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 811-06728

 

Name of Fund: BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock MuniYield Quality Fund II, Inc., 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 MuniYield Quality Fund II, Inc. (MQT)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 0.8%

 

 

 

 

 

 

 

Birmingham Special Care Facilities
Financing Authority, RB, Children’s
Hospital (AGC), 6.00%, 6/01/39

 

$

650

 

$

709,794

 

County of Jefferson Alabama, RB,
Series A, 4.75%, 1/01/25

 

 

2,000

 

 

1,570,060

 

 

 

 

 

 

 

 

 

 

 

 

 

2,279,854

 

Arizona — 1.2%

 

 

 

 

 

 

 

State of Arizona, COP, Department of
Administration, Series A (AGM):

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

2,300

 

 

2,368,057

 

5.00%, 10/01/29

 

 

925

 

 

939,217

 

 

 

 

 

 

 

 

 

 

 

 

 

3,307,274

 

California — 20.1%

 

 

 

 

 

 

 

Alameda Corridor Transportation
Authority, Refunding RB, CAB,
Subordinate Lien, Series A (AMBAC),
5.48%, 10/01/25 (a)

 

 

7,150

 

 

5,828,322

 

Antelope Valley Community College
District, GO, Election of 2004,
Series B (NPFGC), 5.25%, 8/01/39

 

 

550

 

 

565,890

 

Arcadia Unified School District
California, GO, CAB, Election of 2006,
Series A (AGM), 4.96%, 8/01/39 (b)

 

 

1,400

 

 

209,426

 

Cabrillo Community College District
California, GO, CAB, Election of 2004,
Series B (NPFGC) (b):

 

 

 

 

 

 

 

5.18%, 8/01/37

 

 

2,100

 

 

367,899

 

4.87%, 8/01/38

 

 

4,800

 

 

784,944

 

California Health Facilities Financing
Authority, RB, Kaiser Permanente,
Series A (AGM), 5.50%, 6/01/22 (c)

 

 

5,000

 

 

5,007,000

 

California Health Facilities Financing
Authority, Refunding RB, St. Joseph
Health System, Series A, 5.75%,
7/01/39

 

 

500

 

 

523,035

 

Coast Community College District
California, GO, Refunding, CAB,
Election of 2002, Series C (AGM),
5.52%, 8/01/13 (a)

 

 

1,800

 

 

1,511,478

 

East Side Union High School District, GO
(AGM), 4.92%, 8/01/29 (b)

 

 

15,000

 

 

4,695,750

 

El Monte Union High School District
California, GO, Election of 2002,
Series C (AGM), 5.25%, 6/01/28

 

 

4,000

 

 

4,236,640

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Fairfield-Suisun Unified School District
California, GO, Election of 2002
(NPFGC), 5.50%, 8/01/28

 

$

2,770

 

$

2,933,125

 

Fresno Unified School District
California, GO, Election of 2001,
Series E (AGM), 5.00%, 8/01/30

 

 

800

 

 

820,416

 

Los Angeles Department of Water &
Power, RB, Series A (NPFGC), 5.00%,
7/01/38

 

 

3,390

 

 

3,423,188

 

Metropolitan Water District of Southern
California, RB, Series B-1 (NPFGC):

 

 

 

 

 

 

 

5.00%, 10/01/29

 

 

2,600

 

 

2,696,928

 

5.00%, 10/01/36

 

 

1,475

 

 

1,516,212

 

Monterey Peninsula Community College
District, GO, CAB, Series C (AGM),
5.08%, 8/01/28 (b)

 

 

11,975

 

 

4,082,996

 

Palm Springs Financing Authority,
Refunding RB, Convention Center
Project, Series A (NPFGC), 5.50%,
11/01/29

 

 

2,900

 

 

2,987,783

 

Port of Oakland, RB, Series K, AMT
(NPFGC), 5.75%, 11/01/29

 

 

2,000

 

 

2,000,100

 

Poway Redevelopment Agency
California, Tax Allocation Bonds,
Refunding, Paguay Redevelopment
Project (AMBAC), 5.13%, 6/15/33

 

 

1,250

 

 

1,133,500

 

Sacramento Municipal Utility District,
RB, Series N (NPFGC), 5.00%,
8/15/28

 

 

4,300

 

 

4,323,736

 

Sacramento Unified School District
California, GO, Election of 2002
(NPFGC), 5.00%, 7/01/30

 

 

1,600

 

 

1,634,192

 

San Diego County Water Authority,
COP, Refunding, Series 2008-A
(AGM), 5.00%, 5/01/38

 

 

2,015

 

 

2,082,845

 

State of California, GO, 5.13%,
6/01/27

 

 

20

 

 

20,063

 

Ventura County Community College
District, GO, Election of 2002,
Series B (NPFGC), 5.00%, 8/01/30

 

 

2,025

 

 

2,085,446

 

Yosemite Community College District,
GO, CAB, Election of 2004, Series D,
6.55%, 8/01/36 (b)

 

 

2,000

 

 

379,980

 

 

 

 

 

 

 

 

 

 

 

 

 

55,850,894

 

 

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:

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

ARB

Airport Revenue Bonds

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

ERB

Education Revenue Bonds

FGIC

Financial Guaranty Insurance Co.

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

ISD

Independent School District

NPFGC

National Public Finance Guarantee Corp.

PSF-GTD

Permanent School Fund Guaranteed

RB

Revenue Bonds

S/F

Single Family

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JULY 31, 2010

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Colorado — 1.1%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Covenant Retirement Communities,
Series A (Radian):

 

 

 

 

 

 

 

5.50%, 12/01/27

 

$

1,200

 

$

1,129,620

 

5.50%, 12/01/33

 

 

675

 

 

616,288

 

E-470 Public Highway Authority
Colorado, Refunding RB, CAB, Series
B (NPFGC), 5.62%, 9/01/32 (b)

 

 

5,500

 

 

1,221,550

 

 

 

 

 

 

 

 

 

 

 

 

 

2,967,458

 

Florida — 16.3%

 

 

 

 

 

 

 

Broward County School Board Florida,
COP, Series A (AGM), 5.25%,
7/01/33

 

 

1,400

 

 

1,445,696

 

County of Duval Florida, COP, Master
Lease Program (AGM), 5.00%,
7/01/33

 

 

2,600

 

 

2,615,002

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

Jackson Health System (AGC),
5.63%, 6/01/34

 

 

1,000

 

 

1,055,090

 

Water & Sewer System (AGM),
5.00%, 10/01/39

 

 

6,900

 

 

7,099,134

 

County of Miami-Dade Florida,
Refunding RB, Miami International
Airport, AMT (AGC), 5.00%, 10/01/40

 

 

12,550

 

 

12,224,955

 

County of Orange Florida, Refunding
RB, Series B (NPFGC), 5.13%,
1/01/32

 

 

1,575

 

 

1,595,822

 

Hillsborough County Aviation Authority
Florida, RB, Series A, AMT (AGC),
5.38%, 10/01/33

 

 

3,250

 

 

3,291,535

 

Miami-Dade County School Board, COP,
Refunding, Series B (AGC), 5.25%,
5/01/31

 

 

1,625

 

 

1,687,741

 

Orange County School Board, COP,
Series A:

 

 

 

 

 

 

 

(AGC), 5.50%, 8/01/34

 

 

2,850

 

 

3,052,521

 

(NPFGC), 5.00%, 8/01/31

 

 

9,000

 

 

9,074,250

 

Sarasota County Public Hospital
District, RB, Sarasota Memorial
Hospital Project, Series A, 5.63%,
7/01/39

 

 

250

 

 

260,210

 

South Florida Water Management
District, COP (AGC), 5.00%,
10/01/22

 

 

1,800

 

 

1,909,566

 

 

 

 

 

 

 

 

 

 

 

 

 

45,311,522

 

Georgia — 1.0%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB
(AGM), 5.25%, 10/01/39

 

 

1,880

 

 

1,957,588

 

Gwinnett County Hospital Authority,
Refunding RB, Gwinnett Hospital
System, Series D (AGM), 5.50%,
7/01/41

 

 

730

 

 

747,009

 

 

 

 

 

 

 

 

 

 

 

 

 

2,704,597

 

Illinois — 22.6%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO,
Refunding, Chicago School Reform
Board, Series A (NPFGC), 5.50%,
12/01/26

 

 

2,500

 

 

2,849,950

 

City of Chicago Illinois, ARB, General,
Third Lien, Series B-2, AMT:

 

 

 

 

 

 

 

(AGM), 5.75%, 1/01/23

 

 

5,200

 

 

5,445,596

 

(Syncora), 6.00%, 1/01/29

 

 

2,200

 

 

2,276,626

 

City of Chicago Illinois, GO, CAB, City
Colleges (NPFGC), 5.89%,
1/01/31 (b)

 

 

8,370

 

 

2,802,946

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

City of Chicago Illinois, GO, Refunding,
Series A (AGM), 5.00%, 1/01/25

 

$

5,000

 

$

5,301,300

 

City of Chicago Illinois, RB, Series A
(AGC), 5.00%, 1/01/38

 

 

4,000

 

 

4,089,360

 

City of Chicago Illinois, Refunding RB,
General Airport, Third Lien, Series A,
AMT (NPFGC), 5.50%, 1/01/22

 

 

9,150

 

 

9,348,646

 

County of Cook Illinois, GO, Capital
Improvement, Series C (AMBAC),
5.50%, 11/15/12 (d)

 

 

2,460

 

 

2,735,397

 

Illinois Finance Authority, Refunding
RB, Central DuPage Health, Series B,
5.50%, 11/01/39

 

 

2,070

 

 

2,159,776

 

Illinois Sports Facilities Authority, RB,
State Tax Supported (AMBAC),
5.50%, 6/15/30

 

 

21,675

 

 

22,645,390

 

Regional Transportation Authority, RB,
Series B (NPFGC), 5.75%, 6/01/33

 

 

2,000

 

 

2,246,040

 

State of Illinois, RB, Build Illinois,
Series B, 5.25%, 6/15/34

 

 

1,125

 

 

1,162,811

 

 

 

 

 

 

 

 

 

 

 

 

 

63,063,838

 

Indiana — 0.1%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB,
Indiana Municipal Power Agency,
Series B, 5.75%, 1/01/34

 

 

350

 

 

373,412

 

Iowa — 1.9%

 

 

 

 

 

 

 

Iowa Finance Authority, RB, Series A
(AGC), 5.63%, 8/15/37

 

 

4,925

 

 

5,208,975

 

Kentucky — 0.8%

 

 

 

 

 

 

 

Kentucky State Property & Buildings
Commission, Refunding RB, Project
No. 93 (AGC), 5.25%, 2/01/29

 

 

2,000

 

 

2,177,200

 

Louisiana — 1.4%

 

 

 

 

 

 

 

Jefferson Parish Home Mortgage
Authority, RB, Series B-1, AMT
(NPFGC), 6.65%, 12/01/33

 

 

1,145

 

 

1,235,054

 

Louisiana Public Facilities Authority,
Refunding RB, Christus Health,
Series B (AGC), 6.50%, 7/01/30

 

 

1,150

 

 

1,301,052

 

Rapides Finance Authority Louisiana,
RB, Cleco Power LLC Project, AMT
(AMBAC), 4.70%, 11/01/36 (e)

 

 

1,575

 

 

1,387,024

 

 

 

 

 

 

 

 

 

 

 

 

 

3,923,130

 

Maryland — 0.4%

 

 

 

 

 

 

 

Maryland Community Development
Administration, Refunding RB,
Residential, Series A, AMT, 5.75%,
9/01/39

 

 

1,020

 

 

1,082,801

 

Massachusetts — 8.7%

 

 

 

 

 

 

 

Massachusetts HFA, RB, AMT (AGM):

 

 

 

 

 

 

 

Rental Mortgage, Series F, 5.25%,
1/01/46

 

 

19,800

 

 

19,827,720

 

S/F Housing, Series 128, 4.80%,
12/01/27 (e)

 

 

1,500

 

 

1,484,250

 

Massachusetts Water Resources
Authority, Refunding RB, General,
Series A (NPFGC), 5.00%, 8/01/34

 

 

2,700

 

 

2,841,588

 

 

 

 

 

 

 

 

 

 

 

 

 

24,153,558

 

 

 

 

2

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JULY 31, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan — 8.0%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Second
Lien:

 

 

 

 

 

 

 

Series B (AGM), 6.25%, 7/01/36

 

$

350

 

$

383,796

 

Series B (AGM), 7.00%, 7/01/36

 

 

200

 

 

231,140

 

System, Series A (BHAC), 5.50%,
7/01/36

 

 

5,500

 

 

5,714,225

 

System, Series B (NPFGC), 5.00%,
7/01/36

 

 

3,000

 

 

2,957,010

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

Second Lien, Series E (BHAC),
5.75%, 7/01/31

 

 

2,200

 

 

2,351,184

 

Series D (NPFGC), 5.00%, 7/01/28

 

 

4,000

 

 

4,001,880

 

Series D (NPFGC), 5.00%, 7/01/33

 

 

1,000

 

 

985,870

 

Michigan Higher Education Student
Loan Authority, Refunding RB,
Student Loan, Series XVII-G, AMT
(AMBAC), 5.20%, 9/01/20

 

 

1,000

 

 

1,011,760

 

Michigan Strategic Fund, RB, Detroit
Edison Co. Project, Series C, AMT
(Syncora), 5.45%, 12/15/32

 

 

3,900

 

 

3,748,719

 

Michigan Strategic Fund, Refunding RB,
Detroit Edison Co. Project, Series A,
AMT (Syncora), 5.50%, 6/01/30

 

 

1,000

 

 

975,180

 

 

 

 

 

 

 

 

 

 

 

 

 

22,360,764

 

Minnesota — 0.7%

 

 

 

 

 

 

 

City of Minneapolis Minnesota,
Refunding RB, Fairview Health
Services, Series B (AGC), 6.50%,
11/15/38

 

 

1,800

 

 

2,024,154

 

Dakota County Community
Development Agency, RB, Mortgage-
Backed Securities Program, Series B,
AMT (Ginnie Mae), 5.15%, 12/01/38

 

 

—

(f)

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

2,024,158

 

Mississippi — 1.0%

 

 

 

 

 

 

 

Mississippi Development Bank Special
Obligation, Refunding RB, Jackson
Mississippi Water and Sewer System
(AGM), 5.00%, 9/01/34

 

 

2,700

 

 

2,748,762

 

Nevada — 4.1%

 

 

 

 

 

 

 

City of Carson City Nevada, RB, Carson-
Tahoe Hospital Project, Series A
(Radian), 5.50%, 9/01/33

 

 

2,800

 

 

2,619,484

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Las Vegas-McCarran International
Airport, Series A (AGC), 5.25%,
7/01/39

 

 

1,700

 

 

1,734,102

 

Southwest Gas Corp. Project, Series
A AMT (FGIC), 4.75%, 9/01/36

 

 

40

 

 

33,333

 

Subordinate Lien, Series A-2
(NPFGC), 5.00%, 7/01/30

 

 

1,500

 

 

1,510,005

 

Subordinate Lien, Series A-2
(NPFGC), 5.00%, 7/01/36

 

 

2,700

 

 

2,703,699

 

System, Subordinate Lien, Series C
(AGM), 5.00%, 7/01/26

 

 

1,275

 

 

1,335,677

 

Las Vegas Valley Water District, GO,
Refunding, Series A (NPFGC), 5.00%,
6/01/24

 

 

1,350

 

 

1,418,445

 

 

 

 

 

 

 

 

 

 

 

 

 

11,354,745

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New Jersey — 7.3%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax (Radian), 5.75%,
6/15/29

 

$

870

 

$

870,827

 

Cigarette Tax (Radian), 5.50%,
6/15/31

 

 

85

 

 

82,873

 

Motor Vehicle Surcharge, Series A
(NPFGC), 5.25%, 7/01/33

 

 

8,200

 

 

8,356,456

 

School Facilities Construction,
Series O, 5.13%, 3/01/28

 

 

2,750

 

 

2,885,327

 

School Facilities Construction,
Series P, 5.13%, 9/01/28

 

 

4,000

 

 

4,190,440

 

New Jersey EDA, Refunding RB, School
Facilities Construction, Series N-1
(AGM), 5.50%, 9/01/25

 

 

2,000

 

 

2,347,240

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System,
Series A (NPFGC), 5.75%, 6/15/25

 

 

1,400

 

 

1,656,998

 

 

 

 

 

 

 

 

 

 

 

 

 

20,390,161

 

Ohio — 2.7%

 

 

 

 

 

 

 

New Albany Plain Local School District,
GO, Refunding:

 

 

 

 

 

 

 

(FGIC), 6.00%, 6/01/11 (d)

 

 

5,120

 

 

5,367,040

 

(NPFGC), 6.00%, 12/01/20

 

 

1,170

 

 

1,219,163

 

Ohio Higher Educational Facility
Commission, Refunding RB, Summa
Health System, 2010 Project (AGC),
5.25%, 11/15/40

 

 

900

 

 

908,370

 

 

 

 

 

 

 

 

 

 

 

 

 

7,494,573

 

Pennsylvania — 1.7%

 

 

 

 

 

 

 

Pennsylvania HFA, Refunding RB,
Series 99A, AMT, 5.25%, 10/01/32

 

 

1,340

 

 

1,358,211

 

Pennsylvania Turnpike Commission,
RB, CAB, Sub-Series E, 6.48%,
12/01/38 (a)

 

 

2,600

 

 

1,873,482

 

Philadelphia School District, GO,
Series E, 6.00%, 9/01/38

 

 

1,300

 

 

1,407,081

 

 

 

 

 

 

 

 

 

 

 

 

 

4,638,774

 

Puerto Rico — 2.0%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, First Sub-Series A, 6.38%,
8/01/39

 

 

3,000

 

 

3,312,120

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB:

 

 

 

 

 

 

 

CAB, Series A (NPFGC), 5.75%,
8/01/41 (b)

 

 

10,000

 

 

1,504,900

 

First Sub-Series C, 6.00%, 8/01/39

 

 

725

 

 

782,703

 

 

 

 

 

 

 

 

 

 

 

 

 

5,599,723

 

Texas — 10.5%

 

 

 

 

 

 

 

Dallas-Fort Worth International Airport
Facilities Improvement Corp., RB,
Series A, AMT (NPFGC), 5.50%,
11/01/33

 

 

5,000

 

 

5,040,950

 

Lewisville ISD Texas, GO, Refunding,
CAB, School Building (NPFGC),
4.67%, 8/15/24 (b)

 

 

3,915

 

 

1,998,099

 

Lone Star College System, GO, 5.00%,
8/15/33

 

 

3,000

 

 

3,187,560

 

Mansfield ISD Texas, GO, School
Building (PSF-GTD), 5.00%, 2/15/33

 

 

1,065

 

 

1,125,748

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JULY 31, 2010

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

Matagorda County Navigation District
No. 1 Texas, Refunding RB, Central
Power & Light Co. Project, AMT
(NPFGC), 5.20%, 5/01/30 (e)

 

$

1,750

 

$

1,724,362

 

North Harris County Regional Water
Authority, RB, Senior Lien (NPFGC),
5.13%, 12/15/35

 

 

1,245

 

 

1,273,535

 

North Texas Tollway Authority, RB,
System, First Tier, Series K-1 (AGC),
5.75%, 1/01/38

 

 

3,400

 

 

3,702,430

 

North Texas Tollway Authority,
Refunding RB, First Tier:

 

 

 

 

 

 

 

Series A, 6.00%, 1/01/28

 

 

2,415

 

 

2,639,909

 

System, (NPFGC), 5.75%, 1/01/40

 

 

3,600

 

 

3,747,384

 

Texas State Turnpike Authority, RB,
First Tier, Series A (AMBAC), 5.75%,
8/15/38

 

 

4,800

 

 

4,881,024

 

 

 

 

 

 

 

 

 

 

 

 

 

29,321,001

 

Virginia — 0.6%

 

 

 

 

 

 

 

Virginia HDA, RB, Sub-Series H-1
(NPFGC), 5.35%, 7/01/31

 

 

1,590

 

 

1,602,974

 

Washington — 4.0%

 

 

 

 

 

 

 

Port of Seattle Washington, RB, Series
B, AMT (NPFGC), 6.00%, 2/01/16

 

 

7,470

 

 

7,480,309

 

Washington Health Care Facilities
Authority, RB, Providence Health &
Services, Series A:

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

1,000

 

 

1,008,330

 

5.25%, 10/01/39

 

 

550

 

 

565,070

 

Washington Health Care Facilities
Authority, Refunding RB, Providence
Health, Series D (AGM), 5.25%,
10/01/33

 

 

2,000

 

 

2,098,840

 

 

 

 

 

 

 

 

 

 

 

 

 

11,152,549

 

Wisconsin — 0.4%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB, Ascension
Health Senior Credit Group, 5.00%,
11/15/33

 

 

1,200

 

 

1,220,532

 

Vermont — 0.9%

 

 

 

 

 

 

 

Vermont HFA, Refunding RB, Multiple
Purpose, Series C, AMT (AGM),
5.50%, 11/01/38 (e)

 

 

2,440

 

 

2,499,146

 

Total Municipal Bonds – 120.3%

 

 

 

 

 

334,812,375

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (g)

 

 

 

 

 

 

 

Arizona — 0.4%

 

 

 

 

 

 

 

Phoenix Civic Improvement Corp., RB,
Junior Lien, Series A, 5.00%,
7/01/34

 

 

1,000

 

 

1,053,640

 

California — 6.3%

 

 

 

 

 

 

 

Anaheim Public Financing Authority
California, RB, Electric System
Distribution Facilities, Series A (AGM),
5.00%, 10/01/31

 

 

3,808

 

 

3,826,415

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (g)

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Los Angeles Community College District
California, GO, Series A:

 

 

 

 

 

 

 

Election of 2001, (NPFGC), 5.00%,
8/01/32

 

$

4,330

 

$

4,435,305

 

Election of 2008, 6.00%, 8/01/33

 

 

1,699

 

 

1,917,152

 

Orange County Sanitation District, COP
(NPFGC), 5.00%, 2/01/33

 

 

2,299

 

 

2,346,313

 

San Diego Community College District
California, GO, Election of 2002,
5.25%, 8/01/33

 

 

359

 

 

382,590

 

San Diego County Water Authority,
COP, Refunding, Series 2008-A
(AGM), 5.00%, 5/01/33

 

 

3,030

 

 

3,146,110

 

Tamalpais Union High School District
California, GO, Election of 2001
(AGM), 5.00%, 8/01/28

 

 

1,320

 

 

1,369,698

 

 

 

 

 

 

 

 

 

 

 

 

 

17,423,583

 

Colorado — 0.3%

 

 

 

 

 

 

 

Colorado Health Facilities Authority,
Refunding RB, Catholic Healthcare,
Series A, 5.50%, 7/01/34

 

 

780

 

 

831,827

 

District of Columbia — 1.0%

 

 

 

 

 

 

 

District of Columbia, RB, Series A,
5.50%, 12/01/30

 

 

855

 

 

968,296

 

District of Columbia Water & Sewer
Authority, RB, Series A, 6.00%,
10/01/35

 

 

1,580

 

 

1,785,611

 

 

 

 

 

 

 

 

 

 

 

 

 

2,753,907

 

Florida — 3.6%

 

 

 

 

 

 

 

City of Tallahassee Florida, RB (NPFGC),
5.00%, 10/01/37

 

 

4,000

 

 

4,076,960

 

County of Seminole Florida, Refunding
RB, Series B (NPFGC), 5.25%,
10/01/31

 

 

4,200

 

 

4,681,992

 

Florida State Board of Education, GO,
Series D, 5.00%, 6/01/37

 

 

1,189

 

 

1,240,295

 

 

 

 

 

 

 

 

 

 

 

 

 

9,999,247

 

Georgia — 7.3%

 

 

 

 

 

 

 

City of Atlanta Georgia, RB (AGM),
General:

 

 

 

 

 

 

 

Series B, 5.25%, 1/01/33

 

 

4,999

 

 

5,137,480

 

Subordinate Lien, Series C, 5.00%,
1/01/33

 

 

15,000

 

 

15,169,500

 

 

 

 

 

 

 

 

 

 

 

 

 

20,306,980

 

Hawaii — 1.8%

 

 

 

 

 

 

 

Honolulu City & County Board of Water
Supply, RB, Series A (NPFGC), 5.00%,
7/01/33

 

 

5,000

 

 

5,124,850

 

Illinois — 8.1%

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB,
Second Lien (AGM), 5.25%,
11/01/33

 

 

2,549

 

 

2,717,636

 

Illinois State Toll Highway Authority, RB,
Series B, 5.50%, 1/01/33

 

 

3,499

 

 

3,821,708

 

Metropolitan Pier & Exposition
Authority, RB, McCormick Place
Expansion Project, Series A (NPFGC),
5.00%, 12/15/28

 

 

3,500

 

 

3,554,075

 

 

 

 

4

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JULY 31, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (g)

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

Regional Transportation Authority, RB
(NPFGC), 6.50%, 7/01/26

 

$

10,000

 

$

12,511,352

 

 

 

 

 

 

 

 

 

 

 

 

 

22,604,771

 

Louisiana — 1.7%

 

 

 

 

 

 

 

State of Louisiana, RB, Series A (AGM),
5.00%, 5/01/36

 

 

4,600

 

 

4,750,420

 

Massachusetts — 2.7%

 

 

 

 

 

 

 

Massachusetts School Building
Authority, RB, Series A (AGM), 5.00%,
8/15/30

 

 

7,195

 

 

7,546,986

 

Nevada — 1.9%

 

 

 

 

 

 

 

City of Las Vegas Nevada, GO, Limited
Tax, Performing Arts Center, 6.00%,
4/01/39

 

 

3,298

 

 

3,639,854

 

Clark County Water Reclamation
District, GO, Series B, 5.75%,
7/01/34

 

 

1,574

 

 

1,756,926

 

 

 

 

 

 

 

 

 

 

 

 

 

5,396,780

 

New York — 2.3%

 

 

 

 

 

 

 

New York City Municipal Water Finance
Authority, RB, Fiscal 2009, Series A,
5.75%, 6/15/40

 

 

1,050

 

 

1,188,672

 

New York State Dormitory Authority,
ERB, Series B, 5.75%, 3/15/36

 

 

1,005

 

 

1,143,961

 

New York State Thruway Authority, RB,
Series G (AGM), 5.00%, 1/01/32

 

 

2,700

 

 

2,796,228

 

Triborough Bridge & Tunnel Authority,
RB, General, Series A-2, 5.25%,
11/15/34

 

 

1,200

 

 

1,296,096

 

 

 

 

 

 

 

 

 

 

 

 

 

6,424,957

 

Ohio — 0.2%

 

 

 

 

 

 

 

State of Ohio, RB, Cleveland Clinic
Health, Series B, 5.50%, 1/01/34

 

 

500

 

 

533,615

 

South Carolina — 2.7%

 

 

 

 

 

 

 

Charleston Educational Excellence
Finance Corp., RB, Charleston County
School (AGC):

 

 

 

 

 

 

 

5.25%, 12/01/28

 

 

2,725

 

 

2,867,000

 

5.25%, 12/01/29

 

 

2,425

 

 

2,538,369

 

5.25%, 12/01/30

 

 

880

 

 

917,726

 

South Carolina State Public Service
Authority, RB, Santee Cooper,
Series A, 5.50%, 1/01/38

 

 

1,125

 

 

1,230,277

 

 

 

 

 

 

 

 

 

 

 

 

 

7,553,372

 

Texas — 4.3%

 

 

 

 

 

 

 

Clear Creek ISD Texas, GO, Refunding,
School Building (PSF-GTD), 5.00%,
2/15/33

 

 

1,900

 

 

2,062,564

 

Cypress-Fairbanks ISD, GO, Refunding,
Schoolhouse (PSF-GTD), 5.00%,
2/15/32

 

 

5,250

 

 

5,568,097

 

Harris County Cultural Education
Facilities Finance Corp., RB, Hospital,
Texas Children’s Hospital Project,
5.50%, 10/01/39

 

 

4,000

 

 

4,178,280

 

 

 

 

 

 

 

 

 

 

 

 

 

11,808,941

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (g)

 

Par
(000)

 

Value

 

Virginia — 0.1%

 

 

 

 

 

 

 

Fairfax County IDA Virginia, Refunding
RB, Health Care, Inova Health
System, Series A, 5.50%, 5/15/35

 

$

300

 

$

319,332

 

Wisconsin — 0.5%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, Refunding RB,
Froedtert & Community Health Inc.,
5.25%, 4/01/39

 

 

1,250

 

 

1,285,563

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 45.2%

 

 

 

 

 

125,718,771

 

Total Long-Term Investments
(Cost – $452,401,294) – 165.5%

 

 

 

 

 

460,531,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.21% (h)(i)

 

 

3,180,707

 

 

3,180,707

 

Total Short-Term Securities
(Cost – $3,180,707) – 1.1%

 

 

 

 

 

3,180,707

 

Total Investments
(Cost – $455,582,001*) – 166.6%

 

 

 

 

 

463,711,853

 

Liabilities in Excess of Other Assets – (2.0)%

 

 

 

 

 

(5,498,465

)

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (22.7)%

 

 

 

 

 

(63,355,434

)

Preferred Shares, at Redemption Value – (41.9)%

 

 

 

 

 

(116,596,991

)

 

 

 

 

 

 

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

278,260,963

 

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2010, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

393,270,898

 

 

 

 

 

 

 

Gross unrealized appreciation

 

 

 

 

$

14,370,483

 

Gross unrealized depreciation

 

 

 

 

 

(7,208,534

)

 

 

 

 

 

 

Net unrealized appreciation

 

 

 

 

$

7,161,949

 

 

 

 

 

 

 

 

 

(a)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(c)

Security is collateralized by Municipal or US Treasury obligations.

 

 

(d)

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.

 

 

(e)

Variable rate security. Rate shown is as of report date.

 

 

(f)

Amount is less than $1,000.

 

 

(g)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction.


 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JULY 31, 2010

5


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

(Percentages shown are based on Net Assets)

 

 

(h)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares Held
at April 30,
2010

 

Net
Activity

 

Shares Held
at July 31,
2010

 

Income

 

FFI Institutional Tax-Exempt Fund

 

 

6,152,712

 

 

(2,972,005

)

 

3,180,707

 

$

2,748

 

 

 

(i)

Represents the current yield as of report date.

 

 

•

Financial futures contracts sold as of July 31, 2010 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

 

Expiration
Date

 

 

Notional
Value

 

 

Unrealized
Depreciation

 

     55

 

10-Year U.S.
Treasury Note

 

 

September
2010

 

$

6,690,973

 

$

(118,715

)

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivatives, 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 Fund’s own assumptions used in determining the fair value of investments and derivatives)

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 Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its annual report.

The following tables summarize the inputs used as of July 31, 2010 in determining the fair valuation of the Fund’s investments and derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

—

 

$

460,531,146

 

 

—

 

$

460,531,146

 

Short-Term Securities

 

$

3,180,707

 

 

—

 

 

—

 

 

3,180,707

 

Total

 

$

3,180,707

 

$

460,531,146

 

 

—

 

$

463,711,853

 

 

 

1

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Financial Instruments1

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(118,715

)

 

—

 

 

—

 

$

(118,715

)

 

 

1

Derivative financial instruments are financial futures contracts, which are shown at the unrealized appreciation/depreciation on the instrument.

 

 

 

6

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JULY 31, 2010

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 MuniYield Quality Fund II, Inc.

 

 
  By: /s/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer of
    BlackRock MuniYield Quality Fund II, Inc.
   
  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 MuniYield Quality Fund II, Inc.
   
  Date: September 27, 2010
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniYield Quality Fund II, Inc.
     
  Date: September 27, 2010