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: 04/30/2015

Date of reporting period: 01/31/2015

Item 1 – Schedule of Investments

Schedule of Investments January 31, 2015 (Unaudited)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Alabama — 0.8%

     

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

    $ 650      $ 764,556   

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

      2,000        2,000,160   
    

 

 

  
               2,764,716   

Alaska — 0.3%

     

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

      850        986,459   

Arizona — 1.4%

     

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

      1,000        1,156,670   

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

      1,100        1,123,144   

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

     

5.00%, 10/01/27

      1,075        1,221,855   

5.00%, 10/01/29

      925        1,049,311   
    

 

 

  
               4,550,980   

Arkansas — 0.1%

     

Pulaski County Public Facilities Board, RB, 5.00%, 12/01/42

      350        405,030   

California — 16.1%

     

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

      7,150        7,744,665   

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

     

0.00%, 8/01/37

      2,100        727,671   

0.00%, 8/01/38

      4,800        1,582,080   

California Health Facilities Financing Authority, RB:

     

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

      500        587,500   

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

      1,000        1,206,460   

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

      945        1,104,592   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

     

California State University, RB, Systemwide, Series A:

     

5.50%, 11/01/39

    $ 1,000      $ 1,178,680   

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

      3,000        3,494,160   

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

      1,290        1,460,822   

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

      700        811,398   

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

      1,800        2,016,540   

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

      2,015        2,253,294   

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

      575        710,200   

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

      4,000        4,499,840   

Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/17 (b)

      2,200        2,443,870   

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

      11,975        6,535,955   

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

      5,000        3,604,600   

San Diego California Unified School District, GO (a):

     

CAB, Election of 2008, Series C, 0.00%, 7/01/38

      1,400        575,792   

CAB, Election of 2008, Series G, 0.00%, 7/01/34

      580        246,245   

CAB, Election of 2008, Series G, 0.00%, 7/01/35

      615        246,769   

CAB, Election of 2008, Series G, 0.00%, 7/01/36

      920        345,230   

CAB, Election of 2008, Series G, 0.00%, 7/01/37

      615        217,427   

San Diego California Unified School District, GO, Refunding, CAB, Election of 2008, Series R-1, 0.00%, 7/01/31 (a)

      1,110        624,886   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2015    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 Community College District California, GO, CAB, Election of 2006 (a):

     

0.00%, 8/01/31

    $ 1,855      $ 882,405   

0.00%, 8/01/32

      2,320        1,026,066   

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

     

5.00%, 8/01/34

      600        705,846   

5.00%, 8/01/38

      490        569,958   

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

      900        1,033,821   

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

      1,500        1,729,800   

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

      615        711,321   

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

      675        691,531   

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

     

0.00%, 8/01/36

      2,000        886,460   

0.00%, 8/01/37

      2,790        1,190,688   
    

 

 

  
               53,646,572   

Colorado — 2.0%

     

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

      5,500        2,233,220   

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

      1,000        1,170,950   

Regional Transportation District, COP, Series A, 5.00%, 6/01/39

      2,765        3,189,925   
    

 

 

  
               6,594,095   

Florida — 10.9%

     

City of Lakeland Florida, RB, Regional Health, 5.00%, 11/15/40 (d)

      1,420        1,630,771   

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

      1,000        1,118,330   

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

      7,875        8,541,225   
Municipal Bonds   

Par  

(000)

     Value  

Florida (continued)

     

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

    $ 550      $ 655,094   

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

      3,250        3,656,705   

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

     

5.63%, 10/01/26

      825        985,174   

5.38%, 10/01/32

      1,100        1,245,387   

County of Miami-Dade Florida, RB:

     

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

      900        1,021,599   

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

      570        711,007   

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

      1,780        2,209,478   

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

      360        451,843   

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

      580        708,957   

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

     

5.00%, 10/01/34

      160        185,224   

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

      2,600        2,803,814   

Series A, 5.00%, 10/01/32

      1,730        1,967,944   

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

      1,900        2,252,222   

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

      250        282,603   

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

      2,400        2,814,864   

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

      1,040        1,240,158   

 

                
2    BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2015   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Florida (concluded)

     

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

    $ 1,800      $ 1,938,942   
    

 

 

  
               36,421,341   

Georgia — 0.8%

     

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

      1,000        1,100,930   

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54

      440        526,319   

Private Colleges & Universities Authority, RB, Savannah College of Art & Design:

     

5.00%, 4/01/31

      165        188,715   

5.00%, 4/01/33

      120        136,429   

5.00%, 4/01/44

      550        620,186   
    

 

 

  
               2,572,579   

Illinois — 17.9%

     

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

     

Series A, 5.75%, 1/01/39

      2,000        2,366,420   

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

      1,280        1,285,658   

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

      8,370        4,057,860   

City of Chicago Illinois, GO, Refunding, Project, Series A, 5.25%, 1/01/33

      2,400        2,609,976   

City of Chicago Illinois, GO, Series A, 5.25%, 1/01/35

      2,000        2,132,720   

City of Chicago Illinois, Refunding GARB, AMT:

     

O’Hare International Airport, 3rd Lien, Series C-2 (AGM), 5.25%, 1/01/30

      1,620        1,623,046   

O’Hare International Airport, General Senior Lien, Series C, 5.38%, 1/01/39

      3,235        3,712,745   

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

      700        770,791   
Municipal Bonds   

Par  

(000)

     Value  

Illinois (continued)

     

City of Chicago Illinois Midway International Airport, Refunding RB, 2nd Lien, Series A, AMT, 5.00%, 1/01/34

    $ 505      $ 572,104   

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

     

Harbor Facilities Revenue, 5.25%, 1/01/40

      500        554,580   

Harbor Facilities Revenues, 5.25%, 1/01/37

      4,000        4,477,800   

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

      515        597,503   

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

      250        285,160   

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

      400        464,632   

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

      2,070        2,408,093   

Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC):

     

5.50%, 6/15/15 (b)

      5,310        5,468,344   

5.50%, 6/15/30

      12,865        13,222,518   

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

      10,000        3,926,100   

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

     

CAB (AGM), 0.00%, 6/15/44 (a)

      2,980        813,272   

4.25%, 6/15/42

      1,070        1,116,545   

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

      575        688,626   

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

      2,000        2,736,960   

State of Illinois, GO:

     

5.25%, 2/01/33

      735        819,172   

5.50%, 7/01/33

      710        812,758   

5.25%, 2/01/34

      735        817,394   

5.50%, 7/01/38

      380        432,322   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2015    3

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Illinois (concluded)

     

University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 4/01/39

    $ 805      $ 929,010   
    

 

 

  
               59,702,109   

Indiana — 2.0%

     

Indiana Finance Authority, RB, Series A:

     

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

      1,000        1,178,150   

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

      445        487,186   

Private Activity Bond, Ohio River Bridges, AMT, 5.00%, 7/01/40

      770        845,915   

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

     

5.75%, 1/01/38

      2,000        2,301,740   

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

      1,575        1,793,279   
    

 

 

  
               6,606,270   

Iowa — 2.9%

     

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

      4,925        5,709,011   

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

     

5.60%, 12/01/26

      1,065        1,147,772   

5.70%, 12/01/27

      1,070        1,147,318   

5.80%, 12/01/29

      725        778,592   

5.85%, 12/01/30

      750        806,062   
    

 

 

  
               9,588,755   

Kentucky — 0.7%

     

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

      2,000        2,288,700   

Louisiana — 0.8%

     

Louisiana Local Government Environmental Facilities & Community Development Authority, RB:

     

East Baton Rouge Sewerage Commission Projects, Sub-Lien, Series A, 5.00%, 2/01/43

      460        526,433   

Lctcs Act 360 Project , 5.00%, 10/01/39

      700        827,036   
Municipal Bonds   

Par  

(000)

     Value  

Louisiana (concluded)

     

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

    $ 1,150      $ 1,336,105   
    

 

 

  
               2,689,574   

Massachusetts — 3.2%

     

Massachusetts HFA, Refunding RB, Series C, AMT:

     

5.00%, 12/01/30

      5,000        5,311,900   

5.35%, 12/01/42

      975        1,034,105   

Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior, Series A, 5.00%, 5/15/43

      1,110        1,298,489   

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

      2,700        2,953,638   
    

 

 

  
               10,598,132   

Michigan — 4.5%

     

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

      4,500        4,938,165   

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

      2,200        2,458,170   

City of Detroit Michigan Water Supply System, RB, 2nd Lien, Series B (AGM), 6.25%, 7/01/36

      350        392,276   

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

      1,700        2,042,584   

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

     

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

      600        696,054   

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

      1,000        1,157,440   

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

      1,900        2,191,612   

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

      630        681,673   

 

                
4    BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2015   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Michigan (concluded)

     

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

    $ 340      $ 390,776   
    

 

 

  
               14,948,750   

Minnesota — 0.6%

     

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

      1,800        2,131,488   

Nebraska — 0.9%

     

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

      2,650        3,003,722   

Nevada — 0.9%

     

County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A:

     

5.25%, 7/01/42

      1,000        1,144,470   

(AGM), 5.25%, 7/01/39

      1,700        1,946,449   
    

 

 

  
               3,090,919   

New Jersey — 10.3%

     

New Jersey EDA, RB:

     

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

      6,700        6,827,367   

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

      610        683,877   

School Facilities Construction, Series UU, 5.00%, 6/15/34

      505        565,080   

School Facilities Construction, Series UU, 5.00%, 6/15/40

      1,250        1,393,413   

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

      790        887,810   

New Jersey Educational Facilities Authority, RB, Higher Educational Capital Improvement Fund, Series A, 5.00%, 9/01/26

      705        816,171   

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

     

5.50%, 12/01/25

      500        571,625   

5.50%, 12/01/26

      350        398,867   

5.75%, 12/01/28

      200        227,986   

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

      1,070        1,129,011   
Municipal Bonds    Par  
(000)		     Value  

New Jersey (concluded)

     

New Jersey Transportation Trust Fund Authority, RB:

     

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

    $ 1,290      $ 1,484,932   

Transportation Program, Series AA, 5.00%, 6/15/38

      1,560        1,732,411   

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

      1,400        1,783,166   

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

      4,650        5,422,690   

Transportation System, Series B, 5.00%, 6/15/42

      9,500        10,324,505   
    

 

 

  
               34,248,911   

New York — 3.4%

     

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        1,463,275   

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

      3,035        3,535,835   

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

      2,200        2,616,064   

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

      610        717,183   

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

      2,835        2,954,779   
    

 

 

  
               11,287,136   

Ohio — 0.8%

     

American Municipal Power Inc, Refunding RB, Series A, 5.00%, 2/15/42

      310        357,449   

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

      460        583,468   

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

     

5.25%, 2/15/32

      610        727,590   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2015    5

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Ohio (concluded)

     

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

     

5.25%, 2/15/33

    $ 850      $ 1,011,143   
    

 

 

  
               2,679,650   

Pennsylvania — 2.5%

     

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

      2,110        2,403,839   

Pennsylvania Turnpike Commission, RB:

     

Series A, 5.00%, 12/01/38

      550        645,123   

Series C, 5.50%, 12/01/33

      490        601,083   

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

      500        602,365   

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

      2,245        2,604,671   

Philadelphia School District, GO, Series E:

     

6.00%, 9/01/18 (b)

      15        17,740   

6.00%, 9/01/38

      1,285        1,467,097   
    

 

 

  
               8,341,918   

South Carolina — 7.5%

     

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

     

5.25%, 12/01/15

      2,725        2,840,731   

5.25%, 12/01/15

      2,425        2,527,990   

5.25%, 12/01/15

      880        917,374   

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

      1,360        1,599,102   

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

      100        121,130   

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

      3,420        3,917,165   

State of South Carolina Public Service Authority, RB, Santee Cooper:

     

Series A, 5.50%, 12/01/54

      6,435        7,678,371   

Series E, 5.50%, 12/01/53

      2,820        3,339,641   
Municipal Bonds   

Par  

(000)

     Value  

South Carolina (concluded)

     

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

    $ 1,840      $ 2,134,418   
    

 

 

  
               25,075,922   

Texas — 15.5%

     

Central Texas Turnpike System, Refunding RB, Second Tier, Series C, 5.00%, 8/15/34 (d)

      1,300        1,486,485   

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

      500        579,155   

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        748,751   

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

      750        894,225   

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

     

Series D, 5.00%, 11/01/38

      1,800        2,005,686   

Series D, 5.00%, 11/01/42

      1,140        1,267,338   

Series H, 5.00%, 11/01/32

      2,715        3,059,289   

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

      865        1,041,875   

Leander Independent School District, GO, CAB, Refunding, Series D, 0.00%, 8/15/38 (a)

      3,020        1,124,709   

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

      3,000        3,384,270   

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

      1,065        1,160,744   

North Texas Tollway Authority, RB, Convertible CAB, Series C, 6.75%, 9/01/45 (c)

      10,000        10,742,500   

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

     

System, Series A, 6.00%, 1/01/28

      2,415        2,850,376   

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

      3,600        4,046,400   

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

      3,400        3,929,720   

 

                
6    BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2015   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Texas (concluded)

     

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

     

0.00%, 9/15/35

    $ 1,150      $ 461,978   

0.00%, 9/15/36

      3,875        1,467,036   

0.00%, 9/15/37

      17,775        6,328,433   

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

     

5.00%, 12/15/31

      1,030        1,156,597   

5.00%, 12/15/32

      2,500        2,788,850   

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

      925        1,043,039   
    

 

 

  
               51,567,456   

Vermont — 0.2%

     

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

      685        696,816   

Washington — 2.0%

     

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

      1,400        1,537,592   

Washington Health Care Facilities Authority, RB:

     

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

      3,000        3,329,550   

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

      1,000        1,127,220   

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

      550        629,788   
    

 

 

  
               6,624,150   

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        1,371,936   

Total Municipal Bonds — 109.4%

  

     364,484,086   

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

   

Par  

(000)

     Value  

Arizona — 0.9%

     

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

    $ 1,000      $ 1,141,770   

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

      1,750        1,928,518   
    

 

 

  
               3,070,288   

California — 3.2%

     

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

      3,030        3,381,116   

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

      4,330        4,809,981   

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

      1,699        2,093,781   

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

      359        419,489   
    

 

 

  
               10,704,367   

Colorado — 1.3%

     

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

     

5.50%, 7/01/34 (f)

      780        903,973   

5.00%, 2/01/41

      2,999        3,311,810   
    

 

 

  
               4,215,783   

District of Columbia — 1.6%

     

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

      855        1,018,234   

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

      1,580        1,878,603   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2015    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 Trusts (e)

   

Par  

(000)

     Value  

District of Columbia (concluded)

     

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

    $ 2,190      $ 2,540,049   
    

 

 

  
               5,436,886   

Florida — 12.4%

     

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

      4,000        4,369,320   

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

      4,000        4,302,560   

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

      1,540        1,767,750   

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

      2,100        2,402,883   

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

      6,901        7,980,066   

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

     

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

      9,000        9,629,730   

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

      3,394        3,867,494   

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

      4,200        5,556,348   

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

      1,189        1,307,221   
    

 

 

  
               41,183,372   

Illinois — 9.0%

     

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

      4,000        4,343,360   

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

      2,548        2,830,342   

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

      1,638        1,823,806   

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

      10,000        13,732,363   

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

      1,130        1,285,153   

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

   

Par  

(000)

     Value  

Illinois (concluded)

     

State of Illinois Toll Highway Authority, RB:

     

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

    $ 3,499      $ 3,892,478   

Series A, 5.00%, 1/01/38

      1,859        2,112,545   
    

 

 

  
               30,020,047   

Louisiana — 1.5%

     

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

      4,600        4,872,320   

Michigan — 1.6%

     

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

      4,700        5,283,082   

Nevada — 1.7%

     

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

      3,298        3,874,781   

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

      1,574        1,877,524   
    

 

 

  
               5,752,305   

New Jersey — 0.5%

     

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

      1,580        1,768,653   

New York — 5.6%

     

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

      1,050        1,216,361   

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        5,699,390   

City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2014, Series DD, 5.00%, 6/15/35

      1,470        1,755,062   

Metropolitan Transportation Authority, RB, 5.25%, 11/15/44

      3,080        3,693,012   

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

      3,500        3,633,315   

 

                
8    BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2015   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

   

Par  

(000)

     Value  

New York (concluded)

     

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

    $ 1,000      $ 1,175,240   

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

      1,200        1,378,824   
    

 

 

  
               18,551,204   

Ohio — 0.2%

     

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

      500        573,585   

South Carolina — 0.4%

     

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

      1,125        1,293,795   

Texas — 4.9%

     

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

      1,900        2,050,993   

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

      4,000        4,672,600   

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

      5,250        5,671,680   

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

      1,996        2,226,265   

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

      1,400        1,528,968   
    

 

 

  
               16,150,506   

Virginia — 0.1%

     

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

      300        347,697   

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

   

Par  

(000)

     Value  

Washington — 0.9%

     

Washington Health Care Facilities Authority, Refunding RB, Seattle Children’s Hospital, 5.00%, 10/01/38

    $ 2,565      $ 3,126,709   

Wisconsin — 1.7%

     

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        2,175,629   

Series C, 5.25%, 4/01/39 (f)

      3,250        3,632,664   
    

 

 

  
               5,808,293   

Total Municipal Bonds Transferred to

Tender Option Bond Trusts — 47.5%

  

  

     158,158,892   

Total Long-Term Investments

(Cost — $465,918,618) — 156.9%

  

  

     522,642,978   
    
   
Short-Term Securities    Shares         

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

      6,257,831        6,257,831   

Total Short-Term Securities

(Cost — $6,257,831) — 1.9%

              6,257,831   

Total Investments

(Cost — $472,176,449*) — 158.8%

  

  

     528,900,809   
Liabilities in Excess of Other Assets — (0.1)%        (477,612 ) 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (23.7%)

   

     (78,869,865 ) 
VMTP Shares, at Liquidation Value — (35.0%)        (116,500,000 ) 
    

 

 

  
Net Assets Applicable to Common Shares — 100.0%      $ 333,053,332   
    

 

 

  

 

*  As of January 31, 2015, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

      

 

Tax cost

   $ 395,510,517   
 

 

 

  

Gross unrealized appreciation

   $ 56,735,265   

Gross unrealized depreciation

     (2,197,008 ) 
 

 

 

  

Net unrealized appreciation

   $ 54,538,257   
 

 

 

  

 

Notes to Schedule of Investments

 

(a)   Zero-coupon bond.

 

(b)   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.

 

(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 is as of report date.

 

                
   BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2015    9

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

 

(d)   When-issued security. Unsettled when-issued transactions were as follows:

 

Counterparty      Value        Unrealized
Appreciation		  

Barclays Capital, Inc

      $ 1,486,485         $ 21,775   

J.P. Morgan Securities LLC

      $ 1,630,771         $ 7,952   

 

(e)   Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction.

 

(f)   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 $11,170,410.

 

(g)   During the period ended January 31, 2015, investments in issuers considered to be an affiliate of the Fund 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,
2014		        Net
Activity		        Shares Held
at January 31,
2015		        Income  

FFI Institutional Tax-Exempt Fund

        3,656,710           2,601,121           6,257,831         $ 954   

 

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

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
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
M/F    Multi-Family
NPFGC    National Public Finance Guarantee Corp.
PSF    Public School Fund
PSF-GTD    Permanent School Fund Guaranteed
RB    Revenue Bonds
S/F    Single-Family
Syncora    Syncora Guarantee

 

                
10    BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2015   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

Ÿ  

As of January 31, 2015, financial futures contracts outstanding were as follows:

 

Contracts
Short		     Issue   Exchange   Expiration   Notional
Value		     Unrealized
Depreciation		  
  (253 )    10-Year U.S. Treasury Note   Chicago Board of Trade   March 2015   $ 33,111,375      $ (944,032 ) 
  (130 )    5-Year U.S. Treasury Note   Chicago Board of Trade   March 2015   $ 15,774,688        (271,354 ) 
  Total              $ (1,215,386 ) 
         

 

 

  

 

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. 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. 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. The three levels of the fair value hierarchy are as follows:

 

  Ÿ  

Level 1 — unadjusted quoted prices 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)

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. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Fund’s most recent financial statements as contained in its semi-annual report.

As of January 31, 2015, the following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                 
Investments:                 

Long-Term Investments1

     —         $ 522,642,978         —      $ 522,642,978   

Short-Term Securities

   $ 6,257,831           —         —        6,257,831   
 

 

 

  

Total

   $ 6,257,831         $ 522,642,978         —      $ 528,900,809   
 

 

 

  

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

   $ (1,215,386 )         —         —      $ (1,215,386 ) 

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

       

 

                
   BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2015    11

Schedule of Investments (concluded)

   

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of January 31, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                 

Cash

   $ 826,749           —         —      $ 826,749   

Cash pledged for financial futures contracts

     461,000           —         —        461,000   

Liabilities:

                 

TOB trust certificates

     —         $ (78,852,035 )       —        (78,852,035 ) 

VMTP Shares

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

 

 

  

Total

   $ 1,287,749         $ (195,352,035 )       —      $ (194,064,286 ) 
 

 

 

  

During the period ended January 31, 2015, there were no transfers between levels.

 

                
12    BLACKROCK MUNIYIELD QUALITY FUND II, INC.    JANUARY 31, 2015   

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, 2015

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, 2015
By:

/s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Quality Fund II, Inc.
Date: March 25, 2015