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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

Name of Fund:   BlackRock Municipal Bond Trust (BBK)

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Municipal Bond Trust, 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: 08/31/2008

Date of reporting period: 09/01/2007 – 11/30/2007

Item 1 – Schedule of Investments

BlackRock Municipal Bond Trust    
Schedule of Investments as of November 30, 2007 (Unaudited)  
(in Thousands)
      Face          
State     Amount   Municipal Bonds     Value
Alabama - 6.3%   $ 1,135   Birmingham, Alabama, Special Care Facilities Financing Authority, Revenue Refunding Bonds (Ascension Health Credit), Series C-2, 5% due 11/15/2036   $ 1,137
      815   Birmingham, Alabama, Special Care Facilities Financing Authority, Revenue Refunding Bonds (Ascension Health Credit), Series C-2, 5% due 11/15/2039     816
      7,500   Huntsville, Alabama, Health Care Authority Revenue Bonds, Series A, 5.75% due 6/01/2011 (g)     8,141
Arizona - 4.4%     2,545   Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5% due 12/01/2032     2,454
      3,565   Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5% due 12/01/2037     3,416
      300   San Luis, Arizona, Facilities Development Corporation, Senior Lien Revenue Bonds (Regional Detention Center      
          Project), 6.25% due 5/01/2015     294
      300   San Luis, Arizona, Facilities Development Corporation, Senior Lien Revenue Bonds (Regional Detention Center Project), 7% due 5/01/2020     291
      600   San Luis, Arizona, Facilities Development Corporation, Senior Lien Revenue Bonds (Regional Detention Center Project), 7.25% due 5/01/2027     583
California - 8.5%     850   California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco Funding      
          Corporation), Sub-Series B, 5.875% due 6/01/2046 (m)     57
      4,500   California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco Funding      
          Corporation), Sub-Series C, 6.30% due 6/01/2055 (m)     129
      5,750   California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco Funding      
          Corporation), Sub-Series D, 7.251% due 6/01/2055 (m)     133
      4,100   California Health Facilities Financing Authority Revenue Bonds (Sutter Health), Series A, 5.25% due 11/15/2046     4,178
      2,890   California State, GO, Refunding, 5% due 6/01/2032     2,931
      1,800   California State, Various Purpose, GO, Refunding, 5% due 6/01/2034     1,819
      2,660   University of California Revenue Bonds, Series B, 4.75% due 5/15/2038     2,685
      1,585   Val Verde, California, Unified School District Financing Authority, Special Tax Refunding Bonds, Junior Lien, 6.25% due 10/01/2028     1,660
Colorado - 0.8%     635   Colorado Springs, Colorado, Utilities System Improvement Revenue Bonds, Subordinate Lien, Series C, 5% due 11/15/2045 (d)     655
      635   Park Creek Metropolitan District, Colorado, Senior Limited Tax Supported Revenue Refunding Bonds, 5.50% due 12/01/2037     612
District of Columbia - 11.7%     33,450   District of Columbia Revenue Bonds (Georgetown University), Series A, 6.071% due 4/01/2011 (f)(g)(m)     6,004
      595   District of Columbia, Revenue Refunding Bonds (Friendship Public Charter School, Inc.), 5.25% due 6/01/2033 (l)     545
Portfolio Abbreviations        
To simplify the listings of BlackRock Municipal Bond Trust's portfolio holdings in the Schedule of Investments, we have abbreviated the names of many of
the securities according to the list below.        
  AMT   Alternative Minimum Tax (subject to)   IDA   Industrial Development Authority
  EDA   Economic Development Authority   IDR   Industrial Development Revenue Bonds
  EDR   Economic Development Revenue Bonds   M/F   Multi-Family
  GO   General Obligation Bonds   S/F   Single-Family
  HFA   Housing Finance Agency   VRDN   Variable Rate Demand Notes

1

BlackRock Municipal Bond Trust    
Schedule of Investments as of November 30, 2007 (Unaudited)  
(in Thousands)
      Face          
State     Amount   Municipal Bonds     Value
    $ 6,000   District of Columbia, Tax Increment Revenue Bonds (Gallery Place Project), 5.40% due 7/01/2031 (d)   $ 6,334
      5,580   District of Columbia Tobacco Settlement Financing Corporation, Asset-Backed Revenue Refunding Bonds, 6.75% due 5/15/2040     5,711
Florida - 20.0%     1,535   Halifax Hospital Medical Center, Florida, Hospital Revenue Refunding Bonds, Series A, 5% due 6/01/2038     1,465
      6,200   Martin County, Florida, IDA, IDR, Refunding (Indiantown Cogeneration Project), AMT, Series A, 7.875% due 12/15/2025     6,266
      2,810   Miami Beach, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds (Mount Sinai Medical Center of Florida), 6.75% due 11/15/2021     2,972
      10,000   Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Adventist Health System), 5.625% due 11/15/2012 (g)     11,077
      1,845   Orange County, Florida, Tourist Development, Tax Revenue Refunding Bonds, 4.75% due 10/01/2032 (k)     1,846
      7,255   Palm Beach County, Florida, HFA, M/F Housing Revenue Bonds (Indian Trace Apartment Project), AMT, Series A, 5.625% due 1/01/2044 (d)     7,315
      980   Stevens Plantation Community Development District, Florida, Special Assessment Revenue Bonds, Series A, 7.10% due 5/01/2035     1,011
Georgia - 3.8%     940   Atlanta, Georgia, Airport Passenger Facility Charge and Subordinate Lien General Revenue Bonds, Series J, 5% due 1/01/2034 (d)     964
      5,000   Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5% due 11/01/2037 (d)     5,153
Illinois - 17.7%     23,065   Bolingbrook, Illinois, GO, Refunding, Series B, 6.196% due 1/01/2036 (c)(m)     4,444
      1,150   Centerpoint Intermodal Center Program Trust, Illinois, Tax Allocation Bonds, Class A, 8% due 6/15/2023 (j)     1,128
      4,340   Chicago, Illinois, GO, Refunding, Series A, 5.50% due 1/01/2011 (f)(g)     4,664
      1,540   Chicago, Illinois, GO, Refunding, Series A, 5.50% due 1/01/2038 (f)     1,620
      425   Illinois Financing Authority, Student Housing Revenue Bonds (MJH Education Assistance IV LLC), Sub-Series B, 5.375% due 6/01/2035     292
      6,000   Illinois Health Facilities Authority, Revenue Refunding Bonds (Lake Forest Hospital), Series A, 5.75% due 7/01/2029     6,202
      2,005   Illinois Municipal Electric Agency, Power Supply Revenue Bonds, 4.50% due 2/01/2035 (c)     1,914
      420   Illinois State Finance Authority Revenue Bonds (Friendship Village of Schaumburg), Series A, 5.625% due 2/15/2037     386
      10,000   Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds (McCormick Place Expansion), Series A, 6.03% due 6/15/2035 (f)(m)     2,679
      10,000   Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds (McCormick Place Expansion), Series A, 6.05% due 12/15/2036 (f)(m)     2,486
      10,000   Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds (McCormick Place Expansion), Series A, 6.06% due 12/15/2037 (f)(m)     2,363
Indiana - 1.2%     1,925   AIG SunAmerica, Inc., Bloomington, Indiana, M/F Housing Revenue Bonds (Canterbury House Apartments), Pass- Through Certificates of Beneficial Ownership, AMT, Series 1, 5.90% due 12/01/2034     1,948
Kansas - 3.2%     5,000   Wichita, Kansas, Airport Authority, Airport Facilities Revenue Bonds (Cessna Citation Service Center), AMT, Series A, 6.25% due 6/15/2032     5,158
Maryland - 3.3%     1,250   Baltimore, Maryland, Special Obligation Tax Bonds (Harborview Lot Number 2), 6.50% due 7/01/2031     1,296

2

BlackRock Municipal Bond Trust    
Schedule of Investments as of November 30, 2007 (Unaudited)  
(in Thousands)
      Face          
State     Amount   Municipal Bonds     Value
    $ 2,955   Frederick County, Maryland, Special Obligation Tax Bonds (Urbana Community Development Authority), Series B, 6.25% due 7/01/2030   $ 2,972
      1,040   Maryland State Health and Higher Educational Facilities Authority, Revenue Refunding Bonds (MedStar Health, Inc.), 5.50% due 8/15/2033     1,052
Massachusetts - 0.9%     1,450   Massachusetts State Water Resource Authority, General Revenue Refunding Bonds, Series A, 5% due 8/01/2041     1,497
Michigan - 0.7%     1,065   Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Henry Ford Health System), Series A, 5.25% due 11/15/2046     1,071
Mississippi - 0.7%     1,205   Mississippi Business Finance Corporation Revenue Bonds (Northrop Grumman Ship System), 4.55% due 12/01/2028     1,105
Multi-State - 7.5%     10,500   Charter Mac Equity Issuer Trust, 7.20% due 10/31/2052 (j)     11,963
Nebraska - 1.1%     1,760   Omaha Public Power District, Nebraska, Electric System Revenue Bonds, Series A, 4.75% due 2/01/2044     1,745
Nevada - 1.7%     1,325   Clark County, Nevada, EDR, Refunding (Alexander Dawson School of Nevada Project), 5% due 5/15/2029     1,320
      1,385   Las Vegas, Nevada, Special Improvement District Number 809 Revenue Bonds (Summerlin Area), 5.65% due 6/01/2023     1,354
New Jersey - 11.9%     915   Middlesex County, New Jersey, Improvement Authority, Subordinate Revenue Bonds (Heldrich Center Hotel/Conference Project), Series B, 6.25% due 1/01/2037     883
      3,710   New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2024     3,670
      1,500   New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031     1,479
      7,500   New Jersey EDA, EDR, Refunding (Kapkowski Road Landfill Reclamation Improvement District Project), 6.50% due 4/01/2028     8,308
      1,500   New Jersey EDA, First Mortgage Revenue Refunding Bonds (The Winchester Gardens at Ward Homestead Project), Series A, 5.80% due 11/01/2031     1,520
      3,000   New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project), AMT, 7.20% due 11/15/2030     3,058
New York - 9.6%     455   Albany, New York, IDA, Civic Facility Revenue Bonds (New Covenant Charter School Project), Series A, 7% due 5/01/2035     373
      1,760   Metropolitan Transportation Authority, New York, Service Contract Revenue Refunding Bonds, Series A, 5% due 7/01/2030 (a)     1,810
      1,085   Nanuet, New York, Union Free School District, GO, Refunding, 4.30% due 6/15/2029 (d)     1,060
      1,130   Nanuet, New York, Union Free School District, GO, Refunding, 4.30% due 6/15/2030 (d)     1,101
      6,165   New York City, New York, City IDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project), AMT, 7.75% due 8/01/2031     6,790
      2,610   New York Liberty Development Corporation Revenue Bonds (Goldman Sachs Headquarters), 5.25% due 10/01/2035     2,768
      1,330   New York State Environmental Facilities Corporation, State Clean Water and Drinking Revenue Bonds (New York City Water Project), Series B, 5% due 6/15/2031     1,366
North Carolina - 1.8%     2,945   Gaston County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue Bonds (National Gypsum Company Project), AMT, 5.75% due 8/01/2035     2,855
Ohio - 3.4%     1,125   Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Bonds, Series A-2, 6.50% due 6/01/2047     1,158

3

BlackRock Municipal Bond Trust    
Schedule of Investments as of November 30, 2007 (Unaudited)  
(in Thousands)
      Face          
State     Amount   Municipal Bonds     Value
    $ 4,220   Ohio State Air Quality Development Authority, Revenue Refunding Bonds (Dayton Power and Light Company Project), Series B, 4.80% due 1/01/2034 (c)   $ 4,201
Oklahoma - 2.0%     1,355   Oklahoma State Development Finance Authority, Revenue Refunding Bonds (Saint John Health System), 5% due 2/15/2042     1,355
      1,725   Tulsa, Oklahoma, Municipal Airport Trust, Revenue Refunding Bonds, Series A, 7.75% due 6/01/2035     1,859
Oregon - 0.3%     540   AIG SunAmerica, Inc., Portland, Oregon, M/F Housing Revenue Bonds (Pacific Tower Apartments), Pass-Through Certificates of Beneficial Ownership, AMT, Series 6, 6.05% due 11/01/2034     548
Pennsylvania - 2.6%     3,870   Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds (Reliant Energy), AMT, Series A, 6.75% due 12/01/2036     4,114
South Carolina - 0.7%     1,000   South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds (Palmetto Health Alliance), Series C, 7% due 8/01/2013 (g)     1,180
Texas - 19.6%     2,540   AIG SunAmerica, Inc., Texas, M/F Housing Revenue Bonds (Copperwood Ranch Apartments), Pass-Through Certificates of Beneficial Ownership, AMT, Series 9, 5.95% due 11/01/2035     2,576
      11,690   Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds, Senior Lien, Series G, 6.121% due 11/15/2041 (f)(m)     1,851
      605   Lower Colorado River Authority, Texas, Revenue Refunding Bonds, Series A, 5% due 5/15/2031 (f)     622
      430   Montgomery County, Texas, Municipal Utility District Number 46, Waterworks and Sewer System, GO, 4.75% due 3/01/2030 (f)     434
      1,775   SA Energy Acquisition Public Facilities Corporation, Texas, Gas Supply Revenue Bonds, 5.50% due 8/01/2023     1,861
      1,620   SA Energy Acquisition Public Facilities Corporation, Texas, Gas Supply Revenue Bonds, 5.50% due 8/01/2024     1,692
      60,000   Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, 6.09% due 8/15/2035 (a)(m)     12,598
      2,115   Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier, Series A, 5% due 8/15/2042 (a)     2,134
      6,840   Tyler, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Mother Frances Hospital Regional Health Care Center), 6% due 7/01/2012 (g)     7,598
Washington - 1.9%     905   King County, Washington, Sewer Revenue Refunding Bonds, 5% due 1/01/2036 (d)     942
      2,220   Washington State Health Care Facilities Authority, Revenue Refunding Bonds (Providence Health System), Series A, 4.625% due 10/01/2034 (c)     2,136
West Virginia - 0.3%     520   West Virginia EDA, Lease Revenue Bonds (Correctional, Juvenile and Public Safety Facilities), Series A, 5% due 6/01/2029 (f)     537
Wisconsin - 5.7%     1,350   Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Aurora Health Care, Inc.), 6.40% due 4/15/2033     1,421
      7,000   Wisconsin State Health and Educational Facilities Authority, Revenue Refunding Bonds (Wheaton Franciscan Services, Inc.), 5.75% due 2/15/2012 (g)     7,718
Puerto Rico - 1.4%     1,070   Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series N, 5.25% due 7/01/2034 (b)     1,185
      900   Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series N, 5.25% due 7/01/2036 (b)     996
          Total Municipal Bonds (Cost - $233,720) - 154.7%     247,070

4

BlackRock Municipal Bond Trust    
Schedule of Investments as of November 30, 2007 (Unaudited)  
(in Thousands)
      Face            
State     Amount   Short-Term Securities     Value  
Arizona - 0.1%   $ 158   Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, VRDN, AMT, 5.23% due 4/25/2008 (i)   $ 158  
Texas - 0.4%     680   Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Texas Children's        
          Hospital), VRDN, Series B-1, 3.52% due 10/01/2029 (f)(i)     680  
  Shares Held            
Money Market - 2.6%     4,200   Merrill Lynch Institutional Tax-Exempt Fund, 3.43% (e)(h)     4,200  
          Total Short-Term Securities (Cost - $5,038) - 3.1%     5,038  
          Total Investments (Cost - $238,758*) - 157.8%     252,108  
          Liabilities in Excess of Other Assets - (1.1%)     (1,767
)
          Preferred Shares, at Redemption Value - (56.7%)     (90,606
)
          Net Assets Applicable to Common Shares - 100.0%   $ 159,735  

*     

The cost and unrealized appreciation (depreciation) of investments as of November 30, 2007, as computed for federal income tax purposes, were as follows:
 
Aggregate cost   $ 239,292  
Gross unrealized appreciation   $ 14,585  
Gross unrealized depreciation     (1,769 )
Net unrealized appreciation   $ 12,816  

(a)     

AMBAC Insured.
(b)     

Assured Guaranty Insured.
(c)     

FGIC Insured.
(d)     

FSA Insured.
(e)     

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

 
Affiliate  
Net Activity
Interest Income
Merrill Lynch Institutional Tax-Exempt Fund  
(3,400)
$55
(f)
   MBIA Insured.
(g)
  

Prerefunded.
(h)
  

Represents the current yield as of November 30, 2007.
(i)
  

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based upon prevailing market rates.
(j)
  

The security may be offered and sold to "qualified institutional buyers" under Rule 144A of the Securities Act of 1933.
(k)
  

XL Capital Insured.
(l)
  

ACA Insured.
(m)
  

Represents a zero-coupon bond.
• Forward interest rate swaps outstanding as of November 30, 2007 were as follows:        
    Notional  
Unrealized
    Amount   Depreciation
       Pay a fixed rate of 3.588% and receive a floating rate based on 1-week
         (SIFMA) Municipal Swap Index rate 		       
       Broker, JPMorgan Chase        
       Expires January 2018  
$    35,000
 
   $      (703)

5

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 and 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 Bond Trust

By:      /s/ Donald C. Burke
  Donald C. Burke,
 
Chief Executive Officer of
  BlackRock Municipal Bond Trust

Date: January 16, 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 Municipal Bond Trust  

Date: January 16, 2008

By:      /s/ Neal J. Andrews  
  Neal J. Andrews,  
  Chief Financial Officer (principal financial officer) of
  BlackRock Municipal Bond Trust  

Date: January 16, 2008