BLACKROCK MUNIYIELD QUALITY FUND II, INC.

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: John M. Perlowski, 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: 04/30/2014

Date of reporting period: 01/31/2014

Item 1 – Schedule of Investments

Schedule of Investments January 31, 2014 (Unaudited)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Alabama — 0.9%

     

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

    $ 650      $ 734,084   

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

      2,000        1,880,520   
    

 

 

  
               2,614,604   

Alaska — 0.3%

     

Alaska Housing Finance Corp., Refunding RB, Series A, 4.13%, 12/01/37

      80        79,217   

Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A, 5.50%, 10/01/41

      850        906,814   
    

 

 

  
               986,031   

Arizona — 1.5%

     

City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Senior Lien, AMT, 5.00%, 7/01/32

      1,000        1,052,910   

Greater Arizona Development Authority, RB, Series B (NPFGC), 5.00%, 8/01/35

      1,100        1,142,834   

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

     

5.00%, 10/01/27

      1,075        1,164,655   

5.00%, 10/01/29

      925        993,746   
    

 

 

  
               4,354,145   

California — 16.9%

     

Alameda Corridor Transportation Authority, Refunding RB, CAB, Subordinate Lien, Series A (AMBAC), 5.45%, 10/01/25

      7,150        7,647,139   

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

     

0.00%, 8/01/37

      2,100        561,225   

0.00%, 8/01/38

      4,800        1,207,920   

California Health Facilities Financing Authority, RB:

     

St. Joseph Health System, Series A, 5.75%, 7/01/39

      500        560,300   

Sutter Health, Series A, 5.00%, 8/15/52

      635        638,334   

Sutter Health, Series B, 5.88%, 8/15/31

      1,000        1,160,220   
Municipal Bonds    Par  
(000)		     Value  

California (continued)

     

California Health Facilities Financing Authority, Refunding RB, Saint Joseph’s Health System, Series A, 5.00%, 7/01/37

    $ 945      $ 980,173   

California State Public Works Board, LRB, Various Judicial Council Projects, Series A, 5.00%, 3/01/38

      615        637,700   

California State University, RB, Systemwide Series A:

     

5.50%, 11/01/39

      1,000        1,111,160   

(AGC), 5.25%, 11/01/38

      3,000        3,281,460   

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42

      1,290        1,317,670   

City of San Jose California, Refunding ARB, Series A-1, AMT, 5.75%, 3/01/34

      700        755,692   

Coast Community College District, GO, CAB, Election of 2002, Series C (AGM), 5.00%, 8/01/31

      1,800        1,903,824   

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

      2,015        2,156,453   

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax Measure K, Series A, 6.00%, 3/01/36

      575        674,372   

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

      4,000        4,285,640   

Fairfield-Suisun Unified School District California, GO, Election of 2002 (NPFGC), 5.50%, 8/01/14 (b)

      2,770        2,844,014   

Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/32

      2,200        2,357,212   

Monterey Peninsula Community College District, GO, CAB, Series C, 0.00%, 8/01/28 (a)

      11,975        5,844,878   

Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 6.25%, 8/01/43 (c)

      5,000        2,492,650   

San Diego California Unified School District, GO, CAB, Election of 2008, Series C, 0.00%, 7/01/38 (a)

      1,400        379,344   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2014    1

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

California (concluded)

     

San Diego California Unified School District, GO, Refunding, CAB, Series R-1, 0.00%, 7/01/31 (a)

    $ 1,110      $ 468,853   

San Diego Community College District California, GO, CAB, Election of 2006 (a):

     

0.00%, 8/01/31

      1,855        719,369   

0.00%, 8/01/32

      2,320        838,680   

San Marcos Unified School District, GO, Election of 2010, Series A:

     

5.00%, 8/01/34

      600        640,548   

5.00%, 8/01/38

      490        517,901   

State of California, GO, Refunding, Various Purpose, 5.00%, 10/01/41

      900        937,143   

State of California, GO, Various Purpose, 5.00%, 4/01/42

      1,500        1,564,230   

Ventura County Community College District, GO, Election of 2002, Series B (NPFGC), 5.00%, 8/01/15 (b)

      675        723,134   

Yosemite Community College District, GO, CAB, Election of 2004, Series D (a):

     

0.00%, 8/01/36

      2,000        604,380   

0.00%, 8/01/37

      2,790        797,605   
    

 

 

  
               50,609,223   

Colorado — 1.0%

     

E-470 Public Highway Authority, Refunding RB, CAB, Series B (NPFGC), 0.00%, 9/01/32 (a)

      5,500        1,887,050   

Regional Transportation District, COP, Refunding, Series A, 5.38%, 6/01/31

      1,000        1,074,180   
    

 

 

  
               2,961,230   

Florida — 12.3%

     

City of Jacksonville Florida, Refunding RB, Transportation, Series A, 5.00%, 10/01/30

      250        269,855   

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

      1,000        1,077,470   

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

      7,875        8,265,915   

County of Highlands Florida Health Facilities Authority, RB, Adventist Health System/Sunbelt, Series B, 6.00%, 11/15/37

      550        624,003   
Municipal Bonds    Par  
(000)		     Value  

Florida (concluded)

     

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

    $ 3,250      $ 3,503,208   

County of Lee Florida, Refunding ARB, Series A, AMT:

     

5.63%, 10/01/26

      825        902,096   

5.38%, 10/01/32

      1,100        1,144,880   

County of Miami-Dade Florida, RB:

     

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

      900        942,696   

Seaport, Series A, 6.00%, 10/01/38

      1,780        1,988,776   

Seaport, Series B, AMT, 6.00%, 10/01/30

      570        633,076   

Seaport, Series B, AMT, 6.25%, 10/01/38

      360        400,849   

Seaport, Series B, AMT, 6.00%, 10/01/42

      580        632,345   

County of Miami-Dade Florida, Refunding RB, Special Obligation, Sub-Series B, 5.00%, 10/01/37

      1,340        1,364,442   

County of Miami-Dade Florida Aviation, Refunding ARB, Series A AMT:

     

Miami International Airport (AGC), 5.00%, 10/01/40

      5,400        5,417,550   

5.00%, 10/01/32

      1,730        1,761,555   

County of Palm Beach Florida Solid Waste Authority, Refunding RB, 5.00%, 10/01/31

      1,900        2,008,851   

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

      250        258,880   

Florida Ports Financing Commission, Refunding RB, State Transportation Trust Fund, Series B, AMT, 5.38%, 10/01/29

      2,400        2,650,848   

Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/33

      1,040        1,127,724   

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

      1,800        1,992,672   
    

 

 

  
               36,967,691   

Georgia — 7.1%

     

City of Atlanta Georgia Department of Aviation, Refunding GARB:

     

Series B (AGM), 5.25%, 1/01/33

      5,000        5,084,050   

 

                
2    BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2014   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds   

Par  

(000)

     Value  

Georgia (concluded)

     

City of Atlanta Georgia Department of Aviation, Refunding GARB (concluded):

     

Series C (AGM), 5.00%, 1/01/33

    $ 15,000      $ 15,239,700   

County of Burke Georgia Development Authority, Refunding RB, Oglethorpe Power-Vogtle Project, Series C, 5.70%, 1/01/43

      1,000        1,051,260   
    

 

 

  
               21,375,010   

Illinois — 18.4%

     

City of Chicago Illinois, GARB, O’Hare International Airport 3rd Lien:

     

Series A, 5.75%, 1/01/39

      2,000        2,117,860   

Series B-2, AMT (SYNCORA), 6.00%, 1/01/29

      1,280        1,284,877   

City of Chicago Illinois, GO: CAB, City Colleges (NPFGC), 0.00%, 1/01/31 (a)

      8,370        3,202,780   

Series A, 5.25%, 1/01/35

      2,000        2,027,680   

City of Chicago Illinois, Refunding GARB, O’Hare International Airport, AMT:

     

Third Lien, Series C-2 (AGM), 5.25%, 1/01/30

      1,620        1,620,923   

Series C, 5.38%, 1/01/39

      3,235        3,318,916   

City of Chicago Illinois, Refunding RB, Sales Tax Receipts, Series A, 5.00%, 1/01/41

      700        716,975   

City of Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39

      1,915        1,955,138   

City of Chicago Illinois Park District, GO, Series C Harbor Facilities:

     

Revenues, 5.25%, 1/01/37

      4,000        4,128,480   

5.25%, 1/01/40

      500        515,760   

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/36

      515        536,774   

County of Cook Illinois Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/37

      250        261,288   

County of Cook Illinois Forest Preserve District, GO, Series C, 5.00%, 12/15/37

      285        298,683   

Illinois Finance Authority, RB, Carle Foundation, Series A, 5.75%, 8/15/34

      400        432,188   
Municipal Bonds   

Par  

(000)

     Value  

Illinois (concluded)

     

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

    $ 2,070      $ 2,228,210   

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

      18,175        19,141,001   

Metropolitan Pier & Exposition Authority, RB, CAB, McCormick Place Expansion Project (NPFGC), 0.00%, 12/15/36 (a)

      10,000        2,865,400   

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project Series B:

     

CAB (AGM), 0.00%, 6/15/44 (a)

      2,980        532,675   

4.25%, 6/15/42

      4,000        3,688,040   

Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28

      575        637,790   

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

      2,000        2,410,480   

State of Illinois, GO, Various Purposes:

     

5.50%, 7/01/33

      710        753,346   

5.50%, 7/01/38

      380        395,854   
    

 

 

  
               55,071,118   

Indiana — 2.0%

     

Indiana Finance Authority, RB, Series A:

     

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

      1,000        1,065,460   

Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/40

      770        730,622   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44

      445        419,168   

Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project Series A:

     

5.75%, 1/01/38

      2,000        2,154,740   

(AGC), 5.50%, 1/01/38

      1,575        1,674,382   
    

 

 

  
               6,044,372   

Iowa — 3.2%

     

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

      4,925        5,362,340   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2014    3

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Iowa (concluded)

     

Iowa Student Loan Liquidity Corp., RB, Senior Series A-2, AMT:

     

5.60%, 12/01/26

    $ 1,185      $ 1,236,773   

5.70%, 12/01/27

      1,190        1,237,100   

5.80%, 12/01/29

      800        828,416   

5.85%, 12/01/30

      835        863,523   
    

 

 

  
               9,528,152   

Kentucky — 0.7%

     

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

      2,000        2,208,440   

Louisiana — 1.2%

     

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, East Baton Rouge Sewerage Commission Projects, Sub-Lien, Series A:

     

5.00%, 2/01/43

      1,235        1,271,988   

4.00%, 2/01/48

      1,235        1,076,525   

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

      1,150        1,280,928   
    

 

 

  
               3,629,441   

Massachusetts — 5.6%

     

Massachusetts HFA, Refunding RB, Series C, AMT:

     

5.00%, 12/01/30

      5,000        5,094,750   

5.35%, 12/01/42

      975        984,828   

Massachusetts School Building Authority, RB, Series A:

     

Dedicated Sales Tax, Senior, 5.00%, 5/15/43

      1,110        1,186,457   

(AGM), 5.00%, 8/15/15 (b)

      180        193,145   

(AGM), 5.00%, 8/15/15 (b)

      6,015        6,454,275   

(AGM), 5.00%, 8/15/30

      65        68,702   

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

      2,700        2,917,593   
    

 

 

  
               16,899,750   

Michigan — 4.7%

     

City of Detroit Michigan, Refunding RB, Sewage Disposal System, Series A (BHAC), 5.50%, 7/01/36

      4,500        4,503,240   
Municipal Bonds    Par  
(000)		     Value  

Michigan (concluded)

     

City of Detroit Michigan Sewage Disposal System, Refunding RB, 2nd Lien, Series E (BHAC), 5.75%, 7/01/31

    $ 2,200      $ 2,250,578   

City of Detroit Michigan Water Supply System, RB, 2nd Lien, Series B (AGM):

     

6.25%, 7/01/36

      350        354,393   

7.00%, 7/01/36

      200        209,986   

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41

      1,700        1,851,946   

State of Michigan Building Authority, Refunding RB, Facilities Program:

     

Series I-A, 5.38%, 10/15/41

      600        641,886   

Series II-A, 5.38%, 10/15/36

      1,000        1,067,780   

Series II-A (AGM), 5.25%, 10/15/36

      1,900        2,021,049   

State of Michigan HDA, RB, Series C, AMT, 5.50%, 12/01/28

      740        767,165   

Western Michigan University, Refunding RB, (AGM), 5.00%, 11/15/39

      340        350,870   
    

 

 

  
               14,018,893   

Minnesota — 0.7%

     

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

      1,800        2,074,320   

Nebraska — 0.9%

     

Central Plains Nebraska Energy Project, RB, Gas Project No. 3, 5.25%, 9/01/37

      2,650        2,710,499   

Nevada — 2.3%

     

County of Clark Nevada, ARB:

     

Las Vegas-McCarran International Airport, Series A, 5.25%, 7/01/42

      1,000        1,031,210   

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

      1,700        1,775,395   

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

      1,250        1,267,337   

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

      2,700        2,738,124   
    

 

 

  
               6,812,066   

 

                
4    BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2014   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

New Jersey — 5.0%

     

New Jersey EDA, RB:

     

Cigarette Tax (Radian), 5.50%, 6/15/14 (b)

    $ 85      $ 86,696   

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

      6,700        6,810,617   

The Goethals Bridge Replacement Project, AMT, 5.13%, 1/01/34

      610        610,677   

The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43

      790        795,095   

New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT:

     

5.50%, 12/01/25

      500        522,840   

5.50%, 12/01/26

      350        365,253   

5.75%, 12/01/28

      200        214,156   

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT, 4.35%, 11/01/33

      1,070        1,026,076   

New Jersey Transportation Trust Fund Authority, RB:

     

Transportation Program, Series AA, 5.25%, 6/15/33

      1,290        1,399,186   

Transportation Program, Series AA, 5.50%, 6/15/39

      1,010        1,097,759   

Transportation System, Series A (NPFGC), 5.75%, 6/15/25

      1,400        1,699,124   

Rutgers-The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43

      400        427,456   
    

 

 

  
               15,054,935   

New York — 4.0%

     

City of New York New York Municipal Water Finance Authority, Refunding RB, Second General Resolution, Fiscal 2012, Series BB, 5.25%, 6/15/44

      1,250        1,326,812   

City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-4, 5.50%, 1/15/33

      3,035        3,388,760   

City of New York New York Transitional Finance Authority, Refunding RB, Future Tax Secured, Series B, 5.00%, 11/01/32

      2,200        2,393,116   

Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012, Series A, 5.75%, 2/15/47

      610        659,160   
Municipal Bonds    Par  
(000)		     Value  

New York (concluded)

     

Port Authority of New York & New Jersey, Refunding RB, Consolidated, 172nd Series, AMT, 4.50%, 4/01/37

    $ 1,330      $ 1,307,363   

State of New York HFA, RB, Affordable Housing, Series B, 5.30%, 11/01/37

      2,835        2,891,672   
    

 

 

  
               11,966,883   

Ohio — 0.8%

     

County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/37

      460        533,273   

Ohio Higher Educational Facility Commission, Refunding RB, Kenyon College Project, 5.00%, 7/01/37

      310        324,201   

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1:

     

5.25%, 2/15/32

      610        665,901   

5.25%, 2/15/33

      850        923,865   
    

 

 

  
               2,447,240   

Pennsylvania — 2.7%

     

Commonwealth Financing Authority, RB, Series B, 5.00%, 6/01/42

      2,235        2,283,745   

Pennsylvania Turnpike Commission, RB:

     

Series C, 5.50%, 12/01/33

      490        542,102   

Sub-Series A, 5.00%, 12/01/43

      1,000        1,028,710   

Subordinate, Special Motor License Fund, 6.00%, 12/01/36

      500        568,200   

Subordinate, Special Motor License Fund, 5.50%, 12/01/41

      2,245        2,404,283   

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

      1,300        1,404,455   
    

 

 

  
               8,231,495   

South Carolina — 4.6%

     

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

     

5.25%, 12/01/15

      2,725        2,970,795   

5.25%, 12/01/15

      2,425        2,643,735   

5.25%, 12/01/15

      880        959,376   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2014    5

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds   

Par   

(000)

     Value  

South Carolina (concluded)

     

County of Charleston South Carolina Airport District, ARB, Series A, AMT, 5.50%, 7/01/41

    $ 1,360      $ 1,437,724   

South Carolina Jobs EDA, Refunding RB, Palmetto Health, Series A (AGM), 6.50%, 8/01/39

      100        111,468   

South Carolina Transportation Infrastructure Bank, RB, Series A, 5.25%, 10/01/40

      3,420        3,649,892   

State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series B, 5.00%, 12/01/38

      1,840        1,904,952   
    

 

 

  
               13,677,942   

Tennessee — 0.4%

     

Memphis Center City Revenue Finance Corp., RB, Pyramid & Pinch District, Series B (AGM), 5.25%, 11/01/30

      1,000        1,089,480   

Texas — 13.3%

     

City of San Antonio Texas Public Service Board, RB, Junior Lien, 5.00%, 2/01/38

      500        528,185   

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 9/15/36 (a)

      1,850        610,075   

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Cook Children’s Medical Center, 5.25%, 12/01/39

      750        794,865   

Dallas-Fort Worth International Airport, ARB, Joint Improvement:

     

Series D, AMT, 5.00%, 11/01/38

      1,800        1,807,902   

Series D, AMT, 5.00%, 11/01/42

      1,140        1,133,023   

Series H, 5.00%, 11/01/32

      2,715        2,760,150   

Dallas-Fort Worth International Airport, Refunding ARB, Series F, 5.25%, 11/01/33

      865        930,541   

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

      3,000        3,275,640   

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

      1,065        1,145,716   

North Texas Tollway Authority, Refunding RB, 1st Tier System:

     

Series A, 6.00%, 1/01/28

      2,415        2,761,625   
Municipal Bonds   

Par   

(000)

     Value  

Texas (concluded)

     

North Texas Tollway Authority, Refunding RB, 1st Tier System (concluded):

     

Series A (NPFGC), 5.75%, 1/01/40

    $ 3,600      $ 3,898,044   

Series K-1 (AGC), 5.75%, 1/01/38

      3,400        3,765,330   

San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing and Expansion Project:

     

4.00%, 9/15/42

      5,620        5,053,167   

CAB, 0.00%, 9/15/35 (a)

      2,050        712,683   

CAB, 0.00%, 9/15/36 (a)

      3,875        1,267,977   

CAB, 0.00%, 9/15/37 (a)

      17,775        5,478,077   

Texas Municipal Gas Acquisition & Supply Corp. III, RB:

     

5.00%, 12/15/31

      1,030        1,036,541   

5.00%, 12/15/32

      2,500        2,506,950   

Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A, 5.00%, 8/15/41

      450        450,419   
    

 

 

  
               39,916,910   

Vermont — 0.3%

     

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

      960        976,925   

Washington — 2.1%

     

Central Puget Sound Regional Transit Authority, RB, Series A, 5.00%, 11/01/36

      1,400        1,496,866   

Washington Health Care Facilities Authority, RB:

     

MultiCare Health System, Remarketing, Series B, 5.00%, 8/15/44

      3,000        3,052,080   

Providence Health & Services, Series A, 5.00%, 10/01/39

      1,000        1,023,900   

Providence Health & Services, Series A, 5.25%, 10/01/39

      550        572,864   

Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services, Series A, 5.00%, 10/01/42

      205        209,764   
    

 

 

  
               6,355,474   

 

 

                
6    BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2014   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds   

Par  

(000)

     Value  

Wisconsin — 0.4%

     

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

    $ 1,200      $ 1,264,560   
Total Municipal Bonds — 113.3%              339,846,829   
    
                  
Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts (d)		  

Arizona — 1.0%

     

City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Water System, Junior Lien, Series A, 5.00%, 7/01/34

      1,000        1,081,660   

Salt River Project Agricultural Improvement & Power District, RB, Electric System, Series A, 5.00%, 1/01/38

      1,750        1,866,655   
    

 

 

  
               2,948,315   

California — 3.4%

     

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

      3,030        3,268,310   

Los Angeles Community College District California, GO, Election of 2001, Series A (NPFGC), 5.00%, 8/01/32

      4,330        4,639,422   

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33

      1,699        1,968,253   

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

      359        402,941   
    

 

 

  
               10,278,926   

Colorado — 1.3%

     

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A:

     

5.50%, 7/01/34 (e)

      780        865,078   

5.00%, 2/01/41

      2,999        3,009,020   
    

 

 

  
               3,874,098   

District of Columbia — 1.7%

     

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

      855        966,486   
Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts (d)		   

Par  

(000)

     Value  

District of Columbia (concluded)

     

District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 10/01/35 (e)

    $ 1,580      $ 1,775,911   

Metropolitan Washington Airports Authority, Refunding ARB, Series A, AMT, 5.00%, 10/01/30

      2,190        2,322,583   
    

 

 

  
               5,064,980   

Florida — 12.8%

     

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

      4,000        4,152,560   

County of Highlands Florida Health Facilities Authority, RB, Adventist, Series C, 5.25%, 11/15/36

      4,000        4,173,760   

County of Miami-Dade Florida, Refunding RB, Transit System Sales Surtax, 5.00%, 7/01/42

      1,540        1,590,127   

County of Miami-Dade Florida Expressway Authority, Refunding RB, Series A (AGC), 5.00%, 7/01/35

      2,100        2,182,782   

County of Miami-Dade Florida Water & Sewer System, RB, (AGM), 5.00%, 10/01/39

      6,901        7,194,208   

County of Orange Florida School Board, COP, Series A,

     

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

      3,394        3,665,371   

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

      9,000        9,496,260   

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

      4,200        4,802,658   

State of Florida Board of Education, GO, Refunding, Series D, 5.00%, 6/01/37 (e)

      1,189        1,276,602   
    

 

 

  
               38,534,328   

Hawaii — 1.7%

     

Honolulu City & County Board of Water Supply, RB, Series A (NPFGC), 5.00%, 7/01/14 (b)

      5,000        5,100,750   

Illinois — 9.4%

     

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

      4,000        3,999,840   

City of Chicago Illinois, Refunding RB, Waterworks, 2nd Lien (AGM), 5.25%, 11/01/33

      2,548        2,640,953   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2014    7

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 (TOB) Trusts (d)		    Par  
(000)		     Value  

Illinois (concluded)

     

Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.00%, 6/15/42

    $ 1,630      $ 1,660,049   

Regional Transportation Authority, RB, 6.50%, 7/01/26

      10,000        12,866,930   

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

      1,130        1,180,595   

State of Illinois Toll Highway Authority, RB:

     

Senior Priority, Series B, 5.50%, 1/01/33

      3,499        3,800,148   

Toll Highway Senior Revenue Bonds, Series A, 5.00%, 1/01/38

      1,859        1,912,482   
    

 

 

  
               28,060,997   

Louisiana — 1.6%

     

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

      4,600        4,863,074   

Michigan — 1.6%

     

Michigan Finance Authority, RB, Hospital, Trinity Health Credit Group, 5.00%, 12/01/39

      4,700        4,785,023   

Nevada — 1.8%

     

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

      3,298        3,583,820   

County of Clark Nevada Water Reclamation District, GO, Limited Tax, Series B, 5.75%, 7/01/34

      1,574        1,801,341   
    

 

 

  
               5,385,161   

New Jersey — 0.6%

     

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (e)

      1,580        1,680,410   

New York — 4.1%

     

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

      1,050        1,172,544   

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 6/15/47

      4,920        5,136,185   
Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts (d)		    Par  
(000)		     Value  

New York (concluded)

     

Port Authority of New York & New Jersey, Refunding RB, Construction, 143rd Series, AMT, 5.00%, 10/01/30

    $ 3,500      $ 3,602,550   

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

      1,000        1,135,730   

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

      1,200        1,324,416   
    

 

 

  
               12,371,425   

Ohio — 0.2%

     

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

      500        536,385   

South Carolina — 0.4%

     

State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series A, 5.50%, 1/01/38 (e)

      1,125        1,239,131   

Texas — 5.2%

     

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

      1,900        2,033,057   

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

      4,000        4,458,880   

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

      5,250        5,639,917   

Dallas Fort Worth International Airport, ARB, Series H, AMT, 5.00%, 11/01/37 (e)

      1,996        2,006,961   

North East Texas ISD, GO, School Building, Series A (PSF-GTD), 5.00%, 8/01/37 (e)

      1,400        1,490,356   
    

 

 

  
               15,629,171   

Virginia — 0.1%

     

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

      300        322,053   

 

                
8    BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2014   

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 (TOB) Trusts (d)		   

Par  

(000)

     Value  

Wisconsin — 1.8%

     

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health Inc. Obligated Group:

     

Froedtert & Community Health, Inc., Series A, 5.00%, 4/01/42

    $ 1,920      $ 1,967,366   

Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/39 (e)

      3,250        3,368,210   
    

 

 

  
               5,335,576   
Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts — 48.7%		         146,009,803   
Total Long-Term Investments
(Cost — $465,038,251) — 162.0%		         485,856,632   
    
Short-Term Securities		    Shares         

FFI Institutional Tax-Exempt Fund, 0.03% (f)(g)

      4,567,107        4,567,107   
Total Short-Term Securities
(Cost — $4,567,107) — 1.5%		         4,567,107   
Total Investments
(Cost — $469,605,358) — 163.5%		         490,423,739   
Other Assets Less Liabilities — 1.0%        2,667,345   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees
Payable — (25.6%)

    

     (76,726,403 ) 
Preferred Shares, at Redemption Value — (38.9%)        (116,500,000 ) 
    

 

 

  
Net Assets Applicable to Common
Shares — 100.0%		       $ 299,864,681   
    

 

 

  

 

*   As of January 31, 2014, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 395,320,158   
 

 

 

  

Gross unrealized appreciation

   $ 24,379,604   

Gross unrealized depreciation

     (5,984,389 ) 
 

 

 

  

Net unrealized appreciation

   $ 18,395,215   
 

 

 

  

 

Notes to Schedule of Investments

 

(a)   Zero-coupon bond.

 

(b)   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.

 

(c)   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.

 

(d)   Represent bonds transferred to a TOB. In exchange the Fund acquired residual interest certificates. These bonds serve as collateral in a financing transaction.

 

(e)   All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from February 1, 2016 to December 1, 2029 is $11,573,221

 

(f)   Investments in issuers considered to be an affiliate of the Fund during the period ended January 31, 2014, 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,
2013		        Net
Activity		        Shares Held
at January 31,
2014		        Income  

FFI Institutional Tax-Exempt Fund

        849,388           3,717,719           4,567,107         $ 998   

 

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

 

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 Guarantee Corp.
     AGM    Assured Guaranty Municipal Corp.

 

                
   BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2014    9

Schedule of Investments (continued)

    BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

 

   AMBAC   American Municipal Bond Assurance Corp.
   AMT   Alternative Minimum Tax (subject to)
   ARB   Airport Revenue Bonds
   BARB   Building Aid Revenue Bonds
   BHAC   Berkshire Hathaway Assurance Corp.
   CAB   Capital Appreciation Bonds
   COP   Certificates of Participation
   EDA   Economic Development Authority
   ERB   Education Revenue Bonds
   GARB   General Airport Revenue Bonds
   GO   General Obligation Bonds
   GTD   Guaranteed
   HDA   Housing Development Authority
   HFA   Housing Finance Agency
   IDA   Industrial Development Authority
   ISD   Independent School District
   LRB   Lease Revenue Bonds
   NPFGC   National Public Finance Guarantee Corp.
   PSF   Public School Fund
   Radian   Radian Guaranty, Inc.
   RB   Revenue Bonds

 

Ÿ  

Financial futures contracts outstanding as of January 31, 2014 were as follows:

 

Contracts
Purchased/
Sold		     Issue   Exchange   Expiration   Notional
Value		     Unrealized
Depreciation		  
  (55 )    10-Year US Treasury Note   Chicago Board of Trade   March 2014     USD        6,916,250      $ (48,199 ) 

 

                
10    BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2014   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

Ÿ  

Fair Value Measurements—Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

 

  Ÿ  

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)

 

  Ÿ  

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 derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of January 31, 2014:

 

     Level 1        Level 2        Level 3        Total  

Assets:

                 
Investments:                 

Long-Term Investments1

     —         $ 485,856,632           —         $ 485,856,632   

Short-Term Securities

   $ 4,567,107           —           —           4,567,107   
 

 

 

       

 

 

       

 

 

       

 

 

  

Total

   $ 4,567,107         $ 485,856,632           —         $ 490,423,739   
 

 

 

       

 

 

       

 

 

       

 

 

  

 

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

      

     Level 1        Level 2        Level 3        Total  
Derivative Financial Instruments2             

Liabilities:

                 

Interest rate contracts

   $ (48,199 )         —           —         $ (48,199 ) 

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

     

There were no transfers between levels during the period ended January 31, 2014.

 

                
   BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2014    11

Schedule of Investments (concluded)

    BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

The carrying amount for certain of the Fund’s assets and/or liabilities approximates fair value for financial reporting purposes. As of January 31, 2014, such assets and liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1     Level 2     Level 3     Total  

Assets:

        

Cash pledged for financial futures contracts

   $ 98,000        —        —      $ 98,000   

Liabilities:

        

TOB trust certificates

     —      $ (76,708,366 )      —        (76,708,366 ) 

VMTP Shares

     —        (116,500,000 )      —        (116,500,000 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 98,000      $ (193,208,366 )      —      $ (193,110,366 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

There were no transfers between levels during the six months ended January 31, 2014.

 

                
12    BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2014   

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/ JOHN M. PERLOWSKI

  
 

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock MuniYield Quality Fund II, Inc.

Date: March 25, 2014

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/ JOHN M. PERLOWSKI

  
 

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock MuniYield Quality Fund II, Inc.

Date: March 25, 2014

 

By:      

/S/ NEAL J. ANDREWS

  
 

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock MuniYield Quality Fund II, Inc.

Date: March 25, 2014