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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000930413-07-003000.txt : 20070329
<SEC-HEADER>0000930413-07-003000.hdr.sgml : 20070329
<ACCEPTANCE-DATETIME>20070329151713
ACCESSION NUMBER:		0000930413-07-003000
CONFORMED SUBMISSION TYPE:	N-Q
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070131
FILED AS OF DATE:		20070329
DATE AS OF CHANGE:		20070329
EFFECTIVENESS DATE:		20070329

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BLACKROCK INCOME TRUST INC
		CENTRAL INDEX KEY:			0000832327
		IRS NUMBER:				133463349
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		N-Q
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-05542
		FILM NUMBER:		07727441

	BUSINESS ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		STREET 2:		MUTUAL FUND DEPARTMENT
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809
		BUSINESS PHONE:		888-825-2257

	MAIL ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		STREET 2:		MUTUAL FUND DEPARTMENT
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BLACKSTONE INCOME TRUST INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-Q
<SEQUENCE>1
<FILENAME>c47532_nq.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">



<P align="center">
<FONT face="serif">UNITED STATES </FONT><BR>
<FONT face="serif">SECURITIES AND EXCHANGE COMMISSION </FONT><BR>
<FONT face="serif">Washington, D.C. 20549 </FONT><BR>
<BR>
<B><FONT size=4 face="serif">FORM N-Q </FONT></B><BR>
<BR>
<B><FONT face="serif">QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED </FONT></B><BR>
<B><FONT face="serif">MANAGEMENT INVESTMENT COMPANY </FONT></B></P>
<p><FONT face="serif">Investment Company Act file number: </FONT><U><FONT face="serif">&nbsp;&nbsp;811-05542&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></U><FONT face="serif"> </FONT><BR>
</P>
<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="center" style="border-bottom:1px solid #000000;"><font face="serif">BlackRock Income Trust, Inc. </font></td>
  </tr>
  <tr>
    <td><center>
      <font face="serif">(Exact name of registrant as specified in charter) </font>
    </center></td>
  </tr>
</table>
<br>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=left width=54% style="border-bottom:1px solid #000000;"><center>
   <FONT face="serif">100 Bellevue Parkway, Wilmington, DE</FONT>&nbsp;
  </center></TD>
  <TD width=32%><div style="border-bottom:1px solid #000000">&nbsp;</div>
  </TD>
  <TD align=left width=13% style="border-bottom:1px solid #000000;"><center>
   <FONT face="serif">19809</FONT>&nbsp;
  </center></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=54%>
    <center>
      <FONT face="serif">(Address of principal executive offices)</FONT>&nbsp;
    </center></TD>
  <TD width=32%>&nbsp;
  </TD>
  <TD align=left width=13%>
    <center>
      <FONT face="serif">(Zip code)</FONT>&nbsp;
    </center></TD>
</TR>
</TABLE>
<BR>
<div style="border-bottom:1px solid #000000">
  <center>
      <font face="serif"> Robert S. Kapito,
      President </font><br>
    <font face="sans-serif"><b>BlackRock Income Trust, Inc.</b></font><br>
    <font face="serif"> 40 East 52nd Street, New York, NY 10022 </font>
  </center>
</div>
<div align="center"><FONT face="serif">(Name
    and address of agent for service) </FONT></div>
<P>
  <FONT face="serif">Registrant's telephone number, including area code: </FONT><U><FONT face="serif">&nbsp;&nbsp;888-825-2257&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></U><FONT face="serif"> </FONT><BR>
  <BR>
  <FONT face="serif">Date of fiscal year end: </FONT><U><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;October 31, 2007</FONT></U><FONT face="serif"> </FONT><BR>
  <FONT face="serif">Date of reporting period: </FONT><U><FONT face="serif">&nbsp;&nbsp;&nbsp;January 31, 2007</FONT></U></P>
<HR noshade width="100%" size=4>



<P align="left" style="page-break-before:always"></P><PAGE>
<P align="left">
<B><FONT face="serif">Item 1. Schedule of Investments.</FONT></B><FONT face="serif"> </FONT></P>
<P align="left">
<FONT face="serif">The Registrant&#146;s unaudited schedule of investments as of the close of the reporting period pursuant to Rule 30b1-5 under the Investment Company Act of 1940 is as follows: </FONT></P>

<P align="left">
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited) </FONT></B><BR>
<B><FONT face="serif">JANUARY 31, 2007 </FONT></B><BR>
<B><FONT face="serif">BlackRock Income Trust Inc. (BKT)</FONT></B><B><FONT face="serif"> </FONT></B><BR>
<B><FONT face="serif">(Percentage of Net Assets) </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=4% align=center>&nbsp;</TD>
  <TD width=2% align=center>&nbsp;</TD>
  <TD width=5% align=center> <center>
    <B><FONT size=2 face="serif">Principal</FONT></B>  </center></TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD width=73% align=left>&nbsp;

  </TD>
  <TD width=5%>&nbsp;
  </TD>
  <TD width=1% align=left>&nbsp;</TD>
  <TD width=8% align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=center>
<B><FONT size=2 face="serif">Amount</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
    </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">(000)</FONT></B>
    </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </TD>
  <TD align=left style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Description</FONT></B>
  </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;
  </TD>
  <TD align=left style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Value</FONT></B>
  </center></TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;117.0%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Mortgage Pass-Through Securities&#151;27.4%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal Home Loan Mortgage Corp.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp; </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;775</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">4.019%, 1/01/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
  <TD align=right>
<FONT size=2 face="serif"> 768,092</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,034</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">4.96%, 10/01/34</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,019,372</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">700</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">5.50%, 1/01/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">696,392</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">29</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">6.01%, 11/01/17</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">28,802</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">71</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">6.50%, 5/01/29-5/01/30</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">72,928</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">7.50%, 2/01/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,425</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">26</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">8.00%, 11/01/15</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">26,714</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">8.50%, 4/01/07-3/01/08</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">263</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">148</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">9.00%, 9/01/20</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">158,437</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">9,100</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">TBA, 5.50%, 2/15/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">9,051,661</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal National Mortgage Assoc.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">33,046</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">5.00%, 6/01/33-11/01/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">31,758,337</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">16,296</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">5.50%, 3/01/34-8/01/34</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">16,057,596</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,125</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">5.97%, 8/01/16</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">3,239,258</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">6,924</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">6.00%, 11/01/31-10/01/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">6,961,170</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">17,169</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">6.50%, 2/01/26-11/01/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">17,471,721</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">7.50%, 2/01/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">264</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">103</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">8.00%, 5/01/08-5/01/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">103,340</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">4</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">9.50%, 1/01/19-9/01/19</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">4,375</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">25,000</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">TBA, 5.50%, 2/15/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">24,890,625</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Government National Mortgage Assoc.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">50</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">7.00%, 10/15/17</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">51,544</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">449</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">7.50%, 8/15/21-12/15/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">463,290</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">233</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">8.00%, 10/15/22-2/15/29</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">245,310</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">24</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">9.00%, 6/15/18-9/15/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">25,532</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Mortgage Pass-Through Securities</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">113,097,448</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Federal Housing Administration Securities&#151;2.0%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">401</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">General Motors Acceptance Corp. Colonial, 7.40%, 12/01/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">401,304</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">General Motors Acceptance Corp. Projects,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">295</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">3</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 51, 7.43%, 2/01/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">295,339</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">589</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 56, 7.43%, 11/01/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">590,713</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">51</FONT><SUP></SUP>
  </TD>
  <TD><SUP><FONT size=2 face="serif">4</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Merrill Projects, Ser. 54, 7.43%, 5/15/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">50,965</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">789</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Reilly Project, Ser. 41, 8.28%, 3/01/20</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">788,515</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">USGI Projects,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">109</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 87, 7.43%, 12/01/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">109,305</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">339</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 99,7.43%, 10/01/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">339,595</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5,598</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 6094, 7.43%, 6/01/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,611,869</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Federal Housing Administration Securities</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">8,187,605</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Agency Multiple Class Mortgage Pass-Through Securities&#151;29.8%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal Home Loan Mortgage Corp.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">4,626</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 11, Class A9, 2.327%, 1/25/28</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">3,411,796</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">242</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 19, Class F, 8.50%, 3/15/20</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">241,428</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">849</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 40, Class K, 6.50%, 8/17/24</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">868,404</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 192, Class U, 1,009.033%, 2/15/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">9</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1057, Class J, 1,008.001%, 3/15/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">3,206</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,000</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1598, Class J, 6.50%, 10/15/08</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,998,038</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">485</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1961, Class H, 6.50%, 5/15/12</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">489,000</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">8,919</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2218, Class Z, 8.50%, 3/15/30</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">9,760,427</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">15,222</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2461, Class Z, 6.50%, 6/15/32</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">15,574,663</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">10,200</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2542, Class UC, 6.00%, 12/15/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">10,426,467</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,475</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2562, Class PG, 5.00%, 1/15/18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,410,124</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">928</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2564, Class NC, 5.00%, 2/15/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">846,506</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,050</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2750, Class TC, 5.25%, 2/15/34</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,006,850</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">11,801</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2758, Class KV, 5.50%, 5/15/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">11,730,019</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,573</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2765, Class UA, 4.00%, 3/15/11</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,492,265</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,344</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2806, Class VC, 6.00%, 12/15/19</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">3,394,425</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,305</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2927, Class BZ, 5.50%, 2/15/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,229,456</FONT>
  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">1 </FONT></P>

<HR noshade width="100%" size=4>



<P align="left" style="page-break-before:always"></P><PAGE>


<P align="left">
<B><FONT face="serif">BlackRock Income Trust Inc. (BKT) (continued)</FONT></B><B><FONT face="serif"> </FONT></B><BR>
<B><FONT face="serif">(Percentage of Net Assets) </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=4% align=left>&nbsp;

  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD width=5% align=right>
    <center>
      <B><FONT size=2 face="serif">Principal</FONT></B>
    </center></TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD width=67% align=left>&nbsp;

  </TD>
  <TD width=11%>&nbsp;
  </TD>
  <TD width=1% align=left>&nbsp;</TD>
  <TD width=8% align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
    <center>
      <B><FONT size=2 face="serif">Amount</FONT></B>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
    </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">(000)</FONT></B>
    </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </TD>
  <TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>
  </TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;
  </TD>
  <TD align=left style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Value</FONT></B>
  </center></TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Agency Multiple Class Mortgage Pass-Through Securities&#151;(cont'd)</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,749</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2996, Class MK, 5.50%, 6/15/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
  <TD align=right>
<FONT size=2 face="serif"> 2,758,613</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,633</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 3179, Class Z, 5.75%, 12/15/18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,624,740</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">94</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 3193, Class ZA, 6.00%, 7/15/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">93,961</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,909</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 3227, Class CZ, 6.00%, 8/15/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,897,302</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal National Mortgage Assoc.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,270</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2, Class KP, 1.133%, 2/25/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,197,626</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5,549</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 28, Class PB, 6.00%, 8/25/28</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">5,559,063</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,381</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 29, Class HC, 7.50%, 7/25/30</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,508,462</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,251</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 31, Class ZG, 7.50%, 5/25/34</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,582,733</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">7,677</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 32, Class VT, 6.00%, 9/25/15</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">7,764,242</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">68</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 38, Class F, 8.325%, 4/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">69,807</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5,866</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 38, Class Z, 5.00%, 5/25/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">5,826,748</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,005</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 68, Class PC, 5.50%, 7/25/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">3,007,785</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">12,264</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 135, Class PB, 6.00%, 1/25/34</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">12,306,798</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Government National Mortgage Assoc.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,187</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 5, Class Z, 7.00%, 5/16/26</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,229,027</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,073</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 33, Class PB, 6.50%, 7/20/31</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,101,299</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">4,532</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 89, Class PE, 6.00%, 10/20/34</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4,596,241</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Agency Multiple Class Mortgage Pass-Through Securities</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">123,007,530</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Non-Agency Multiple Class Mortgage Pass-Through Securities&#151;10.7%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
    <center>
      <FONT size=2 face="serif">AAA</FONT>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">6,889</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">CWALT, Inc., Ser. 28CB, Class 1A5, 5.50%, 8/25/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">6,875,012</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>

    <center>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">GSR Mortgage Loan Trust,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
    <center>
      <FONT size=2 face="serif">AAA</FONT>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">4,509</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 10, Class 2A1, 4.474%, 10/25/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">4,317,936</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>
    <center>
      <FONT size=2 face="serif">AAA</FONT>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">4,505</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 13, Class 1A1, 4.502%, 10/25/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">4,304,426</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
    <center>
      <FONT size=2 face="serif">AAA</FONT>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,796</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">MASTR Alternative Loan Trust, Ser. 7, Class 4A3, 8.00%, 11/25/18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,884,691</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>
    <center>
      <FONT size=2 face="serif">AAA</FONT>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">8,144</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">MASTR Asset Securitization Trust, Ser. 12, Class 3A5, 5.25%, 10/25/14</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">7,977,360</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
    <center>
      <FONT size=2 face="serif">AAA</FONT>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">6,462</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Residential Asset Securitization Trust, Ser. A8, Class A2, 5.67%, 10/25/18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">6,445,161</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>
    <center>
      <FONT size=2 face="serif">AAA</FONT>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">10,723</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Residential Funding Securities Corp., Ser. RM2, Class AI5, 8.50%, 5/25/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">11,506,938</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
    <center>
      <FONT size=2 face="serif">AAA</FONT>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5,978</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Structured Adjustable Rate Mortgage Loan Trust, Ser. 18, Class 7AX, 5.50%, 9/25/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">927,488</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>
    <center>
      <FONT size=2 face="serif">AAA</FONT>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">26</FONT><SUP></SUP>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2,5,6</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Summit Mortgage Trust, Ser. 1, Class B1, 6.581%, 12/28/12</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">25,888</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Non-Agency Multiple Class Mortgage Pass-Through Securities</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">44,264,900</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Inverse Floating Rate Mortgage Securities&#151;3.6%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal Home Loan Mortgage Corp.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">36</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1160, Class F, 17.319%, 10/15/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">36,232</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">203</FONT><SUP></SUP>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2,7</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1616, Class SB, 8.50%, 11/15/08</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">204,976</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">598</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1688, Class S, 9.223%, 12/15/13</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">608,624</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5,085</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 3167, Class SX, 5.58%, 6/15/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">5,005,317</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal National Mortgage Assoc.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">41</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 7, Class S, 541.833%, 3/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">4,484</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">62</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 17, Class S, 531.967%, 6/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">7,262</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">69</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 38, Class SA, 10.186%, 4/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">72,691</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">20</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 46, Class S, 1,295.281%, 5/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">7,033</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">24</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 49, Class S, 479.05%, 12/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,364</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">255</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 72, Class S, 8.75%, 5/25/08</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">260,502</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">6,642</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 73, Class DS, 3.718%, 8/25/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">6,201,062</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">145</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 87, Class S, 12.522%, 8/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">165,942</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">99</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 93, Class S, 8.50%, 5/25/08</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">99,983</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">39</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 170, Class SC, 9.00%, 9/25/08</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">39,490</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">515</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 196, Class SC, 7.731%, 10/25/08</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">520,914</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">221</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 214, Class SH, 4.359%, 12/25/08</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">219,987</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,041</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 247, Class SN, 10.00%, 12/25/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,179,791</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">121</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Kidder Peabody Acceptance Corp., Ser. 1, Class A6, 6.741%, 8/25/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">120,829</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Inverse Floating Rate Mortgage Securities</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">14,757,483</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Interest Only Asset-Backed Securities&#151;0.4%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">654</FONT><SUP></SUP>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2,5</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Morgan Stanley Capital Trust I, Ser. HF1, Class X, 1.947%, 6/15/17</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,395</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Sterling Coofs Trust,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">22,801</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1, 2.362%, 4/15/29</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">933,399</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">17,317</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2, 2.216%, 3/30/30</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">551,989</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Interest Only Asset-Backed Securities</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,486,783</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Interest Only Mortgage-Backed Securities&#151;12.9%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,792</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">ABN Amro Mortgage Corp., Ser. 4, Class A2, 5.50%, 3/25/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">18,755</FONT>
  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">2 </FONT></P>

<HR noshade width="100%" size=4>



<P align="left" style="page-break-before:always"></P><PAGE>


<P align="left">
<B><FONT face="serif">BlackRock Income Trust Inc. (BKT) (continued)</FONT></B><B><FONT face="serif"> </FONT></B><BR>
<B><FONT face="serif">(Percentage of Net Assets) </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=4% align=left>&nbsp;

  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD width=5% align=center>
<B><FONT size=2 face="serif">Principal</FONT></B>
  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD width=76% align=left>&nbsp;

  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD width=1% align=left>&nbsp;</TD>
  <TD width=8% align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=center>
<B><FONT size=2 face="serif">Amount</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
    </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">(000)</FONT></B>
    </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </TD>
  <TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>
  </TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">Value</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>

    <center>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Interest Only Mortgage-Backed Securities&#151;(cont'd)</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
    <center>
      <FONT size=2 face="serif">AAA</FONT>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 248,871</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Banc of America Mortgage Securities, Inc., Ser. 3, Class 1A, 0.286%, 5/25/18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
  <TD align=right>
<FONT size=2 face="serif"> 2,984,366</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
    <center>
      <FONT size=2 face="serif">Aaa</FONT>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">80,469</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Commercial Mortgage Acceptance Corp., Ser. ML1, 0.917%, 11/15/17</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">907,025</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
    <center>
      <FONT size=2 face="serif">AAA</FONT>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=center>
    <div align="right"><FONT size=2 face="serif">11,566</FONT><SUP></SUP>
    </div></TD>
  <TD><SUP><FONT size=2 face="serif">2,5</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Credit Suisse First Boston Mortgage Securities Corp., Ser. C1, Class AX, 1.478%, 6/20/29</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">386,585</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>
    <center>
      <FONT size=2 face="serif">AAA</FONT>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">160,699</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">CWALT, Inc., Ser. 79CB, Class A2, 6.21%, 1/25/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">462,847</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal Home Loan Mortgage Corp.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,833</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 60, Class HS, 0.625%, 4/25/24</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">22,154</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">6</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 176, Class M, 1,010.00%, 7/15/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">80</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">30</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 200, Class R, 93,499.29%, 12/15/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">410</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,946</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 204, Class IO, 6.00%, 5/01/29</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">431,996</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">16</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1043, Class H, 20.813%, 2/15/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">16,358</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1054, Class I, 413.56%, 3/15/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">318</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">15</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1056, Class KD, 1,084.50%, 3/15/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,838</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">51</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1148, Class E, 563.074%, 10/15/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">856</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">11</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1179, Class O, 1,009.389%, 11/15/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">194</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1221, Class H, 1,006.50%, 3/15/07</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">266</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1706, Class IA, 7.00%, 10/15/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">17,632</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">87</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1720, Class PK, 7.50%, 1/15/24</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">7,541</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,725</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1914, Class PC, 0.75%, 12/15/11</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">45,886</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">895</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2296, Class SA, 2.43%, 3/15/16</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">48,800</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">484</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2444, Class ST, 2.65%, 9/15/29</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">18,147</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">203</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2513, Class BI, 5.50%, 12/15/15</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">3,857</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,610</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2542, Class MX, 5.50%, 5/15/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">267,311</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,059</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2545, Class NI, 5.50%, 3/15/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">421,909</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,748</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2559, Class IO, 0.839%, 8/15/30</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">12,915</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">4,962</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2561, Class EW, 5.00%, 9/15/16</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">476,667</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">11,726</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2611, Class QI, 5.50%, 9/15/32</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,170,128</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,593</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2633, Class PI, 4.50%, 3/15/12</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">74,514</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,730</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2653, Class MI, 5.00%, 4/15/26</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">376,468</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5,946</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2658, Class PI, 4.50%, 6/15/13</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">238,485</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">4,765</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2672, Class TQ, 5.00%, 3/15/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">186,437</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,653</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2676, Class JI, 5.50%, 8/15/13</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">10,294</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,633</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2687, Class IL, 5.00%, 9/15/18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">467,333</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">6,645</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2687, Class IQ, 5.50%, 9/15/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">157,746</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5,496</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2693, Class IB, 4.50%, 6/15/13</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">205,694</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,920</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2694, Class LI, 4.50%, 7/15/19</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">265,061</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5,428</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2773, Class OX, 5.00%, 2/15/18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">672,277</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">17,298</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2780, Class SM, 0.68%, 4/15/34</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">321,037</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,782</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2786, Class PI, 4.50%, 10/15/10</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">9,847</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">6,727</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2825, Class NI, 5.50%, 3/15/30</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,662,515</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">18,296</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2865, Class SR, 0.405%, 10/15/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">510,919</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">12,391</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2865, Class SV, 0.584%, 10/15/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">618,574</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,056</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2949, Class IO, 5.50%, 3/15/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">359,565</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">36,882</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2990, Class WR, 1.306%, 6/15/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,720,219</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">104,968</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 3122, Class IS, 1.38%, 3/15/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">5,353,711</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">98,189</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 3225, Class EY, 0.97%, 10/15/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">4,195,516</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal National Mortgage Assoc.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">236</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 5, Class H, 9.00%, 1/25/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">58,200</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">14</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 7, Class 2, 8.50%, 4/01/17</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,905</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">4,646</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 9, Class BI, 5.50%, 10/25/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">690,203</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">116</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 10, Class S, 524.318%, 5/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">22,148</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">60</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 12, Class C, 1,016.898%, 2/25/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">11,333</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">98</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 12, Class S, 553.577%, 5/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">10,964</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5,662</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 13, Class IG, 5.00%, 10/25/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">246,439</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">4,127</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 16, Class PI, 5.00%, 11/25/12</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">64,818</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">79</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 33, Class PV, 1,078.42%, 10/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">22,267</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,401</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 33, Class SG, 2.756%, 3/25/09</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">34,612</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">54,450</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 36, Class SP, 1.38%, 5/25/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">3,023,048</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 38, Class N, 1,008.50%, 4/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">814</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,253</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 43, Class LC, 6.00%, 3/25/34</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">279,479</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">58</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 50, Class G, 1,158.628%, 12/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">13,721</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">796</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 50, Class SI, 1.20%, 4/25/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">26,346</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5,651</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 51, Class IE, 5.50%, 4/25/26</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">241,976</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">6,044</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 55, Class GI, 5.00%, 7/25/19</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">657,444</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">14,139</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 55, Class SB, 0.83%, 7/25/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">428,973</FONT>
  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">3 </FONT></P>

<HR noshade width="100%" size=4>



<P align="left" style="page-break-before:always"></P><PAGE>


<P align="left">
<B><FONT face="serif">BlackRock Income Trust Inc. (BKT) (continued)</FONT></B><B><FONT face="serif"> </FONT></B><BR>
<B><FONT face="serif">(Percentage of Net Assets) </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=4% align=left>&nbsp;

  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD width=5% align=center>
<B><FONT size=2 face="serif">Principal</FONT></B>
  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD width=78% align=left>&nbsp;

  </TD>
  <TD width=1%>&nbsp;
  </TD>
  <TD width=1% align=left>&nbsp;</TD>
  <TD width=7% align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=center>
<B><FONT size=2 face="serif">Amount</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
    </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">(000)</FONT></B>
    </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </TD>
  <TD align=left style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Description</FONT></B>
  </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;
  </TD>
  <TD align=left style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">Value</FONT></B>
    </center></TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Interest Only Mortgage-Backed Securities&#151;(cont'd)</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,313</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 59, Class S, 4.904%, 10/25/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
  <TD align=right>
<FONT size=2 face="serif"> 621,923</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">683</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 60, Class SB, 1.60%, 10/25/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">31,748</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">408</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 62, Class IC, 5.50%, 7/25/15</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">12,465</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">6,092</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 66, Class CI, 5.00%, 7/25/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,307,122</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,427</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 68, Class SC, 2.756%, 1/25/24</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">132,170</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">15,697</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 73, Class ST, 0.81%, 8/25/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">453,345</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">7,726</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 88, Class TI, 4.50%, 11/25/13</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">274,904</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">25</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 89, Class 2, 8.00%, 6/01/18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">4,358</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">34,428</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 90, Class JH, 1.38%, 11/25/34</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,552,382</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">14,769</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 90, Class M, 6.00%, 1/25/28</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">3,073,751</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">8</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 94, Class 2, 9.50%, 8/01/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,046</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">30</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 99, Class L, 930.00%, 8/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">8,613</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,741</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 122, Class IC, 5.00%, 9/25/18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">487,280</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 123, Class M, 1,009.50%, 10/25/20</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,252</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">30</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 136, Class S, 14.746%, 11/25/20</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">37,067</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">52</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 139, Class PT, 648.35%, 10/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">9,996</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 141, Class SA, 13.625%, 8/25/07</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">56</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,508</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 199, Class SB, 2.156%, 10/25/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">155,314</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">719</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. W4, Class IO, 6.50%, 12/25/28</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">163,087</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">102</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">First Boston Mortgage Securities Corp., Ser. C, Class I, 10.965%, 4/25/17</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">28,714</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">First Horizon Alternative Mortgage Securities,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">59,812</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. FA2, Class 1A4, 0.18%, 5/25/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">219,300</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">81,562</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. FA7, Class 1A7, 6.08%, 10/25/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">220,495</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">207,995</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. FA9, Class A2, 6.168%, 12/25/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">273,472</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">18,543</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">General Motors Acceptance Corp., Commercial Mortgage Securities, Inc., Ser. C1, Class X, 1.517%, 7/15/27</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">441,679</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
    <div align="right"><FONT size=2 face="serif">9,522</FONT><SUP></SUP>
    </div></TD>
  <TD><SUP><FONT size=2 face="serif">2,5</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Goldman Sachs Mortgage Securities Corp., Ser. 5, 0.987%, 2/19/25</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">203,196</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Government National Mortgage Assoc.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,012</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 39, Class ID, 5.00%, 5/20/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">473,527</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,355</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 58, Class IT, 5.50%, 7/20/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">345,630</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">6,275</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 75, Class IJ, 5.50%, 7/20/25</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">161,437</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">19,361</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 89, Classl SA, 0.58%, 10/16/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">464,451</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">172,263</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Indymac Index Mortgage Loan Trust, Ser. AR33, Class 4AX, 0.165%, 1/25/37</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">868,656</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">Aaa</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">83</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Kidder Peabody Acceptance Corp., Ser. B, Class A2, 9.50%, 4/22/18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">21,039</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">28,631</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">MASTR Adjustable Rate Mortgages Trust, Ser. 3, Class 3AX, 0.977%, 4/25/34</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">573,579</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,650</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">MASTR Alternative Loan Trust, Ser. 9, Class 15X2, 6.00%, 1/25/19</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">305,885</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,971</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Morgan Stanley Capital Trust I, Ser. 3, Class 1AX, 5.00%, 5/25/19</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">291,476</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">166,818</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Residential Accredit Loans, Inc., Ser. QS16, Class A2, 6.51%, 11/25/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">198,730</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">98,090</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Sequoia Mortgage Trust, Ser. 2, Class XA, 1.018%, 3/20/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">835,923</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">NR</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">9,594</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">3</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Small Business Administration, Ser. 1, 1.381%, 4/01/15</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Structured Adjustable Rate Mortgage Loan Trust,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">17,943</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2, Class 4AX, 5.50%, 3/25/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,528,466</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5,148</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 20, Class 3AX, 5.50%, 10/25/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">747,933</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">51,272</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 7, Class 3AS, 2.442%, 8/25/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">3,428,833</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">NR</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">96,853</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Vendee Mortgage Trust, Ser. 2, Class 1, 0.052%, 5/15/29</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">246,104</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Interest Only Mortgage-Backed Securities</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">53,174,882</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Principal Only Mortgage-Backed Securities&#151;5.4%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Countrywide Home Loans, Inc.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">5,925</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 26, 4.944%, 8/25/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">4,434,207</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,146</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. J4, 5.142%, 6/25/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">860,274</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,618</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. J5, 4.911%, 7/25/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,182,959</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,245</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. J8, 4.787%, 9/25/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">953,787</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Drexel Burnham Lambert, Inc.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">29</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. K, Class 1, 11.50%, 9/23/17</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">28,445</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">351</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. V, Class 1, 11.50%, 9/01/18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">300,065</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal Home Loan Mortgage Corp.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">260</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 8, Class A10, 6.737%, 11/15/28</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">208,961</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">177</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1418, Class M, 7.50%, 11/15/22</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">160,800</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">577</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1571, Class G, 7.50%, 8/15/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">484,676</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,290</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1691, Class B, 7.50%, 3/15/24</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,884,468</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">217</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 1739, Class B, 7.50%, 2/15/24</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">188,366</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal National Mortgage Assoc.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">337</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 2, Class KB, 8.00%, 1/25/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">272,933</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">47</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 7, Class J, 10.00%, 2/25/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">39,608</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,013</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 13, Class PR, 6.50%, 3/25/32</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">797,578</FONT>
  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">4 </FONT></P>

<HR noshade width="100%" size=4>



<P align="left" style="page-break-before:always"></P><PAGE>


<P align="left">
<B><FONT face="serif">BlackRock Income Trust Inc. (BKT) (continued)</FONT></B><B><FONT face="serif"> </FONT></B><BR>
<B><FONT face="serif">(Percentage of Net Assets) </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=4% align=left>&nbsp;

  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD width=5% align=right>
    <center>
      <B><FONT size=2 face="serif">Principal</FONT></B>
    </center></TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD width=77% align=left>&nbsp;

  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD width=1% align=left>&nbsp;</TD>
  <TD width=7% align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
    <center>
      <B><FONT size=2 face="serif">Amount</FONT></B>
    </center></TD>
  <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
    </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">(000)</FONT></B>
    </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </TD>
  <TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Description</FONT></B>
  </TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;
  </TD>
  <TD align=left style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=left style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Value</FONT></B>
  </center></TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Principal Only Mortgage-Backed Securities&#151;(cont'd)</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;154</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 51, Class E, 8.00%, 2/25/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
  <TD align=right>
<FONT size=2 face="serif"> 125,295</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">28</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 70, Class A, 7.00%, 5/25/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">22,791</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">70</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 167, Class D, 8.50%, 10/25/17</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">63,276</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">51</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 203, Class 1, 8.00%, 2/01/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">42,441</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">33</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 228, Class 1, 7.00%, 5/01/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">26,663</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,075</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 249, Class B, 7.50%, 11/25/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,660,096</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">268</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 273, Class 1, 7.00%, 7/01/26</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">214,391</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">4,987</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 328, Class 1, 6.00%, 11/01/32</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">3,840,028</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,961</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 338, Class 1, 5.50%, 6/01/33</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,945,675</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">371</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. W4, Class PO, 5.985%, 2/25/29</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">284,130</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">314</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">MASTR Asset Securitization Trust, Ser. 3, Class 4A15, 5.634%, 3/25/34</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">131,604</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">983</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Residential Asset Securitization Trust, Ser. A15, Class 1A8, 5.713%, 2/25/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">526,952</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">18</FONT><SUP></SUP>
  </TD>
  <TD><SUP><FONT size=2 face="serif">3,8</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Structured Mortgage Asset Residential Trust, Ser. 3C, Class CX, 7.031%, 4/25/24</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">16,947</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,035</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">8</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Washington Mutual, Ser. 9, Class CP, 5.112%, 11/25/35</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">739,166</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Principal Only Mortgage-Backed Securities</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">22,436,582</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Collateralized Mortgage Obligation Residual Securities&#151;0.0%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Collateralized Mortgage Obligation Trust,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">4</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 40, Class R, 580.50%, 4/01/18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">355</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=center>
<FONT size=2 face="serif">AAA</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">65</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 42, Class R, 6,000.00%, 10/01/14</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">4,612</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal Home Loan Mortgage Corp.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 19, Class R, 9,427.406%, 3/15/20</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,746</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 75, Class R, 9.50%, 1/15/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">5</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 75, Class RS, 16.90%, 1/15/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">5</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 173, Class R, 9.00%, 11/15/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">25</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 173, Class RS, 9.103%, 11/15/21</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">25</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">NR</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">13</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Painewebber CMO Trust, Ser. 88 M, Class 6, 13.80%, 9/01/18</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">&#151;</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Collateralized Mortgage Obligation Residual Securities</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6,773</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">U.S. Government and Agency Securities&#151;24.1%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Overseas Private Investment Corp.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">312</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">4.09%, 5/29/12</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">289,272</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">872</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">4.30%, 5/29/12</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">831,026</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">653</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">4.64%, 5/29/12</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">630,823</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">369</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">4.68%, 5/29/12</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">345,434</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">2,790</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">4.87%, 5/29/12</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,722,781</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,460</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">2</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">5.40%, 5/29/12</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">3,555,891</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">13,000</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Resolution Funding Corp., Ser. B, Zero Coupon, 4/15/30</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">4,020,991</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Small Business Administration,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">765</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 20C-1, 7.15%, 3/01/17</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">791,492</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">742</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 20E-1, 7.60%, 5/01/16</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">773,516</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,011</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 20F-1, 7.55%, 6/01/16</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,053,067</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">613</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 20G-1, 7.70%, 7/01/16</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">640,738</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,111</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 20H-1, 7.25%, 8/01/16</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,149,965</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,673</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Ser. 20K-1, 6.95%, 11/01/16</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,726,611</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">U.S. Treasury Notes,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">21,000</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">9</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">3.75%, 3/31/07</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">20,952,414</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">19,400</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">9</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">4.00%, 8/31/07</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">19,278,750</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">100,000</FONT><SUP></SUP>
  </TD>
  <TD><SUP><FONT size=2 face="serif">7,9</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">U.S. Treasury Strip, Zero Coupon, 11/15/24</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">40,896,600</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total U.S. Government and Agency Securities</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">99,659,371</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Corporate Bond&#151;0.7%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=center>
<FONT size=2 face="serif">AA+</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,059</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">3</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Structured Asset Receivable Trust, 5.114%, 1/21/10</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">3,058,522</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Long-Term Investments (cost &#36;505,551,647)</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">483,137,879</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">SHORT-TERM INVESTMENTS&#151;5.4%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">U.S. Government and Agency Discount Notes&#151;5.4%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal Home Loan Bank Discount Notes,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">16,800</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">10</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">5.001%, 2/01/07</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">16,800,000</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">3,000</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">10</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">5.161%, 2/16/07</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">2,993,575</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,500</FONT>
  </TD>
  <TD><SUP><FONT size=2 face="serif">10</FONT></SUP>
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal National Mortgage Assoc. Discount Notes, 5.132%, 2/21/07</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">1,495,742</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">U.S. Treasury Bills,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">100</FONT><SUP></SUP>
  </TD>
  <TD><SUP><FONT size=2 face="serif">7,10</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">4.879%, 2/01/07</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">100,000</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>
<FONT size=2 face="serif">1,000</FONT><SUP></SUP>
  </TD>
  <TD><SUP><FONT size=2 face="serif">7,10</FONT></SUP>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">4.889%, 2/01/07</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,000,000</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Short-Term Investments (cost &#36;22,389,317)</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">22,389,317</FONT>
  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">5 </FONT></P>

<HR noshade width="100%" size=4>



<P align="left" style="page-break-before:always"></P><PAGE>


<P align="left">
<B><FONT face="serif">BlackRock Income Trust Inc. (BKT) (continued)</FONT></B><B><FONT face="serif"> </FONT></B><BR>
<B><FONT face="serif">(Percentage of Net Assets) </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=5% align=center>&nbsp;</TD>
  <TD width=5% align=center>
<B><FONT size=2 face="serif">Notional</FONT></B>
  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD width=70% align=left>&nbsp;

  </TD>
  <TD width=10%>&nbsp;
  </TD>
  <TD width=1% align=left>&nbsp;</TD>
  <TD width=7% align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD align=right>
    <center>
      <B><FONT size=2 face="serif">Amount</FONT></B>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">(000)</FONT></B>
    </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </TD>
  <TD align=left style="border-bottom:1px solid #000000;"> <center>
    <B><FONT size=2 face="serif">Description</FONT></B>
  </center></TD>
  <TD style="border-bottom:1px solid #000000;">&nbsp;
  </TD>
  <TD align=center style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="serif">Value</FONT></B>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Outstanding Options Purchased&#151;0.2%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Interest Rate Swaps,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">5,500</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trust pays 3-month LIBOR, Trust receives 5.52%, expires 9/21/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
  <TD align=right>
<FONT size=2 face="serif"> 279,509&nbsp;</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">49,200</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trust pays 5.40%, Trust receives 3-month LIBOR, expires 3/14/08</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">29,850&nbsp;</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">5,500</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trust pays 5.52%, Trust receives 3-month LIBOR, expires 9/21/36</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">314,693&nbsp;</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">49,200</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trust pays 5.90%, Trust receives 3-month LIBOR, expires 3/14/08</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5&nbsp;</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Outstanding Options Purchased (cost &#36;729,050)</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">624,057&nbsp;</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total investments before borrowed bonds, investments sold short, TBA sale commitments and outstanding</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;</TD>
  <TD align=left style="border-bottom:1px solid #000000;">&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">options written (cost &#36;528,670,014</FONT><SUP><FONT size=2 face="serif">11</FONT></SUP><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">506,151,253&nbsp;</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=center>
<B><FONT size=2 face="serif">Principal</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
    <center>
      <B><FONT size=2 face="serif">Amount</FONT></B>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">(000)</FONT></B>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">BORROWED BONDS&#151;15.0%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32,808</FONT><SUP><FONT size=2 face="serif">12</FONT></SUP>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">U.S. Treasury Bonds, 5.00%, 8/15/23-2/15/31</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">32,808,000&nbsp;</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">29,060</FONT><SUP><FONT size=2 face="serif">12</FONT></SUP>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">U.S. Treasury Notes, 5.00%, 8/15/10-5/15/16</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">29,059,750&nbsp;</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Borrowed Bonds (cost &#36;61,867,750)</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">61,867,750&nbsp;</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">INVESTMENTS SOLD SHORT&#151;(14.5)%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">U.S. Treasury Bonds,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(12,930</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">5.375%, 2/15/31</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(13,643,167)</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(15,750</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">6.25%, 8/15/23</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(17,897,166)</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">U.S. Treasury Notes,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(14,900</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">4.00%, 2/15/15</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(14,086,907)</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(12,000</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">4.125%, 8/15/10</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(11,730,468)</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(2,500</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">5.125%, 5/15/16</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2,553,613)</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Investements Sold Short (proceeds &#36;61,745,381)</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(59,911,321)</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">TBA SALE COMMITMENTS&#151;(6.2)%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Federal National Mortgage Assoc.,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(19,000</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">5.00%, 2/12/37</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(18,228,125)</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(7,500</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">5.50%, 2/12/37</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(7,375,785)</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left style="border-bottom:1px solid #000000;">&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total TBA Sale Commitments (proceeds &#36;25,876,328)</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(25,603,910)</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=right>
    <center>
      <B><FONT size=2 face="serif">Notional</FONT></B>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
    <center>
      <B><FONT size=2 face="serif">Amount</FONT></B>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
    <center>
      <B><FONT size=2 face="serif">(000)</FONT></B>
    </center></TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">OUTSTANDING OPTIONS WRITTEN&#151;(0.5)%</FONT></B>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Interest Rate Swaps,</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(14,100</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trust pays 3-month LIBOR, Trust receives 4.725%, expires 6/13/07</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(683,145)</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(5,700</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trust pays 3-month LIBOR, Trust receives 5.135%, expires 4/21/08</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(185,592)</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(5,400</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trust pays 3-month LIBOR, Trust receives 5.485%, expires 10/28/19</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(167,994)</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(98,400</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trust pays 3-month LIBOR, Trust receives 5.65%, expires 3/14/08</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(2,598)</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(12,400</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trust pays 3-month LIBOR, Trust receives 5.67%, expires 1/04/10</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(313,805)</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(14,100</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trust pays 4.725%, Trust receives 3-month LIBOR, expires 6/13/07</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(13,677)</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(5,700</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trust pays 5.135%, Trust receives 3-month LIBOR, expires 4/21/08</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(85,446)</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(5,400</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trust pays 5.485%, Trust receives 3-month LIBOR, expires 10/28/19</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(177,174)</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>
<FONT size=2 face="serif">(12,400</FONT>
  </TD>
  <TD><FONT size=2 face="serif">)</FONT>
  </TD>
  <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trust pays 5.67%, Trust receives 3-month LIBOR, expires 1/04/10</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(493,681)</FONT>
  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Outstanding Options Written (premium received &#36;3,312,560)</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(2,123,112)</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Total Investments net of borrowed bonds, investments sold short, TBA sale commitments and outstanding</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">options written&#151;116.4%</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
  <TD align=right>
<FONT size=2 face="serif"> 480,380,660&nbsp;</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">Liabilities in excess of other assets (including &#36;62,691,250 in reverse repurchase agreements payable)&#151;</FONT>
  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
</TR>
<TR valign="bottom" bgcolor="#C0C0C0">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;

  </TD>
  <TD>&nbsp;
  </TD>
  <TD align=left>
<FONT size=2 face="serif">(16.4)%</FONT>
  </TD>
  <TD>&nbsp; </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(67,555,709)</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp; </TD>
  <TD>&nbsp; </TD>
  <TD align=left>
<B><FONT size=2 face="serif">Net Assets&#151;100%</FONT></B>
  </TD>
  <TD>&nbsp; </TD>
  <TD align=right style="border-bottom:3px double #000000;"><div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
  <TD align=right style="border-bottom:3px double #000000;">
<FONT size=2 face="serif"> 412,824,951&nbsp;</FONT>
  </TD>
</TR>
</TABLE>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>______________________</TD>
</TR>
<TR>
  <TD nowrap valign=top>
<FONT size=2 face="serif">1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD width=100%>
<P align="left"><FONT size=2 face="serif">Using the highest of Standard &amp; Poor's, Moody's Investor Service or Fitch's Ratings.</FONT></P>
  </TD>
</TR>
<TR>
  <TD nowrap valign=top>
<FONT size=2 face="serif">2</FONT></TD>
  <TD width=100%>
<P align="left"><FONT size=2 face="serif">Variable rate security. Rate shown is interest rate as of January 31, 2007.</FONT></P>
  </TD>
</TR>
<TR>
  <TD nowrap valign=top>
<FONT size=2 face="serif">3</FONT></TD>
  <TD width=100%>
<P align="left"><FONT size=2 face="serif">Illiquid security. As of January 31, 2007, the Trust held 0.8% of its net assets, with a current market value of &#36;3,370,809, in these securities.</FONT></P>
  </TD>
</TR>
<TR>
  <TD nowrap valign=top>
<FONT size=2 face="serif">4</FONT></TD>
  <TD width=100%>
<P align="left"><FONT size=2 face="serif">Represents an investment in an affiliate.</FONT></P>
  </TD>
</TR>
<TR>
  <TD nowrap valign=top>
<FONT size=2 face="serif">5</FONT></TD>
  <TD width=100%>
<P align="left"><FONT size=2 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of January 31,
2007, the Trust held 0.1% of its net assets, with a current market value of &#36;617,064, in securities restricted as to resale.</FONT></P>
  </TD>
</TR>
<TR>
  <TD nowrap valign=top>
<FONT size=2 face="serif">6</FONT></TD>
  <TD width=100%>
<P align="left"><FONT size=2 face="serif">Security is fair valued.</FONT></P>
  </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">6 </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align="left">
<B><FONT face="serif">BlackRock Income Trust Inc. (BKT) (continued)</FONT></B><B><FONT face="serif"> </FONT></B><BR>
<B><FONT face="serif">(Percentage of Net Assets) </FONT></B></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>
<FONT size=2 face="serif">7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD width=100%>
<P align="left"><FONT size=2 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;8,526,379 on 1,485 short Eurodollar futures contracts expiring March 2007 to September 2009, 626 short U.S. Treasury Bond futures
contracts expiring March 2007 and 770 short U.S. Treasury Note futures contracts expiring March 2007. The notional value of such contracts on January 31, 2007 was &#36;502,055,269, with an unrealized gain of &#36;4,899,431.</FONT></P>
  </TD>
</TR>
<TR>
  <TD nowrap valign=top>
<FONT size=2 face="serif">8</FONT></TD>
  <TD width=100%>
<P align="left"><FONT size=2 face="serif">Rate shown is effective yield as of January 31, 2007 of the underlying collateral.</FONT></P>
  </TD>
</TR>
<TR>
  <TD nowrap valign=top>
<FONT size=2 face="serif">9</FONT></TD>
  <TD width=100%>
<P align="left"><FONT size=2 face="serif">Entire or partial principal amount pledged as collateral for reverse repurchase agreements.</FONT></P>
  </TD>
</TR>
<TR>
  <TD nowrap valign=top>
<FONT size=2 face="serif">10</FONT></TD>
  <TD width=100%>
<P align="left"><FONT size=2 face="serif">Rate shown is the yield to maturity as of the date of purchase.</FONT></P>
  </TD>
</TR>
<TR>
  <TD nowrap valign=top>
<FONT size=2 face="serif">11</FONT></TD>
  <TD width=100%>
<P align="left"><FONT size=2 face="serif">Cost for federal income tax purposes is &#36;529,350,087. The net unrealized depreciation on a tax basis is &#36;23,198,834, consisting of &#36;13,027,382 gross unrealized appreciation and &#36;36,226,216
gross unrealized depreciation.</FONT></P>
  </TD>
</TR>
<TR>
  <TD nowrap valign=top>
<FONT size=2 face="serif">12</FONT></TD>
  <TD width=100%>
<P align="left"><FONT size=2 face="serif">The interest rate and maturity date shown represent the terms of the borrowed transaction, not the security borrowed.</FONT></P>
  </TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<center>
<DIV STYLE="BORDER:1PX SOLID BLACK; width:24%; padding:1%">
<TABLE width="83%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>
    <center>
      <B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>
    </center></TD>
  </TR>
<TR valign="bottom">
  <TD width=22% align=left nowrap>
<FONT size=2 face="serif">LIBOR&nbsp;</FONT>
  </TD>
  <TD width=78% align=left nowrap>
<FONT size=2 face="serif">&#151; </FONT><FONT size=2 face="serif">London Interbank Offered Rate</FONT> </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
    <FONT size=2 face="serif">TBA</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#151; To Be Announced</FONT>
  </TD>
</TR>
</TABLE>
</div></center>
<BR>
<P align="center">
<FONT size=2 face="serif">7 </FONT></P>
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<P align="left" style="page-break-before:always"></P><PAGE>
<P align="left">
<B><FONT face="serif">Item 2. Controls and Procedures.</FONT></B><FONT face="serif"> </FONT></P>
<P align="left">
<FONT face="serif">(a) The Registrant's principal executive and principal financial officers have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the
Registrant&#146;s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-Q was recorded, processed, summarized, and reported within the required time periods
and that information to be disclosed by the Registrant in this Form N-Q was accumulated and communicated to the Registrant&#146;s management, including its principal executive and principal financial officers, as appropriate, to allow timely
decisions regarding required disclosure. </FONT></P>
<P align="left">
<FONT face="serif">(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a -3(d)) that occurred during the Registrant's last fiscal quarter that have
materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. </FONT></P>
<P align="left">
<B><FONT face="serif">Item 3. Exhibits.</FONT></B><FONT face="serif"> </FONT></P>
<P align="left">
<FONT face="serif">Separate certifications of the Registrant&#146;s Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as EX-99.CERT. </FONT></P>

<center>
  <FONT size=2 face="serif">8</FONT>
</center>
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<P align="left" style="page-break-before:always"></P><PAGE>
<P align="center">
<B><FONT face="serif">SIGNATURES</FONT></B><FONT face="serif"> </FONT></P>
<P align="left">
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</FONT></P>
<table width="45%"  border="0" cellspacing="0" cellpadding="0">
  <tr align="left">
    <td width="23%" nowrap><font face="serif">(Registrant)</font></td>
    <td width="77%" nowrap style="border-bottom:1px solid #000000;"><font face="serif">BlackRock Income Trust, Inc. </font></td>
  </tr>
</table>
<P align="left">  <FONT face="serif">By: <u>/s/ Donald C. Burke&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT><BR>
  <FONT face="serif">Name: Donald C. Burke </FONT><BR>
  <FONT face="serif">Title: Treasurer and Principal Financial Officer </FONT><BR>
  <FONT face="serif">Date: March 28, 2007 </FONT></P>
<P align="left">
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. </FONT></P>
<P align="left">
<FONT face="serif">By: <U>/s/ Robert S. Kapito&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> </FONT><BR>
<FONT face="serif">Name: Robert S. Kapito </FONT><BR>
<FONT face="serif">Title: President and Principal Executive Officer </FONT><BR>
<FONT face="serif">Date: March 28, 2007 </FONT><BR>
<BR>
<FONT face="serif">By: <u>/s/ Donald C. Burke&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT><BR>
<FONT face="serif">Name: Donald C. Burke </FONT><BR>
<FONT face="serif">Title: Treasurer and Principal Financial Officer </FONT><BR>
<FONT face="serif">Date: March 28, 2007 </FONT></P>
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<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>2
<FILENAME>c47532_ex99-cert.htm
<TEXT>

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   <TITLE>c47521_ex99-cert.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing</TITLE>
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<BODY bgcolor="#ffffff">


<P align="right">
<B><FONT face="serif">EX-99.CERT </FONT></B></P>
<p align="center"><B><FONT face="serif">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER </FONT></B><BR>
<BR>
<B><U><FONT face="serif">CERTIFICATIONS</FONT></U></B><B><FONT face="serif"> </FONT></B></P>
<P align="left">
<FONT face="serif">I, Robert S. Kapito, certify that: </FONT></P>
<P align="left">
<FONT face="serif">1. I have reviewed this report on Form N-Q of BlackRock Income Trust, Inc.; </FONT></P>
<P align="left">
<FONT face="serif">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report; </FONT></P>
<P align="left">
<FONT face="serif">3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the Registrant as of the end of the fiscal quarter for which the report is filed; </FONT></P>
<P align="left">
<FONT face="serif">4. The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have: </FONT></P>
<P align="left">
<FONT face="serif">(a)</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </FONT></P>
<P align="left">
<FONT face="serif">(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </FONT></P>
<P align="left">
<FONT face="serif">(c)</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and</FONT><FONT size=2 face="sans-serif"> </FONT></P>
<P align="left">
<FONT face="serif">(d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter that has  materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and </FONT></P>
<P align="left">
<FONT face="serif">5. The Registrant's other certifying officer(s) and I have disclosed to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): </FONT></P>
<P align="left">
<FONT face="serif">(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process,
summarize, and report financial information; and </FONT></P>
<P align="left">
<FONT face="serif">(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. </FONT></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=left width=25%>
<FONT face="serif">Date: March 28, 2007</FONT>&nbsp;
  </TD>
  <TD width=26%>&nbsp;
  </TD>
  <TD align=left width=48% style="border-bottom:1px solid #000000;"><center>
    /s/ Robert S. Kapito

</center></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=25%>&nbsp;

  </TD>
  <TD width=26%>&nbsp;
  </TD>
  <TD align=center width=48%>
<FONT face="serif">Robert S. Kapito</FONT>&nbsp;
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=25%>&nbsp;

  </TD>
  <TD width=26%>&nbsp;
  </TD>
  <TD align=center width=48%>
<FONT face="serif">President and Principal Executive Officer</FONT>&nbsp;
  </TD>
</TR>
</TABLE><BR>

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<P align="left" style="page-break-before:always"></P><PAGE>
<P align="right">
<B><FONT face="serif">EX-99.CERT </FONT></B></p>
<p align="center"><B><FONT face="serif">CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER </FONT></B><BR>
<BR>
<B><U><FONT face="serif">CERTIFICATIONS</FONT></U></B><B><FONT face="serif"> </FONT></B></P>
<P align="left">
<FONT face="serif">I, Donald C. Burke, certify that: </FONT></P>
<P align="left">
<FONT face="serif">1. I have reviewed this report on Form N-Q of BlackRock Income Trust, Inc.; </FONT></P>
<P align="left">
<FONT face="serif">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report; </FONT></P>
<P align="left">
<FONT face="serif">3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the Registrant as of the end of the fiscal quarter for which the report is filed; </FONT></P>
<P align="left">
<FONT face="serif">4. The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have: </FONT></P>
<P align="left">
<FONT face="serif">(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </FONT></P>
<P align="left">
<FONT face="serif">(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </FONT></P>
<P align="left">
<FONT face="serif">(c)</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and</FONT><FONT size=2 face="sans-serif"> </FONT></P>
<P align="left">
<FONT face="serif">(d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter that has  materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and </FONT></P>
<P align="left">
<FONT face="serif">5. The Registrant's other certifying officer(s) and I have disclosed to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): </FONT></P>
<P align="left">
<FONT face="serif">(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process,
summarize, and report financial information; and </FONT></P>
<P align="left">
<FONT face="serif">(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. </FONT></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=left width=6%>
<FONT face="serif">Date:</FONT>&nbsp;
  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD align=left width=18%>
<FONT face="serif">March 28, 2007</FONT>&nbsp;
  </TD>
  <TD width=25%>&nbsp;
  </TD>
  <TD align=left width=47% style="border-bottom:1px solid #000000;"><center>
    /s/ Donald C. Burke

</center></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=6%>&nbsp;

  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD align=left width=18%>&nbsp;

  </TD>
  <TD width=25%>&nbsp;
  </TD>
  <TD align=center width=47%>
<FONT face="serif">Donald C. Burke</FONT>&nbsp;
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=6%>&nbsp;

  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD align=left width=18%>&nbsp;

  </TD>
  <TD width=25%>&nbsp;
  </TD>
  <TD align=center width=47%>
<FONT face="serif">Treasurer and Principal Financial Officer</FONT>&nbsp;
  </TD>
</TR>
</TABLE><BR>

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