Company: MYI
Filing Date: 2025-10-03
Form Type: N-CSR
Source: 0001193125-25-230138
Chunk: 10

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-10-03
Form: N-CSR
Chunk 10
---
 NAV(a)(b)                            |                      (4.09)% |   0.16% |    2.58% |
| Fund at Market Price(a)(b)                   |                        -4.52 |   -0.84 |     2.37 |
| High Yield Customized Reference Benchmark(c) |                        -0.64 |    1.62 |      N/A |
| Bloomberg Municipal High Yield Bond Index    |                        -0.86 |    2.28 |     4.35 |

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
Past performance is not an indication of future results. The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance. More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com . The following discussion relates to the Fund’s absolute performance based on NAV: The municipal bond market produced slightly negative total returns during the reporting period, with the benefit of income offset by weak price action. The market experienced a record-setting pace of new issuance in tax-exempt supply. The surge in supply, which outweighed the benefits of strong demand and stable credit fundamentals, was a key factor weighing on price performance. The yield curve steepened (indicating outperformance for short-term bonds) due to the combination of persistent inflation concerns and interest rate cuts by the U.S. Federal Reserve. On a sector basis, the other industries and corporate-backed sectors registered positive absolute returns. The other industries category incorporates smaller sectors such as hotels, tribal gaming, and development districts. Performance in the corporate-backed sector was positively impacted by the strategic timing of asset sales, which occurred before some of the gains began to reverse near the end of the period. Conversely, transportation, housing, and education were the largest detractors. Bonds with maturities of 20 years and below delivered positive returns. In contrast, longer-term issues underperformed. Some zero-coupon bonds that were added during the period helped performance. Bonds with coupons of 5.25% and above also contributed, while those with coupons below 5% lagged due to their higher interest rate sensitivity. The Fund’s use of leverage enhanced income by helping it capitalize on the higher yields