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: Donald C. Burke, Chief Executive Officer,
BlackRock MuniYield Quality Fund II, Inc., 800 Scudders Mill Road,
Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ
08543-9011
Registrant's telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 10/31/2008
Date of reporting period: 05/01/2008 - 07/31/2008
Item 1 - Schedule of Investments
BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
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Alabama - 0.6% Jefferson County, Alabama, Limited Obligation School Warrants,
Series A, 4.75%, 1/01/25 $ 2,000 $ 1,686,480
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Arizona - 2.3% Salt Verde Financial Corporation, Arizona, Senior Gas Revenue
Bonds, 5%, 12/01/37 7,500 6,237,300
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California - 26.6% Alameda Corridor Transportation Authority, California, Capital
Appreciation Revenue Refunding Bonds, Subordinate Lien,
Series A, 5.33%, 10/01/25 (a)(b) 7,150 5,924,848
Antelope Valley, California, Community College District, GO
(Election of 2004), Series B, 5.25%, 8/01/39 (c) 550 551,721
Arcadia, California, Unified School District, GO (Election of 2006),
CABS, Series A, 4.96%, 8/01/39 (d)(e) 1,400 236,250
Cabrillo, California, Community College District, GO (Election of 2004),
Series B, 5.20%, 8/01/37 (c)(e) 2,100 371,700
Cabrillo, California, Community College District, GO (Election of 2004),
Series B, 4.87%, 8/01/38 (c)(e) 4,800 793,632
California Health Facilities Financing Authority Revenue Bonds
(Kaiser Permanente), Series A, 5.50%, 6/01/22 (d)(f) 5,000 5,109,800
California State, GO, Refunding, 5.25%, 9/01/10 (g) 2,200 2,322,628
California State, GO, Refunding, 5.125%, 6/01/27 20 20,101
California State, GO, Refunding, 5.25%, 2/01/33 (h) 3,900 3,913,923
California State Public Works Board, Lease Revenue Bonds (Department
of Corrections), Series C, 5%, 6/01/25 1,600 1,596,288
California State University, Systemwide Revenue Bonds, Series A, 5%,
11/01/35 (i) 2,200 2,139,214
California State, Various Purpose, GO, 5.25%, 11/01/29 2,750 2,787,510
California State, Various Purpose, GO, 5.50%, 11/01/33 6,500 6,608,875
Coast Community College District, California, GO, Refunding (Election of
2002), Series C, 5.45%, 8/01/13 (a)(d) 1,800 1,346,778
East Side Union High School District, California, Santa Clara County,
Capital Appreciation, GO (Election of 2002), Series E,
5.15%, 8/01/29 (e)(j) 15,000 4,551,900
East Side Union High School District, California, Santa Clara County,
GO (Election of 2002), Series D, 5%, 8/01/26 (j) 1,370 1,346,080
Fairfield-Suisun, California, Unified School District, GO (Election of
2002), 5.50%, 8/01/28 (c) 2,770 2,869,055
Fresno, California, Unified School District, GO (Election of 2001),
Series E, 5%, 8/01/30 (d) 800 809,464
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedule of Investments,
the names of many of the securities have been abbreviated according to the list
below.
AMT Alternative Minimum Tax (subject to)
CABS Capital Appreciation Bonds
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
SIFMA Securities Industry and Financial Markets Association
BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Golden State Tobacco Securitization Corporation of California, Tobacco
Settlement Revenue Bonds, Series B, 5.50%, 6/01/13 (g)(j) $ 2,300 $ 2,501,411
John Swett Unified School District, California, GO, Series A, 5.50%,
8/01/26 (d) 2,815 2,950,007
Metropolitan Water District of Southern California, Waterworks Revenue
Bonds, Series B-1, 5%, 10/01/29 (i) 2,600 2,619,838
Metropolitan Water District of Southern California, Waterworks Revenue
Bonds, Series B-1, 5%, 10/01/36 (i) 1,475 1,476,224
Monterey Peninsula Community College District, California, GO, CABS,
Series C, 5.08%, 8/01/28 (d)(e) 11,975 3,975,580
Orange County, California, Sanitation District, COP, 5%, 2/01/33 (i) 2,300 2,261,705
Palm Springs, California, Financing Authority, Lease Revenue Refunding
Bonds (Convention Center Project), Series A, 5.50%, 11/01/29 (c) 2,900 2,973,138
Poway, California, Redevelopment Agency, Tax Allocation Refunding Bonds
(Paguay Redevelopment Project), 5.125%, 6/15/33 (b) 1,250 1,216,512
Sacramento, California, Municipal Utility District, Electric Revenue
Bonds, Series N, 5%, 8/15/28 (c) 5,000 4,864,200
Sacramento, California, Unified School District, GO (Election of 2002),
5%, 7/01/30 (c) 1,600 1,607,360
Ventura County, California, Community College District, GO (Election of
2002), Series B, 5%, 8/01/30 (c) 2,025 2,006,330
-------------
71,752,072
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Colorado - 1.8% Colorado Health Facilities Authority Revenue Bonds (Catholic Health
Initiatives), Series A, 5.50%, 3/01/32 (f) 1,150 1,209,363
Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement
Communities Inc.), Series A, 5.50%, 12/01/27 (h) 1,200 1,180,272
Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement
Communities Inc.), Series A, 5.50%, 12/01/33 (h) 675 642,222
E-470 Public Highway Authority, Colorado, Capital Appreciation Revenue
Refunding Bonds, Series B, 5.607%, 9/01/32 (c)(e) 7,500 1,707,600
-------------
4,739,457
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Florida - 4.8% Broward County, Florida, School Board, COP, Series A, 5.25%, 7/01/33 (d) 1,400 1,390,312
Highlands County, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Adventist Health System), Series C, 5.25%, 11/15/36 3,050 2,894,938
Highlands County, Florida, Health Facilities Authority, Hospital Revenue
Refunding Bonds (Adventist Health System), Series G, 5.125%, 11/15/32 1,700 1,601,961
Hillsborough County, Florida, Aviation Authority Revenue Bonds, AMT,
Series A, 5.375%, 10/01/33 (k) 3,250 3,181,717
Miami-Dade County, Florida, School Board, COP, Refunding, Series B,
5.25%, 5/01/31 (k) 1,625 1,634,717
BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Miami, Florida, Special Obligation Revenue Bonds (Street and Sidewalk
Improvement Program), 5%, 1/01/37 (c) $ 730 $ 691,843
Orange County, Florida, Sales Tax Revenue Refunding Bonds, Series B,
5.125%, 1/01/32 (i) 1,575 1,588,230
-------------
12,983,718
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Georgia - 5.6% Atlanta, Georgia, Airport Revenue Refunding Bonds, Series A, 5.875%,
1/01/17 (i) 5,000 5,144,950
Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5%, 11/01/34 (d) 2,850 2,829,166
Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5%,
11/01/33 (c) 800 767,816
Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5%,
11/01/39 (c) 4,610 4,365,947
Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25%, 10/01/39 (d) 1,880 1,927,808
-------------
15,035,687
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Illinois - 14.6% Chicago, Illinois, O'Hare International Airport, General Airport Revenue
Refunding Bonds, Third Lien, AMT, Series A, 5.50%, 1/01/22 (c) 9,500 9,349,235
Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien,
AMT, Series B-2, 5.75%, 1/01/23 (d) 5,200 5,245,396
Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien,
AMT, Series B-2, 6%, 1/01/29 (j) 2,200 2,210,956
Cook County, Illinois, Capital Improvement, GO, Series C, 5.50%,
11/15/12 (b)(g) 2,460 2,700,982
Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds,
5.264%, 6/15/30 (a)(b) 21,675 19,934,931
-------------
39,441,500
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Louisiana - 5.5% Jefferson Parish, Louisiana, Home Mortgage Authority, S/F Mortgage Revenue
Bonds, AMT, Series B-1, 6.65%, 12/01/33 (c)(l) 1,420 1,490,077
Lafayette, Louisiana, Utilities Revenue Bonds, 5%, 11/01/28 (c) 5,500 5,423,770
Louisiana Local Government Environmental Facilities and Community
Development Authority, Revenue Bonds (Capital Projects and Equipment
Acquisition Program), Series A, 6.30%, 7/01/30 (b) 2,300 2,346,644
Louisiana State Citizens Property Insurance Corporation, Assessment
Revenue Bonds, Series B, 5%, 6/01/23 (b) 1,800 1,702,422
Louisiana State Transportation Authority, Senior Lien Toll Revenue
Capital Appreciation Bonds, Series B, 5.31%, 12/01/27 (b)(e) 3,185 1,046,623
Rapides Financing Authority, Louisiana, Revenue Bonds (Cleco Power LLC
Project), AMT, 4.70%, 11/01/36 (b) 1,750 1,480,535
Terrebonne Parish, Louisiana, Hospital Service District Number 1, Hospital
Revenue Bonds (Terrebonne General Medical Center Project), 5.50%, 4/01/33 (b) 1,300 1,323,933
-------------
14,814,004
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BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 2.9% Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding
Bonds, Senior Series A-2, 5.12%, 7/01/35 (e) $ 2,290 $ 513,945
Massachusetts State, HFA, S/F Housing Revenue Bonds, AMT, Series 128,
4.80%, 12/01/27 (d) 1,500 1,309,995
Massachusetts State Port Authority, Special Facilities Revenue Bonds
(Delta Air Lines Inc. Project), AMT, Series A, 5.50%, 1/01/16 (b) 2,900 2,764,048
Massachusetts State Port Authority, Special Facilities Revenue Bonds
(Delta Air Lines Inc. Project), AMT, Series A, 5.50%, 1/01/19 (b) 2,670 2,434,186
Massachusetts State Water Resource Authority, General Revenue Refunding
Bonds, Series B, 5.125%, 8/01/27 (c) 840 854,246
-------------
7,876,420
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Michigan - 3.0% Detroit, Michigan, Sewage Disposal System, Second Lien Revenue Bonds,
Series B, 5%, 7/01/36 (c)(i) 3,000 2,869,470
Michigan Higher Education Student Loan Authority, Student Loan Revenue
Refunding Bonds, AMT, Series XVII-G, 5.20%, 9/01/20 (b) 1,000 908,330
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company Pollution Control Project), AMT, Series A,
5.50%, 6/01/30 (j) 1,000 912,320
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company Pollution Control Project), AMT, Series C,
5.45%, 12/15/32 (j) 3,900 3,503,799
-------------
8,193,919
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Minnesota - 0.9% Dakota County, Minnesota, Community Development Agency, S/F Mortgage
Revenue Bonds (Mortgage-Backed Securities Program), Series B, 5.15%,
12/01/38 (l)(m) 2,620 2,531,794
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Missouri - 2.2% Saint Louis County, Missouri, Pattonville R-3 School District, GO
(Missouri Direct Deposit Program), 5.75%, 3/01/10 (g)(i) 4,000 4,260,160
Saint Louis County, Missouri, Pattonville R-3 School District, GO
(Missouri Direct Deposit Program), 6%, 3/01/10 (g)(i) 1,500 1,603,365
-------------
5,863,525
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Nebraska - 0.5% Municipal Energy Agency of Nebraska, Power Supply System Revenue Bonds,
Series A, 5%, 4/01/33 (d) 1,300 1,278,199
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Nevada - 3.1% Carson City, Nevada, Hospital Revenue Bonds (Carson-Tahoe Hospital
Project), Series A, 5.50%, 9/01/33 (h) 2,800 2,664,704
Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds,
Series A-2, 5%, 7/01/30 (i) 1,500 1,447,665
Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds,
Series A-2, 5%, 7/01/36 (i) 2,700 2,593,917
Clark County, Nevada, IDR (Southwest Gas Corp. Project), AMT, Series A,
4.75%, 9/01/36 (i) 2,200 1,629,342
-------------
8,335,628
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New Jersey - 6.1% New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75%, 6/15/29 (h) 1,070 1,045,775
New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/31 (h) 500 484,785
BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A,
5%, 7/01/29 (c) $ 2,400 $ 2,360,160
New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25%,
7/01/33 (c) 4,800 4,865,520
New Jersey EDA, School Facilities Construction Revenue Bonds, Series O,
5.125%, 3/01/28 3,380 3,446,958
New Jersey EDA, School Facilities Construction Revenue Bonds, Series P,
5.125%, 9/01/28 4,000 4,084,360
-------------
16,287,558
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New Mexico - 2.5% New Mexico State Highway Commission, Tax Revenue Bonds, Senior Sub-Lien,
Series A, 6%, 6/15/2010 (d)(g) 6,295 6,719,346
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New York - 8.3% Metropolitan Transportation Authority, New York, Transportation Revenue
Bonds, Series A, 5%, 11/15/32 (i) 1,800 1,757,808
Nassau Health Care Corporation, New York, Health System Revenue Bonds,
5.75%, 8/01/09 (d)(g) 7,000 7,425,040
New York City, New York, City Municipal Water Finance Authority, Water
and Sewer System, Revenue Refunding Bonds, Series A, 5%, 6/15/35 (c) 1,525 1,513,761
New York State Dormitory Authority, Revenue Refunding Bonds (State
University Educational Facilities), 5.75%, 5/15/10 (g)(i) 5,000 5,361,350
Tobacco Settlement Financing Corporation of New York Revenue Bonds,
Series A-1, 5.25%, 6/01/22 (b) 6,115 6,258,519
-------------
22,316,478
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Ohio - 2.5% Plain, Ohio, Local School District, GO, Refunding, 6%, 6/01/11 (g)(i) 5,120 5,582,080
Plain, Ohio, Local School District, GO, Refunding, 6%, 12/01/20 (i) 1,170 1,246,881
-------------
6,828,961
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Pennsylvania - 0.5% Delaware River Port Authority of Pennsylvania and New Jersey Revenue
Bonds, 6%, 1/01/17 (d) 5 5,230
Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 99A,
5.25%, 10/01/32 1,340 1,214,107
-------------
1,219,337
-----------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 1.6% Rhode Island State Health and Educational Building Corporation, Higher
Education Facilities Revenue Bonds (University of Rhode Island),
Series A, 5.70%, 9/15/09 (c)(g) 4,010 4,214,189
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South Carolina - 4.4% Berkeley County, South Carolina, School District, Installment Lease
Revenue Bonds (Securing Assets for Education Project),
5.125%, 12/01/30 2,450 2,387,819
Kershaw County, South Carolina, Public Schools Foundation, Installment
Power Revenue Refunding Bonds, 5%, 12/01/29 (n) 2,075 1,970,461
South Carolina Transportation Infrastructure Bank Revenue Bonds,
Series A, 5%, 10/01/33 (b) 7,500 7,352,175
-------------
11,710,455
-----------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.8% Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series A,
5.25%, 9/01/26 3,920 3,593,974
BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series C,
5%, 2/01/27 $ 1,400 $ 1,239,112
-------------
4,833,086
-----------------------------------------------------------------------------------------------------------------------------------
Texas - 13.1% Corpus Christi, Texas, Utility System Revenue Refunding Bonds, Series A,
6%, 7/15/10 (d)(g) 2,000 2,141,640
Dallas-Fort Worth, Texas, International Airport, Joint Revenue Bonds, AMT,
Series B, 6%, 11/01/23 (c) 600 602,364
Dallas-Fort Worth, Texas, International Airport Revenue Bonds, AMT,
Series A, 5.50%, 11/01/33 (c) 5,000 4,744,900
Leander, Texas, Independent School District, Capital Appreciation, GO,
Refunding (School Building), 5.58%, 8/15/35 (e) 8,800 1,910,216
Lewisville, Texas, Independent School District, Capital Appreciation and
School Building, GO, Refunding, 4.67%, 8/15/24 (e)(i) 3,915 1,581,269
Lower Colorado River Authority, Texas, PCR (Samsung Austin Semiconductor),
AMT, 6.375%, 4/01/27 3,500 3,456,775
Matagorda County, Texas, Navigation District Number 1, PCR, Refunding
(Central Power and Light Company Project), AMT, 5.20%, 5/01/30 (c) 2,250 2,079,450
North Harris County, Texas, Regional Water Authority, Senior Lien Revenue
Bonds, 5.125%, 12/15/35 (c) 4,925 4,807,883
North Texas Tollway Authority, System Revenue Refunding Bonds, First Tier,
5.75%, 1/01/40 (c) 3,600 3,675,888
North Texas Tollway Authority, System Revenue Refunding Bonds, First Tier,
Series A, 6%, 1/01/25 525 550,352
Texas State Affordable Housing Corporation, S/F Mortgage Revenue Bonds
(Professional Educators Home Loan Program), AMT, Series A-1, 5.50%,
12/01/39 (l)(m) 1,285 1,229,640
Texas State Turnpike Authority, Central Texas Turnpike System Revenue
Bonds, First Tier, Series A, 5.75%, 8/15/38 (b) 4,800 4,933,584
Texas State Turnpike Authority, Central Texas Turnpike System Revenue
Bonds, First Tier, Series A, 5.50%, 8/15/39 (b) 3,600 3,653,172
-------------
35,367,133
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Vermont - 1.8% Vermont HFA, Revenue Refunding Bonds, AMT, Series C, 5.50%, 11/01/38 (d) 2,700 2,498,229
Vermont HFA, S/F Housing Revenue Bonds, AMT, Series 27,
4.85%, 11/01/32 (d) 2,755 2,321,694
-------------
4,819,923
-----------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.8% Halifax County, Virginia, IDA, Exempt Facility Revenue Refunding Bonds
(Old Dominion Electric Cooperative Project), AMT, 5.625%, 6/01/28 (b) 2,100 2,096,094
-----------------------------------------------------------------------------------------------------------------------------------
Washington - 6.4% Port of Seattle, Washington, Revenue Bonds, AMT, Series B, 6%, 2/01/16 (c) 7,470 7,624,181
Port of Tacoma, Washington, GO, AMT, Series B, 4.875%, 12/01/38 (k) 1,375 1,277,238
BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Port of Tacoma, Washington, Revenue Refunding Bonds, Series A, 5.25%,
12/01/14 (b)(g) $ 1,600 $ 1,773,744
Seattle, Washington, Municipal Light and Power Revenue Bonds, 6%,
10/01/09 (c)(g) 6,150 6,506,946
-------------
17,182,109
-----------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds - 124.2% 334,364,372
-----------------------------------------------------------------------------------------------------------------------------------
Municipal Bonds Transferred to
Tender Option Bond Trusts (o)
-----------------------------------------------------------------------------------------------------------------------------------
Alabama - 1.1% University of Alabama, General Revenue Bonds, Series A, 5%, 7/01/34 (c) 2,955 2,912,625
-----------------------------------------------------------------------------------------------------------------------------------
California - 3.1% Anaheim, California, Public Financing Authority, Electric System
Distribution Facilities Revenue Bonds, Series A, 5%, 10/01/31 (d) 3,808 3,817,689
San Diego County, California, Water Authority, Water Revenue Refunding
Bonds, COP, Series A, 5%, 5/01/33 (d) 3,030 3,060,058
Tamalpais, California, Union High School District, GO (Election of 2001),
5%, 8/01/28 (d) 1,320 1,337,186
-------------
8,214,933
-----------------------------------------------------------------------------------------------------------------------------------
Florida - 4.9% Duval County, Florida, School Board, COP (Master Lease Program),
5%, 7/01/33 (d) 2,010 1,937,801
Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami
International Airport), AMT, 5%, 10/01/40 (j)(k) 11,300 10,108,528
Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami
International Airport), AMT, Series A, 5%, 10/01/40 (j) 1,250 1,118,200
-------------
13,164,529
-----------------------------------------------------------------------------------------------------------------------------------
Georgia - 8.2% Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series B,
5.25%, 1/01/33 (d) 5,000 5,060,550
Atlanta, Georgia, Airport Passenger Facility Charge and Subordinate Lien
General Revenue Refunding Bonds, Series C, 5%, 1/01/33 (d) 17,000 16,975,520
-------------
22,036,070
-----------------------------------------------------------------------------------------------------------------------------------
Illinois - 9.6% Chicago, Illinois, Water Revenue Refunding Bonds, Second Lien,
5.25%, 11/01/33 (d) 2,548 2,596,765
Illinois Regional Transit Authority, Revenue Bonds, 6.50%, 7/01/26 (c) 10,000 11,906,151
Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax
Revenue Bonds (McCormick Place Expansion), Series A, 5%, 12/15/28 (c) 3,499 3,519,553
Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax
Revenue Refunding Bonds (McCormick Place Expansion Project),
Series B, 5.75%, 6/15/23 (c) 7,250 7,746,625
-------------
25,769,094
-----------------------------------------------------------------------------------------------------------------------------------
Louisiana - 1.5% Louisiana State Gas and Fuels Tax Revenue Bonds, Series A, 5%,
5/01/36 (d) 2,340 2,325,913
Louisiana State Gas and Fuels Tax Revenue Bonds, Series A, 4.75%,
5/01/39 (d) 1,970 1,848,884
-------------
4,174,797
-----------------------------------------------------------------------------------------------------------------------------------
BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
Municipal Bonds Transferred to Par
State Tender Option Bond Trusts (o) (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 9.0% Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT,
Series F, 5.25%, 1/01/46 (d) $20,000 $ 17,068,200
Massachusetts State School Building Authority, Dedicated Sales Tax Revenue
Bonds, Series A, 5%, 8/15/30 (d) 7,200 7,254,657
-------------
24,322,857
-----------------------------------------------------------------------------------------------------------------------------------
Michigan - 0.9% Detroit, Michigan, Sewage Disposal System, Second Lien Revenue Refunding
Bonds, Series E, 5.75%, 7/01/31 (i) 2,203 2,354,084
-----------------------------------------------------------------------------------------------------------------------------------
New Jersey - 3.2% New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/24 (k) 4,600 4,655,456
New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/31 (k) 4,000 4,048,222
-------------
8,703,678
-----------------------------------------------------------------------------------------------------------------------------------
South Carolina - 3.4% Charleston Educational Excellence Financing Corporation, South Carolina,
Revenue Bonds (Charleston County School District), 5.25%, 12/01/28 (k) 2,725 2,774,568
Charleston Educational Excellence Financing Corporation, South Carolina,
Revenue Bonds (Charleston County School District), 5.25%, 12/01/29 (k) 2,425 2,460,187
Charleston Educational Excellence Financing Corporation, South Carolina,
Revenue Bonds (Charleston County School District), 5.25%, 12/01/30 (k) 880 890,613
Scago Educational Facilities Corporation for Pickens County School
District, South Carolina, Revenue Bonds, 5%, 12/01/31 (d) 3,000 2,947,080
-------------
9,072,448
-----------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.7% Virginia State, HDA, Commonwealth Mortgage Revenue Bonds, Series H,
Sub-Series H-1, 5.35%, 7/01/31 (c) 1,995 2,009,982
-----------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds Transferred to
Tender Option Bond Trusts - 45.6% 122,735,097
-----------------------------------------------------------------------------------------------------------------------------------
Total Long-Term Investments
(Cost - $470,362,701) - 169.8% 457,099,469
-----------------------------------------------------------------------------------------------------------------------------------
Short-Term Securities Shares
-----------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund, 2.08% (p)(q) 6,100,000 6,100,000
-----------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost - $6,100,000) - 2.2% 6,100,000
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost - $476,462,701*) - 172.0% 463,199,469
Other Assets Less Liabilities - 1.3% 3,377,878
Liability for Trust Certificates, Including Interest
Expense and Fees Payable - (25.6)% (68,925,321)
Preferred Stock, at Redemption Value - (47.7)% (128,390,016)
-------------
Net Assets Applicable to Common Stock - 100.0% $ 269,262,010
=============
* The cost and unrealized appreciation (depreciation) of investments as of
July 31, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 408,754,417
=============
Gross unrealized appreciation $ 5,066,434
Gross unrealized depreciation (19,364,060)
-------------
Net unrealized depreciation $ (14,297,626)
=============
BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(a) Represents a step bond. Rate shown reflects the effective yield at the
time of purchase.
(b) AMBAC Insured.
(c) MBIA Insured.
(d) FSA Insured.
(e) Represents a zero-coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(f) Security is collateralized by Municipal or U.S. Treasury Obligations.
(g) U.S. government securities, held in escrow, are used to pay interest on
this security as well as to retire the bond in full at the date indicated,
typically at a premium to par.
(h) Radian Insured.
(i) FGIC Insured.
(j) XL Capital Insured.
(k) Assured Guaranty Insured.
(l) FNMA/GNMA Collateralized.
(m) FHLMC Collateralized.
(n) CIFG Insured.
(o) 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.
(p) Represents the current yield as of report date.
(q) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
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Net
Affiliate Activity Income
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Merrill Lynch Institutional Tax-Exempt Fund 4,792,820 $143,662
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o Forward interest rates swaps outstanding as of July 31, 2008 were as
follows:
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Notional Unrealized
Amount Appreciation
(000) (Depreciation)
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Pay a fixed rate of 3.869% and receive a floating rate based
on 1-week SIFMA Municipal Swap Index Rate
Broker, JPMorgan Chase
Expires September 2023 $ 14,000 $ (306,334)
Pay a fixed rate of 3.639% and receive a floating rate based
on 1-week SIFMA Municipal Swap Index Rate
Broker, JPMorgan Chase
Expires August 2028 $ 9,000 139,959
Pay a fixed rate of 3.699% and receive a floating rate based
on 1-week SIFMA Municipal Swap Index Rate
Broker, JPMorgan Chase
Expires August 2028 $ 9,500 78,232
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Total $ (88,143)
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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/ Donald C. Burke
-------------------
Donald C. Burke
Chief Executive Officer of
BlackRock MuniYield Quality Fund II, Inc.
Date: September 19, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Quality Fund II, Inc.
Date: September 19, 2008
By: /s/ Neal J. Andrews
-------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Quality Fund II, Inc.
Date: September 19, 2008