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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: John M. Perlowski, 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: 01/31/2011

Item 1 – Schedule of Investments


BlackRock Municipal Income Trust (BFK)
Schedule of Investments January 31, 2011 (Unaudited)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Alabama — 0.7%       
Alabama State Docks Department,       
Refunding RB, 6.00%, 10/01/40  $ 4,080  $ 3,991,138 
Arizona — 4.4%       
Maricopa County Pollution Control Corp.,     
Refunding RB, Southern California       
Edison Co., Series A, 5.00%, 6/01/35  3,360  3,161,592 
Salt River Project Agricultural       
Improvement & Power District, RB,       
Series A, 5.00%, 1/01/38    3,860  3,781,526 
Salt Verde Financial Corp., RB, Senior:     
5.00%, 12/01/32    10,030  8,631,818 
5.00%, 12/01/37    9,460  8,016,593 
      23,591,529 
Arkansas — 0.6%       
County of Little River Arkansas,       
Refunding RB, Georgia-Pacific Corp.     
Project, AMT, 5.60%, 10/01/26    3,255  2,978,390 
California — 27.5%       
Bay Area Toll Authority, Refunding RB,     
San Francisco Bay Area, Series F-1,     
5.63%, 4/01/44    4,445  4,507,052 
California County Tobacco Securitization     
Agency, RB, CAB, Stanislaus,       
Sub-Series C, 6.30%, 6/01/55 (a)    17,855  101,774 
California Health Facilities Financing       
Authority, Refunding RB, Sutter       
Health, Series B, 6.00%, 8/15/42 (b)  6,230  6,117,362 
California HFA, RB, Home Mortgage,       
Series G, AMT, 5.50%, 8/01/42    5,925  5,839,502 
California State Public Works Board, RB,     
Various Capital Projects, Sub-Series I-     
1, 6.38%, 11/01/34    2,315  2,355,049 
California Statewide Communities       
Development Authority, RB, Health       
Facility, Memorial Health Services,       
Series A, 5.50%, 10/01/33    5,000  4,993,150 
City of Lincoln California, Special Tax       
Bonds, Community Facilities District     
No. 2003-1, 6.00%, 9/01/13 (c)    3,115  3,566,955 
Foothill Eastern Transportation Corridor     
Agency California, Refunding RB,       
CAB (a):       
6.09%, 1/15/32    54,635  9,899,316 
6.09%, 1/15/38    75,000  8,119,500 

 

    Par   
Municipal Bonds    (000)  Value 
California (concluded)       
Golden State Tobacco Securitization       
Corp. California, RB, Series 2003-A-1,     
6.63%, 6/01/13 (c)  $ 5,000  $ 5,611,450 
Los Angeles Department of Airports, RB,     
Series A, 5.25%, 5/15/39    1,560  1,493,466 
Los Angeles Department of Airports,       
Refunding RB, Senior, Los Angeles       
International Airport, Series A, 5.00%,     
5/15/40    11,690  10,747,903 
Los Angeles Regional Airports       
Improvement Corp. California,       
Refunding RB, Facilities, LAXFUEL       
Corp., LA International, AMT (AMBAC),     
5.50%, 1/01/32    13,320  12,352,302 
Los Angeles Unified School District       
California, GO, Series D:       
5.25%, 7/01/24    5,000  5,093,400 
5.25%, 7/01/25    3,490  3,528,879 
5.00%, 7/01/26    1,305  1,276,146 
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  4,343,750 
San Francisco City & County Public       
Utilities Commission, RB, Series B,       
5.00%, 11/01/39    18,550  17,731,945 
State of California, GO, Various Purpose:     
6.00%, 3/01/33    4,970  5,056,677 
6.50%, 4/01/33    20,410  21,585,004 
University of California, RB, Limited       
Project, Series B, 4.75%, 5/15/38    9,840  8,828,251 
West Valley-Mission Community College     
District, GO, Election of 2004,       
Series A (AGM), 4.75%, 8/01/30    4,015  3,639,718 
      146,788,551 
Colorado — 2.3%       
City of Colorado Springs Colorado, RB,     
Subordinate Lien, Improvement,       
Series C (AGM), 5.00%, 11/15/45    2,545  2,443,582 
Colorado Health Facilities Authority,       
Refunding RB, Series A:       
Catholic Healthcare, 5.50%,       
7/01/34    4,205  4,107,402 
Sisters of Leavenworth, 5.00%,       
1/01/40    4,310  3,801,765 

 

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

 

BLACKROCK MUNICIPAL INCOME TRUST JANUARY 31, 2011 1


BlackRock Municipal Income Trust (BFK)
Schedule of Investments(continued)
(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  $ 2,170,664 
      12,523,413 
Connecticut — 0.5%       
Connecticut State Health & Educational     
Facility Authority, RB, Ascension       
Health Senior Credit, 5.00%,       
11/15/40    2,710  2,442,930 
Delaware — 1.7%       
County of Sussex Delaware, RB, NRG     
Energy, Inc., Indian River Project,       
6.00%, 10/01/40    2,225  2,135,644 
Delaware State EDA, RB, Exempt       
Facilities, Indian River Power, 5.38%,     
10/01/45    7,950  7,007,607 
      9,143,251 
District of Columbia — 6.9%       
District of Columbia Tobacco Settlement     
Financing Corp., Refunding RB,       
Asset-Backed, 6.75%, 5/15/40    23,035  21,508,701 
District of Columbia, RB, CAB,       
Georgetown, Series A (NPFGC),       
6.03%, (a)(c)    51,185  11,017,571 
District of Columbia, Refunding RB,       
Friendship Public Charter School Inc.     
(ACA), 5.25%, 6/01/33    2,390  1,891,374 
Metropolitan Washington Airports       
Authority, RB, First Senior Lien,       
Series A:       
5.00%, 10/01/39    990  928,402 
5.25%, 10/01/44    1,545  1,492,841 
      36,838,889 
Florida — 5.8%       
County of Miami-Dade Florida, RB,       
Water & Sewer System, 5.00%,       
10/01/34    6,625  6,189,009 
County of Miami-Dade Florida,       
Refunding RB, Miami International       
Airport, Series A-1, 5.38%, 10/01/41  2,280  2,114,677 
County of Orange Florida, Refunding RB     
(Syncora), 4.75%, 10/01/32    2,635  2,316,639 
Miami Beach Health Facilities Authority,     
RB, Mount Sinai Medical Center of       
Florida, 6.75%, 11/15/21    7,045  7,022,738 
Mid-Bay Bridge Authority, RB, Series A,     
7.25%, 10/01/40 (b)    4,450  4,372,214 
Stevens Plantation Community       
Development District, Special       
Assessment Bonds, Series A, 7.10%,     
5/01/35    3,710  2,820,305 
Village Community Development District     
No. 6, Special Assessment Bonds,       
5.63%, 5/01/22    6,615  6,192,434 
      31,028,016 

 

    Par   
Municipal Bonds    (000)  Value 
Georgia — 2.5%       
De Kalb Private Hospital Authority,       
Refunding RB, Children's Healthcare,     
5.25%, 11/15/39  $ 1,650  $ 1,532,239 
Metropolitan Atlanta Rapid Transit       
Authority, RB, Third Series, 5.00%,       
7/01/39    5,000  4,852,200 
Private Colleges & Universities Authority,     
Refunding RB, Emory University,       
Series C, 5.00%, 9/01/38    2,990  2,928,526 
Richmond County Development       
Authority, Refunding RB, International     
Paper Co. Project, Series A, AMT,       
6.00%, 2/01/25    4,000  3,929,880 
      13,242,845 
Guam — 0.8%       
Territory of Guam, GO, Series A:       
6.00%, 11/15/19    1,245  1,267,833 
6.75%, 11/15/29    1,775  1,873,371 
7.00%, 11/15/39    1,255  1,339,951 
      4,481,155 
Hawaii — 0.5%       
State of Hawaii, Refunding RB, Series A,     
5.25%, 7/01/30    2,660  2,556,579 
Illinois — 7.8%       
Illinois Finance Authority, RB:       
Advocate Health Care, Series C,       
5.38%, 4/01/44    10,630  9,720,178 
MJH Education Assistance IV LLC,     
Sub-Series B, 5.38%,       
6/01/35 (d)(e)    1,675  449,754 
Navistar International, Recovery       
Zone, 6.50%, 10/15/40    3,010  2,995,101 
Illinois Finance Authority, Refunding RB:     
Central DuPage Health, Series B,     
5.50%, 11/01/39    3,160  2,973,244 
Elmhurst Memorial Healthcare,       
5.63%, 1/01/28    3,000  2,695,920 
Friendship Village Schaumburg,       
Series A, 5.63%, 2/15/37    845  642,225 
Series 05-A, 5.25%, 7/01/41    760  760,889 
Metropolitan Pier & Exposition Authority,     
Refunding RB (AGM), McCormick       
Place Expansion Project:       
CAB, Series B, 6.23%, 6/15/43 (a)  6,130  671,358 
CAB, Series B, 6.25%, 6/15/45 (a)  12,420  1,170,833 
Series B, 5.00%, 6/15/50    6,155  5,220,671 
Series B-2, 5.00%, 6/15/50    4,885  4,012,393 
Railsplitter Tobacco Settlement       
Authority, RB:       
5.50%, 6/01/23    2,625  2,485,271 
6.00%, 6/01/28    2,245  2,142,493 
State of Illinois, RB, Build Illinois,       
Series B, 5.25%, 6/15/34    1,240  1,160,752 
Village of Bolingbrook Illinois, GO,       
Refunding, Series B (NPFGC) (a):       
6.01%, 1/01/33    6,820  1,636,323 

 

2 BLACKROCK MUNICIPAL INCOME TRUST JANUARY 31, 2011


BlackRock Municipal Income Trust (BFK)
Schedule of Investments(continued)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Illinois (concluded)       
Village of Bolingbrook Illinois, GO,       
Refunding, Series B (NPFGC) (a)       
(concluded):       
6.01%, 1/01/34  $ 14,085 $ 3,152,364 
      41,889,769 
Indiana — 3.3%       
City of Vincennes Indiana, Refunding       
RB, Southwest Indiana Regional Youth     
Village, 6.25%, 1/01/24    2,030  1,713,767 
Indiana Finance Authority, RB, Sisters of     
St. Francis Health, 5.25%, 11/01/39  1,655  1,500,423 
Indiana Health Facility Financing       
Authority, Refunding RB, Methodist     
Hospital Inc., 5.50%, 9/15/31    9,000  7,164,630 
Indiana Municipal Power Agency, RB,     
Series B, 6.00%, 1/01/39    2,150  2,215,338 
Petersburg Indiana, RB, Indiana Power     
& Light, AMT, 5.90%, 12/01/24    5,000  5,039,400 
      17,633,558 
Kansas — 0.6%       
Kansas Development Finance Authority,     
Refunding RB, Sisters of Leavenworth,     
Series A, 5.00%, 1/01/40    3,275  3,016,930 
Kentucky — 0.3%       
Kentucky Economic Development       
Finance Authority, Refunding RB,       
Owensboro Medical Health System,     
Series A, 6.38%, 6/01/40    1,990  1,868,530 
Louisiana — 1.2%       
Louisiana Local Government       
Environmental Facilities & Community     
Development Authority, RB, Westlake     
Chemical Corp., Series A-1, 6.50%,     
11/01/35    6,535  6,469,911 
Maryland — 1.8%       
Maryland Community Development       
Administration, Refunding RB,       
Residential, Series A, AMT, 4.65%,       
9/01/32    2,465  2,190,646 
Maryland EDC, RB, Transportation       
Facilities Project, Series A, 5.75%,       
6/01/35    855  778,999 
Maryland EDC, Refunding RB, CNX       
Marine Terminals, Inc., 5.75%,       
9/01/25    1,760  1,638,278 
Maryland Health & Higher Educational     
Facilities Authority, Refunding RB,       
Charlestown Community, 6.25%,       
1/01/41    4,295  4,078,188 
Montgomery County Housing       
Opportunities Commission, RB,       
Series D, AMT, 5.50%, 1/01/38    1,030  1,072,673 
      9,758,784 
Massachusetts — 0.6%       
Massachusetts Health & Educational     
Facilities Authority, Refunding RB,       
Partners Healthcare, Series J1,       
5.00%, 7/01/39    3,535  3,165,805 

 

    Par   
Municipal Bonds    (000)  Value 
Michigan — 1.1%       
Kalamazoo Hospital Finance Authority,     
Refunding RB, Bronson Methodist       
Hospital, 5.50%, 5/15/36  $ 2,700  $ 2,502,063 
Michigan State Hospital Finance       
Authority, Refunding RB, Henry Ford     
Health System, Series A, 5.25%,       
11/15/46    4,230  3,517,668 
      6,019,731 
Mississippi — 2.7%       
City of Gulfport Mississippi, RB,       
Memorial Hospital at Gulfport Project,     
Series A, 5.75%, 7/01/31    14,425  14,450,532 
Missouri — 0.3%       
Missouri State Health & Educational       
Facilities Authority, RB, Senior Living     
Facilities, Lutheran Senior Home,       
5.50%, 2/01/42    2,035  1,784,492 
Multi-State — 4.5%       
Centerline Equity Issuer Trust,       
6.80%, 10/31/52 (f)(g)    16,000  17,214,080 
MuniMae TE Bond Subsidiary LLC,       
7.50%, 6/30/49 (f)(g)(h)    7,349  6,833,907 
      24,047,987 
Nebraska — 0.7%       
Douglas County Hospital Authority No. 2,     
RB, Health Facilities, Immanuel       
Obligation Group, 5.63%, 1/01/40  3,280  3,060,929 
Lancaster County Hospital Authority       
No. 1, RB, Immanuel Obligation Group,     
5.63%, 1/01/40    600  559,926 
      3,620,855 
Nevada — 0.8%       
County of Clark Nevada, Refunding RB,     
Alexander Dawson School Nevada       
Project, 5.00%, 5/15/29    4,550  4,142,593 
New Hampshire — 0.7%       
New Hampshire Health & Education       
Facilities Authority, RB, Exeter Project,     
5.75%, 10/01/31    3,500  3,523,695 
New Jersey — 7.5%       
Middlesex County Improvement       
Authority, RB, Subordinate, Heldrich     
Center Hotel, Series B, 6.25%,       
1/01/37 (d)(e)    3,680  509,422 
New Jersey EDA, RB:       
Cigarette Tax, 5.75%, 6/15/29    15,500  13,895,440 
Continental Airlines Inc. Project,       
AMT, 7.00%, 11/15/30 (h)    15,410  15,085,157 
New Jersey EDA, Special Assessment     
Bonds, Refunding, Kapkowski Road     
Landfill Project, 6.50%, 4/01/28    8,000  7,946,800 
Tobacco Settlement Financing Corp.       
New Jersey, Refunding RB, Series 1A,     
4.50%, 6/01/23    3,195  2,667,889 
      40,104,708 

 

BLACKROCK MUNICIPAL INCOME TRUST JANUARY 31, 2011 3


BlackRock Municipal Income Trust (BFK)
Schedule of Investments(continued)
 (Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
New York — 7.1%       
Albany Industrial Development Agency,     
RB, New Covenant Charter School       
Project, Series A, 7.00%,       
5/01/35 (d)(e)  $ 1,820  $ 546,000 
Metropolitan Transportation Authority,     
Refunding RB, Transportation,       
Series D, 5.25%, 11/15/40    2,375  2,171,795 
New York City Industrial Development     
Agency, RB, American Airlines Inc. ,       
JFK International Airport, AMT (h):       
8.00%, 8/01/28    5,000  5,259,300 
7.75%, 8/01/31    22,140  23,039,106 
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  2,412,072 
Port Authority of New York & New Jersey,     
RB, JFK International Air Terminal:       
6.00%, 12/01/36    2,525  2,421,904 
6.00%, 12/01/42    2,460  2,321,920 
      38,172,097 
North Carolina — 5.7%       
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  9,038,184 
North Carolina Capital Facilities Finance     
Agency, RB, Series B:       
Duke Energy Carolinas, 4.38%,       
10/01/31    3,160  2,817,266 
Duke University Project, 5.00%,       
10/01/38    10,000  9,999,300 
North Carolina Capital Facilities Finance     
Agency, Refunding RB, Series B:       
Duke Energy Carolinas, 4.63%,       
11/01/40    3,160  2,788,574 
Duke University Project, 4.25%,       
7/01/42    3,710  3,169,713 
North Carolina Medical Care       
Commission, RB, Duke University       
Health System, Series A, 5.00%,       
6/01/42    2,750  2,518,697 
      30,331,734 
Ohio — 2.5%       
County of Allen Ohio, Refunding RB,       
Catholic Healthcare, Series A, 5.25%,     
6/01/38    6,125  5,665,380 
County of Montgomery Ohio, Refunding     
RB, Catholic Healthcare, Series A,       
5.00%, 5/01/39    5,450  4,952,469 
Pinnacle Community Infrastructure       
Financing Authority, RB, Facilities,       
Series A, 6.25%, 12/01/36    3,760  2,787,664 
      13,405,513 
Oklahoma — 1.4%       
Tulsa Airports Improvement Trust, RB,     
Series A, Mandatory Put Bonds, AMT,     
7.75%, 6/01/35 (h)    7,175  7,258,732 

 

    Par   
Municipal Bonds    (000)  Value 
Pennsylvania — 2.6%       
Allegheny County Hospital Development     
Authority, Refunding RB, Health       
System, West Penn, Series A, 5.38%,     
11/15/40  $ 3,000  $ 1,993,680 
Pennsylvania Economic Development     
Financing Authority, RB:       
Amtrak Project, Series A, AMT,       
6.38%, 11/01/41    6,500  6,502,665 
Aqua Pennsylvania Inc. Project,       
5.00%, 11/15/40    3,725  3,558,232 
Pennsylvania Turnpike Commission, RB,     
Sub-Series D, 5.13%, 12/01/40    2,100  1,953,126 
      14,007,703 
Puerto Rico — 5.6%       
Commonwealth of Puerto Rico, GO,       
Refunding, Public Improvement,       
Series C, 6.00%, 7/01/39    5,820  5,680,204 
Puerto Rico Sales Tax Financing       
Corp., RB:       
CAB, Series A, 6.59%, 8/01/31 (a)  10,000  2,589,800 
CAB, Series A, 6.66%, 8/01/33 (a)  12,670  2,851,130 
CAB, Series A, 6.67%, 8/01/36 (a)  40,000  7,287,600 
First Sub-Series A, 6.50%, 8/01/44  10,900  11,280,737 
      29,689,471 
South Carolina — 2.1%       
South Carolina Jobs-EDA, Refunding RB,     
Palmetto Health Alliance, Series A,       
6.25%, 8/01/31    5,075  5,101,745 
South Carolina State Ports Authority, RB,     
5.25%, 7/01/40    6,455  6,193,508 
      11,295,253 
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  3,139,004 
Rutherford County Health & Educational     
Facilities Board, RB, Ascension Health     
Senior Credit Group, 5.00%,       
11/15/40    2,015  1,811,102 
      4,950,106 
Texas — 15.5%       
Brazos River Authority, RB, TXU Electric,     
Series A, AMT, 8.25%, 10/01/30    4,370  1,628,961 
Brazos River Authority, Refunding RB,     
TXU Electric Co. Project, Series C,       
Mandatory Put Bonds, AMT, 5.75%,     
5/01/36 (h)    4,125  3,882,574 
City of Dallas Texas, Refunding RB,       
5.00%, 10/01/35    2,970  2,965,604 
City of Houston Texas, RB, Senior Lien,     
Series A, 5.50%, 7/01/39    3,000  3,007,080 
City of Houston Texas, Refunding RB,     
Combined, First Lien, Series A (AGC),     
6.00%, 11/15/35    16,425  17,746,720 
Harris County-Houston Sports Authority,     
Refunding RB (NPFGC) (a):       
CAB, Junior Lien, Series H, 6.12%,     
11/15/35    5,000  666,000 

 

4 BLACKROCK MUNICIPAL INCOME TRUST JANUARY 31, 2011


BlackRock Municipal Income Trust (BFK)
Schedule of Investments(continued)
 (Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Texas (concluded)       
Harris County-Houston Sports Authority,     
Refunding RB (NPFGC) (a)       
(concluded):       
CAB, Senior Lien, Series A, 5.95%,     
11/15/38  $ 12,580   $1,488,466 
Third Lien, Series A-3, 5.97%,       
11/15/37    26,120  2,844,990 
Lower Colorado River Authority,       
Refunding RB:       
(NPFGC), 5.00%, 5/15/13 (c)    50  54,611 
(NPFGC), 5.00%, 5/15/13 (c)    70  76,371 
(NPFGC), 5.00%, 5/15/31    1,775  1,700,645 
LCRA Transmission Services Project     
(AMBAC), 4.75%, 5/15/34    140  127,491 
Series A (NPFGC), 5.00%,       
5/15/13 (c)    5  5,461 
North Texas Tollway Authority, RB, Toll,     
Second Tier, Series F, 6.13%,       
1/01/31    12,180  12,197,052 
San Antonio Energy Acquisition Public     
Facility Corp., RB, Gas Supply, 5.50%,     
8/01/25    6,540  6,424,765 
State of Texas, GO, Transportation       
Community, Mobility Fund, Series A,     
4.75%, 4/01/35    3,350  3,183,471 
Tarrant County Cultural Education       
Facilities Finance Corp., RB, Scott &     
White Healthcare, 6.00%, 8/15/45  7,930  7,918,264 
Texas Private Activity Bond Surface       
Transportation Corp., RB:       
Senior Lien, LBJ Infrastructure       
Group LLC, LBJ Freeway Managed     
Lanes Project, 7.00%, 6/30/40    8,475  8,532,291 
Senior Lien, NTE Mobility Partners     
LLC, North Tarrant Express       
Managed Lanes Project, 6.88%,       
12/31/39    7,590  7,565,788 
Texas State Affordable Housing Corp.,     
RB, American Opportunity Housing       
Portfolio, Junior Series B, 8.00%,       
3/01/32 (d)(e)    4,435  206,139 
Texas State Turnpike Authority, RB, First     
Tier, Series A (AMBAC), 5.00%,       
8/15/42    640  543,488 
      82,766,232 
Utah — 1.2%       
City of Riverton Utah, RB, IHC Health       
Services Inc., 5.00%, 8/15/41    7,150  6,545,038 
Virginia — 1.7%       
City of Norfolk Virginia, Refunding RB,     
Series B (AMBAC), 5.50%, 2/01/31  2,240  2,014,365 
Virginia Commonwealth Transportation     
Board, RB, CAB, Contract, Route 28     
(NPFGC), 5.29%, 4/01/32 (a)    8,105  2,501,365 
Virginia HDA, RB, Sub-Series H-1       
(NPFGC), 5.35%, 7/01/31    4,520  4,524,339 
      9,040,069 

 

    Par   
Municipal Bonds    (000)  Value 
Wisconsin — 2.5%       
Wisconsin Health & Educational       
Facilities Authority, RB:       
Ascension Health Senior Credit       
Group, 5.00%, 11/15/30  $ 3,210 $ 2,945,143 
Ascension Health Senior Credit       
Group, 5.00%, 11/15/33    1,640  1,469,391 
Aurora Health Care, 6.40%,       
4/15/33    7,500  7,551,075 
Wisconsin Health & Educational       
Facilities Authority, Refunding RB,       
Froedtert & Community Health Inc.,     
5.38%, 10/01/30    1,205  1,174,224 
      13,139,833 
Total Municipal Bonds – 136.9%      731,706,347 
Municipal Bonds Transferred to Tender     
Option Bond Trusts (i)       
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  4,248,087 
California — 3.2%       
California Educational Facilities       
Authority, RB, University of Southern     
California, Series A, 5.25%, 10/01/39  5,115  5,153,107 
Los Angeles Community College District     
California, GO, Election of 2001,       
Series A (AGM), 5.00%, 8/01/32    4,500  4,239,945 
San Diego Community College District     
California, GO, Election of 2002,       
5.25%, 8/01/33    3,260  3,278,156 
University of California, RB, Series C       
(NPFGC), 4.75%, 5/15/37    5,000  4,507,200 
      17,178,408 
Colorado — 2.1%       
Colorado Health Facilities Authority, RB     
Catholic Health, (AGM):       
Series C-3, 5.10%, 10/01/41    7,600  6,952,404 
Series C-7, 5.00%, 9/01/36    4,860  4,465,805 
      11,418,209 
Connecticut — 3.5%       
Connecticut State Health & Educational     
Facility Authority, RB, Yale University:     
Series T-1, 4.70%, 7/01/29    9,400  9,464,860 
Series X-3, 4.85%, 7/01/37    9,360  9,368,799 
      18,833,659 
Illinois — 1.5%       
Chicago Housing Authority, Refunding     
RB (AGM), 5.00%, 7/01/24    8,232  8,191,692 

 

BLACKROCK MUNICIPAL INCOME TRUST JANUARY 31, 2011 5


BlackRock Municipal Income Trust (BFK)
Schedule of Investments(continued)
(Percentages shown are based on Net Assets)

Municipal Bonds Transferred to Tender  Par   
Option Bond Trusts (i)  (000)  Value 
Massachusetts — 1.3%     
Massachusetts Water Resources     
Authority, Refunding RB, General,     
Series A, 5.00%, 8/01/41  $ 6,770  $ 6,686,458 
New Hampshire — 0.8%     
New Hampshire Health & Education     
Facilities Authority, Refunding RB,     
Dartmouth College, 5.25%, 6/01/39  3,988  4,068,643 
New York — 4.7%     
New York City Municipal Water Finance     
Authority, RB, Series FF-2, 5.50%,     
6/15/40  3,074  3,142,197 
New York State Dormitory Authority,     
ERB, Series F, 5.00%, 3/15/35  16,709  16,296,077 
New York State Environmental Facilities     
Corp., RB, Revolving Funds, New York     
City Municipal Water Project, Series B,     
5.00%, 6/15/31  5,370  5,378,162 
    24,816,436 
Virginia — 2.0%     
University of Virginia, Refunding RB,     
General, 5.00%, 6/01/40  10,750  10,861,048 
Washington — 3.7%     
Central Puget Sound Regional Transit     
Authority, RB, Series A (AGM), 5.00%,     
11/01/32  5,459  5,422,701 
State of Washington, GO, Various     
Purpose, Series E, 5.00%, 2/01/34  14,487  14,487,102 
    19,909,803 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts – 23.6%    126,212,443 
Total Long-Term Investments     
(Cost – $919,253,220) – 160.5%    857,918,790 
Short-Term Securities  Shares   
FFI Institutional Tax-Exempt Fund,     
0.15% (j)(k)  23,974,263  23,974,263 
Total Short-Term Securities     
(Cost – $23,974,263) – 4.5%    23,974,263 
Total Investments     
(Cost – $943,227,483*) – 165.0%    881,893,053 
Liabilities in Excess of Other Assets – (0.2)%  (1,367,356) 
Liability for Trust Certificates, Including Interest   
Expense and Fees Payable – (14.1)%    (75,243,678) 
Preferred Shares, at Redemption Value – (50.7)%  (270,889,767) 
Net Assets Applicable to Common Shares – 100.0%  $ 534,392,252 


* The cost and unrealized appreciation (depreciation) of investments as of
January 31, 2011, as computed for federal income tax purposes, were as
follows:

Aggregate cost  $ 866,902,693 
Gross unrealized appreciation  $ 11,108,503 
Gross unrealized depreciation  (71,300,290) 
Net unrealized depreciation  $ (60,191,787) 


(a) Represents a zero-coupon bond. Rate shown reflects the current yield as
of report date.
(b) When-issued security. Unsettled when-issued transactions were as
follows:

    Unrealized 
Counterparty  Value  Appreciation 
Morgan Stanley Co. Inc.  $ 6,117,362  $ 59,123 
Goldman Sachs Co.  $ 4,372,214 $ 54,468 


(c) 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.
(d) Non-income producing security.
(e) Issuer filed for bankruptcy and/or is in default of interest payments.
(f) 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.
(g) 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.
(h) Variable rate security. Rate shown is as of report date.
(i) 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.
(j) 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    Shares   
  Held at    Held at   
  April 30,  Net  January 31,   
Affiliate  2010  Activity  2011  Income 
FFI Institutional         
Tax-Exempt         
Fund  22,810,780  1,163,483  23,974,263  $12,953 


(k) Represents the current yield as of report date.

6 BLACKROCK MUNICIPAL INCOME TRUST JANUARY 31, 2011


Schedule of Investments (concluded)
BlackRock Municipal Income Trust (BFK)

•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 Trust’s most recent
financial statements as contained in its semi-annual report.

The following table summarizes the inputs used as of January 31, 2011 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         
Investments1  —                $857,918,790  —  $ 857,918,790 
Short-Term         
Securities  $ 23,974,263  —  —  23,974,263 
Total   $ 23,974,263      $857,918,790  —  $ 881,893,053 
1 See above Schedule of Investments for values in each state or political subdivision.

 

BLACKROCK MUNICIPAL INCOME TRUST JANUARY 31, 2011 7


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
31940 Act3)) areeffective 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/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Municipal Income Trust

Date: March 25, 2011

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: John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Municipal Income Trust

Date: March 25, 2011

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

Date: March 25, 2011