, 6/01/46 06/16@ 17.60   89,556   
  4,500      Ser. C, Zero Coupon, 6/01/55 06/16@ 8.9   231,210   
  5,750      Stanislaus Cnty. Proj., Ser. D, Zero Coupon, 6/01/55 06/16@ 6.219   195,845   
  4,100   Hlth. Fac. Fing. Auth., Hlth., Hosp. & Nursing Home RB, Sutter Hlth. Proj., Ser. A,        
         5.25%, 11/15/46 11/16@ 100   4,281,917   
  2,660   Univ. of California, Univ. & Coll. Impvts. RB, Ser. B, 4.75%, 5/15/38 05/13@ 101   2,694,527   
  1,585   Val Verde Unified Sch. Dist. ST, 6.25%, 10/01/28 10/13@ 102   1,658,084   
            11,009,747   
      Colorado—0.8%        
  635   City of Colorado Springs, Mult. Util. Impvts. RB, Ser. C, 5.00%, 11/15/45, FSA 11/15@ 100   658,470   
  635   Pk. Creek Met. Dist., Ppty. Tax Misc. RB, 5.50%, 12/01/37 12/15@ 101   668,604   
            1,327,074   
      District of Columbia—11.3%        
  6,000   Econ. Impvts. TA, Gallery Place Proj., 5.40%, 7/01/31, FSA 07/12@ 100   6,335,820   
  595   Misc. RB, Friendship Pub. Charter Sch. Proj., 5.25%, 6/01/33, ACA 06/14@ 100   614,689   
  33,450 2 Univ. & Coll. Impvts. RB, Georgetown Univ. Proj., Ser. A, Zero Coupon, 4/01/11,        
      MBIA N/A   5,815,282   
  5,580   Tobacco Settlement Fing. Corp., Tobacco Settlement Funded RB, 6.75%, 5/15/40 05/11@ 101   6,120,479   
            18,886,270   
      Florida—19.7%        
  1,845   Cnty. of Orange, Sales Tax RB, 4.75%, 10/01/32, XLCA 10/16@ 100   1,867,804   
  1,535   Halifax Hosp. Med. Ctr., Hlth., Hosp. & Nursing Home RB, Ser. A, 5.00%, 6/01/38 06/16@ 100   1,536,105   
  770   JEA, Wtr. Util. Impvts. Wtr. RB, Ser. A, 4.75%, 10/01/36, MBIA 04/11@ 100   779,094   
  6,200   Martin Cnty. Indl. Dev. Auth., Indl. RB, Indiantown Cogeneration Proj., Ser. A, 7.875%,        
         12/15/25, AMT 07/07@ 100   6,262,992   
  2,810   Miami Beach Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mt. Sinai        
         Med. Ctr. Proj., 6.75%, 11/15/21 11/14@ 100   3,149,954   
  10,000 2 Orange Cnty. Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Adventist        
         Hlth. Sys. Proj., 5.625%, 11/15/12 N/A   10,890,300   
  7,255   Palm Beach Cnty. Hsg. Fin. Auth., Multi-Fam. Hsg. RB, Indian Trace Apts. Proj., Ser.        
      A, 5.625%, 1/01/44, FSA, AMT 01/12@ 100   7,387,839   
  980   Stevens Plantation Cmnty. Dev. Dist., Pub. Impvts. SA, Ser. A, 7.10%, 5/01/35 05/14@ 100   1,059,782   
            32,933,870   
      Georgia—3.9%        
      City of Atlanta,        
  1,250      Port, Arpt. & Marina Impvts. RB, Ser. J, 5.00%, 1/01/34, FSA 01/15@ 100   1,295,425   
  5,000      Wtr. Util. Impvts. RB, 5.00%, 11/01/37, FSA 11/14@ 100   5,197,550   
            6,492,975   
      Illinois—18.9%        
  1,150 3 Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23 No Opt. Call   1,182,154   
      City of Chicago, Ad Valorem Ppty. Tax GO,        
  4,285 2    5.50%, 1/01/11, MBIA N/A   4,553,798   
  1,540      5.50%, 1/01/38, MBIA 01/11@ 101   1,623,899   
  55 2    Ser. A, 5.50%, 1/01/11, MBIA N/A   58,450   

1

BlackRock Municipal Bond Trust (BBK) (continued)
(Percentages shown are based on Net Assets)

  Principal            
  Amount     Option Call      
  (000)   Description  Provisions1   Value   
      Illinois— (cont'd)         
      Fin. Auth.,         
$ 1,065      Coll. & Univ. RB, Edl. Advancement Proj., Ser. B, 5.00%, 5/01/25  11/16@ 100 $ 1,076,119   
  850      Coll. & Univ. RB, Edl. Advancement Proj., Ser. B, 5.00%, 5/01/30  11/16@ 100   856,953   
  420      Hlth., Hosp. & Nursing Home RB, Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%,         
         2/15/37  02/15@ 100   431,983   
  525      Univ. & Coll. Impvts. RB, MJH Ed. Asst. LLC Proj., Ser. A, 5.125%, 6/01/35  06/14@ 100   535,358   
  425      Univ. & Coll. Impvts. RB, MJH Ed. Asst. LLC Proj., Ser. B, 5.375%, 6/01/35  06/14@ 100   433,313   
  6,000   Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Lake Forest Hosp. Proj., Ser. A,         
         5.75%, 7/01/29  07/12@ 100   6,353,940   
      Met. Pier & Exposition Auth., Pub. Impvts. Sales Tax RB, McCormick Place Expansion         
      Proj.,         
  10,000      Ser. A, Zero Coupon, 6/15/35, MBIA  No Opt. Call   2,755,800   
  10,000      Ser. A, Zero Coupon, 12/15/36, MBIA  No Opt. Call   2,564,800   
  10,000      Ser. A, Zero Coupon, 12/15/37, MBIA  No Opt. Call   2,442,000   
  2,535   Mun. Elec. Agcy., Elec., Pwr. & Lt. RB, 4.50%, 2/01/35, FGIC  02/16@ 100   2,472,157   
  23,065   Vlg. of Bolingbrook, Pub. Impvts. Ad Valorem Ppty. Tax GO, Ser. B, Zero Coupon,         
         1/01/36, FGIC  01/12@ 23.018   4,315,923   
            31,656,647   
      Indiana—2.3%         
  1,940   Multi-Fam. Hsg., Local Hsg. RB, Canterbury House Apts. Proj., Ser. 1, 5.90%, 12/01/34,         
         AMT  12/11@ 100   1,979,848   
  1,950   Mun. Pwr. Agcy., Elec., Pwr. & Lt. Impvts. RB, Pwr. Sply. Sys. Proj., Ser. A, 4.50%,         
         1/01/32, AMBAC  01/16@ 100   1,912,950   
            3,892,798   
      Kansas—3.2%         
  5,000   Wichita Arpt. Auth., Port, Arpt. & Marina Impvts. RB, Cessna Citation Svc. Ctr. Proj.,         
         Ser. A, 6.25%, 6/15/32, AMT  06/12@ 101   5,325,250   
      Maryland—3.3%         
  1,250   City of Baltimore Pub. Impvts. Tax Incr./Alloc. ST, Harborview Lot No. 2 Proj., 6.50%,         
         7/01/31  07/13@ 101   1,356,500   
  2,955   Frederick Cnty., Pub. Impvt. ST, Urbana Cmnty. Dev. Auth. Proj., Ser. B, 6.25%,         
         7/01/30  07/07@ 102   3,017,144   
  1,040   Hlth. & Higher Edl. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Medstar         
         Hlth., Inc. Proj., 5.50%, 8/15/33  08/14@ 100   1,098,084   
            5,471,728   
      Massachusetts—0.9%         
  1,450   Wtr. Recs. Auth., Wtr. RB, Ser. A, 5.00%, 8/01/41  08/16@ 100   1,506,086   
      Michigan—0.7%         
  1,065   Hosp. Fin. Auth., Hlth., Hosp. & Nursing Home RB, Henry Ford Hlth. Sys. Proj., Ser. A,         
         5.25%, 11/15/46  11/16@ 100   1,100,731   
      Mississippi—0.9%         
  1,605   Business Fin. Comm., Indl. Impvts. RB, Northrop Grumman Ship Sys. Proj., 4.55%,         
         12/01/28  12/16@ 100   1,580,331   
      Multi-State—7.1%         
  10,500 3 Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52  10/14@ 100   11,790,135   
      Nebraska—1.1%         
  1,760   Omaha Pub. Pwr. Dist., Elec., Pwr. & Lt. Impvts. RB, Ser. A, 4.75%, 2/01/44  02/14@ 100   1,769,891   
      Nevada—2.9%         
  1,325   Cnty. of Clark Private Schs. RB, Alexander Dawson Sch. Rainbow Proj., 5.00%, 5/15/29  05/16@ 100   1,365,479   
  1,385   Las Vegas Spec. Dist. No. 809, Pub. Impvts. SA, Summerlin Area Proj., 5.65%, 6/01/23  12/07@ 103   1,431,397   
  2,000   Truckee Meadows Wtr. Auth., Wtr. RB, 4.875%, 7/01/34, XLCA  07/16@ 100   2,047,840   
            4,844,716   
      New Jersey—9.9%         
      Econ. Dev. Auth.,         
  1,500      Econ. Impvts. RB, Cigarette Tax Proj., 5.50%, 6/15/31  06/14@ 100   1,580,640   
  1,500      Hlth., Hosp. & Nursing Home RB, Marcus L. Ward Home Proj., Ser. A, 5.80%,         
         11/01/31  11/14@ 100   1,608,855   
  3,000      Port, Arpt. & Marina Impvts. RB, Contl. Airlines, Inc. Proj., 7.20%, 11/15/30, AMT  11/10@ 101   3,220,920   
  7,500      SA, Kapkowski Rd. Landfill Proj., 6.50%, 4/01/28  No Opt. Call   9,134,175   

2

BlackRock Municipal Bond Trust (BBK) (continued)
(Percentages shown are based on Net Assets)

  Principal            
Amount     Option Call      
(000)   Description Provisions1   Value   
      New Jersey— (cont'd)        
$ 915   Middlesex Cnty. Impvt. Auth., Pub. Impvts. Hotel Occupancy Tax RB, Heldrich        
         Associates LLC Proj., Ser. B, 6.25%, 1/01/37 01/15@ 100 $  966,313   
            16,510,903   
      New York—9.6%        
  455 4 Albany Indl. Dev. Agcy., Sch. Impvts. Lease Approp. RB, New Covenant Charter Sch.        
         Proj., Ser. A, 7.00%, 5/01/35 05/15@ 102   443,539   
  1,330   Env. Facs. Corp., Swr. Impvts. Misc. RB, NYC Mun. Wtr. Proj., Ser. B, 5.00%, 6/15/31 06/12@ 100   1,372,972   
  2,610   Liberty Dev. Corp., Indl. Impvts. Misc. RB, Goldman Sachs Group., Inc. Proj., 5.25%,        
         10/01/35 No Opt. Call   2,899,136   
  1,760   Met. Transp. Auth., Misc. RB, Ser. A, 5.00%, 7/01/30, AMBAC 07/12@ 100   1,818,907   
      Nanuet Union Free Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO,        
  1,085      4.30%, 6/15/29, FSA 06/15@ 100   1,058,103   
  1,130      4.30%, 6/15/30, FSA 06/15@ 100   1,098,089   
  6,165   New York City Indl. Dev. Agcy., Port, Arpt. & Marina Impvts. RB, American Airlines,        
         Inc./JFK Intl. Arpt. Proj., 7.75%, 8/01/31, AMT 08/16@ 101   7,417,851   
            16,108,597   
      North Carolina—1.8%        
  2,945   Gaston Cnty. Indl. Facs. & Poll. Ctrl. Fing. Auth., Indl. Impvts. RB, 5.75%, 8/01/35,        
         AMT 08/15@ 100   3,088,186   
      Ohio—2.6%        
  4,220   Air Qual. Dev. Auth., Rec. Recovery RB, Dayton Pwr. & Lt. Co. Proj., 4.80%, 1/01/34,        
         FGIC 07/15@ 100   4,276,843   
      Oklahoma—2.0%        
  1,355   Dev. Fin. Auth., Hlth., Hosp. & Nursing Home RB, St. John Hlth. Sys. Proj., 5.00%,        
         2/15/42 02/17@ 100   1,375,731   
  1,725   Tulsa Mun. Arpt. Trust, Port, Arpt. & Marina Impvts. RB, AMR Corp. Proj., Ser. A,        
         7.75%, 6/01/35, AMT No Opt. Call   2,020,441   
            3,396,172   
      Oregon—0.3%        
  545   Multi-Fam. Hsg., Local Hsg. RB, Pacific Tower Apts. Proj., Ser. 6, 6.05%, 11/01/34,        
         AMT 12/11@ 100   557,617   
      Pennsylvania—2.6%        
  3,870   Econ. Dev. Fing. Auth., Elec., Pwr. & Lt. Impvts. RB, Reliant Energy, Inc. Proj., Ser. A,        
         6.75%, 12/01/36, AMT 06/11@ 103   4,274,415   
      Puerto Rico—2.5%        
  1,820   Elec. Pwr. Auth., Elec., Pwr. & Lt. RB, Ser. UU, 5.00%, 7/01/21, FSA 07/17@ 100   1,941,704   
      Hwy. & Transp. Auth., Hwy. Impvts. Tolls RB,        
  1,070      Ser. N, 5.25%, 7/01/34 No Opt. Call   1,205,740   
  900      Ser. N, 5.25%, 7/01/36 No Opt. Call   1,016,775   
            4,164,219   
      South Carolina—0.7%        
  1,000 2 Jobs-Econ. Dev. Auth., Hlth., Hosp. & Nursing Home RB, Palmetto Hlth. Proj., Ser. C,        
         7.00%, 8/01/13 N/A   1,160,967   
      Texas—17.0%        
  940 2 Dallas Area Rapid Trans., Sales Tax RB, 5.00%, 12/01/11, AMBAC N/A   983,090   
  11,690   Harris Cnty.-Houston Sports Auth., Hotel Occupancy Tax RB, Ser. G, Zero Coupon,        
         11/15/41, MBIA 11/31@ 53.779   1,923,356   
  605   Lower Colorado River Auth., Misc. RB, Ser. A, 5.00%, 5/15/31, MBIA 05/13@ 100   624,142   
  430   Montgomery Cnty. Mun. Util. Dist. No. 46, Pub. Impvts. Ad Valorem Ppty. Tax GO,        
         4.75%, 3/01/30, MBIA 03/14@ 100   434,175   
  2,560   Multi-Fam. Hsg., Local Hsg. RB, Copperwood Ranch Apts. Proj., Ser. 9, 5.95%,        
         11/01/35, AMT 12/11@ 100   2,621,542   
      Tpke. Auth., Hwy. Impvts. Tolls RB,        
  2,115      Ser. A, 5.00%, 8/15/42, AMBAC 08/12@ 100   2,166,416   
  60,000      Zero Coupon, 8/15/35, AMBAC 08/12@ 25.665   12,147,000   

3

BlackRock Municipal Bond Trust (BBK) (continued)
(Percentages shown are based on Net Assets)

  Principal            
  Amount     Option Call      
  (000)   Description  Provisions1   Value  
      Texas— (cont'd)         
$  6,840 2 Tyler Cnty. Hlth. Facs. Dev., Hlth., Hosp. & Nursing Home Impvts. RB, Mother Frances         
         Hosp. Proj., 6.00%, 7/01/12  N/A $  7,443,698  
            28,343,419  
      Washington—1.9%         
  905   Cnty. of King, Swr. RB, 5.00%, 1/01/36, FSA  01/16@ 100   942,123  
  2,220   Hlth. Care Facs. Auth., Hlth., Hosp. & Nursing Home RB, Providence Hlth. Sys. Proj.,         
         Ser. A, 4.625%, 10/01/34, FGIC  10/16@ 100   2,184,325  
            3,126,448  
      West Virginia—0.3%         
  520   Econ. Dev. Auth., Correctional Fac. Impvts. Lease RB, Correctional Juvenile Safety         
         Proj., Ser. A, 5.00%, 6/01/29, MBIA  06/14@ 100   541,164  
      Wisconsin—5.4%         
      Hlth. & Edl. Facs. Auth., Hlth., Hosp. & Nursing Home RB,         
  1,350      Aurora Hlth. Care Proj., 6.40%, 4/15/33  04/13@ 100   1,484,932  
  7,000 2    Wheaton Franciscan Svcs. Proj., 5.75%, 2/15/12  N/A   7,600,320  
            9,085,252  
      Total Long-Term Investments (cost $228,177,408)      246,903,076  
      SHORT-TERM INVESTMENTS—4.7%         
      Texas—0.4%         
  700 5 Harris Cnty. Hlth. Facs. Dev. Corp., Hlth., Hosp. & Nursing Home Impvts. RB,         
         Children's Hosp. Proj., Ser. B-1, 3.91%, 6/01/07, MBIA, FRDD  N/A   700,000  
  Shares            
  (000)            
      Money Market Fund—4.3%         
  7,200 6,7 Merrill Lynch Institutional Tax Exempt Fund, 3.60%  N/A   7,200,000  
      Total Short-Term Investments (cost $7,900,000)      7,900,000  
Total Investments —152.5% (cost $236,077,4088)   $  254,803,076  
Other assets in excess of liabilities —1.7%     2,809,217  
Preferred shares at redemption value, including dividends payable —(54.2)%      (90,542,277 ) 
Net Assets Applicable to Common Shareholders —100%    $  167,070,016  
__________
1      Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.
 
2      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.
 
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 May 31, 2007, the Trust held 7.8% of its net assets, with a current market value of $12,972,289, in securities restricted as to resale.
 
4      Illiquid security. As of May 31, 2007, the Trust held 0.3% of its net assets, with a current market value of $443,539, in these securities.
 
5      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 May 31, 2007.
 
6      Represents an investment in an affiliate.
 
7      Represents current yield as of May 31, 2007.
 
8      Cost for federal income tax purposes is $236,081,888. The net unrealized appreciation on a tax basis is $18,721,188, consisting of $19,005,931 gross unrealized appreciation and $284,743 gross unrealized depreciation.
 
 
KEY TO ABBREVIATIONS
           
ACA 
— 
American Capital Access  MBIA 
— 
Municipal Bond Insurance Assoc. 
AMBAC 
— 
American Municipal Bond Assurance Corp.  RB 
— 
Revenue Bond 
AMT 
— 
Subject to Alternative Minimum Tax  SA 
— 
Special Assessment 
FGIC 
— 
Financial Guaranty Insurance Co.  ST 
— 
Special Tax 
FRDD 
— 
Floating Rate Daily Demand  TA 
— 
Tax Allocation 
FSA 
— 
Financial Security Assurance  XLCA 
— 
XL Capital Assurance 
GO 
— 
General Obligation       

 

4

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 Bond Trust       
   
By: 
     /s/ Donald C. Burke
Name: Donald C. Burke
Title: Treasurer and Principal Financial Officer
Date: July 25, 2007

          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: July 25, 2007
   
By: 
     /s/ Donald C. Burke
Name: Donald C. Burke
Title: Treasurer and Principal Financial Officer
Date: July 25, 2007