BLACKROCK MUNICIPAL TARGET TERM TRUST INC, N-30D, 1999-08-25

BLACKROCK MUNICIPAL TARGET TERM TRUST INC
N-30D, 1999-08-25

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THE BLACKROCK MUNICIPAL TARGET TERMTRUSTINC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------
July 31, 1999

Dear Shareholder:

Since the Trust's last report, interest rates rose sharply as U.S. economic
growth remained strong, labor markets tightened and international markets began
to recover. In light of these factors, the Federal Reserve's Federal Open Market
Committee increased short-term interest rates by 25 basis points in June, citing
a concern that inflation might start to accelerate.

In tandem with the Fed's recent rate tightening, BlackRock has taken a
defensive interest rate stance. With the Treasury curve currently pricing in the
possibility of another Fed tightening by year-end, we believe that interest
rates will trade in a relatively narrow range until the economy shows signs of
slowing.

This report contains comments from your Trust's managers regarding the
markets and portfolio in addition to the Trust's semi-annual financial
statements and a detailed portfolio listing. We thank you for your continued
investment in the Trust.

Sincerely,

/s/Laurence D. Fink /s/Ralph L. Schlosstein
- ------------------- -----------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President

<PAGE>
July 31, 1999

Dear Shareholder:

We are pleased to present the semi-annual report for The BlackRock
Municipal Target Term Trust Inc. ("the Trust") for the six months ended June 30,
1999. We would like to take this opportunity to review the Trust's stock price
and net asset value (NAV) performance, summarize developments in the fixed
income markets and discuss recent portfolio management activity.

The Trust is a diversified, actively managed closed-end bond fund whose
shares are traded on the New York Stock Exchange under the symbol "BMN". The
Trust's investment objective is to manage a portfolio of municipal debt
securities that will return $10 per share (an amount equal to the Trust's
initial public offering price) to investors on or about December 31, 2006, while
providing high current income exempt from regular federal income tax. The Trust
seeks to achieve this objective by investing in high credit quality ("AAA" or
insured to "AAA") tax-exempt general obligation and revenue bonds issued by
city, county and state municipalities throughout the United States.

The table below summarizes the changes in the Trust's stock price and net
asset value over the past six months:

<TABLE>
<CAPTION>
6/30/99 12/31/98 CHANGE HIGH LOW
<S> <C> <C> <C> <C> <C>
STOCK PRICE $10.50 $11.375 (7.69%) $11.75 $10.187
NET ASSET VALUE (NAV) $10.83 $11.21 (3.39%) $11.30 $10.82
</TABLE>

THE FIXED INCOME MARKETS

The past six months have witnessed continued rapid expansion of the U.S.
economy. GDP growth for the second quarter of 1999 is estimated at an annual
rate of 3.5%-4%, far exceeding the historical non-inflationary level of 2%.
While BlackRock believes that growth may slow down in the second half of 1999,
we anticipate GDP to remain above 3% for the year. In spite of strong domestic
economic growth, inflationary forces continue to remain contained; still, the
Federal Reserve chose to raise its target for the federal funds rate from 4.75%
to 5.00% at its June meeting. The Fed cited an easing of financial strain, tight
labor markets and a firming of foreign economies in the release accompanying the
move. The Fed dropped its tightening bias to a neutral bias, which should reduce
the likelihood of another hike at the August 24th meeting. However, an
additional 25-50 basis points of tightening by year end is possible, as the
combination of a very strong domestic economy and an improving situation in
Europe and Japan may allow for tighter monetary policy.

U.S. Treasury securities dramatically reversed their fourth quarter gains
in the first half of 1999. The yield of the 10-Year Treasury posted a net
decline of 118 basis points (1.18%), beginning 1999 at 4.65% and closing on June
30, 1999 at 5.78%. Strong economic numbers led the Federal Reserve to adopt a
tightening bias on May 18, 1999 and ultimately raised interest rates by 25 basis
points on June 30, 1999. The Federal Reserve eased rates by 0.75% in 1998
because of the global financial crisis but cited in their June 1999 meeting
"Since then much of the financial strain has eased, foreign economies have
firmed and economic activity in the U.S. has moved forward at a brisk pace." We
anticipate Treasuries will trade in a relatively narrow range for the balance of
1999 unless the Fed takes further action.

<PAGE>

Municipal bonds outperformed the taxable domestic bond market during the
past six months, returning -0.90% (as measured by the Lehman Municipal Index)
versus the Lehman Aggregate Index's -1.37% on a pre-tax basis. Municipal bonds
continue to appear attractive relative to Treasuries on a long-term historical
basis, and we believe that reduced Treasury supply and increased crossover
activity should keep ratios at higher than normal levels. Supply and demand
technicals continue to improve in the municipal market as supply has declined
23% in the first half of 1999 from last year. Much of the drop in issuance can
be attributed to the plunge in refunding supply, which is down nearly 50% versus
last year. Retail investors have been adding municipals to their portfolios at
an aggressive pace, which should result in the second consecutive year of net
positive cash flows into mutual funds after having negative flows during the
previous four years. Due to the factors mentioned above, we believe municipals
remain a compelling investment opportunity going forward.

THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY

The Trust's portfolio is actively managed to diversify exposure to various
sectors, issuers, revenue sources and security types. BlackRock's investment
strategy emphasizes a relative value approach, which allows the Trust to
capitalize upon changing market conditions by rotating municipal sectors,
credits and coupons. Additionally, the Trust emphasizes securities whose
maturity dates match the termination date of the Trust. Trading activity in the
Trust remained low during the period, as the market prices of a significant
portion of the portfolio's bonds are currently above the prices at which they
were bought. A bond sold at a gain would result in the Trust realizing a capital
gain, which may require a taxable distribution. Since one of the Trust's primary
investment objectives is to pay out tax-exempt income, we believe that
restructuring the portfolio in a higher interest rate environment remains the
most prudent strategy.

Additionally, the Trust employs leverage to enhance its income by
borrowing at short-term municipal rates and investing the proceeds in longer
maturity issues that have higher yields. The degree to which the Trust can
benefit from its use of leverage may affect its ability to pay high monthly
income. At the end of the semi-annual period, the Trust's leverage amount was
31% of total assets. During the past six months, the Trust's borrowing costs
have remained favorable.

The following chart compares the Trust's current and December 31, 1998
asset composition:

THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
- ---------------------------------------------------------------------------

SECTOR JUNE 30, 1999 DECEMBER 31, 1998
- ----- ------------- -----------------
City, County and State 22% 22%
- --------------------------------------------------------------------------
Hospital 15% 15%
- --------------------------------------------------------------------------
Transportation 15% 14%
- --------------------------------------------------------------------------
Tax Revenue 14% 14%
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Water & Sewer 11% 11%
- --------------------------------------------------------------------------
Lease Revenue 8% 8%
- --------------------------------------------------------------------------
Education 6% 5%
- --------------------------------------------------------------------------
Utility/Power 6% 8%
- --------------------------------------------------------------------------
Other 3% 3%
- --------------------------------------------------------------------------

3
<PAGE>

We look forward to managing the Trust to benefit from the opportunities
available in the fixed income markets and to meet its investment objectives. We
thank you for your investment in the BlackRock Municipal Target Term Trust Inc.
Please feel free to contact our marketing center at (800) 227-7BFM (7236) if you
have specific questions which were not addressed in this report.

Sincerely,

/s/Robert S. Kapito /s/Kevin Klingert
- ------------------- -----------------
Robert S. Kapito Kevin Klingert
Vice Chairman and Managing Director and
Portfolio Manager Portfolio Manager
BlackRock Financial BlackRock Financial
Management, Inc. Management, Inc.

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
- --------------------------------------------------------------------------------

Symbol on New York Stock Exchange: BMN
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
Initial Offering Date: September 27, 1991
- --------------------------------------------------------------------------------
Closing Stock Price as of 6/30/99: $10.50
- --------------------------------------------------------------------------------
Net Asset Value as of 6/30/99: $10.83
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 6/30/99 ($10.50)1: 5.86%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Common Share2: $0.05125
- --------------------------------------------------------------------------------
Current Annualized Distribution per Common Share2: $0.615
- --------------------------------------------------------------------------------

1 Yield on Closing Stock Price is calculated by dividing the current
annualized distribution per share by the closing stock price per share.
2 Distribution is not constant and is subject to change.

<PAGE>

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
PORTFOLIO OF INVESTMENTS JUNE 30, 1999 (UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG-TERM INVESTMENTS--141.5%
ALABAMA--1.0%
Hoover Brd. of Ed. Spl. Tax. Wts., G.O., AMBAC,
AAA $1,700++ 6.50%, 2/01/01 ........................................... N/A $ 1,794,044
AAA 1,815++ 6.60%, 2/01/01 ........................................... N/A 1,918,146
AAA 1,025++ 6.625%, 2/01/01 .......................................... N/A 1,083,630
------------
4,795,820
------------
ALASKA--1.5%
AAA 9,000 No. Slope Boro., Ser. B, Zero Coupon, 6/30/04, FSA ........ No Opt. Call 7,160,130
------------
ARIZONA--1.1%
Tucson Bus. Dev. Fin., Corp. Lease Rev., FGIC,
AAA 1,515++ 6.25%, 7/01/02 .......................................... N/A 1,624,959
AAA 3,495 6.25%, 7/01/06 .......................................... 7/02 at 102 3,725,285
------------
5,350,244
------------
CALIFORNIA--5.0%
AAA 6,000 California St., G.O., 6.30%, 9/01/06, AMBAC ............... No Opt. Call 6,650,220
AAA 1,910++ California St. Pub. Wrks. Rev., Ser. A,
6.20%, 12/01/02, AMBAC .................................. N/A 2,071,280
AAA 4,000 Glendale Hosp. Rev., Adventist Hlth. Ctr., Ser. A,
6.50%, 3/01/07, MBIA .................................... 3/01 at 102 4,211,920
Los Angeles Wst. Wtr. Sys. Rev., MBIA,
AAA 5,570 5.625%, 6/01/07 ......................................... 6/03 at 102 5,881,252
AAA 3,320++ Ser. D, 6.60%, 12/01/00 ................................. N/A 3,520,428
AAA 3,500 San Joaquin Hills Trans. Agcy., Toll Rd. Rev.,
Ser. A, Zero Coupon, 1/15/07, MBIA ...................... No Opt. Call 2,461,235
------------
24,796,335
------------
COLORADO--2.0%
Denver City & Cnty. Wtr. Brd. Rev., C.O.P., FGIC,
AAA 2,025++ 6.50%, 11/15/01 ......................................... N/A 2,151,461
AAA 1,385 6.50%, 11/15/05 ......................................... 11/01 at 101 1,462,200
AAA 1,110++ 6.60%, 11/15/01 ......................................... N/A 1,181,795
AAA 765 6.60%, 11/15/06 ......................................... 11/01 at 101 809,339
AAA 2,295++ 6.625%, 11/15/01 ........................................ N/A 2,444,703
AAA 1,570 6.625%, 11/15/07 ....................................... 11/01 at 101 1,654,639
------------
9,704,137
------------
CONNECTICUT--0.9%
AAA 4,000 Connecticut St. Arpt. Rev., 7.65%, 10/01/12, FGIC ......... 10/04 at 100 4,540,640
------------
DISTRICT OF COLUMBIA--1.8%
Dist. of Columbia, G.O., Ser. B, 6/01/06, MBIA,
AAA 1,060++ 5.90%, 6/01/04 .......................................... N/A 1,136,776
AAA 7,190 5.90%, 6/01/06 .......................................... 6/04 at 102 7,633,191
------------
8,769,967
------------
FLORIDA--12.1%
Florida St. Div. Bd. Fin. Dept. Gen. Svcs. Rev.,
(Dept. Nat. Res. & Pres.),
AAA 7,000++ 6.45%, 7/01/01, MBIA .................................... N/A 7,375,270
AAA 6,975++ 6.75%, 7/01/01, AMBAC ................................... N/A 7,452,788
AAA 2,190 Florida St. Sunshine Skyway Rev., 6.60%, 7/01/07, MBIA .... 7/01 at 101 2,300,310
Greater Orlando Aviation Auth., Arpt. Fac. Rev., Ser. B, FGIC,
AAA 4,760 6.55%, 10/01/06 ......................................... 10/02 at 102 5,117,904
AAA 5,070 6.55%, 10/01/07 ......................................... 10/02 at 102 5,436,916
AAA 3,155 Gulf Breeze Local Gov't., Ln. Pkg. Rev., 7.70%, 12/01/15, FGIC 12/99 at 102 3,208,982
AAA 2,650++ Jacksonville Hlth. Fac. Auth. Rev., Mem. Med. Ctr.,
Ser. A, 6.625%, 11/01/01, MBIA .......................... N/A 2,816,632
AAA 7,500 Jacksonville Hosp. Rev., Univ. Med. Ctr. Inc. Proj.,
6.50%, 2/01/07, CONNIE LEE .............................. 2/02 at 102 7,982,325
AAA 2,000++ No. Broward Hosp. Rev., 6.50%, 1/01/02, MBIA .............. N/A 2,140,140
</TABLE>

See Notes to Financial Statements.

5
<PAGE>

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA--12.1% (CONTINUED)
AAA $10,645 Orange Cnty., Tourist Dev. Tax Rev., Ser. A,
6.375%, 10/01/06, AMBAC ................................. 10/02 at 102 $ 11,373,331
AAA 2,570++ Tampa Auth. Rev., St. Joseph Hlth. Ctr.,
6.70%, 12/01/01, MBIA ................................... N/A 2,767,916
AAA 1,600 Tampa Util. Tax & Spec. Rev., 6.80%, 10/01/06, AMBAC ...... 10/01 at 102 1,708,048
------------
59,680,562
------------
GEORGIA--0.4%
AAA 1,990 Burke Cnty. Dev. Auth. P.C.R., Oglethorpe Pwr. Corp.,
Ser. B, 6.45%, 1/01/05, MBIA ............................ 1/04 at 101 2,137,698
------------
ILLINOIS--14.9%
AAA 4,930++ Alton Hlth. Fac. Rev., Christian Hlth. Ctr.,
7.00%, 2/15/01, FGIC .................................... N/A 5,240,836
Chicago Cent. Pub. Library, G.O. AMBAC,
AAA 1,800++ Ser. A, 6.75%, 4/01/02 .................................. N/A 1,943,604
AAA 1,600++ Ser. C, 6.75%, 4/01/02 .................................. N/A 1,727,648
AAA 5,555++ Cook Cnty., Ser. A, 6.40%, 11/15/02, MBIA ................. N/A 6,008,510
AAA 1,775++ Cook Cnty. Cmnty. Sch. Dist., G.O., Ser. A,
6.375%, 1/01/02, FGIC ................................... N/A 1,860,094
Illinois Hlth. Fac. Auth. Rev.,
AAA 3,300 Elmhurst Mem. Hosp., 6.60%, 1/01/07, FGIC ................. 1/02 at 102 3,499,485
AAA 14,585 Sisters Svcs., Inc., Ser. C, 6.625%, 6/01/06, MBIA ........ 6/02 at 102 15,609,159
Illinois Regl. Trans. Auth. Rev., Ser. A, FGIC,
AAA 2,780++ 6.55%, 11/01/01 ......................................... N/A 2,976,435
AAA 6,125++ 6.625%, 11/01/01 ........................................ N/A 6,567,837
AAA 8,725++ Illinois St., G.O., 6.40%, 12/15/01, AMBAC ................ N/A 9,334,005
Illinois St. Sales Tax Rev., Ser. O,
AAA 5,900 Zero Coupon, 6/15/07 .................................... No Opt. Call 4,025,098
AAA 5,635 Zero Coupon, 6/15/08 .................................... No Opt. Call 3,616,374
AAA 2,065++ 6.50%, 6/15/01 .......................................... N/A 2,193,897
AAA 3,935 6.50%, 6/15/06 .......................................... 6/02 at 101 4,163,152
AAA 2,000++ 6.60%, 6/15/01 .......................................... N/A 2,128,540
AAA 2,000 Will Cnty. Cmnty. Sch. Dist. Rev.,
7.05%, 12/01/08, AMBAC .................................. No Opt. Call 2,303,580
------------
73,198,254
------------
INDIANA--2.9%
AAA 9,000 Indiana Univ. Rev., Student Fee,
Zero Coupon, 8/01/06, AMBAC ............................. No Opt. Call 6,406,920
Aaa 2,270 Noblesville West Indpt. Sch. Bldg. Corp., G.O.,
7.00%, 7/01/07, MBIA .................................... 1/01 at 102 2,386,791
AAA 5,000 Warsaw High Sch. Bldg. Corp., G.O., 6.90%, 7/01/05, MBIA .. 7/00 at 102 5,208,150
------------
14,001,861
------------
KENTUCKY--3.1%
Danville Multi-City Lease Rev., Swr & Drain Sys., MBIA,
AAA 2,015++ 6.60%, 3/01/02 .......................................... N/A 2,167,455
AAA 2,160++ 6.65%, 3/01/02 .......................................... N/A 2,326,104
AAA 3,750++ Kentucky Dev. Fin. Auth. Rev., Sisters of Charity,
6.60%, 11/01/01, MBIA ................................... N/A 3,981,262
AAA 6,410 Kentucky St. Ppty. & Bldgs. Auth. Rev., Proj. 53,
6.625%, 10/01/07, MBIA .................................. 10/01 at 102 6,806,523
------------
15,281,344
------------
LOUISIANA--7.0%
Jefferson Sales Tax Dist. Rev., FGIC,
AAA 21,000 Ser. A, 6.75%, 12/01/06 ................................. 12/02 at 100 22,465,341
AAA 4,000++ Ser. B, 6.75%, 12/01/02 ................................. N/A 4,297,760
AAA 3,500++ Louisiana St., G.O., Ser. A, 6.50%, 5/01/02, AMBAC ........ N/A 3,762,290
AAA 5,250 New Orleans, G.O., Zero Coupon, 9/01/06, AMBAC ............ No Opt. Call 3,740,782
-----------
34,266,173
------------
MASSACHUSETTS--5.1%
AAA 3,670++ Mansfield, G.O., 6.65%, 1/15/02, AMBAC .................... N/A 3,942,901
Massachusetts Bay Trans. Auth. Rev. Gen., Tran. Sys.,
AAA 20,015++ Ser. A, 6.625%, 3/01/02, MBIA ........................... N/A 21,197,486
------------
25,140,387
------------
</TABLE>
See Notes to Financial Statements.

<PAGE>

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MICHIGAN--9.0%
Detroit Swr. Disp. Rev., FGIC,
AAA $1,655++ 6.60%, 7/01/01 .......................................... N/A $ 1,763,667
AAA 1,765++ 6.65%, 7/01/01 .......................................... N/A 1,882,567
AAA 1,880++ 6.70%, 7/01/01 .......................................... N/A 2,006,994
AAA 3,750 Grand Rapids Wtr. Sply. Rev., 6.625%, 1/01/08, FGIC ....... 1/01 at 102 3,920,213
Michigan Mun. Bond Auth.,
AAA 5,000 G.O., Ser. D, Zero Coupon, 5/15/06, MBIA ................ No Opt. Call 3,610,100
AAA 1,840 Local Gov't. Loan Prog., 6.35%, 11/01/06, AMBAC ......... 11/04 at 102 2,027,882
Michigan St. Bldg. Auth. Rev.,
AAA 11,590 Ser. I, 6.75%, 10/01/07, MBIA ........................... 10/01 at 102 12,327,240
AAA 3,850++ Ser. II, 6.75%, 10/01/01, AMBAC ......................... N/A 4,135,863
AAA 11,940 Michigan St. Hosp. Fin. Auth. Rev., Sparrow Oblig. Grp.,
6.60%, 11/15/07, MBIA ................................... 11/01 at 102 12,659,504
------------
44,334,030
------------
NEVADA--4.7%
AAA 6,210++ Clark Cnty. Flood Ctrl., G.O., 6.40%, 11/01/01, AMBAC ..... N/A 6,579,060
Clark Cnty. Sch. Dist., G.O., Ser. A, MBIA,
AAA 11,000 6.70%, 3/01/06 .......................................... 3/01 at 101 11,455,840
AAA 1,500 6.75%, 3/01/07 .......................................... 3/01 at 101 1,563,345
AAA 3,250++ Reno Hosp. Auth. Rev., St. Mary Regl. Med. Ctr.,
6.70%, 7/01/01, MBIA .................................... N/A 3,469,538
------------
23,067,783
------------
NEW HAMPSHIRE--0.5%
AAA 2,310 New Hampshire High. Ed. Auth. Rev., Elliot Hosp. of Manchester,
6.70%, 10/01/06, AMBAC .................................. 10/02 at 102 2,445,366
------------
NEW JERSEY--15.9%
AAA 10,500++ Elizabeth, G.O., 6.60%, 8/01/01, MBIA ..................... N/A 11,098,605
Howell Twp., G.O., FGIC,
AAA 7,715 6.70%, 1/01/06 .......................................... 1/02 at 102 8,227,353
AAA 2,925 6.75%, 1/01/07 .......................................... 1/02 at 102 3,126,240
New Jersey St. Hlth. Care Fac. Fin. Auth. Rev.,
Hackensack Med. Ctr., FGIC,
AAA 12,755++ 6.65%, 7/01/01 .......................................... N/A 13,604,611
AAA 3,735++ 6.70%, 7/01/01 .......................................... N/A 3,987,299
AAA 1,765 New Jersey St. Hwy. Auth. Rev., Garden St. Pkwy.,
6.15%, 1/01/07, AMBAC ................................... 1/02 at 102 1,852,844
AAA 30,000 New Jersey St. Tpk. Auth. Rev., Ser. C,
6.40%, 1/01/07, AMBAC ................................... 1/01 at 101.5 31,222,800
No. Jersey Dist. Wtr. Sply. Cmnty. Rev., MBIA,
AAA 2,525 Wanaque No. Proj., Ser. B, 6.50%, 11/15/06 .............. 11/01 at 102 2,672,157
AAA 1,065 Wanaque So. Proj., 6.50%, 7/01/06 ....................... No Opt. Call 1,149,721
AAA 1,250 Warren Cnty. Fin. Auth., P.C.R., 6.55%, 12/01/06, MBIA .... 12/02 at 102 1,326,150
------------
78,267,780
------------
NEW MEXICO--0.8%
AAA 3,535 Gallup, P.C.R., 6.50%, 8/15/07, MBIA ...................... 8/02 at 102 3,766,330
------------
NEW YORK--14.1%
AAA 13,000 New York City, G.O., Ser. A, 7.00%, 8/01/07, FSA .......... 8/06 at 101.5 14,836,900
AAA 10,000 New York City G.O., Ser. E, 6.125%, 8/01/06, MBIA ......... No Opt. Call 10,817,100
New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys.
Rev., Ser. A, FGIC,
AAA 11,100 6.15%, 6/15/07 .......................................... 6/02 at 101.5 11,716,716
AAA 1,090++ 6.75%, 6/15/01 .......................................... N/A 1,155,106
AAA 1,070 6.75%, 6/15/06 .......................................... 6/01 at 101 1,125,287
AAA 1,340++ 7.00%, 6/15/01 .......................................... N/A 1,426,229
AAA 1,320 7.00%, 6/15/07 .......................................... 6/01 at 101 1,391,755
AAA 4,500 New York St. Environ. Fac. Corp., P.C.R., Ser. D,
6.40%, 5/15/06 .......................................... 11/04 at 102 4,958,955
AAA 9,830 New York St. Hsg. Fin. Agcy. Rev., Hsg. Proj. Mtge.,
Ser. A, 5.50%, 11/01/06, FSA ............................ 5/06 at 102 10,262,815
AAA 5,250 New York St. Urb. Dev. Corp. Rev.,
5.625%, 1/01/07, AMBAC . ................................ 1/03 at 102 5,504,310
AAA 6,000 Triborough Brdg. & Tunl. Auth. Rev., Ser. B,
6.70%, 1/01/08, FGIC .................................... 1/01 at 102 6,292,020
------------
69,487,193
------------
</TABLE>
See Notes to Financial Statements.

7
<PAGE>

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NORTH CAROLINA--1.3%
AAA $6,000 North Carolina Eastern Mun. Pwr. Agcy. Sys. Rev., Ser. B,
6.00%, 1/01/06, CAPMAC .................................. No Opt. Call $ 6,413,820
------------
NORTH DAKOTA--0.4%
AAA 2,035 Grand Forks Hlth. Care Fac. Rev., United Hosp. Oblig. Grp.,
6.50%, 12/01/06, MBIA ................................... 12/01 at 102 2,145,969
------------
PENNSYLVANIA--10.3%
AAA 6,200++ Beaver Cnty. Hosp. Auth., 6.625%, 7/01/02, AMBAC .......... N/A 6,714,538
AAA 1,500++ Coatesville Sch. Dist., G.O., 6.60%, 3/01/01, AMBAC ....... N/A 1,561,320
AAA 10,000++ Harrisburg Auth. Lease Rev., 6.625%, 6/01/01, FSA ......... N/A 10,555,400
AAA 7,450++ Pennsylvania St., G.O., Ser. A, 6.50%, 11/01/01, FGIC ..... N/A 7,942,966
AAA 1,445++ Pennsylvania St. Higher Ed. Rev., 6.75%, 7/01/01, MBIA .... N/A 1,543,983
AAA 4,500 Pennsylvania St. Tpk. Auth. Rev., Ser. O,
5.80%, 12/01/07, FGIC ................................... 12/02 at 102 4,710,420
Philadelphia Mun. Auth., Justice Lease Rev.,
AAA 1,550 Ser. A, 7.00%, 11/15/04, MBIA ........................... 11/01 at 102 1,665,026
AAA 2,370++ Ser. B, 7.10%, 11/15/01, FGIC ........................... N/A 2,571,189
Pittsburgh & Allegheny Cntys. Rev., AMBAC,
AAA 1,015 Ser. A, 6.50%, 7/15/06 .................................. 7/01 at 100 1,054,250
AAA 900 Ser. B, 6.50%, 7/15/06 .................................. 7/01 at 100 934,803
AAA 3,000 Schuylkill Cnty. Redev. Auth. Common Lease Rev.,
Ser. A, 7.00%, 6/01/07, FGIC ............................ 6/02 at 101 3,180,060
AAA 7,800++ Westmoreland Cnty., G.O., 6.70%, 8/01/01, AMBAC ........... N/A 8,198,190
------------
50,632,145
------------
RHODE ISLAND--2.4%
AAA 11,220++ Conv. Ctr. Auth. Rev., Ser. A, 6.60%, 5/15/01, MBIA ....... N/A 11,920,128
............................................................................... ------------
SOUTH CAROLINA--2.0%
AAA 4,390 Piedmont Mun. Pwr. Agy. Elec. Rev., 6.85%, 1/01/07, FGIC .. 1/01 at 102 4,607,173
AAA 5,100 Rock Hill Util. Sys. Rev., 6.50%, 1/01/07, FGIC ........... 1/01 at 102 5,326,950
------------
9,934,123
------------
TENNESSEE--0.5%
AAA 2,350 Met. Nashville Arpt. Rev., Ser. C, 6.625%, 7/01/07, FGIC .. 7/01 at 102 2,477,676
------------
TEXAS--15.5%
AAA 2,000++ Austin Util. Sys. Rev., 6.875%, 5/15/01, AMBAC ............ N/A 2,136,420
AAA 8,500 Cypress-Fairbanks Indpt. Sch. Dist.,
G.O., Zero Coupon, 8/01/06, AMBAC ....................... No Opt. Call 6,025,990
AAA 5,800 El Paso Cnty. Tax Rev., Ser. B, 6.40%, 2/15/07, MBIA ...... 2/02 at 100 6,047,718
Ft. Bend Cnty., Perm. Imprvt., FGIC,
AAA 1,650++ G.O., 6.60%, 9/01/02 .................................... N/A 1,762,167
AAA 1,725++ Rev., 6.60%, 9/01/02 .................................... N/A 1,842,266
Harris Cnty. Toll Rd., Sr. Lien, Ser. A, FGIC,
AAA 13,555++ 6.50%, 8/15/02 .......................................... N/A 14,663,121
AAA 1,955 6.50%, 8/15/06 .......................................... 8/02 at 102 2,093,512
AAA 590 6.50%, 8/15/07 .......................................... 8/02 at 102 631,801
Houston Wtr. & Swr. Sys. Rev., Ser. B, FGIC,
AAA 1,775++ 6.75%, 12/01/01 ......................................... N/A 1,913,699
AAA 13,225 6.75%, 12/01/08 ......................................... 12/01 at 102 14,098,114
AAA 1,900 No. Central Texas Hlth. Fac. Dev. Corp. Rev.,
Childrens Med. Ctr. of Dallas,
6.375%, 10/01/06, MBIA .................................. 10/01 at 102 1,998,401
AAA 1,550++ No. Texas Wtr. Dist., 6.40%, 6/01/03, MBIA ................ N/A 1,659,973
AAA 3,000++ Round Rock Indpt. Sch. Dist., G.O., 6.75%, 8/15/01, MBIA .. N/A 3,158,850
AAA 15,000 Texas Mun. Pwr. Agy. Rev., Zero Coupon, 9/01/06, AMBAC .... No Opt. Call 10,658,100
AAA 3,745++ Texas St. Bldg. Fin. Auth. Rev., 7.00%, 2/01/01, MBIA ..... N/A 3,910,042
AAA 3,395 Tyler Cnty. Hlth. Fac. Dev. Corp. Rev.,
Mother Francis Hosp.,
6.50%, 7/01/06, FGIC .................................... 7/02 at 102 3,621,514
------------
76,221,688
------------
WASHINGTON--4.7%
Seattle, G.O., Ser. E, MBIA,
AAA 1,700 Zero Coupon, 12/15/07 ................................... No Opt. Call 1,124,805
AAA 1,345 Zero Coupon, 12/15/08 ................................... No Opt. Call 839,751
</TABLE>

See Notes to Financial Statements.

<PAGE>

Total Short-Term Investments (cost $10,000,000) ........... 10,000,000
------------
TOTAL INVESTMENTS--143.6% (cost $661,698,646; Note 3) ..... 706,280,589
Other assets in excess of liabilities--2.1% ............... 10,716,056
Liquidation value of preferred stock--(45.7)% ............. (225,000,000)
------------

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........ $491,996,645
============
</TABLE>

* Rating: Using the higher of Standard & Poor's, Moody's or Fitch's rating.
** For purposes of amortized cost valuation, the maturity date of these
instruments
is considered to be the earlier of the next date on which the security
can be redeemed at par, or the next date on which the rate of interest is
adjusted.
+ Option call provisions: Date (month/year) and prices of the earliest
optional call or redemption. There may be other call provisions at
varying prices at later dates.
++ This bond is prerefunded. See Glossary for definition.

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
The following abbreviations are used in portfolio descriptions:
<S> <C> <C> <C>
AMBAC -- American Municipal Bond Assurance Corporation FSA -- Financial Security Assurance
CAPMAC -- Capital Markets Assurance Corporation FRDD -- Floating Rate Daily Demand**
C.O.P. -- Certificate of Participation G.O. -- General Obligation Bond
CONNIE LEE -- College Construction Loan Insurance Association MBIA -- Municipal Bond Insurance Association
FGIC -- Financial Guaranty Insurance Company P.C.R. -- Pollution Control Revenue
- ------------------------------------------------------------------------------------------------------------------
</TABLE>

See Notes to Financial Statements.

9
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------

ASSETS
Investments, at value (cost $661,698,646) (Note 1) ....... $706,280,589
Cash ..................................................... 90,558
Interest receivable ...................................... 11,359,061
------------
......................................................... 717,730,208
------------
Liabilities
Investment advisory fee payable (Note 2) ................. 207,669
Dividends payable-preferred stock ........................ 204,926
Administration fee payable (Note 2) ...................... 41,534
Other accrued expenses ................................... 279,434
------------
......................................................... 733,563
------------
NET INVESTMENT ASSETS .................................... $716,996,645
============
Net investment assets were comprised of:
Common stock:
Par value (Note 4) ................................... $ 454,106
Paid-in capital in excess of par ..................... 421,119,385
Preferred stock (Note 4) ............................... 225,000,000
------------
646,573,491

Undistributed net investment income .................... 25,860,725
Accumulated net realized loss .......................... (19,514)
Net unrealized appreciation ............................ 44,581,943
------------
Net investment assets, June 30, 1999 ..................... $716,996,645
============
Net assets applicable to common
shareholders ......................................... $491,996,645
============
Net asset value per common share:
($491,996,645 / 45,410,639 shares of
common stock issued and outstanding) ................... $10.83
======

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME

Income
Interest and discount earned ........................... $ 21,406,977
------------
Operating expenses
Investment advisory .................................... 1,290,121
Auction agent .......................................... 279,000
Administration ......................................... 258,024
Custodian .............................................. 75,000
Directors .............................................. 42,000
Audit .................................................. 30,000
Transfer agent ......................................... 17,000
Reports to shareholders ................................ 10,000
Legal .................................................. 5,000
Miscellaneous .......................................... 135,492
------------
Total expenses ....................................... 2,141,637
------------
Net investment income .................................... 19,265,340
------------

REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (Note 3)
Net realized gain on investments ....................... 2,678
Net change in unrealized appreciation
on investments ........................................ (18,654,326)
------------
Net loss on investments ................................ (18,651,648)
------------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS ....................... $ 613,692
============
See Notes to Financial Statements.

<PAGE>

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
Six Months Ended Year Ended
June 30, December 31,
1999 1998
--------------- ------------
<S> <C> <C>
Increase (Decrease) in Net Investment Assets

Operations:
Net investment income ...................................... $19,265,340 $38,755,547
Net realized gain (loss) on investments .................... 2,678 (22,192)
Net change in unrealized appreciation
(depreciation) on investments ............................. (18,654,326) (3,961,990)
------------ ------------
Net increase in net investment assets
resulting from operations ............................... 613,692 34,771,365
------------ ------------
To preferred shareholders from net investment income ....... (3,504,271) (7,606,013)
To common shareholders from net investment income .......... (13,963,579) (27,927,201)
------------ ------------
Total dividends .......................................... (17,467,850) (35,533,214)
------------ ------------

Total decrease ......................................... (16,854,158) (761,849)
------------ ------------

NET INVESTMENT ASSETS

Beginning of period .......................................... 733,850,803 734,612,652
------------ ------------
End of period ................................................ $716,996,645 $733,850,803
============ ============
</TABLE>

See Notes to Financial Statements.

<PAGE>

<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
FINANCIAL HIGHLIGHTS (Unaudited)
- ---------------------------------------------------------------------------------------------------------------------------------

Six Months Ended Year Ended December 31,
June 30, ------------------------------------------------------------
PER COMMON SHARE OPERATING PERFORMANCE: 1999 1998 1997 1996 1995 1994
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ............. $ 11.21 $ 11.22 $ 10.96 $ 11.14 $ 9.98 $ 11.30
--------- --------- --------- --------- --------- ---------
Net investment income .......................... 0.42 0.85 0.85 0.84 0.87 0.83
Net realized and unrealized gain
(loss) on investments ......................... (0.41) (0.08) 0.20 (0.24) 1.14 (1.39)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) from
investment operations .......................... 0.01 0.77 1.05 0.60 2.01 (0.56)
--------- --------- --------- --------- --------- ---------
Dividends from net investment income to:
Preferred shareholders ......................... (0.08) (0.17) (0.18) (0.17) (0.19) (0.14)
Common shareholders ............................ (0.31) (0.61) (0.61) (0.61) (0.62) (0.62)
Distributions from capital gains to:
Preferred shareholders ......................... -- -- * * (0.01) --
Common shareholders ............................ -- -- * * (0.03) --
--------- --------- --------- --------- --------- ---------
Total dividends and distributions ................ (0.39) (0.78) (0.79) (0.78) (0.85) (0.76)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period** ................. $ 10.83 $ 11.21 $ 11.22 $ 10.96 $ 11.14$ 9.98
========= ========= ========= ========= ========= =========
Market value, end of period** .................... $ 10.50 $ 11.38 $ 11.00 $ 10.25 $ 10.13$ 8.88
========= ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN+ ......................... (5.04%) 9.35% 13.69% 7.43% 21.67% (8.89%)
========= ========= ========= ========= ========= =========
RATIOS TO AVERAGE NET ASSETS OF
COMMONSHAREHOLDERS:++
Expenses ......................................... 0.86%+++ 0.80% 0.88% 0.91% 0.90% 0.94%
Net investment income before
preferred stock dividends ...................... 7.70%+++ 7.63% 7.70% 7.75% 8.06% 7.91%
Preferred stock dividends ........................ 1.40%+++ 1.50% 1.61% 1.59% 1.83% 1.38%
Net investment income available
to common stockholders ......................... 6.30%+++ 6.13% 6.09% 6.16% 6.23% 6.53%

SUPPLEMENTAL DATA:
Average net assets of common
shareholders (in thousands) .................... $504,710 $508,037 $500,227 $494,667 $487,923 $475,529
Portfolio turnover rate .......................... 1% 0% 8% 5% 9% 21%
Net assets of common shareholders,
end of period (in thousands) ................... $491,997 $508,851 $509,613 $497,686 $506,060 $453,407
Asset coverage per share of preferred stock,
end of period# ................................. $ 79,689 $ 81,550 $ 81,640 $ 80,298 $ 81,243 $150,783
Preferred stock outstanding (in thousands) ....... $225,000 $225,000 $225,000 $225,000 $225,000 $225,000
</TABLE>

* Actual amount paid for the year ended December 31, 1997 to preferred
shareholders was $0.0008 and to common shareholders was $0.0031 and for the
year ended December 31, 1996 to preferred shareholders was $.0007 and to
common shareholders was $.0024.
** Net asset value and market value are published in Barron's on Saturday, The
New York Times and The Wall Street Journal on Monday.
# A stock split occurred on July 24, 1995 (Note 4).
+ Total investment return is calculated assuming a purchase of common stock
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends are
assumed, for purposes of this calculation to be reinvested at prices
obtained under the Trust's dividend reinvestment plan. This calculation
does not reflect brokerage commissions. Total investment returns for
periods of less than one year are not annualized.
++ Ratios calculated on the basis of income and expenses applicable to both
the common and preferred shares, and preferred stock dividends, relative to
the average net assets of common shareholders.
+++ Annualized.

The information above represents the unaudited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data, for each of the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's common stock.

See Notes to Financial Statements.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL
TARGET TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------

NOTE 1. ORGANIZATION & ACCOUNTING POLICIES

The BlackRock Municipal Target Term Trust Inc. (the "Trust"), was organized
in Maryland on July 16, 1991 as a diversified, closed-end management investment
company. The Trust's investment objective is to manage a diversified portfolio
of high quality securities that will return $10 per share to investors on or
about December 31, 2006 while providing current income exempt from regular
federal income tax. The ability of issuers of debt securities held by the Trust
to meet their obligations may be affected by economic developments in a specific
state, industry or region. No assurance can be given that the Trust's investment
objective will be achieved.

The following is a summary of significant accounting policies followed by the
Trust.

SECURITIES VALUATION: Municipal securities (including commitments to purchase
such securities on a "when-issued" basis) are valued on the basis of prices
provided by a pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in
comparable securities and various relationships between securities in
determining values. Any securities or other assets for which such current market
quotations are not readily available are valued at fair value as determined in
good faith under procedures established by and under the general supervision and
responsibility of the Trust's Board of Directors.

Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost, if their term to maturity from date of purchase is 60
days or less, or by amortizing their value on the 61st day prior to maturity, if
their original term to maturity from date of purchase exceeded 60 days.

SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust amortizes premium and accretes original issue
discount on securities purchased using the interest method.

FEDERAL INCOME TAXES: It is the Trust's intention to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute sufficient net income to shareholders. For this
reason and because substantially all of the Trust's gross income consists of
tax-exempt interest, no federal income tax provision is required. Dividends and
Distributions: The Trust declares and pays dividends and distributions to common
shareholders monthly from net investment income, net realized short-term capital
gains and other sources, if necessary. Net long-term capital gains, if any, in
excess of loss carryforwards may be distributed annually. Dividends and
distributions are recorded on the ex-dividend date. Dividends and distributions
to preferred shareholders are accrued and determined as described in Note 4.

ESTIMATES: The preparation of financial statements inconformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

NOTE 2. AGREEMENTS
The Trust has an Investment Advisory Agreement withBlackRock Financial
Management, Inc. (the "Adviser") a wholly-owned corporate subsidiary of
BlackRock Advisors,Inc., which is an indirect majority-owned subsidiary of PNC
Bank, N.A., and an Administration Agreement with Prudential Investments Fund
Management LLC ("PIFM"), an indirect, wholly owned subsidiary of The Prudential
Insurance Company of America. The investment advisory fee paid to the Adviser is
computed weekly and payable monthly at an annual rate of 0.35% of the Trust's
average weekly net investment assets. The administration fee paid to PIFM is
also computed weekly and payable monthly at an annual rate of 0.07% of the
Trust's average weekly net investment assets.

Pursuant to the agreements, the Adviser provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Adviser. PIFM pays occupancy and certain clerical
and accounting costs of the Trust. The Trust bears all other costs and expenses.

NOTE 3. PORTFOLIO SECURITIES
Purchases and sales of investment securities, other than short-term
investments for the six months ended June 30, 1999 aggregated $5,889,800 and
$11,716,140 respectively.

<PAGE>

The federal income tax basis of the Trust's investments at June 30, 1999 was
substantially the same as the basis for financial reporting purposes and,
accordingly, gross and net unrealized appreciation for federal income tax
purposes was $44,581,943.

For federal income tax purposes, the Trust had a capital loss carry forward
at December 31, 1998 of approximately $22,200 which will expire in 2006.
Accordingly, no capital gains distribution is expected to be paid to
shareholders until net gains have been realized in excess of such amounts.

NOTE 4. CAPITAL
There are 200 million shares of $.01 par value common stock authorized. Of
the 45,410,639 common shares outstanding at June 30, 1999, the Adviser owned
10,639 shares. As of June 30, 1999, there were 9,000 preferred shares
outstanding as follows: Series W7-3,000, Series F7-3,000 and Series W28-3,000.

The Trust may classify or reclassify any unissued shares of common stock into
one or more series of preferred stock. On November 21, 1991 the Trust
reclassified 4,500 shares of common stock and issued 3 series of Auction Market
Preferred Stock ("Preferred Stock") as follows: Series W7--1,500 shares, Series
F7--1,500 shares and Series W28--1,500 shares. The Preferred Stock had a
liquidation value of $50,000 per share plus any accumulated but unpaid
dividends. On May 16, 1995 shareholders approved a proposal to split each share
of preferred stock into two shares and simultaneously reduce each share's
liquidation preference from $50,000 to $25,000 plus any accumulated but unpaid
dividends. The stock split occurred on July 24, 1995.

Dividends on Series W7 and Series F7 are cumulative at a rate which is reset
every 7 days based on the results of an auction. Dividends on Series W28 are
also cumulative at a rate which is reset every 28 days based on the results of
an auction. Dividend rates ranged from 2.37% to 4.24% during the six months
ended June 30, 1999.

The Trust may not declare dividends or make other distributions on shares of
common stock or purchase any such shares if, at the time of the declaration,
distribution, or purchase, asset coverage with respect to the outstanding
Preferred Stock would be less than 200%.

The Preferred Stock is redeemable at the option of the Trust, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated or
unpaid dividends whether or not declared. The Preferred Stock is also subject to
mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared if certain requirements relating to the
composition of the assets and liabilities of the Trust as set forth in the
Articles of Incorporation are not satisfied.

The holders of Preferred Stock have voting rights equal to the holders of
common stock (one vote per share) and will vote together with holders of shares
of common stock as a single class. However, holders of Preferred Stock are also
entitled to elect two of the Trust's directors. In addition, the Investment
Company Act of 1940 requires that along with approval by shareholders that might
otherwise be required, the approval of the holders of a majority of any
outstanding preferred shares, voting separately as a class would be required to
(a) adopt any plan of reorganization that would adversely affect the Preferred
shares and (b) take any action requiring a vote of security holders, including,
among other things, changes in the Trust's subclassification as a closed-end
investment company or changes in its fundamental investment restrictions.

NOTE 5. DIVIDENDS
Subsequent to June 30, 1999, the Board of Directors of the Trust declared
dividends from undistributed earnings of $0.05125 per common share payable July
30, 1999 to shareholders of record on July 15, 1999.

For the period July 1, 1999 to July 31, 1999 dividends and distributions
declared on preferred shares totalled $594,689 in aggregate for the three
outstanding preferred share series.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
DIVIDEND REINVESTMENT PLAN
- --------------------------------------------------------------------------------
Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"), shareholders
may elect to have all distributions of dividends and capital gains reinvested by
State Street Bank and Trust Company (the "Plan Agent") in Trust shares pursuant
to the Plan. Shareholders who do not participate in the Plan will receive all
distributions in cash paid by check in United States dollars mailed directly to
the shareholders of record (or if the shares are held in street or other nominee
name, then to the nominee) by the transfer agent, as dividend disbursing agent.

The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the New York
Stock Exchange for the participants' accounts. The Trust will not issue any new
shares under the Plan.

Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment will be made for any fraction of a Trust share.

The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal income tax that may be payable on
such dividends or distributions.

The Trust reserves the right to amend or terminate the Plan as applied to any
dividend or distribution paid subsequent to written notice of the change sent to
all shareholders of the Trust at least 90 days before the record date for the
dividend or distribution. The Plan also may be amended or terminated by the Plan
Agent upon at least 90 days' written notice to all shareholders of the Trust.
All correspondence concerning the Plan should be directed to the Plan Agent at
(800) 699-1BFM. The addresses are on the front of this report.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

YEAR 2000 READINESS DISCLOSURE. The Trust is currently in the process of
evaluating its information technology infrastructure for Year 2000 compliance.
Substantially all of the Trust's information systems are supplied by the
Adviser. The Adviser has advised the Trust that it is currently evaluating
whether such systems are year 2000 compliant and that it expects to incur costs
of up to approximately five hundred thousand dollars to complete such evaluation
and to make any modifications to its systems as may be necessary to achieve Year
2000 compliance. The Adviser has advised the Trust that it has fully tested its
systems for Year 2000 compliance. The Trust may be required to bear a portion of
such cost incurred by the Adviser in this regard. The Adviser has advised the
Trust that it does not anticipate any material disruption in the operations of
the Trust as a result of any failure by the Adviser to achieve Year 2000
compliance. There can be no assurance that the costs will not exceed the amount
referred to above or that the Trust will not experience a disruption in
operations.

The Adviser has advised the Trust that it is in the process of evaluating the
Year 2000 compliance of various suppliers of the Adviser and the Trust. The
Adviser has advised the Trust that it has communicated with such suppliers to
determine their Year 2000 compliance status and the extent to which the Adviser
or the Trust could be affected by any supplier's Year 2000 compliance issues. To
date, the Adviser has received responses from all such suppliers with respect to
their Year 2000 compliance, and there can be no assurance that the systems of
such suppliers, who are beyond the Trust's control, will be Year 2000 compliant.
In the event that any of the Trust's significant suppliers do not successfully
and timely achieve Year 2000 compliance, the Trust's business or operations
could be adversely affected. The Adviser has advised the Trust that it is in the
process of preparing a contingency plan for Year 2000 compliance by its
suppliers. There can be no assurance that such contingency plan will be
successful in preventing a disruption of the Trust's operations.

The Trust is designating this disclosure as its Year 2000 readiness
disclosure for all purposes under the Year 2000 Information and Readiness
Disclosure Act and the foregoing information shall constitute a Year 2000
statement for purposes of that Act.

ANNUAL MEETING OF TRUST SHAREHOLDERS. There have been no material changes in
the Trust's investment objectives or policies that have not been approved by the
shareholders or to its charter or by-laws or in the principal risk factors
associated with investment in the Trust. There have been no changes in the
persons who are primarily responsible for the day-to-day management of the
Trust's Portfolio.

The Annual Meeting of Trust Shareholders was held May 19, 1999 to vote on
the following matters:
(1) To elect three Directors as follows:

Director Class Term Expiring
-------- ----- ---- --------
Richard E. Cavanagh .......... I 3 years 2002
James Grosfeld ............... I 3 years 2002
James Clayburn La Force, Jr. . I 3 years 2002

Directors whose term of office continues beyond this meeting are Andrew F.
Brimmer, Kent Dixon, Frank J. Fabozzi, Laurence D. Fink, Walter F. Mondale
and Ralph L. Schlosstein.

(2) To ratify the selection of Deloitte & Touche LLP as independent public
accountants of the Trust for the fiscal year ending December 31, 1999.

Shareholders elected the three Directors and ratified the selection of
Deloitte & Touche LLP. The results of the voting was as follows:

<TABLE>
<CAPTION>
Votes for* Votes Against* Abstentions*
--------- ------------- -----------
<S> <C> <C> <C>
Richard E. Cavanagh 4,663 -- 3
James Grosfeld 40,746,46 -- 549,319
James Clayburn La Force, Jr. 40,686,252 -- 609,529
Ratification of
Deloitte & Touche LLP 40,720,987 165,375 409,419
</TABLE>
- ----------------
* The votes represent common and preferred shareholders voting as a single
class except for the election of Richard E. Cavanagh who was elected by
preferred shareholders.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------

THE TRUST'S INVESTMENT OBJECTIVE
The BlackRock Municipal Target Term Trust Inc.'s investment objective is to
provide current income exempt from regular federal income tax and to return $10
per share (the initial public offering price per share) to investors on or about
December 31, 2006.

WHO MANAGES THE TRUST?
BlackRock Financial Management, Inc. ("BlackRock") is an SEC-registered
investment adviser. BlackRock and its affiliates currently manage over $140
billion on behalf of taxable and tax-exempt clients worldwide. Strategies
include fixed income, equity and cash and may incorporate both domestic and
international securities. Domestic fixed income strategies utilize the
government, mortgage, corporate and municipal bond sectors.BlackRock manages
twenty-one closed-end funds that are traded on either the New York or American
stock exchanges, and a $25 billion family of open-end funds. BlackRock manages
over 470 accounts, domiciled in the United States and overseas.

WHAT CAN THE TRUST INVEST IN?
The Trust intends to invest substantially all of its assets in a diversified
portfolio of tax-exempt Municipal Obligations which are rated Aaa by Moody's or
AAA by S&P or are covered by insurance or a guaranty of the timely payment of
both principal and interest from an entity having a Aaa or AAA rating or are
determined by the Trust's adviser to be of comparable credit quality.

WHAT IS THE ADVISER'S INVESTMENT STRATEGY?
The primary investment strategy for the Trust is to seek to closely match the
maturity of the assets of the portfolio with the future return of the initial
investment on or about December 31, 2006. Accordingly, the majority of the
Trust's assets are invested in securities which have maturities that are similar
to the maturity date of the Trust. Most municipal securities, however, have
optional redemption provisions (or "calls") which allow the issuer to redeem the
bonds on specified dates prior to their maturity. While call features are more
predictable than prepayments on mortgage-backed securities, they require
additional active, management considerations for the Trust. If a portion of the
Trust is invested in callable bonds, the yield to call date is analyzed instead
of the yield to the maturity of the bond, and should the security be called,
BlackRock will generally seek to reinvest the proceeds in additional assets with
maturities which are not significantly longer than the remaining term of the
Trust.

In addition, in order to seek to earn back the underwriting discount and upfront
expenses and have the ability to return the full initial investment at the end
of the term, the Trust generally seeks to retain a small portion of the income
earned on its portfolio each year. In addition to seeking the return of the
initial offering price, the Adviser also seeks to provide current income exempt
from federal income tax to investors. The portfolio managers will attempt to
achieve this objective by investing in securities that provide competitive
tax-exempt income. In addition, leverage will be used (in an amount up to 35% of
the total assets) to enhance the income of the portfolio. In order to maintain
competitive yields as the Trust approaches maturity and depending on market
conditions, the Adviser will attempt to purchase securities with call protection
or maturities as close to the Trust's maturity date as possible. Securities with
call protection should provide the portfolio with some degree of protection
against reinvestment risk during times of lower prevailing interest rates. Since
the Trust's primary goal is to return the initial offering price at maturity,
any cash that the Trust receives prior to its maturity date will be reinvested
in securities with maturities which coincide with the remaining term of the
Trust. It is important to note that the Trust will be managed so as to preserve
the integrity of the return of the initial offering price. If market conditions,
such as high interest rate volatility, force a choice between current income and
risking the return of the initial offering price, it is likely that the return
of the initial offering price will be emphasized.

<PAGE>

HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD?
DOES THE TRUST PAY DIVIDENDS REGULARLY?
The Trust's shares are traded on the New York Stock Exchange which provides
investors with liquidity on a daily basis. Orders to buy or sell shares of the
Trust must be placed through a registered broker or financial advisor. The Trust
pays monthly dividends which are typically paid on the last business day of the
month. For shares held in the shareholder's name, dividends may be reinvested in
additional shares of the Trust through the Trust's transfer agent, State Street
Bank and Trust Company. Investors who wish to hold shares in a brokerage account
should check with their financial advisor to determine whether their brokerage
firm offers dividend reinvestment services.

LEVERAGE CONSIDERATIONS IN A TERM TRUST
Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the issuance of preferred
stock. Leverage permits the Trust to borrow money at short-term rates and
reinvest that money in longer-term assets which typically offer higher interest
rates. The difference between the cost of the borrowed funds and the income
earned on the proceeds that are invested in longer term assets is the benefit to
the Trust from leverage. In general, the portfolio is typically leveraged at
approximately 35% of total assets. Leverage also increases the duration (or
price volatility of the net assets) of the Trust, which can improve the
performance of the Trust in a declining rate environment, but can cause net
assets to decline faster than the market in a rapidly rising rate environment.
BlackRock's portfolio managers continuously monitor and regularly review the
Trust's use of leverage and the Trust may reduce, or unwind, the amount of
leverage employed should BlackRock consider that reduction to be in the best
interests of the shareholders.

SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO TERM TRUSTS
The Trust is intended to be a long-term investment and is not a short-term
trading vehicle.

RETURN OF INITIAL INVESTMENT. Although the objective of the Trust is to return
its initial offering price upon termination, there can be no assurance that this
objective will be achieved.

DIVIDEND CONSIDERATIONS. The income and dividends paid by the Trust are likely
to decline to some extent over the term of the Trust due to the anticipated
shortening of the dollar-weighted average maturity of the Trust's assets.

LEVERAGE. The Trust utilizes leverage through the issuance of preferred stock
which involves special risks. The Trust's net asset value and market value may
be more volatile due to its use of leverage.

MARKET PRICE OF SHARES. The shares of closed-end investment companies such as
the Trust trade on the New York Stock Exchange (NYSE symbol: BMN) and as such
are subject to supply and demand influences. As a result, shares may trade at a
discount or a premium to their net asset value.

ILLIQUID SECURITIES. The Trust may invest in securities that are illiquid,
although under current market conditions the Trust expects to do so to only a
limited extent. These securities involve special risks.

ANTITAKEOVER PROVISIONS. Certain antitakeover provisions will make a change in
the Trust's business or management more difficult without the approval of the
Trust's Board of Directors and may have the effect of depriving shareholders of
an opportunity to sell their shares at a premium above the prevailing market
price.

MUNICIPAL OBLIGATIONS. Municipal obligations include debt obligations issued by
states, cities, and local authorities, and possessions and certain territories
of the United States to obtain funds for various public purposes, including the
construction of public facilities, the refinancing of outstanding obligations
and the obtaining of funds for general operating expenses and for loans to other
public institutions and facilities. The value of municipal debt securities
generally varies inversely with changes in prevailing market interest rates.
Depending on the amount of call protection that the securities in the Trust
have, the Trust may be subject to certain reinvestment risks in environments of
declining interest rates.

ALTERNATIVE MINIMUM TAX (AMT). The Trust may invest in securities subject to
alternative minimum tax.

<PAGE>

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THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
GLOSSARY
- --------------------------------------------------------------------------------

CLOSED-END FUND:
Investment vehicle which initially offers a fixed number of shares and trades on
a stock exchange. The fund invests in a portfolio of securities in accordance
with its stated investment objectives and policies.

DISCOUNT:
When a fund's net asset value is greater than its stock price the fund is said
to be trading at a discount.

DIVIDEND:
Income generated by securities in a portfolio and distributed to shareholders
after the deduction of expenses. This Trust declares and pays dividends to
common shareholders on a monthly basis.

DIVIDEND REINVESTMENT:
Shareholders may have all dividends and distributions of capital gains
automatically reinvested into additional shares of the Trust.

MARKET PRICE:
Price per share of a security trading in the secondary market. For a closed-end
fund, this is the price at which one share of the fund trades on the stock
exchange. If you were to buy or sell shares, you would pay or receive the market
price.

NET ASSET VALUE (NAV):
Net asset value is the total market value of all securities and other assets
held by the Trust, plus income accrued on its investments, minus any liabilities
including accrued expenses, divided by the total number of outstanding shares.
It is the underlying value of a single share on a given day. Net asset value for
the Trust is calculated weekly and published in Barron's on Saturday and The New
York Times and The Wall Street Journal each Monday. Premium: When a fund's stock
price is greater than its net asset value, the fund is said to be trading at a
premium. Pre-refunded Bonds: These securities are collateralized by U.S.
Government securities which are held in escrow and are used to pay principal and
interest on the tax exempt issue and retire the bond in full at the date
indicated, typically at a premium to par.

<PAGE>

THE BLACKROCK
MUNICIPAL TARGET
TERM TRUST INC.
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
JUNE 30, 1999

DIRECTORS
Laurence D. Fink, Chairman
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein

OFFICERS
Ralph L. Schlosstein, President
Keith T. Anderson, Vice President
Michael C. Huebsch, Vice President
Robert S. Kapito, Vice President
Kevin Klingert, Vice President
Richard M. Shea, Vice President/Tax
Henry Gabbay, Treasurer
James Kong, Assistant Treasurer
Karen H. Sabath, Secretary

INVESTMENT ADVISER
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM

ADMINISTRATOR
Prudential Investments Fund Management LLC
Gateway Center 3
100 Mulberry Street
Newark, NJ07102-4077

CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171 (800) 699-1BFM

AUCTION AGENT
Deutsche Bank
4 Albany Street
New York, NY 10006

INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434

LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
919 Third Avenue
New York, NY 10022

The accompanying financial statements as of June 30, 1999 were not audited
and accordingly, no opinion is expressed on them.

This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of any securities.

The BlackRock Municipal Target Term Trust Inc.
c/o Prudential Investments Fund Management LLC
Gateway Center 3
100 Mulberry Street
Newark, NJ07102-4077
092476-10-5
092476-20-4
092476-30-3
092476-40-2
Printed on recycled paper