Form N-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q


QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number         811-22253         

        Nuveen Municipal Value Fund 2         
(Exact name of registrant as specified in charter)

Nuveen Investments
        333 West Wacker Drive, Chicago, Illinois 60606         
(Address of principal executive offices) (Zip code)


Kevin J. McCarthy Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)

Registrant's telephone number, including area code:         312-917-7700        

Date of fiscal year end:            10/31          

Date of reporting period:         7/31/09         

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Schedule of Investments

  Portfolio of Investments (Unaudited)       
  Nuveen Municipal Value Fund 2 (NUW)       
  July 31, 2009       
 
 
 
Principal    Optional Call     
Amount (000)  Description (1)  Provisions (2)  Ratings (3)  Value 
  Alaska – 0.1%       
$                155  Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds,  6/14 at 100.00  Baa3  $     84,796 
   Series 2006A, 5.000%, 6/01/46       
  Arizona – 3.4%       
4,000  Maricopa County Pollution Control Corporation, Arizona, Pollution Control Revenue Bonds,  2/19 at 100.00  BBB  4,265,640 
   El Paso Electric Company, Refunding Series 2009A, 7.250%, 2/01/40       
2,995  Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Series 2007,  No Opt. Call  A  2,290,666 
   5.000%, 12/01/37       
6,995  Total Arizona      6,556,306 
  California – 9.4%       
11,000  Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds,  No Opt. Call  AAA  1,331,440 
   Capital Appreciation Series 2009B, 0.000%, 8/01/41 – AGC Insured       
2,500  California State Public Works Board, Lease Revenue Bonds, Department of General Services  4/19 at 100.00  A–  2,545,075 
   Buildings 8 & 9, Series 2009A, 6.250%, 4/01/34       
  Chawanakee Unified School District, Madera County, California, Certificates of Participation,       
  Series 2009B:       
145   7.125%, 5/01/34  10/09 at 100.00  A–  145,055 
250   7.125%, 5/01/39  10/09 at 100.00  A–  250,080 
1,900  Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement  6/17 at 100.00  BBB  1,202,567 
   Asset-Backed Bonds, Series 2007A-1, 5.000%, 6/01/33       
1,800  Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed  6/15 at 100.00  A–  1,451,520 
   Revenue Bonds, Series 2005A, 5.000%, 6/01/45       
  Palomar Pomerado Health General Obligation Bonds, California, Election of 2004, Series 2009A:       
9,320   0.000%, 8/01/33 – AGC Insured  No Opt. Call  AAA  1,876,862 
10,200   0.000%, 8/01/38 – AGC Insured  8/29 at 100.00  AAA  5,875,710 
  Poway Unified School District, San Diego County, California, School Facilities Improvement       
  District 2007-1 General Obligation Bonds, Series 2009A:       
8,000   0.000%, 8/01/32  No Opt. Call  AA–  1,764,960 
8,000   0.000%, 8/01/33  No Opt. Call  AA–  1,648,880 
53,115  Total California      18,092,149 
  Colorado – 5.2%       
5,000  Denver City and County, Colorado, Airport System Revenue Bonds, Series 2005A, 5.000%,  11/15 at 100.00  A+  4,923,000 
   11/15/25 – SYNCORA GTY Insured       
3,605  E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B, 0.000%, 9/01/27 –  9/20 at 67.94  A  984,129 
   NPFG Insured       
4,000  Park Creek Metropolitan District, Colorado, Senior Property Tax Supported Revenue Bonds,  No Opt. Call  AAA  4,148,160 
   Series 2009, 6.375%, 12/01/37 – AGC Insured       
12,605  Total Colorado      10,055,289 
  Florida – 9.0%       
9,500  Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2009A,  10/19 at 100.00  A2  9,275,230 
   5.500%, 10/01/41       
  Miami-Dade County, Florida, General Obligation Bonds, Build Better Communities Program,       
  Series 2009-B1:       
2,500   6.000%, 7/01/38  7/18 at 100.00  AA–  2,606,700 
2,000   5.625%, 7/01/38  7/18 at 100.00  AA–  2,008,940 
4,500  Tolomato Community Development District, Florida, Special Assessment Bonds, Series 2007,  5/18 at 100.00  N/R  3,399,930 
   6.450%, 5/01/23       
18,500  Total Florida      17,290,800 
  Illinois – 11.8%       
5,000  Illinois Finance Authority, Revenue Bonds, Northwestern Memorial Hospital, Series 2009A,  8/19 at 100.00  AA+  5,190,750 
   6.000%, 8/15/39       
3,500  Illinois Finance Authority, Revenue Bonds, OSF Healthcare System, Series 2009A,  5/19 at 100.00  A  3,650,990 
   7.125%, 11/15/37       
5,000  Illinois Finance Authority, Revenue Bonds, Rush University Medical Center Obligated Group,  11/18 at 100.00  A–  5,271,150 
   Series 2009A and 2009B, 7.250%, 11/01/38       
3,995  Illinois Finance Authority, Student Housing Revenue Bonds, Educational Advancement Fund Inc.,  5/17 at 100.00  Baa3  2,948,909 
   Refunding Series 2007A, 5.250%, 5/01/34       
28,000  Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion  No Opt. Call  AAA  5,595,520 
   Project, Series 2002A, 0.000%, 12/15/35 – MBIA Insured       
45,495  Total Illinois      22,657,319 
  Indiana – 5.4%       
5,000  Indiana Finance Authority, Hospital Revenue Bonds, Deaconess Hospital Obligated Group, Series  3/19 at 100.00  A+  5,105,600 
   2009A, 6.750%, 3/01/39       
3,650  Indiana Health Facility Financing Authority, Revenue Bonds, Community Foundation of Northwest  3/17 at 100.00  BBB  3,184,406 
   Indiana, Series 2007, 5.500%, 3/01/37       
2,000  Indiana Municipal Power Agency, Power Supply System Revenue Bonds, Series 2009B,  1/19 at 100.00  A+  2,083,060 
   6.000%, 1/01/39       
10,650  Total Indiana      10,373,066 
  Iowa – 0.9%       
3,000  Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C,  6/15 at 100.00  BBB  1,794,300 
   5.375%, 6/01/38       
  Louisiana – 7.3%       
5,000  Louisiana Citizens Property Insurance Corporation, Assessment Revenue Bonds, Series 2006C-3,  6/18 at 100.00  AAA  5,482,950 
   6.125%, 6/01/25       
  Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project,       
  Series 2007A:       
7,000   5.375%, 5/15/43  5/17 at 100.00  A3  5,600,840 
275   5.500%, 5/15/47  5/17 at 100.00  A3  223,347 
3,255  St John Baptist Parish, Louisiana, Revenue Bonds, Marathon Oil Corporation, Series 2007A,  6/17 at 100.00  BBB+  2,810,790 
   5.125%, 6/01/37       
15,530  Total Louisiana      14,117,927 
  Maine – 1.8%       
3,335  Maine Health and Higher Educational Facilities Authority, Revenue Bonds, Bowdoin College,  7/19 at 100.00  Aa2  3,451,658 
   Tender Option Bond Trust 09-5B, 12.750%, 7/01/39 (IF)       
  Massachusetts – 2.9%       
  Massachusetts Turnpike Authority, Metropolitan Highway System Revenue Bonds, Senior       
  Series 1997A:       
375   5.000%, 1/01/11  10/09 at 100.00  Baa2  375,656 
1,200   5.000%, 1/01/13 – MBIA Insured  10/09 at 100.00  A  1,201,644 
  Massachusetts Turnpike Authority, Metropolitan Highway System Revenue Bonds, Subordinate       
  Series 1999A:       
2,045   5.250%, 1/01/15 – AMBAC Insured  1/10 at 100.00  AA  2,060,767 
1,000   4.750%, 1/01/34 – AMBAC Insured  1/10 at 100.00  AA  887,580 
1,000  Massachusetts Water Pollution Abatement Trust, Pooled Loan Program Bonds, Series 2009-14, Trust  8/19 at 100.00  AAA  1,071,180 
   2989, 13.138%, 8/01/38 (IF)       
5,620  Total Massachusetts      5,596,827 
  Michigan – 2.2%       
5,000  Detroit, Michigan, Second Lien Sewerage Disposal System Revenue Bonds, Series 2005A, 5.000%,  7/15 at 100.00  A  4,299,650 
   7/01/35 – MBIA Insured       
  Nevada – 3.1%       
250  Clark County, Nevada, Senior Lien Airport Revenue Bonds, Series 2005A, 5.000%, 7/01/40 –  No Opt. Call  Aa2  228,400 
   AMBAC Insured       
5,415  Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue Bonds, Series 2009A,  6/19 at 100.00  A  5,803,635 
   8.000%, 6/15/30       
5,665  Total Nevada      6,032,035 
  New Jersey – 2.9%       
  New Jersey Educational Facilities Authority Revenue Refunding Bonds, University of Medicine       
  and Dentistry of New Jersey Issue, Series 2009 B:       
2,135   7.125%, 12/01/23  6/19 at 100.00  Baa2  2,272,067 
3,000   7.500%, 12/01/32  6/19 at 100.00  Baa2  3,183,750 
5,135  Total New Jersey      5,455,817 
  New York – 1.5%       
3,000  Liberty Development Corporation, New York, Goldman Sachs Headquarters Revenue Bonds Series  No Opt. Call  A1  2,949,120 
   2007, 5.500%, 10/01/37       
  North Carolina – 1.6%       
3,000  North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A,  1/13 at 100.00  A  3,093,390 
   5.250%, 1/01/19 – MBIA Insured       
  Ohio – 5.6%       
5,000  American Municipal Power Ohio INC Prairie State Energy Campus Project Revenue Bonds Series  2/19 at 100.00  AAA  5,131,250 
   2009 A, 5.750%, 2/15/39 – AGC Insured       
5,500  Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue  6/17 at 100.00  BBB  3,511,805 
   Bonds, Senior Lien, Series 2007A-2, 6.500%, 6/01/47       
2,000  Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, University  1/15 at 100.00  A  2,059,480 
   Hospitals Health System, Series 2009, 6.750%, 1/15/39       
12,500  Total Ohio      10,702,535 
  Puerto Rico – 3.8%       
4,390  Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A,  7/18 at 100.00  BBB–  4,258,827 
   6.000%, 7/01/44       
3,000  Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series  8/19 at 100.00  A+  3,026,940 
   2009A, 6.000%, 8/01/42       
7,390  Total Puerto Rico      7,285,767 
  Rhode Island – 3.0%       
3,000  Rhode Island Health and Educational Building Corporation Hospital Financing Revenue Bonds,  5/19 at 100.00  A–  3,109,170 
   Lifespan Obligated Group Issue, Series 2009A, 7.000%, 5/15/39       
3,240  Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds,  6/12 at 100.00  BBB  2,691,922 
   Series 2002A, 6.125%, 6/01/32       
6,240  Total Rhode Island      5,801,092 
  Texas – 7.5%       
  Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation       
  Bonds, Series 2008:       
13,510   0.000%, 8/15/39  8/17 at 27.35  AAA  2,359,386 
19,300   0.000%, 8/15/41  8/17 at 24.20  AAA  2,984,166 
5,300  North Texas Thruway Authority, Second Tier System Revenue Refunding Bonds, Series 2008,  1/18 at 100.00  A3  5,078,248 
   5.750%, 1/01/38       
5,000  Richardson Hospital Authority, Texas, Revenue Bonds, Richardson Regional Medical Center,  12/13 at 100.00  Baa2  3,891,850 
   Series 2004, 6.000%, 12/01/34       
43,110  Total Texas      14,313,650 
  Virgin Islands – 0.5%       
1,000  Virgin Islands Public Finance Authority, Matching Fund Revenue Loan Note – Diageo Project,  10/19 at 100.00  Baa3  1,006,890 
   Series 2009A, 6.750%, 10/01/37       
  Virginia – 1.1%       
2,000  Washington County Industrial Development Authority , Virginia, Hospital Revenue Bonds,  1/19 at 100.00  BBB+  2,149,080 
   Mountain States Health Alliance, Series 2009C, 7.750%, 7/01/38       
  Wisconsin – 8.4%       
195  Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco Settlement Asset-Backed  6/12 at 100.00  AAA  212,100 
   Bonds, Series 2002, 6.125%, 6/01/27 (Pre-refunded 6/01/12)       
5,000  Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Aurora Healthcare Inc.,  4/13 at 100.00  BBB+  4,833,950 
   Series 2003, 6.400%, 4/15/33       
1,500  Wisconsin Health and Educational Facilities Authority, Revenue Bonds, ProHealth Care, Inc.  2/19 at 100.00  A+  1,556,265 
   Obligated Group, Series 2009, 6.625%, 2/15/39       
9,000  Wisconsin State, General Fund Annual Appropriation Revenue Bonds, Series 2009A,  5/19 at 100.00  AA–  9,601,109 
   6.000%, 5/01/36       
15,695  Total Wisconsin      16,203,424 
$       284,735  Total Investments (cost $177,781,777) – 98.4%      189,362,887 
  Other Assets Less Liabilities – 1.6%      3,158,144 
  Net Assets – 100%      $ 192,521,031 

Fair Value Measurements

During the current fiscal period, the Fund adopted the provisions of Statement of Financial Accounting Standards No. 157 (SFAS No.157) “Fair Value Measurements.” SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosure about fair value measurements. In determining the value of the Fund’s investments various inputs are used. These inputs are summarized in the three broad levels listed below:

Level 1 – Quoted prices in active markets for identical securities.

Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 – Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of July 31, 2009:

  Level 1  Level 2  Level 3  Total 
Investments:         
  Municipal Bonds  $ —  $189,362,887  $ —  $189,362,887 

Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to Statement of Financial Accounting Standards No. 140 (SFAS No. 140), if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

At July 31, 2009, the cost of investments was $177,643,057.

Gross unrealized appreciation and gross unrealized depreciation of investments at July 31, 2009, were as follows:

Gross unrealized:   
  Appreciation  $12,371,848 
  Depreciation  (652,018) 
 
Net unrealized appreciation (depreciation) of investments  $11,719,830 

(1)  All percentages shown in the Portfolio of Investments are based on net assets. 
(2)  Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. 
  There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities 
  may be subject to periodic principal paydowns. 
(3)  Ratings: Using the higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, 
  Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be 
  below investment grade. 
N/R  Not rated. 
(IF)  Inverse floating rate investment. 

Item 2. Controls and Procedures.

  1. 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") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
  2. There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: See EX-99 CERT attached hereto.


SIGNATURES

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

(Registrant)         Nuveen Municipal Value Fund 2         

By (Signature and Title)          /s/ Kevin J. McCarthy                    
                                                  Kevin J. McCarthy
                                                  Vice President and Secretary

Date         September 29, 2009        

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 (Signature and Title)         /s/ Gifford R. Zimmerman                    
                                                 Gifford R. Zimmerman
                                                 Chief Administrative Officer (principal executive officer) 

Date         September 29, 2009        

By (Signature and Title)         /s/ Stephen D. Foy                              
                                                 Stephen D. Foy
                                                 Vice President and Controller (principal financial officer) 

Date        September 29, 2009