UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number:      811-21036          

          BlackRock Municipal Bond Trust          
(Exact name of registrant as specified in charter)

100 Bellevue Parkway, Wilmington, DE 
19809 
(Address of principal executive offices) 
(Zip code) 

Robert S. Kapito, President
BlackRock Municipal Bond Trust
40 East 52nd Street, New York, NY 10022
(Name and address of agent for service)

Registrant's telephone number, including area code:     888-825-2257                                        

Date of fiscal year end:      August 31, 2006
Date of reporting period:   November 30, 2005

Item 1. Schedule of Investments.

The Registrant’s unaudited schedule of investments as of the close of the reporting period pursuant to Rule 30b1-5 under the Investment Company Act of 1940 is as follows:



PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 2005 (Unaudited)

BlackRock Municipal Bond Trust (BBK)

 
Principal
       
 
Amount
  Option Call    
Rating1  
(000)
Description Provisions2   Value
      LONG-TERM INVESTMENTS—150.3%      
        Alabama—4.9%      
A2   $ 7,500   Huntsville Hlth. Care Auth., Ser. A, 5.75%, 6/01/31 06/11 @ 101   $ 7,871,925  
        Arizona—0.7%      
        San. Luis Fac. Dev. Corp. Rev., Sr. Lien Proj. Regl. Detention Ctr.,     
NR   300       6.25%, 5/01/15 05/10 @ 107   294,816  
NR   300       7.00%, 5/01/20 05/10 @ 107   293,346  
NR   600       7.25%, 5/01/27 05/10 @ 107   584,070  
              1,172,232  
        California—8.5%      
A-   12,090   Golden St. Tobacco Sec. Corp., Ser. A, 5.00%, 6/01/45 06/15 @ 100   12,054,093  
NR   1,585   Val Verde Unified Sch. Dist. Fin. Auth., Spec. Tax Rev., 6.25%, 10/01/28 10/13 @ 102   1,654,565  
              13,708,658  
        Colorado—0.4%      
AAA   635   Springs Co. Utils. Rev. Sub., Ser. C, 5.00%, 11/15/45, FSA 11/15 @ 100   648,456  
        District of Columbia—11.2%      
A   595   Friendship Pub. Charter Sch., Inc. Proj., 5.25%, 6/01/33, ACA 06/14 @ 100   600,676  
AAA   6,000   Gallary Place Proj., 5.40%, 7/01/31, FSA 07/12 @ 100   6,304,080  
AAA   33,450   Georgetown Univ., Ser. A, Zero Coupon, 4/01/38, MBIA 04/11 @ 20.243   5,120,526  
BBB   5,580   Tobacco Settlement Fin. Corp., 6.75%, 5/15/40 05/11 @ 101   6,028,800  
              18,054,082  
        Florida—20.0%       
AAA   3,455   Brd. of Ed. Pub. Ed., Cap. Outlay, GO, Ser. A, 5.00%, 6/01/31 06/14 @ 101   3,592,612  
BB+   6,200   Martin Cnty. Indl. Dev. Auth., Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25 01/06 @ 101   6,405,468  
BB+   2,810   Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21 11/14 @ 100   3,158,356  
A+   10,000   Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys. Proj., 5.625%, 11/15/32 11/12 @ 101   10,602,600  
AAA   7,255   Palm Beach Cnty. Hsg. Fin. Auth., Multi-Fam. Rev., Indian Trace Apts. Proj., Ser. A,      
            5.625%, 1/01/44, FSA 01/12 @ 100   7,436,230  
NR   1,000   Stevens Plantation Cmnty. Dev. Dist., Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35 05/14 @ 100   1,025,390  
              32,220,656  
        
        Georgia—5.1%     
AAA   3,000   Atlanta Arpt. Passenger Fac., Ser. J, 5.00%, 1/01/34, FSA 01/15 @ 100   3,088,080  
AAA   5,000   Atlanta Wtr. & Wstwtr., 5.00%, 11/01/37, FSA 11/14 @ 100   5,133,550  
              8,221,630  
        Illinois—20.9%      
AAA   23,065   Bolingbrook, GO, Ser. B, Zero Coupon, 1/01/36, FGIC 01/12 @ 23.018   4,002,008  
NR   1,150 3 Centerpoint Intermodal Ctr. Prog. Trust, Ser. A, 8.00%, 6/15/23 No Opt. Call   1,160,074  
        Chicago, GO,     
AAA   55 4     Ser. A, 5.50%, 1/01/11, MBIA N/A   60,451  
AAA   5,825       Ser. A, 5.50%, 1/01/38, MBIA 01/11 @ 101   6,231,235  
BBB   6,000   Edl. Facs. Auth., Student Hsg. Rev., Edl. Advancement Fund Univ. Ctr. Proj., 6.25%, 5/01/34    05/07 @ 100   6,146,100  
BB+   420   Fin. Auth. Rev., Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%, 2/15/37 02/15 @ 100   411,936  
        Fin. Auth. Student Hsg., MJH Ed. Asst. Living Proj.,     
Baa2   525       Ser. A, 5.125%, 6/01/35 06/14 @ 100   517,535  
Baa3   425       Ser. B, 5.375%, 6/01/35 06/14 @ 100   419,118  
A   6,000   Hlth. Facs. Auth., Lake Forest Hosp. Proj., Ser. A, 5.75%, 7/01/29 07/12 @ 100   6,215,220  
        Met. Pier & Exposition Auth., Ded. St. Tax Rev., McCormick Place Expansion Proj.,      
AAA   10,000       Ser. A, Zero Coupon, 6/15/35, MBIA No Opt. Call   2,333,200  
AAA   10,000       Ser. A, Zero Coupon, 12/15/36, MBIA No Opt. Call   2,160,400  
AAA   10,000       Ser. A, Zero Coupon, 12/15/37, MBIA No Opt. Call   2,056,300  
        O’Hare Intl. Arpt.,     
AAA   1,000       Ser. A, 5.00%, 1/01/29, MBIA 01/15 @ 100   1,028,610  
AAA   1,000       Ser. A, 5.00%, 1/01/30, MBIA 01/15 @ 100   1,027,120  
              33,769,307  

1

BlackRock Municipal Bond Trust (BBK) (continued)

 
Principal
       
 
Amount
  Option Call    
Rating1  
(000)
Description Provisions2   Value
      Indiana—1.3%      
Aa2   $ 1,985   Multi-Fam. Hsg., Canterbury House Apts. Proj., Ser. 1, 5.90%, 12/01/34 12/11 @ 100   $ 2,071,764  
        Kansas—3.3%      
A-   5,000   Wichita Arpt. Auth., Arpt. Facs. Rev., Cessna Citation Svc. Ctr. Proj., Ser. A, 6.25%, 6/15/32 06/12 @ 101   5,340,300  
        Louisiana—0.7%      
Baa1   1,165   Local Gov’t. Env. Facs. & Cmnty. Dev. Auth., Oakleigh Apts. Proj., Ser. A, 6.375%, 6/01/38 06/13 @ 102   1,182,615  
        Maryland—3.4%      
NR   1,250   Baltimore Spec. Oblig. Rev., Harborview Lot No. 2 Proj., 6.50%, 7/01/31 07/13 @ 101   1,308,700  
NR   3,000   Frederick Cnty. Spl. Oblig., Urbana Cmnty. Dev. Auth., Ser. B, 6.25%, 7/01/30 07/07 @ 102   3,047,670  
Baa1   1,040   Hlth. & Higher Edl. Facs. Auth. Medstar Hlth. Proj., 5.50%, 8/15/33 08/14 @ 100   1,068,839  
              5,425,209  
        Massachusetts—0.6%      
AAA   1,000   Tpke. Auth., Met. Hwy. Sys. Rev., Ser. A, 5.00%, 1/01/37, MBIA 01/07 @ 102   1,014,450  
        Multi-State—7.4%      
Baa1   10,500 3 Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52 10/14 @ 100   11,893,035  
        Nevada—0.9%      
NR   1,400   Las Vegas Spec. Impvt. Dist. No. 809, Summerlin Area Proj., 5.65%, 6/01/23 06/06 @ 103   1,430,842  
        New Jersey—9.5%      
        Econ. Dev. Auth.,  
BBB   1,500       Cigarette Tax Rev., 5.50%, 6/15/31 06/14 @ 100   1,544,400  
B   3,000       Continental Airlines, Inc. Proj., 7.20%, 11/15/30 11/10 @ 101   2,707,890  
Baa3   7,500       Kapkowski Rd. Landfill Proj., 6.50%, 4/01/28 No Opt. Call   8,631,225  
BBB-   1,500       Winchester Proj., Ser. A, 5.80%, 11/01/31 11/14 @ 100   1,555,335  
NR   915   Middlesex Cnty. Imprt. Auth., Heldrich Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37 01/15 @ 100   901,540  
              15,340,390  
        New York—15.7%      
AAA   1,330   Env. Facs. Corp., St. Clean Wtr. & Drinking Wtr. Rev., NYC Mun. Wtr. Proj., Ser. B,      
            5.00%, 6/15/31 06/12 @ 100   1,369,514  
AA-   9,710   Liberty Dev. Corp. Rev. Proj., 5.25%, 10/01/35 No Opt. Call   10,744,795  
AAA   1,760   Met. Transp. Auth. Svc. Contract, Ser. A, 5.00%, 7/01/30, AMBAC 07/12 @ 100   1,811,551  
B-   8,100   New York City Indl. Dev. Agcy., 7.75%, 8/01/31 08/16 @ 101   7,822,332  
AA+   790   New York City Mun. Wtr. Fin. Auth., Ser. A, 5.00%, 6/15/39 06/15 @ 100   809,244  
BBB   5,455   New York Cntys. Tobacco Trust III, Zero Coupon, 6/01/38 06/15 @ 26.19   804,285  
AAA   1,885   Sales Tax Asset Receivable Corp., Ser. A, 5.00%, 10/15/29, AMBAC 10/14 @ 100   1,961,531  
              25,323,252  
        North Carolina—4.5%      
AA+   1,700   Cap. Fac. Fin. Agcy., Ser. A, 5.00%, 10/01/41 10/15 @ 100   1,746,376  
NR   2,945   Gaston Cnty. Indl. Facs. & Poll. Ctrl. Fin. Auth., 5.75%, 8/01/35 08/15 @ 100   3,086,537  
AA+   2,265   Univ. of NC, Chapel Hill Rev., Ser. A, 5.00%, 12/01/34 12/15 @ 100   2,346,087  
              7,179,000  
        Ohio—3.6%      
AAA   4,220   Air Qual. Dev. Auth., 4.80%, 1/01/34, FGIC 07/15 @ 100   4,232,702  
NR   1,500   Port Greater Cincinnati Dev. Auth., Cooperative Pub. Pkg. Infrastructure Proj., 6.40%, 2/15/34 02/14 @ 102   1,574,055  
              5,806,757  
        Oklahoma—1.1%      
B-   1,725   Tulsa Mun. Arpt. Trust, Ser. A, 7.75%, 6/01/35 No Opt. Call   1,749,616  
        Oregon—0.6%      
Aa2   990   Multi-Fam. Hsg., Pacific Tower Apts. Proj., Ser. 6, 6.05%, 11/01/34 12/11 @ 100   1,033,402  
        Pennsylvania—3.2%      
BB-   4,895   Econ. Dev. Fin. Auth. Exempt Facs. Rev., Reliant Energy Conv. Proj., Ser. A, 6.75%, 12/01/36      12/09 @ 103   5,214,594  
        South Carolina—0.7%      
BBB+   1,000   Jobs Econ. Dev. Auth. Hosp. Facs. Rev., Palmetto Hlth. Alliance Proj., Ser. C, 7.00%, 8/01/30 08/13 @ 100   1,165,950  

2

BlackRock Municipal Bond Trust (BBK) (continued)

 
Principal
       
 
Amount
  Option Call    
Rating1  
(000)
Description Provisions2   Value
      Texas—15.3%      
BBB   $     880   Brazos River Auth., PCR, TXU Elec. Co. Proj., Ser. C, 6.75%, 10/01/38 10/13 @ 101   $ 967,375  
AAA   940   Dallas Area Rapid Trans., 5.00%, 12/01/31, AMBAC 12/11 @ 100   959,975  
AAA   11,690   Harris Cnty. Houston Sports Auth., Ser. G, Zero Coupon, 11/15/41, MBIA 11/31 @ 53.779   1,565,876  
Aa2   2,825   Multi-Fam. Hsg., Copperwood Ranch Apts. Proj., Ser. 9, 5.95%, 11/01/35 12/11 @ 100   2,947,209  
AAA   60,000   Tpke. Auth., Central Sys. Rev., Zero Coupon, 8/15/35, AMBAC 08/12 @ 25.665   11,165,400  
BBB+   6,840   Tyler Cnty. Hlth. Facs. Dev., Mother Frances Hosp. Proj., 6.00%, 7/01/31 07/12 @ 100   7,133,299  
              24,739,134  
        West Virginia—0.3%      
AAA   520 5 Econ. Dev. Auth., Correctional Juvenile Safety Proj., Ser. A, 5.00%, 6/01/29, MBIA    06/14 @ 100   538,174  
        Wisconsin—6.5%      
        Hlth. & Edl. Facs. Auth.,        
A-   1,350       Aurora Hlth. Care Proj., 6.40%, 4/15/33 04/13 @ 100   1,478,142  
A   7,000       Wheaton Franciscan Svcs. Proj., 5.75%, 8/15/30 02/12 @ 101   7,395,640  
        Pub. Pwr, Inc. Sys.,  
AAA   1,000       Ser. A, 5.00%, 7/01/35, AMBAC 07/15 @ 100   1,032,220  
AAA   530       Ser. A, 5.00%, 7/01/37, AMBAC 07/15 @ 100   545,010  
              10,451,012  
        Total Long-Term Investments (cost $229,325,080)     242,566,442  
        SHORT TERM INVESTMENTS—1.0%        
        Massachusetts—0.1%  
A-1+   100 6   Hlth. & Edl. Fac. Auth. Rev., Harvard Univ. Proj., Ser. GG-1, 2.75%, 12/15/05 N/A   100,000  
    Shares         
    (000)         
        MONEY MARKET FUND—0.9%      
    1,400   AIM Tax Free Investment Co. Cash Reserve Portfolio N/A   1,400,000  
        Total Short-Term Investments (cost $1,500,000)     1,500,000  
        Total Investments—151.3% (cost $230,825,0807)     $244,066,442  
        Other assets in excess of liabilities—4.8%     7,788,214  
        Preferred shares at redemption value, including dividends payable—(56.1)%     (90,525,294)  
        Net Assets Applicable to Common Shareholders—100%     $161,329,362  

1   Using the higher of Standard & Poor’s, Moody’s Investors Service or Fitch Ratings rating.  
2   Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.  
3   Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of November 30, 2005, the Trust held 8.1% of its net assets, with a current market value of $13,053,109, in securities restricted as to resale.  
4   This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par.  
5   Security, or a portion thereof, pledged as collateral with a value of $538,174 on 194 U.S. Treasury Note futures contracts expiring December 2005, 142 U.S. Treasury Note futures contracts expiring March 2006 and 123 U.S. Treasury Bond futures contracts expiring March 2006. The value of such contracts on November 30, 2005 was $50,285,750, with an unrealized gain of $646,883.  
6   For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown is rate as of November 30, 2005.  
7   Cost for Federal tax purposes is $230,818,697. The net unrealized appreciation on a tax basis is $13,247,745, consisting of $13,769,828 gross unrealized appreciation and $522,083 gross unrealized depreciation. 

KEY TO ABBREVIATIONS

ACA —  American Capital Access GO —  General Obligation
AMBAC   —  American Municipal Bond Assurance Corp. MBIA —  Municipal Bond Insurance Assoc.
FGIC —  Financial Guaranty Insurance Co. PCR —  Pollution Control Revenue
FSA —  Financial Security Assurance  

3

Item 2. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrant’s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-Q was recorded, processed, summarized, and reported within the required time periods and that information to be disclosed by the Registrant in this Form N-Q was accumulated and communicated to the Registrant’s management , including its principle executive and principle financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a -3(d)) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 3. Exhibits.

Separate certifications of the Registrant’s principal executive and financial officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as EX-99.CERT.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)      BlackRock Municipal Bond Trust     

By:     /s/ Henry Gabbay                                                                                                                   
Name: Henry Gabbay
Title: Treasurer and Principal Financial Officer
Date: January 25, 2006

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:     /s/ Robert S. Kapito                                                                                                              
Name: Robert S. Kapito
Title: President and Principal Executive Officer
Date: January 25, 2006

By:     /s/ Henry Gabbay                                                                                                                   
Name: Henry Gabbay
Title: Treasurer and Principal Financial Officer
Date: January 25, 2006