UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21179

Name of Fund: BlackRock New York Municipal Income Quality Trust (BSE)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock New
York Municipal Income Quality Trust, 55 East 52^nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 08/31/2011

Date of reporting period: 05/31/2011

Item 1 – Schedule of Investments

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BlackRock New York Municipal Income Quality Trust (BSE)
Schedule of Investments May 31, 2011 (Unaudited)
 (Percentages shown are based on Net Assets)

 

 

 

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BlackRock New York Municipal Income Quality Trust (BSE)
Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

 

 

 

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BlackRock New York Municipal Income Quality Trust (BSE)
Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

 

 

 

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BlackRock New York Municipal Income Quality Trust (BSE)
Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

* The cost and unrealized appreciation (depreciation) of investments as of
May 31, 2011, as computed for federal income tax purposes, were as
follows:

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

(b) Represents a zero-coupon bond. Rate shown reflects the current yield as
of report date.
(c) US government securities, held in escrow, are used to pay interest on
this security as well as to retire the bond in full at the date indicated,
typically at a premium to par.
(d) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Trust acquired residual interest certificates.
These securities serve as collateral in a financing transaction.
(e) Variable rate security. Rate shown is as of report date and maturity
shown is the date the principal owed can be recovered through demand.
(f) Investments in companies considered to be an affiliate of the Trust
during the period, for purposes of Section 2(a)(3) of the Investment
Company Act of 1940, as amended, were as follows:

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

• For Trust compliance purposes, the Trust’s sector classifications refer
to any one or more of the sector sub-classifications used by one or
more widely recognized market indexes or ratings group indexes,
and/or as defined by Trust management. This definition may not apply
for purposes of this report, which may combine such sector sub-
classifications for reporting ease.

• Financial futures contracts sold as of May 31, 2011 were as follows:

 

•Fair Value Measurements - Various inputs are used in determining the fair
value of investments and derivative financial instruments. These inputs
are summarized in three broad levels for financial reporting purposes as
follows:

•Level 1 — price quotations in active markets/exchanges for identical
assets and liabilities

•Level 2 — other observable inputs (including, but not limited to: quoted
prices for similar assets or liabilities in markets that are active, quoted
prices for identical or similar assets or liabilities in markets that are not
active, inputs other than quoted prices that are observable for the
assets or liabilities (such as interest rates, yield curves, volatilities,
prepayment speeds, loss severities, credit risks and default rates) or
other market-corroborated inputs)

•Level 3 — unobservable inputs based on the best information available
in the circumstances, to the extent observable inputs are not available
(including the Trust’s own assumptions used in determining the fair
value of investments and derivative financial instruments)

The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For
information about the Trust's policy regarding valuation of investments and
derivative financial instruments and other significant accounting policies, please
refer to the Trust’s most recent financial statements as contained in its semi-
annual report.

 

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BlackRock New York Municipal Income Quality Trust (BSE)
Schedule of Investments (concluded)

The following tables summarize the inputs used as of May 31, 2011 in
determining the fair valuation of the Trust’s investments and derivative
financial instruments:

  

 

 

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Item 2 – Controls and Procedures

2(a) – The registrant's principal executive and principal financial officers or persons performing
similar functions have concluded that the registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the
31940 Act3)) areeffective as of a date within 90 days of the filing of this report based on the
evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act
and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

2(b) – There were no changes in the registrant's internal control over financial reporting (as defined
in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter
that have materially affected, or are reasonably likely to materially affect, the registrant's
internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto

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

BlackRock New York Municipal Income Quality Trust

By: /S/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock New York Municipal Income Quality Trust

Date: July 26, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.

By: /S/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock New York Municipal Income Quality Trust

Date: July 26, 2011

By: /S/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock New York Municipal Income Quality Trust

Date: July 26, 2011

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