UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-04706

Templeton Income Trust

(Exact name of registrant as specified in charter)

300 S.E. 2^nd Street, Fort Lauderdale, FL 33301-1923

(Address of principal executive offices)(Zip code)

Alison Baur, One Franklin Parkway, San Mateo, CA  94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code:(954) 527-7500

Date of fiscal year end: 12/31

Date of reporting period: 12/31/22

Item 1. Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.

Not Applicable

.

Annual

Report

and

Shareholder

Letter

Templeton

Income

Trust

December

31,

2022

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Annual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

The

12

months

ended

December

31,

2022,

were

characterized

by

multiple

challenges

to

the

global

economy

in

the

form

of

the

lingering

economic

impacts

of

COVID-19,

Russia’s

war

on

Ukraine

and

its

impact

on

the

movement

and

prices

of

goods

as

well

as

the

refugee

flows

into

Europe,

continued

supply-chain

disruptions,

high

commodity

prices,

weakening

global

growth,

and

rising

inflation.

Financial

conditions

tightened

over

the

year

as

central

banks

focused

on

fighting

inflation

even

at

the

expense

of

growth,

with

a

significant

number

of

central

banks

implementing

monetary

tightening.

Some

of

the

negative

factors

started

to

ease

in

the

final

months

of

the

year,

including

supply

chains

starting

to

normalize,

commodity

prices

coming

off

their

highs

and

inflation

trends

showing

signs

of

peaking.

However,

concerns

about

growth

remained

prominent.

Against

this

background,

sovereign

bond

yields

rose

in

most

countries

during

2022,

while

the

U.S.

dollar

(USD)

broadly

strengthened.

Despite

the

challenging

macroeconomic

environment,

divergences

among

countries

offer

opportunities

for

outperformance

in

duration,

local-currency

sovereign

bonds

and

currencies.

Through

these

varying

conditions,

we

remained

committed

to

pursuing

our

investment

objectives.

In

this

environment,

global

government

bonds,

as

measured

by

the

FTSE

World

Government

Bond

Index,

posted

total

returns

of

-18.26%

and

-13.76%

in

USD

and

local

currency

terms,

respectively.

1

Historically,

patient

investors

have

achieved

rewarding

results

by

evaluating

their

goals,

diversifying

their

assets

globally

and

maintaining

a

disciplined

investment

program,

all

hallmarks

of

the

Templeton

investment

philosophy.

We

continue

to

recommend

investors

consult

their

financial

professionals

and

review

their

portfolios

to

design

a

long-term

strategy

and

portfolio

allocation

that

meet

their

individual

needs,

goals

and

risk

tolerance.

Templeton

Income

Trust’s

annual

report

includes

more

detail

about

prevailing

conditions

and

a

discussion

about

investment

decisions

during

the

period.

Please

remember

all

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin

Templeton,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

investment

needs

in

the

years

ahead.

Sincerely,

Michael

Hasenstab,

Ph.D.

Executive

Vice

President,

Chief

Investment

Officer

of

Templeton

Global

Macro

This

letter

reflects

our

analysis

and

opinions

as

of

December

31,

2022,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Annual

Report

2

Contents

Annual

Report

Economic

and

Market

Overview

3

Templeton

Global

Bond

Fund

4

Templeton

Global

Total

Return

Fund

10

Templeton

International

Bond

Fund

16

Templeton

Sustainable

Emerging

Markets

Bond

Fund

22

Financial

Highlights

and

Schedules

of

Investments

29

Financial

Statements

69

Notes

to

Financial

Statements

75

Report

of

Independent

Registered

Public

Accounting

Firm

102

Tax

Information

103

Board

Members

and

Officers

104

Shareholder

Information

109

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Economic

and

Market

Overview

Over

the

12-month

period

ending

December

31,

2022,

as

prospects

were

improving

for

the

global

economy,

which

was

emerging

from

the

worst

of

the

pandemic

slowdown,

Russia

invaded

Ukraine,

precipitating

a

war,

in

late

February

2022.

The

dominant

themes

of

the

year

under

review—high

inflation,

tighter

monetary

policy,

rising

bond

yields,

a

stronger

U.S

dollar

(USD),

and

weakening

global

growth—were

thus

in

the

shadow

of

(and

in

some

instances

exacerbated

by)

the

war.

Inflation

rates

pushed

higher

over

the

year,

with

energy

and

food

prices

after

Russia’s

invasion

of

Ukraine

a

significant

impetus.

Inflation

across

many

countries

showed

similar

patterns

whereby

the

upcycle

was

spurred

by

these

factors

and

then

spread

wider

into

core

measures,

often

reaching

a

multi-decade

or

multi-year

high

along

the

way,

while

headline

inflation

started

to

peak

and

recede

nearer

year-end

as

the

effects

of

the

food

and

energy

price

spikes

dissipated.

Sovereign

bond

yields

rose

sharply

over

most

of

the

year

on

the

combination

of

the

withdrawal

of

direct

market

support

from

central

banks,

rising

inflation,

rising

policy

rates,

and

increasingly

hawkish

central

bank

commentary.

U.S.

Treasury

(UST)

and

other

bond

yields

surged

to

multi-year

highs

during

the

period,

but

a

number

of

markets

saw

bond

yields

end

the

year

below

their

peaks.

The

USD

gained

significantly

against

almost

all

other

currencies

in

2022,

supported

by

hawkish

U.S.

Federal

Reserve

(Fed)

policy,

growth

differentials

were

in

favor

of

the

U.S.

(as

U.S.

growth

benefited

from

post-pandemic

reopening/normalization),

while

continued

COVID-19

lockdowns

disadvantaged

Asian

growth

and

the

war

affected

growth

in

Europe,

amidst

continued

geopolitical

concerns.

As

some

of

these

factors

started

to

moderate

towards

year-

end,

the

USD

slid

off

its

highs

of

2022,

while

still

ending

the

year

8.2%

stronger,

according

to

the

U.S.

Dollar

Index

(DXY

index),

than

where

it

began.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

December

31,

2022.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

4

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

This

annual

report

for

Templeton

Global

Bond

Fund

covers

the

fiscal

year

ended

December

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

current

income

with

capital

appreciation

and

growth

of

income.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

bonds,

predominantly

those

issued

by

governments,

government-related

entities

and

government

agencies

located

around

the

world.

Bonds

include

debt

obligations

of

any

maturity,

such

as

bonds,

notes,

bills

and

debentures.

Performance

Overview

For

the

12

months

under

review,

the

Fund’s

Class

A

shares

posted

a

-6.17%

cumulative

total

return.

In

comparison,

global

government

bonds,

as

measured

by

the

Fund’s

benchmark,

the

FTSE

World

Government

Bond

Index

(WGBI),

which

measures

the

performance

of

fixed-rate,

local

currency,

investment-grade

sovereign

bonds

and

is

stated

in

U.S.

dollar

terms,

had

a

cumulative

total

return

of

-18.26%

in

U.S.

dollar

terms

for

the

same

period.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

6

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

*Includes

foreign

government

and

agency

securities,

money

market

funds

and

other

net

assets

(including

derivatives).

Investment

Strategy

We

invest

selectively

in

bonds

around

the

world

based

upon

our

assessment

of

changing

market,

political

and

economic

conditions.

While

seeking

opportunities,

we

monitor

various

factors

including

changes

in

interest

rates,

currency

exchange

rates

and

credit

risks.

For

purposes

of

pursuing

its

investment

goals,

the

Fund

regularly

enters

into

various

currency-related

transactions

involving

derivative

instruments,

principally

currency

and

cross

currency

forwards,

but

it

may

also

use

currency

and

currency

index

futures

contracts

and

currency

options.

Manager’s

Discussion

In

bonds,

we

continued

to

maintain

low

portfolio

duration,

while

aiming

at

a

high

overall

portfolio

yield

by

holding

what

we

believe

to

be

compelling

risk-adjusted

yields

in

various

local-currency

bond

markets,

specifically

in

countries

with

resilient

economies

and

strong

trade

dynamics.

We

were

significantly

underweight

developed

market

duration

in

the

U.S.

and

the

euro

area

(less

so

later

in

the

year),

with

a

preference

for

the

higher

yields

available

in

select

emerging

market

local-currency

bonds,

notably

including

Indonesia,

India,

Thailand,

Brazil,

and

Colombia.

At

the

beginning

of

the

period,

the

Fund

held

overweight

positions

in

specific

currencies

against

the

USD

and

the

euro.

In

Asia,

we

held

notable

exposures

to

the

South

Korean

won,

Chinese

yuan,

Indonesian

rupiah,

Indian

rupee

and

Singapore

dollar,

while

holding

an

underweight

in

the

Japanese

yen.

We

closed

our

exposure

to

the

Japanese

yen

in

March

2022,

primarily

due

to

expected

depreciation

pressures

on

the

currency

from

widening

rate

differentials

with

the

U.S.

During

the

third

quarter

2022,

after

it

had

subsequently

weakened

significantly,

we

re-established

a

position

in

the

Japanese

yen,

and

reduced

exposure

in

Chinese

yuan,

Indonesian

rupiah

and

Singapore

dollar.

We

exited

our

underweight

position

in

the

Australian

dollar

which

had

been

used

to

hedge

against

emerging

market

beta

risks.

In

EMEA

(Europe,

Middle

East

and

Africa),

the

Fund

initially

held

overweight

positions

in

the

Norwegian

krone

and

the

Swedish

krona

against

the

euro.

We

added

a

position

in

the

British

pound

against

the

euro

in

April

2022,

which

we

Portfolio

Composition

12/31/22

%

of

Total

Net

Assets

Foreign

Government

and

Agency

Securities

44.4%

U.S.

Government

and

Agency

Securities

21.7%

Short-Term

Investments

&

Other

Net

Assets*

33.9%

Geographic

Composition

12/31/22

%

of

Total

Net

Assets

Americas

30.1%

Asia

Pacific

24.9%

Other

Europe

9.4%

Middle

East

&

Africa

1.7%

Short-Term

Investments

&

Other

Net

Assets

33.9%

1.

Source:

Morningstar.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

34

.

Templeton

Global

Bond

Fund

5

franklintempleton.com

Annual

Report

exited

in

the

fourth

quarter.

We

also

closed

the

Swedish

krona

position.

We

reduced

our

short

in

the

euro

during

the

third

and

fourth

quarters,

given

that

the

currency

had

already

weakened

significantly.

We

also

reduced

our

Ghanaian

cedi

exposure.

In

the

Americas,

we

started

the

period

holding

long

exposures

to

the

Brazilian

real,

Colombian

peso,

Chilean

peso

and

Argentine

peso

against

the

USD,

and

long

exposure

to

the

Canadian

dollar

against

the

euro.

We

closed

our

position

in

the

Argentine

peso.

During

the

third

quarter

2022,

we

reduced

our

bond

exposure

in

Mexico

but

took

on

a

new

position

in

the

fourth

quarter.

We

added

to

and

extended

duration

in

our

Colombian

peso

position,

and

extended

duration

in

Brazil.

During

the

period,

we

used

currency

forwards

and

currency

options

to

actively

manage

currency

exposures.

Over

the

period,

the

Fund’s

negative

absolute

performance

was

primarily

due

to

currency

positions.

Interest-rate

strategies

and

sovereign

credit

exposures

had

a

neutral

effect.

Among

currencies,

positions

in

the

South

Korean

won,

Indonesian

rupiah,

Chinese

yuan,

Indian

rupee,

Colombian

peso,

Argentine

peso

and

Ghanaian

cedi

detracted

from

absolute

performance.

However,

the

Fund’s

position

in

the

euro

(net

negative

for

much

of

the

period)

and

tactical

positioning

in

the

Japanese

yen

and

Brazilian

real

were

positive

contributors

to

absolute

results.

The

Fund’s

duration

exposures

in

the

U.S.

and

Ghana

detracted

from

absolute

results,

while

its

duration

exposures

in

Argentina

and

Brazil

contributed.

On

a

relative

basis,

during

the

period

under

review,

the

Fund’s

performance

fared

better

than

that

of

its

benchmark

index

primarily

due

to

interest-rate

strategies.

Currency

positions

and

sovereign

credit

exposures

had

largely

neutral

effects

on

relative

results.

The

Fund

maintained

duration

exposures

primarily

in

select

emerging

markets.

A

lack

of

duration

exposure

in

the

euro

area

contributed

to

relative

performance,

as

did

underweighted

duration

exposures

in

the

U.S.,

the

U.K.

and

Japan.

Overweighted

duration

exposures

in

Argentina

and

Brazil

also

contributed

to

relative

results,

while

duration

exposure

to

Ghana

detracted.

Among

currencies,

tactical

positioning

in

the

Japanese

yen

contributed

to

relative

performance,

as

did

the

Fund’s

underweighted

exposure

to

the

euro

and

its

overweighted

position

in

the

Brazilian

real.

However,

overweighted

positions

in

the

Colombian

peso,

Argentine

peso,

Indonesian

rupiah,

South

Korean

won,

Indian

rupee

and

Ghanaian

cedi

detracted

from

relative

results.

Thank

you

for

your

continued

participation

in

Templeton

Global

Bond

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Michael

Hasenstab,

Ph.D.

Lead

Portfolio

Manager

Calvin

Ho,

Ph.D.

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

December

31,

2022

Templeton

Global

Bond

Fund

6

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A:

3.75%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-6.17%

-9.64%

5-Year

-13.22%

-3.53%

10-Year

-6.20%

-1.02%

Advisor

1-Year

-5.95%

-5.95%

5-Year

-12.16%

-2.56%

10-Year

-3.82%

-0.39%

See

page

8

for

Performance

Summary

footnotes.

Templeton

Global

Bond

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

See

page

8

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/12–12/31/22)

Advisor

Class

(12/31/12–12/31/22)

Templeton

Global

Bond

Fund

Performance

Summary

8

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Derivatives,

including

currency

management

strategies,

involve

costs

and

can

create

economic

leverage

in

the

portfolio

that

may

result

in

significant

volatility

and

cause

the

Fund

to

participate

in

losses

on

an

amount

that

exceeds

the

Fund’s

initial

investment.

The

Fund

may

not

achieve

the

anticipated

benefits

and

may

realize

losses

when

a

counterparty

fails

to

perform

as

promised.

The

markets

for

particular

securities

or

types

of

securities

are

or

may

become

relatively

illiquid.

Reduced

liquidity

will

have

an

adverse

impact

on

the

security’s

value

and

on

the

Fund’s

ability

to

sell

such

securities

when

necessary

to

meet

the

Fund’s

liquidity

needs

or

in

response

to

a

specific

market

event.

Foreign

securities

involve

special

risks,

including

currency

fluctuations

(which

may

be

significant

over

the

short

term)

and

economic

and

political

uncertainties;

investments

in

emerging

markets

involve

heightened

risks

related

to

the

same

factors.

Sovereign

debt

securities

are

subject

to

various

risks

in

addition

to

those

relating

to

debt

securities

and

foreign

securities

generally,

including,

but

not

limited

to,

the

risk

that

a

government

entity

may

be

unwilling

or

unable

to

pay

interest

and

repay

principal

on

its

sovereign

debt,

or

otherwise

meet

its

obligations

when

due.

Investments

in

lower

rated

bonds

include

higher

risk

of

default

and

loss

of

principal.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

As

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Changes

in

the

financial

strength

of

a

bond

issuer

or

in

a

bond’s

credit

rating

may

affect

its

value.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia's

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia's

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Source:

FactSet.

The

FTSE

WGBI

measures

the

performance

of

fixed-rate,

local

currency,

investment-grade

sovereign

bonds

and

is

stated

in

U.S.

dollar

terms.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Tax

Return

of

Capital

A

$0.4079

C

$0.3734

R

$0.3880

R6

$0.4427

Advisor

$0.4287

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.97%

0.98%

Advisor

0.72%

0.73%

Your

Fund’s

Expenses

Templeton

Global

Bond

Fund

9

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,008.20

$4.33

$1,020.89

$4.36

0.86%

C

$1,000

$1,006.10

$6.37

$1,018.86

$6.41

1.26%

R

$1,000

$1,007.00

$5.58

$1,019.65

$5.61

1.10%

R6

$1,000

$1,011.70

$2.30

$1,022.92

$2.31

0.45%

Advisor

$1,000

$1,009.60

$3.07

$1,022.15

$3.09

0.61%

10

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

This

annual

report

for

Templeton

Global

Total

Return

Fund

covers

the

fiscal

year

ended

December

31

,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

total

investment

return

consisting

of

a

combination

of

interest

income,

capital

appreciation

and

currency

gains.

Under

normal

market

conditions,

the

Fund

invests

primarily

in

fixed

and

floating

rate

debt

securities

and

debt

obligations

(including

convertible

bonds)

of

governments,

government

agencies

and

government-related

or

corporate

issuers

worldwide

(collectively,

“bonds”).

Bonds

may

be

denominated

and

issued

in

the

local

currency

or

in

another

currency.

Bonds

include

debt

securities

of

any

maturity,

such

as

bonds,

notes,

bills

and

debentures.

Performance

Overview

For

the

12

months

under

review,

the

Fund’s

Class

A

shares

posted

a

-12.53%

cumulative

total

return.

In

comparison,

the

global

fixed

income

market,

as

measured

by

the

Fund’s

benchmark,

the

Bloomberg

Multiverse

Index,

posted

a

-16.01%

cumulative

total

return

for

the

same

period.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

12

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

*Includes

securities

determined

to

have

no

value

at

12/31/22.

**Includes

foreign

government

and

agency

securities,

money

market

funds

and

other

net

assets

(including

derivatives).

Investment

Strategy

We

invest

selectively

in

bonds

around

the

world

based

upon

our

assessment

of

changing

market,

political

and

economic

conditions.

While

seeking

opportunities,

we

consider

various

factors

including

evaluation

of

interest

rates,

currency

exchange

rate

changes

and

credit

risks.

For

purposes

of

pursuing

its

investment

goals,

the

Fund

regularly

enters

into

various

currency

related

transactions

involving

derivative

instruments,

principally

currency

and

cross

currency

forwards,

but

it

may

also

use

currency

and

currency

index

futures

contracts

and

currency

options.

Manager’s

Discussion

In

bonds,

we

continued

to

maintain

low

portfolio

duration,

while

aiming

at

a

high

overall

portfolio

yield

by

holding

what

we

believe

to

be

compelling

risk-adjusted

yields

in

various

local-currency

bond

markets,

specifically

in

countries

with

resilient

economies

and

strong

trade

dynamics.

We

were

significantly

underweight

developed

market

duration

in

the

U.S.

and

the

euro

area

(less

so

later

in

the

year),

with

a

preference

for

the

higher

yields

available

in

select

emerging

market

local-currency

bonds,

notably

including

Indonesia,

India,

Thailand,

Brazil,

and

Colombia.

At

the

beginning

of

the

period,

the

Fund

held

overweight

positions

in

specific

currencies

against

the

USD

and

the

euro.

In

Asia,

we

held

notable

exposures

to

the

South

Korean

won,

Chinese

yuan,

Indonesian

rupiah,

Indian

rupee

and

Singapore

dollar,

while

holding

an

underweight

in

the

Japanese

yen.

We

closed

our

exposure

to

the

Japanese

yen

in

March

2022,

primarily

due

to

expected

depreciation

pressures

on

the

currency

from

widening

rate

differentials

with

the

U.S.

During

the

third

quarter

2022,

after

it

had

subsequently

weakened

significantly,

we

re-established

a

position

in

the

Japanese

yen

and

also

added

new

exposure

in

Malaysian

ringgit.

We

reduced

exposure

in

the

Chinese

Portfolio

Composition

12/31/22

%

of

Total

Net

Assets

Foreign

Government

and

Agency

Securities

62.0%

U.S.

Government

and

Agency

Securities

7.4%

Other

0.0%

*

Short-Term

Investments

&

Other

Net

Assets**

30.6%

Geographic

Composition

12/31/22

%

of

Total

Net

Assets

Americas

28.5%

Asia

Pacific

26.4%

Other

Europe

7.4%

Middle

East

&

Africa

7.1%

Short-Term

Investments

&

Other

Net

Assets

30.6%

1.

Source:

Morningstar.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

44

.

Templeton

Global

Total

Return

Fund

11

franklintempleton.com

Annual

Report

yuan,

Indonesian

rupiah

and

Indian

rupee

and

closed

our

position

in

the

Singapore

dollar.

We

had

exited

our

underweight

position

in

the

Australian

dollar

which

had

been

used

to

hedge

against

emerging

market

beta

risks

and

closed

our

position

in

the

New

Zealand

dollar.

In

EMEA

(Europe,

Middle

East

and

Africa),

the

Fund

initially

held

overweight

positions

in

the

Norwegian

krone

and

the

Swedish

krona

against

the

euro.

We

closed

our

Russian

ruble

position

and

our

local-currency

positions

in

Egypt

and

Turkey

and

added

a

new

USD-denominated

sovereign

credit

exposure

in

Egypt.

We

also

added

a

position

in

the

British

pound

against

the

euro

in

April

2022,

which

we

exited

in

the

fourth

quarter.

We

closed

the

Swedish

krona

position

and

reduced

our

short

in

the

euro

during

the

third

and

fourth

quarters,

given

that

the

currency

had

already

weakened

significantly.

Lastly,

we

added

a

new

Hungarian

forint

position

and

reduced

our

Norwegian

Krone

and

Ghanaian

cedi

exposure.

In

the

Americas,

we

started

the

period

holding

long

exposures

to

the

Brazilian

real,

Colombian

peso,

Chilean

peso,

Mexican

peso

and

Argentine

peso

against

the

USD,

and

long

exposure

to

the

Canadian

dollar

against

the

euro.

We

closed

our

position

in

the

Argentine

peso.

During

the

third

quarter

2022,

we

closed

our

bond

exposure

in

Mexico

but

took

on

a

new

position

in

the

fourth

quarter.

We

added

to

and

extended

duration

in

our

Colombian

peso

position,

and

extended

duration

in

Brazil.

We

opened

a

new

USD-

denominated

sovereign

exposure

to

the

Dominican

Republic.

During

the

period,

we

used

currency

forwards

and

currency

options

to

actively

manage

currency

exposures,

as

well

as

using

interest-rate

swaps

to

hedge

duration

exposure

in

specific

sovereign

credit

positions.

Over

the

period,

the

Fund’s

negative

absolute

performance

was

primarily

due

to

currency

positions,

followed

by

overall

credit

exposures.

Interest-rate

strategies

contributed

to

absolute

results.

Among

currencies,

the

Fund’s

position

in

the

Russian

ruble

for

part

of

the

period

detracted

from

absolute

performance,

as

did

positions

in

the

Ghanaian

cedi,

Argentine

peso,

Colombian

peso,

South

Korean

won,

Chinese

yuan,

Indian

rupee

and

Indonesian

rupiah.

However,

positions

in

the

Brazilian

real

and

Japanese

yen

contributed

to

absolute

results.

Among

credit

exposures,

sub-investment-grade

sovereign

credits

detracted

from

absolute

return.

The

Fund

maintained

duration

exposures

primarily

in

select

emerging

markets.

Duration

exposures

in

Argentina

and

Brazil

contributed

to

absolute

performance,

while

duration

exposure

in

Ghana

detracted.

On

a

relative

basis,

during

the

period

under

review,

the

Fund’s

performance

fared

better

than

that

of

its

benchmark

index

primarily

due

to

interest-rate

strategies,

followed

by

overall

credit

exposures.

Currency

positions

detracted

from

relative

results.

The

Fund

maintained

duration

exposures

primarily

in

select

emerging

markets.

A

lack

of

duration

exposure

in

the

euro

area

contributed

to

relative

performance,

as

did

underweighted

duration

exposures

in

the

U.S.,

the

U.K.

and

Japan.

Overweighted

duration

exposures

in

Argentina

and

Brazil

also

contributed

to

relative

results,

while

overweighted

duration

exposure

in

Ghana

detracted.

Among

credit

exposures,

underweighted

exposure

to

investment-grade

corporate

bonds

and

investment-grade

sovereign

credits

contributed

to

relative

return,

while

overweighted

exposure

to

sub-investment-

grade

sovereign

credits

detracted.

Among

currencies,

the

Fund’s

overweighted

position

in

the

Russian

ruble

for

part

of

the

period

detracted

from

relative

performance,

as

did

overweighted

positions

in

the

Ghanaian

cedi,

Argentine

peso,

Colombian

peso,

Indian

rupee,

South

Korean

won

and

Indonesian

rupiah.

However,

tactical

positioning

in

the

Japanese

yen

contributed

to

relative

results,

as

did

the

Fund’s

underweighted

exposure

to

the

euro

and

its

overweighted

position

in

the

Brazilian

real.

Thank

you

for

your

continued

participation

in

Templeton

Global

Total

Return

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Michael

Hasenstab,

Ph.D.

Lead

Portfolio

Manager

Calvin

Ho,

Ph.D.

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

December

31,

2022

Templeton

Global

Total

Return

Fund

12

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A:

3.75%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton

.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-12.53%

-15.80%

5-Year

-19.36%

-4.94%

10-Year

-11.13%

-1.55%

Advisor

1-Year

-12.28%

-12.28%

5-Year

-18.23%

-3.95%

10-Year

-8.77%

-0.91%

See

page

14

for

Performance

Summary

footnotes.

Templeton

Global

Total

Return

Fund

Performance

Summary

13

franklintempleton.com

Annual

Report

See

page

14

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/12–12/31/22)

Advisor

Class

(12/31/12–12/31/22)

Templeton

Global

Total

Return

Fund

Performance

Summary

14

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Foreign

securities

involve

special

risks,

including

currency

fluctuations

(which

may

be

significant

over

the

short

term)

and

economic

and

political

uncertainties;

investments

in

developing

markets

involve

heightened

risks

related

to

the

same

factors.

Derivatives,

including

currency

management

strategies,

involve

costs

and

can

create

economic

leverage

in

the

portfolio,

which

may

result

in

significant

volatility

and

cause

the

Fund

to

participate

in

losses

on

an

amount

that

exceeds

the

Fund’s

initial

investment.

The

Fund

may

not

achieve

the

anticipated

benefits,

and

may

realize

losses

when

a

counterparty

fails

to

perform

as

promised.

The

markets

for

particular

securities

or

types

of

securities

are

or

may

become

relatively

illiquid.

Reduced

liquidity

will

have

an

adverse

impact

on

the

security’s

value

and

on

the

Fund’s

ability

to

sell

such

securities

when

necessary

to

meet

the

Fund’s

liquidity

needs

or

in

response

to

a

specific

market

event.

Sovereign

debt

securities

are

subject

to

various

risks

in

addition

to

those

relating

to

debt

securities

and

foreign

securities

generally,

including

but

not

limited

to,

the

risk

that

a

government

entity

may

be

unwilling

or

unable

to

pay

interest

and

repay

principal

on

its

sovereign

debt,

or

otherwise

meet

its

obligations

when

due.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

As

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Changes

in

the

financial

strength

of

a

bond

issuer

or

in

a

bond’s

credit

rating

may

affect

its

value.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

consid-

ered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Source:

FactSet.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high

yield

securities

in

all

eligible

currencies.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Tax

Return

of

Capital

A

$0.5226

C

$0.4902

R

$0.5034

R6

$0.5540

Advisor

$0.5417

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

1.17%

1.18%

Advisor

0.92%

0.93%

Your

Fund’s

Expenses

Templeton

Global

Total

Return

Fund

15

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,008.90

$5.67

$1,019.57

$5.70

1.12%

C

$1,000

$1,006.80

$7.74

$1,017.49

$7.78

1.53%

R

$1,000

$1,009.00

$6.92

$1,018.32

$6.95

1.37%

R6

$1,000

$1,011.00

$3.60

$1,021.63

$3.62

0.71%

Advisor

$1,000

$1,011.60

$4.47

$1,020.76

$4.49

0.88%

16

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

This

annual

report

for

Templeton

International

Bond

Fund

covers

the

fiscal

year

ended

December

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

current

income

with

capital

appreciation

and

growth

of

income.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

bonds.

For

purposes

of

the

Fund’s

80%

policy,

bonds

include

derivative

instruments

or

other

investments

that

have

economic

characteristics

similar

to

bonds.

Bonds

include

debt

obligations

of

any

maturity,

such

as

bonds,

notes,

bills

and

debentures.

The

Fund

invests

predominantly

in

bonds

issued

by

governments,

government-related

entities

and

government

agencies

located

outside

of

the

U.S.

*Includes

foreign

government

and

agency

securities,

money

market

funds

and

other

net

assets

(including

derivatives).

Performance

Overview

For

the

12

months

under

review,

the

Fund’s

Class

A

shares

posted

a

-5.90%

cumulative

total

return.

In

comparison,

the

Fund’s

benchmark,

the

FTSE

Non-USD

World

Government

Bond

Index

(WGBI),

which

measures

performance

of

investment-grade,

non-U.S.

world

government

bond

markets,

posted

a

cumulative

total

return

of

-22.07%

in

U.S.

dollar

terms

for

the

same

period.

1

You

can

find

more

of

the

Fund’s

performance

data

in

the

Performance

Summary

beginning

on

page

18

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Investment

Strategy

We

invest

selectively

in

non-U.S.

bonds

around

the

world

based

upon

our

assessment

of

changing

market,

political

and

economic

conditions.

While

seeking

opportunities,

we

monitor

various

factors

including

changes

in

interest

rates,

currency

exchange

rates

and

credit

risks.

For

purposes

of

pursuing

its

investment

goals,

the

Fund

regularly

enters

into

various

currency-related

transactions

involving

derivative

instruments,

principally

currency

and

cross

currency

forwards,

but

it

may

also

use

currency

and

currency

index

futures

contracts

and

currency

options.

The

Fund

may

also

enter

into

various

other

transactions

involving

derivatives,

including

interest-rate/bond

futures

and

swap

agreements

(which

may

include

interest

rate

and

credit

default

swaps).

Manager’s

Discussion

In

bonds,

we

continued

to

maintain

low

portfolio

duration,

while

aiming

at

a

high

overall

portfolio

yield

by

holding

what

we

believe

to

be

compelling

risk-adjusted

yields

in

various

local-currency

bond

markets,

specifically

in

countries

with

resilient

economies

and

strong

trade

dynamics.

We

were

significantly

underweight

developed

market

duration

in

the

U.S.

and

the

euro

area

(less

so

later

in

the

year),

with

a

preference

for

the

higher

yields

available

in

select

emerging

market

local-currency

bonds,

notably

including

Indonesia,

India,

Thailand,

Brazil,

and

Colombia.

At

the

beginning

of

the

period,

the

Fund

held

overweight

positions

in

specific

currencies

against

the

USD

and

the

euro.

In

Asia,

we

held

notable

exposures

to

the

South

Korean

won,

Chinese

yuan,

Indonesian

rupiah,

Indian

rupee

and

Singapore

dollar,

while

holding

an

underweight

in

the

Japanese

yen.

We

closed

our

exposure

to

the

Japanese

yen

in

March

2022,

primarily

due

to

expected

depreciation

pressures

on

the

currency

from

widening

rate

differentials

with

the

U.S.

During

the

third

quarter

2022,

after

it

had

subsequently

weakened

significantly,

we

re-established

a

position

in

the

Japanese

yen,

and

reduced

exposure

in

the

Chinese

yuan,

Indonesian

rupiah,

Indian

rupee

and

Singapore

dollar.

We

exited

our

underweight

position

in

the

Portfolio

Composition

12/31/22

%

of

Total

Net

Assets

Foreign

Government

and

Agency

Securities

57.5%

Short-Term

Investments

&

Other

Net

Assets*

42.5%

Geographic

Composition

12/31/22

%

of

Total

Net

Assets

Asia

34.9%

Latin

America

&

Caribbean

16.3%

Australia

&

New

Zealand

4.5%

Middle East & Africa

1.8%

Short-Term

Investments

&

Other

Net

Assets

42.5%

1.

Source:

Morningstar.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

56

.

Templeton

International

Bond

Fund

17

franklintempleton.com

Annual

Report

Australian

dollar

which

had

been

used

to

hedge

against

emerging

market

beta

risks.

In

EMEA

(Europe,

Middle

East

and

Africa),

the

Fund

initially

held

overweight

positions

in

the

Norwegian

krone

and

the

Swedish

krona

against

the

euro.

We

added

a

position

in

the

British

pound

against

the

euro

in

April

2022

which

we

exited

in

the

fourth

quarter.

We

closed

the

Swedish

krona

position

in

the

third

quarter

2022

as

well

as

reduced

our

Norwegian

krone

position.

We

reduced

our

short

in

the

euro

during

the

third

and

fourth

quarters,

given

that

the

currency

had

already

weakened

significantly,

and

added

a

new

long

Hungarian

forint

position.

We

also

reduced

our

Ghanaian

cedi

exposure.

In

the

Americas,

we

started

the

period

holding

long

exposures

to

the

Brazilian

real,

Colombian

peso,

Chilean

peso

and

Argentine

peso

against

the

USD,

and

long

exposure

to

the

Canadian

dollar

against

the

euro.

We

closed

our

position

in

the

Argentine

peso.

We

added

to

and

extended

duration

in

our

Colombian

peso

position,

also

extended

duration

in

Brazil

and

added

a

new

long

position

in

the

Mexican

peso.

During

the

period,

we

used

currency

forwards

to

actively

manage

currency

exposures.

Over

the

period,

the

Fund’s

negative

absolute

performance

was

primarily

due

to

currency

positions.

Interest-rate

strategies

contributed

moderately,

while

sovereign

credit

exposures

had

a

neutral

effect.

Among

currencies,

positions

in

the

South

Korean

won,

Indonesian

rupiah,

Chinese

yuan,

Indian

rupee,

Colombian

peso,

Argentine

peso

and

Ghanaian

cedi

detracted

from

absolute

performance.

However,

tactical

positioning

in

the

Japanese

yen

and

exposure

to

the

Brazilian

real

were

positive

contributors

to

absolute

results.

The

Fund’s

duration

exposure

in

Argentina

contributed

to

absolute

results,

while

its

position

in

South

Korea

detracted.

On

a

relative

basis,

during

the

period

under

review,

the

Fund’s

performance

fared

better

than

that

of

its

benchmark

index

primarily

due

to

interest-rate

strategies,

followed

by

currency

positions.

Sovereign

credit

exposures

had

a

largely

neutral

effect

on

relative

results.

The

Fund

maintained

duration

exposures

primarily

in

select

emerging

markets.

A

lack

of

duration

exposure

in

the

euro

area

contributed

to

relative

performance,

as

did

underweighted

duration

exposures

in

the

U.K.

and

Japan.

Overweighted

duration

exposure

in

Argentina

also

contributed

to

relative

results.

Among

currencies,

tactical

positioning

in

the

Japanese

yen

contributed

to

relative

performance,

as

did

the

Fund’s

underweighted

exposure

to

the

euro.

However,

overweighted

positions

in

the

Colombian

peso,

Argentine

peso,

Indonesian

rupiah,

South

Korean

won,

Chinese

yuan,

Indian

rupee

and

Ghanaian

cedi

detracted

from

relative

results.

Thank

you

for

your

continued

participation

in

Templeton

International

Bond

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Michael

Hasenstab,

Ph.D.

Lead

Portfolio

Manager

Calvin

Ho,

Ph.D.

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

December

31,

2022

Templeton

International

Bond

Fund

18

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A:

3.75%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton

.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-5.90%

-9.45%

5-Year

-14.06%

-3.72%

10-Year

-14.22%

-1.90%

Advisor

1-Year

-5.68%

-5.68%

5-Year

-13.07%

-2.76%

10-Year

-12.08%

-1.28%

See

page

20

for

Performance

Summary

footnotes.

Templeton

International

Bond

Fund

Performance

Summary

19

franklintempleton.com

Annual

Report

See

page

20

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/12–12/31/22)

Advisor

Class

(12/31/12–12/31/22)

Templeton

International

Bond

Fund

Performance

Summary

20

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Derivatives,

including

currency

management

strategies,

involve

costs

and

can

create

economic

leverage

in

the

portfolio,

which

may

result

in

significant

volatility

and

cause

the

Fund

to

participate

in

losses

on

an

amount

that

exceeds

the

Fund’s

initial

investment.

The

Fund

may

not

achieve

the

anticipated

benefits,

and

may

realize

losses

when

a

counterparty

fails

to

perform

as

promised.

The

markets

for

particular

securities

or

types

of

securities

are

or

may

become

relatively

illiquid.

Reduced

liquidity

will

have

an

adverse

impact

on

the

security’s

value

and

on

the

Fund’s

ability

to

sell

such

securities

when

necessary

to

meet

the

Fund’s

liquidity

needs

or

in

response

to

a

specific

market

event.

Foreign

securities

involve

special

risks,

including

currency

fluctuations

(which

may

be

significant

over

the

short

term)

and

economic

and

political

uncertainties;

investments

in

emerging

markets

involve

heightened

risks

related

to

the

same

factors.

Sovereign

debt

securities

are

subject

to

various

risks

in

addition

to

those

relating

to

debt

securities

and

foreign

securities

generally,

including,

but

not

limited

to,

the

risk

that

a

government

entity

may

be

unwilling

or

unable

to

pay

interest

and

repay

principal

on

its

sovereign

debt,

or

otherwise

meet

its

obligations

when

due.

Investments

in

lower

rated

bonds

include

higher

risk

of

default

and

loss

of

principal.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

As

the

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Changes

in

the

financial

strength

of

a

bond

issuer

or

in

a

bond’s

credit

rating

may

affect

its

value.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Source:

FactSet.

The

FTSE

Non-USD

WGBI

is

a

market

capitalization-weighted

index

consisting

of

investment-grade

world

government

bond

markets;

it

includes

all

WGBI

countries

except

the

U.S.

and

is

stated

in

U.S.

dollar

terms.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Tax

Return

of

Capital

A

$0.3583

C

$0.3255

R

$0.3405

R6

$0.3946

Advisor

$0.3761

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

1.01%

1.39%

Advisor

0.76%

1.01%

Your

Fund’s

Expenses

Templeton

International

Bond

Fund

21

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,012.60

$6.24

$1,019.01

$6.26

1.23%

C

$1,000

$1,010.20

$8.23

$1,017.02

$8.26

1.62%

R

$1,000

$1,011.40

$7.53

$1,017.72

$7.55

1.48%

R6

$1,000

$1,015.60

$3.30

$1,021.93

$3.31

0.65%

Advisor

$1,000

$1,013.70

$5.04

$1,020.20

$5.06

0.99

%

22

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

This

annual

report

for

Templeton

Sustainable

Emerging

Markets

Bond

Fund

covers

the

fiscal

year

ended

December

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

current

income

with

capital

appreciation

as

a

secondary

goal.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

a

non-diversified

portfolio

of

bonds

issued

by

emerging

market

countries.

The

Fund’s

investment

strategy

emphasizes

the

current

and

projected

sustainability

efforts

of

emerging

market

countries

in

certain

environmental,

social

and

governance

(ESG)

categories.

For

purposes

of

the

Fund’s

80%

policy,

bonds

issued

by

entities

located

in

emerging

markets

countries

include

derivative

instruments

and

other

investments

that

have

economic

characteristics

similar

to

such

securities.

*Includes

securities

determined

to

have

no

value

at

12/31/2022.

**Includes

foreign

government

and

agency

securities,

money

market

funds

and

other

net

assets

(including

derivatives).

Performance

Overview

For

the

12

months

under

review,

the

Fund’s

Class

A

shares

posted

a

-10.51%

cumulative

total

return.

In

comparison,

U.S.

dollar-denominated

emerging

market

bonds,

as

measured

by

the

Fund’s

new

benchmark,

the

J.P.

Morgan

(JPM)

Government

Bond

Index-Emerging

Markets

(GBI-

EM)

Global

Diversified

Index,

posted

a

-11.68%

cumulative

total

return

in

U.S.

dollar

terms

for

the

same

period.

1

The

Fund’s

prior

benchmark,

the

J.P.

Morgan

(JPM)

Emerging

Markets

Bond

Index

(EMBI)

Global

Index,

posted

a

-16.45%

cumulative

total

return

in

U.S.

dollar

terms

for

the

same

period.

2

The

JPM

GBI-EM

Global

Diversified

Index

is

replacing

the

JPM

EMBI

Global

Index

as

the

Fund’s

primary

benchmark

because

the

investment

manager

believes

that

the

benchmark

better

reflects

the

Fund’s

investment

strategies.

You

can

find

more

of

the

Fund’s

performance

data

in

the

Performance

Summary

beginning

on

page

25

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Economic

and

Market

Overview

Over

the

12-month

period

ending

December

31,

2022,

as

prospects

were

improving

for

the

global

economy,

which

was

emerging

from

the

worst

of

the

pandemic

slowdown,

Russia

invaded

Ukraine,

precipitating

a

war,

in

late

February

2022.

The

dominant

themes

of

the

year

under

review—high

inflation,

tighter

monetary

policy,

rising

bond

yields,

a

stronger

U.S.

dollar

(USD),

and

weakening

global

growth—were

thus

in

the

shadow

of

(and

in

some

instances

exacerbated

by)

the

war.

Inflation

rates

pushed

higher

over

the

year,

with

energy

and

food

prices,

after

Russia’s

invasion

of

Ukraine,

a

significant

impetus.

Inflation

across

many

countries

showed

similar

patterns,

whereby

the

upcycle

was

spurred

by

these

factors

and

then

spread

wider

into

core

measures,

often

reaching

a

multi-year

high

along

the

way,

while

headline

inflation

started

to

peak

and

recede

nearer

year-end

as

the

effects

of

the

food

and

energy

price

spikes

dissipated.

A

number

of

the

emerging

market

central

banks

who

were

early

movers,

particularly

in

Latin

America,

have

paused

hiking

rates

and

even

signalled

that

rates

may

have

peaked,

as

have

some

banks

in

eastern

Europe.

That

said,

most

also

appear

willing

to

keep

rates

at

high

levels

until

they

are

more

confident

of

a

disinflationary

trend

resulting,

rather

than

quickly

moving

to

unwind

the

rate

hiking

cycle.

The

USD

gained

significantly

against

almost

all

other

currencies

in

2022,

supported

by

hawkish

U.S.

Federal

Reserve

(Fed)

policy,

growth

differentials

were

in

favor

of

the

U.S.

(as

U.S.

growth

benefited

from

post-pandemic

reopening/normalization),

while

continued

COVID-19

lockdowns

disadvantaged

Asian

growth

and

the

war

affected

growth

in

Europe,

amidst

continued

geopolitical

concerns.

As

Portfolio

Composition

12/31/22

%

of

Total

Net

Assets

Foreign

Government

and

Agency

Securities

87.7%

Corporate

Bonds

3.2%

Other

0.0%

*

Short-Term

Investments

&

Other

Net

Assets**

9.1%

1.

Source:

FactSet.

2.

Source:

Morningstar.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

64

.

Templeton

Sustainable

Emerging

Markets

Bond

Fund

23

franklintempleton.com

Annual

Report

some

of

these

factors

started

to

moderate

towards

year-end,

the

USD

slid

off

its

highs

of

2022.

Investment

Strategy

We

invest

selectively

in

bonds

from

emerging

markets

around

the

world

to

seek

to

generate

income

for

the

Fund,

pursuing

opportunities

while

monitoring

changes

in

interest

rates,

currency

exchange

rates

and

credit

risks.

At

least

80%

of

the

Fund’s

net

assets

are

invested

in

or

exposed

to

government

bonds

of

emerging

market

countries

based

on

such

countries’

scores

related

to

environmental,

social

and

governance

considerations.

We

manage

the

Fund’s

exposure

to

derivative

instruments

and

regularly

use

currency

and

contracts

and

may

also

use

currency

and

currency

index

futures

contracts

and

currency

options.

We

may

also

use

other

derivative

instruments,

such

as

interest

rate/bond

futures

contracts

and

swap

agreements.

Manager’s

Discussion

In

bonds,

we

continued

to

maintain

low

portfolio

duration,

while

aiming

at

a

high

overall

portfolio

yield

by

holding

what

we

believe

to

be

compelling

risk-adjusted

yields

in

various

local-currency

bond

markets,

specifically

in

countries

with

resilient

economies

and

strong

trade

dynamics.

At

the

beginning

of

the

period,

the

Fund

held

overweight

positions

in

specific

currencies

against

the

USD.

In

Asia,

we

held

notable

exposures

to

the

South

Korean

won,

Chinese

yuan,

Indonesian

rupiah,

Indian

rupee

and

Thai

baht.

We

exited

our

underweight

position

in

the

Australian

dollar

which

had

been

used

to

hedge

against

emerging

market

beta

risks.

We

added

new

exposures

to

the

Singapore

dollar,

Malaysia

ringgit

and

the

Japanese

yen

and

reduced

exposures

to

the

Indonesian

rupiah

and

Indian

rupee.

In

EMEA

(Europe,

Middle

East

and

Africa),

the

Fund

initially

held

overweight

positions

in

Egypt

and

Ghana.

We

switched

our

local

currency

Egyptian

exposure

into

a

dollar-denominated

Egyptian

sovereign

bond.

Russian

ruble

exposure

was

closed

out

in

the

first

quarter

of

2022.

We

added

exposure

in

Czechia

and

reduced

our

Ghanaian

cedi

exposure.

We

opened

a

short

euro

position

in

the

second

quarter

and

closed

it

in

the

fourth

quarter

2022.

In

the

Americas,

we

started

the

period

holding

long

exposures

to

the

Brazilian

real,

Colombian

peso,

Chilean

peso,

Peruvian

sol

and

Argentine

peso

against

the

USD.

We

closed

our

local-currency

position

in

the

Argentine

peso

and

added

to

our

Peruvian

exposure.

We

added

a

new

USD-

denominated

sovereign

credit

exposure

in

the

Dominican

Republic.

We

also

added

to

and

extended

duration

in

our

Colombian

peso

position,

and

extended

duration

in

Brazil

and

Peru.

During

the

period,

we

used

currency

forwards

to

actively

manage

currency

exposures,

as

well

as

using

interest-rate

swaps

to

hedge

duration

exposure

in

specific

sovereign

credit

positions.

Over

the

period,

the

Fund’s

negative

absolute

performance

was

primarily

due

to

currency

positions,

followed

by

overall

credit

exposures.

Interest-rate

strategies

contributed

to

absolute

results.

Among

currencies,

the

Fund’s

position

in

the

Russian

ruble

for

part

of

the

period

detracted

from

absolute

performance,

as

did

positions

in

the

Colombian

peso,

Ghanaian

cedi,

Indonesian

rupiah

and

Indian

rupee.

However,

the

Fund’s

position

in

the

Brazilian

real

contributed

to

absolute

results.

Among

credit

exposures,

positions

in

Latin

America

detracted

from

absolute

return.

The

Fund

maintained

duration

exposures

in

select

emerging

markets.

Duration

exposure

in

Chile

also

contributed

to

absolute

performance.

Thank

you

for

your

participation

in

Templeton

Sustainable

Emerging

Markets

Bond

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Michael

Hasenstab,

Ph.D.

Lead

Portfolio

Manager

Calvin

Ho,

Ph.D.

Vivian

Guo

Jaap

Willems

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

Geographic

Composition

12/31/22

%

of

Total

Net

Assets

Americas

38.6%

Asia

Pacific

26.0%

Supranational

13.0%

Middle

East

&

Africa

10.0%

Europe

3.3%

Short-Term

Investments

&

Other

Net

Assets

9.1%

Templeton

Sustainable

Emerging

Markets

Bond

Fund

24

franklintempleton.com

Annual

Report

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

December

31,

2022

Templeton

Sustainable

Emerging

Markets

Bond

Fund

25

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A:

3.75%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-10.51%

-13.91%

5-Year

-22.80%

-5.77%

Since

Inception

(4/1/13)

-11.79%

-1.66%

Advisor

1-Year

-10.28%

-10.28%

5-Year

-21.79%

-4.80%

Since

Inception

(4/1/13)

-9.69%

-1.04%

See

page

27

for

Performance

Summary

footnotes.

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Performance

Summary

26

franklintempleton.com

Annual

Report

See

page

27

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(4/1/13–12/31/22)

Advisor

Class

(4/1/13–12/31/22)

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Performance

Summary

27

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Foreign

securities

involve

special

risks,

including

currency

rate

fluctuations

(which

may

be

significant

over

the

short

term)

and

economic

and

political

uncertainties;

investments

in

emerging

markets

involve

heightened

risks

related

to

the

same

factors,

in

addition

to

those

associated

with

their

relatively

small

size

and

lesser

liquidity.

Sovereign

debt

securities

are

subject

to

various

risks

in

addition

to

those

re-

lating

to

debt

securities

and

foreign

securities

generally,

including,

but

not

limited

to,

the

risk

that

a

government

entity

may

be

unwilling

or

unable

to

pay

interest

and

repay

principal

on

its

sovereign

debt,

or

otherwise

meet

its

obligations

when

due.

Derivatives,

including

currency

management

strategies,

involve

costs

and

can

create

economic

leverage

in

the

portfolio

that

may

result

in

significant

volatility

and

cause

the

Fund

to

participate

in

losses

on

an

amount

that

exceeds

the

Fund’s

initial

investment.

The

Fund

may

not

achieve

the

anticipated

benefits

and

may

realize

losses

when

a

counterparty

fails

to

perform

as

promised.

The

man-

ager’s

environmental

social

and

governance

(ESG)

investment

strategies

may

limit

the

types

and

number

of

investment

opportunities

available

and,

as

a

result,

may

underperform

strategies

that

are

not

subject

to

such

criteria.

ESG

factors

or

criteria

are

subjective

and

qualitative,

and

the

analysis

by

the

manager

may

not

always

accurately

assess

ESG

practices

of

a

security

or

issuer,

or

reflect

the

opinions

of

the

other

investors

or

advisors.

There

is

no

guarantee

that

the

strategy's

ESG

directives

will

be

successful

or

will

result

in

better

performance

and

may

not

work

as

intended.

Bonds

are

subject

to

liquidity

risk,

which

may

have

an

adverse

impact

on

the

security’s

value

or

a

fund’s

ability

to

sell

such

securities.

Changes

in

interest

rates

will

affect

the

value

of

the

Fund’s

portfolio,

share

price

and

yield.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

As

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Changes

in

the

financial

strength

of

a

bond

issuer

or

in

a

bond’s

credit

rating

may

affect

its

value.

Investments

in

lower

rated

securities

include

higher

risks

of

default

and

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Source:

FactSet.

The

JPM

Government

Bond

Index-Emerging

Markets

(GBI-EM)

Global

Diversified

Index

tracks

local

currency

bonds

issued

by

emerging

markets.

The

index

was

created

to

capture

a

diverse

set

of

countries

that

most

investors

can

access

and

replicate

through

bonds

or

derivatives.

The

JPM

Emerging

Markets

Bond

Index

(EMBI)

Global

Index

tracks

total

returns

for

U.S.

dollar-denominated

debt

instruments

issued

by

emerging

market

sovereign

and

quasi-sovereign

entities:

Brady

bonds,

loans

and

Eurobonds.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Consolidated

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Tax

Return

of

Capital

A

$0.3063

C

$0.2803

R

$0.2905

R6

$0.3209

Advisor

$0.3161

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

1.15%

2.77%

Advisor

0.90%

2.52%

Your

Fund’s

Expenses

Templeton

Sustainable

Emerging

Markets

Bond

Fund

28

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,007.10

$5.44

$1,019.78

$5.48

1.08%

C

$1,000

$1,006.70

$7.79

$1,017.45

$7.83

1.54%

R

$1,000

$1,005.50

$7.05

$1,018.17

$7.10

1.39%

R6

$1,000

$1,008.30

$4.41

$1,020.81

$4.44

0.87%

Advisor

$1,000

$1,010.00

$4.52

$1,020.71

$4.55

0.89%

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Bond

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

29

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.84

$9.80

$10.69

$11.30

$11.89

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.34

0.42

0.41

0.59

0.59

Net

realized

and

unrealized

gains

(losses)

...........

(0.88)

(0.90)

(0.85)

(0.54)

(0.44)

Total

from

investment

operations

....................

(0.54)

(0.48)

(0.44)

0.05

0.15

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(0.01)

(0.66)

(0.74)

Tax

return

of

capital

............................

(0.41)

(0.48)

(0.44)

—

—

Total

distributions

...............................

(0.41)

(0.48)

(0.45)

(0.66)

(0.74)

Net

asset

value,

end

of

year

.......................

$7.89

$8.84

$9.80

$10.69

$11.30

Total

return

c

...................................

(6.17)%

(5.06)%

(4.14)%

0.35%

1.27%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.96%

0.97%

0.93%

0.92%

0.94%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.94%

0.96%

0.91%

0.85%

0.86%

d

Net

investment

income

...........................

4.14%

4.51%

4.03%

5.27%

4.99%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,492,812

$3,478,172

$4,749,790

$6,514,630

$8,375,227

Portfolio

turnover

rate

............................

16.01%

28.44%

60.07%

32.63%

19.86%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.88

$9.83

$10.72

$11.33

$11.92

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.31

0.38

0.37

0.55

0.54

Net

realized

and

unrealized

gains

(losses)

...........

(0.89)

(0.90)

(0.85)

(0.55)

(0.44)

Total

from

investment

operations

....................

(0.58)

(0.52)

(0.48)

—

0.10

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(0.01)

(0.61)

(0.69)

Tax

return

of

capital

............................

(0.37)

(0.43)

(0.40)

—

—

Total

distributions

...............................

(0.37)

(0.43)

(0.41)

(0.61)

(0.69)

Net

asset

value,

end

of

year

.......................

$7.93

$8.88

$9.83

$10.72

$11.33

Total

return

c

...................................

(6.53)%

(5.38)%

(4.52)%

0.06%

0.86%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.37%

1.36%

1.33%

1.32%

1.34%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.35%

1.36%

d

1.31%

1.25%

1.26%

e

Net

investment

income

...........................

3.78%

4.07%

3.65%

4.87%

4.59%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$126,600

$224,611

$682,582

$1,392,223

$2,218,852

Portfolio

turnover

rate

............................

16.01%

28.44%

60.07%

32.63%

19.86%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

31

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.84

$9.80

$10.69

$11.30

$11.89

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.32

0.40

0.38

0.56

0.56

Net

realized

and

unrealized

gains

(losses)

...........

(0.88)

(0.91)

(0.84)

(0.54)

(0.44)

Total

from

investment

operations

....................

(0.56)

(0.51)

(0.46)

0.02

0.12

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(0.01)

(0.63)

(0.71)

Tax

return

of

capital

............................

(0.39)

(0.45)

(0.42)

—

—

Total

distributions

...............................

(0.39)

(0.45)

(0.43)

(0.63)

(0.71)

Net

asset

value,

end

of

year

.......................

$7.89

$8.84

$9.80

$10.69

$11.30

Total

return

....................................

(6.40)%

(5.30)%

(4.38)%

0.10%

1.02%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.21%

1.22%

1.18%

1.17%

1.19%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.19%

1.21%

1.16%

1.10%

1.11%

c

Net

investment

income

...........................

3.87%

4.26%

3.79%

5.02%

4.74%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$111,601

$137,543

$170,554

$208,853

$239,671

Portfolio

turnover

rate

............................

16.01%

28.44%

60.07%

32.63%

19.86%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.80

$9.75

$10.64

$11.25

$11.85

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.37

0.45

0.45

0.62

0.63

Net

realized

and

unrealized

gains

(losses)

...........

(0.88)

(0.89)

(0.85)

(0.53)

(0.45)

Total

from

investment

operations

....................

(0.51)

(0.44)

(0.40)

0.09

0.18

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(0.01)

(0.70)

(0.78)

Tax

return

of

capital

............................

(0.44)

(0.51)

(0.48)

—

—

Total

distributions

...............................

(0.44)

(0.51)

(0.49)

(0.70)

(0.78)

Net

asset

value,

end

of

year

.......................

$7.85

$8.80

$9.75

$10.64

$11.25

Total

return

....................................

(5.79)%

(4.59)%

(3.79)%

0.73%

1.57%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.58%

0.63%

0.58%

0.57%

0.59%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.52%

0.58%

0.54%

0.48%

0.49%

c

Net

investment

income

...........................

4.56%

4.85%

4.42%

5.64%

5.36%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$688,345

$944,502

$2,273,175

$4,407,299

$4,084,816

Portfolio

turnover

rate

............................

16.01%

28.44%

60.07%

32.63%

19.86%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

33

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.80

$9.75

$10.64

$11.25

$11.85

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.36

0.44

0.43

0.61

0.61

Net

realized

and

unrealized

gains

(losses)

...........

(0.88)

(0.89)

(0.84)

(0.54)

(0.44)

Total

from

investment

operations

....................

(0.52)

(0.45)

(0.41)

0.07

0.17

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(0.01)

(0.68)

(0.77)

Tax

return

of

capital

............................

(0.43)

(0.50)

(0.47)

—

—

Total

distributions

...............................

(0.43)

(0.50)

(0.48)

(0.68)

(0.77)

Net

asset

value,

end

of

year

.......................

$7.85

$8.80

$9.75

$10.64

$11.25

Total

return

....................................

(5.95)%

(4.74)%

(3.92)%

0.60%

1.44%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.72%

0.72%

0.69%

0.67%

0.69%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.69%

0.71%

0.66%

0.60%

0.61%

c

Net

investment

income

...........................

4.41%

4.74%

4.31%

5.52%

5.24%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,284,522

$3,641,639

$7,050,610

$14,244,707

$18,506,219

Portfolio

turnover

rate

............................

16.01%

28.44%

60.07%

32.63%

19.86%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Schedule

of

Investments,

December

31,

2022

Templeton

Global

Bond

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

44.4%

Brazil

1.9%

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/27

..................

433,584,000

BRL

$

75,937,348

10%,

1/01/31

..................

208,480,000

BRL

34,555,779

110,493,127

Colombia

4.8%

Colombia

Government

Bond

,

Senior

Bond,

4.375%,

3/21/23

.....

6,831,000,000

COP

1,384,399

Senior

Bond,

9.85%,

6/28/27

......

10,884,000,000

COP

1,988,224

Colombia

Titulos

de

Tesoreria

,

B,

10%,

7/24/24

................

359,411,500,000

COP

72,242,062

B,

6.25%,

11/26/25

..............

126,303,000,000

COP

22,327,816

B,

7.5%,

8/26/26

...............

172,321,200,000

COP

30,414,804

B,

5.75%,

11/03/27

..............

91,769,000,000

COP

14,358,590

B,

6%,

4/28/28

.................

322,225,100,000

COP

49,742,924

B,

7.75%,

9/18/30

..............

295,978,800,000

COP

46,029,664

a

B,

7%,

3/26/31

.................

110,158,200,000

COP

16,094,188

B,

7%,

6/30/32

.................

107,691,000,000

COP

15,156,194

B,

6.25%,

7/09/36

..............

18,484,000,000

COP

2,204,933

271,943,798

Ghana

1.7%

Ghana

Government

Bond

,

19.75%,

3/25/24

................

186,550,000

GHS

15,184,808

18.3%,

3/02/26

................

6,300,000

GHS

371,393

19%,

11/02/26

.................

833,825,000

GHS

46,504,491

19.75%,

3/15/32

................

820,425,000

GHS

34,796,042

96,856,734

India

4.7%

India

Government

Bond

,

8.2%,

9/24/25

.................

320,200,000

INR

3,966,487

7.59%,

1/11/26

.................

4,022,000,000

INR

49,195,611

7.27%,

4/08/26

................

1,448,000,000

INR

17,554,955

8.33%,

7/09/26

................

8,401,000,000

INR

104,981,407

7.26%,

1/14/29

................

6,911,000,000

INR

83,446,998

Senior

Note,

5.15%,

11/09/25

......

622,300,000

INR

7,143,200

266,288,658

Indonesia

8.8%

Indonesia

Government

Bond

,

FR39,

11.75%,

8/15/23

..........

641,965,000,000

IDR

42,807,339

FR40,

11%,

9/15/25

.............

532,795,000,000

IDR

38,190,843

FR44,

10%,

9/15/24

.............

248,790,000,000

IDR

17,030,836

FR46,

9.5%,

7/15/23

............

1,653,114,000,000

IDR

108,638,594

FR59,

7%,

5/15/27

..............

502,090,000,000

IDR

33,101,440

FR70,

8.375%,

3/15/24

..........

2,197,357,000,000

IDR

145,857,269

FR81,

6.5%,

6/15/25

............

162,429,000,000

IDR

10,537,916

FR86,

5.5%,

4/15/26

............

1,712,391,000,000

IDR

107,907,857

504,072,094

Mexico

1.7%

Mexican

Bonos

Desarr

Fixed

Rate

,

M,

7.5%,

5/26/33

...............

1,682,600,000

MXN

77,237,984

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

35

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Mexico

(continued)

Mexican

Bonos

Desarr

Fixed

Rate,

(continued)

M

20,

Senior

Bond,

8.5%,

5/31/29

..

384,700,000

MXN

$

19,213,927

96,451,911

Norway

9.4%

b

Norway

Government

Bond

,

Senior

Bond,

144A,

Reg

S,

2%,

5/24/23

......................

1,503,753,000

NOK

152,823,113

Senior

Bond,

144A,

Reg

S,

3%,

3/14/24

......................

2,921,308,000

NOK

297,652,141

Senior

Bond,

144A,

Reg

S,

1.75%,

3/13/25

......................

890,910,000

NOK

88,394,572

538,869,826

South

Korea

8.0%

Korea

Treasury

Bonds

,

1.875%,

3/10/24

................

58,662,000,000

KRW

45,594,639

1.375%,

9/10/24

................

385,853,010,000

KRW

294,686,926

3%,

9/10/24

...................

146,030,000,000

KRW

114,575,190

454,856,755

Thailand

3.4%

Thailand

Government

Bond

,

0.75%,

9/17/24

................

3,255,070,000

THB

92,899,077

1%,

6/17/27

...................

2,318,690,000

THB

64,331,228

Senior

Note,

0.66%,

11/22/23

......

1,302,120,000

THB

37,394,627

194,624,932

Total

Foreign

Government

and

Agency

Securities

(Cost

$3,281,297,958)

...........

2,534,457,835

U.S.

Government

and

Agency

Securities

21.7%

United

States

21.7%

U.S.

Treasury

Notes

,

4.5%,

11/30/24

.................

145,679,000

145,696,072

1.75%,

12/31/24

................

145,678,000

138,303,051

2.875%,

5/31/25

................

37,950,000

36,697,354

2.625%,

12/31/25

...............

418,885,000

400,656,960

1.625%,

2/15/26

................

226,420,000

209,473,878

2.125%,

5/31/26

................

103,431,000

96,804,952

1.625%,

10/31/26

...............

226,430,000

206,732,358

1,234,364,625

Total

U.S.

Government

and

Agency

Securities

(Cost

$1,333,575,839)

..............

1,234,364,625

Total

Long

Term

Investments

(Cost

$4,614,873,797)

.............................

3,768,822,460

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

Short

Term

Investments

31.1%

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

23.6%

Brazil

8.9%

c

Brazil

Letras

do

Tesouro

Nacional

,

1/01/24

......................

206,720,000

BRL

$

34,519,108

7/01/24

......................

764,550,000

BRL

120,630,432

1/01/25

......................

2,370,780,000

BRL

353,241,453

508,390,993

Japan

10.1%

c

Japan

Treasury

Bills

,

1/25/23

......................

11,304,600,000

JPY

86,116,879

2/27/23

......................

9,672,700,000

JPY

73,698,052

5/10/23

......................

25,360,000,000

JPY

193,273,481

9/20/23

......................

28,889,900,000

JPY

220,211,354

573,299,766

Singapore

4.6%

c

Singapore

Treasury

Bills

,

5/30/23

....

358,260,000

SGD

262,821,408

Total

Foreign

Government

and

Agency

Securities

(Cost

$1,335,510,484)

...........

1,344,512,167

Shares

Money

Market

Funds

7.5%

United

States

7.5%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

.........

428,932,984

428,932,984

Total

Money

Market

Funds

(Cost

$428,932,984)

.................................

428,932,984

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$1,764,443,468

)

.............................

1,773,445,151

a

a

a

Total

Investments

(Cost

$6,379,317,265)

97.2%

..................................

$5,542,267,611

Other

Assets,

less

Liabilities

2.8%

.............................................

161,612,051

Net

Assets

100.0%

...........................................................

$5,703,879,662

a

a

a

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

December

31,

2022,

the

aggregate

value

of

these

securities

was

$538,869,826,

representing

9.4%

of

net

assets.

c

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

d

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

e

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

37

At

December

31,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(d). 

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Chinese

Yuan

......

CITI

Buy

856,161,690

127,741,475

1/11/23

$

—

$

(3,959,074)

Euro

.............

HSBK

Buy

87,170,000

91,408,641

1/11/23

1,947,752

—

Euro

.............

HSBK

Sell

256,580,000

252,374,654

1/11/23

—

(22,414,647)

Indian

Rupee

......

HSBK

Buy

2,559,257,100

31,766,758

1/11/23

—

(848,575)

Indian

Rupee

......

JPHQ

Buy

2,823,969,900

34,244,881

1/11/23

—

(128,724)

South

Korean

Won

..

MSCO

Buy

147,734,000,000

112,748,226

1/17/23

4,597,629

—

South

Korean

Won

..

JPHQ

Buy

37,708,300,000

28,946,265

1/18/23

1,006,078

—

Euro

.............

DBAB

Sell

155,497,462

1,645,112,308

SEK

1/19/23

—

(8,842,677)

Swedish

Krona

.....

DBAB

Sell

1,645,112,308

155,658,627

EUR

1/19/23

9,015,386

—

Chilean

Peso

......

GSCO

Buy

18,813,550,000

19,556,705

1/20/23

2,573,110

—

Chilean

Peso

......

GSCO

Sell

9,888,000,000

11,059,166

1/20/23

—

(571,792)

Chilean

Peso

......

JPHQ

Buy

17,871,274,547

18,111,249

1/24/23

2,898,454

—

Euro

.............

BZWS

Sell

69,550,000

68,971,344

1/25/23

—

(5,593,764)

Euro

.............

DBAB

Sell

91,387,000

100,708,824

1/25/23

2,732,095

—

South

Korean

Won

..

CITI

Buy

73,606,900,000

56,673,006

1/25/23

1,800,242

—

Canadian

Dollar

....

HSBK

Buy

301,760,000

225,271,332

2/03/23

—

(2,364,592)

Canadian

Dollar

....

HSBK

Sell

301,760,000

215,690,273

EUR

2/03/23

8,494,399

—

Euro

.............

HSBK

Sell

386,610,575

511,912,995

CAD

2/03/23

—

(36,626,857)

Chilean

Peso

......

JPHQ

Buy

29,488,000,000

32,930,929

2/09/23

1,654,927

—

Chilean

Peso

......

GSCO

Buy

37,210,285,275

40,720,382

2/21/23

2,841,513

—

Chilean

Peso

......

MSCO

Buy

33,537,277,800

36,646,755

2/21/23

2,615,168

—

Japanese

Yen

......

BOFA

Buy

15,477,619,440

112,034,885

2/22/23

6,651,772

—

Chilean

Peso

......

GSCO

Buy

12,107,880,000

14,335,638

3/07/23

—

(192,496)

Chinese

Yuan

......

BOFA

Buy

354,401,030

51,399,714

3/07/23

60,967

—

Chilean

Peso

......

GSCO

Buy

45,411,400,440

50,597,661

3/15/23

2,371,468

—

Chinese

Yuan

......

JPHQ

Buy

588,157,946

85,221,756

3/15/23

232,048

—

Indian

Rupee

......

CITI

Buy

2,857,906,500

34,486,624

3/15/23

—

(102,939)

Indian

Rupee

......

JPHQ

Buy

4,628,008,500

55,839,871

3/15/23

—

(159,958)

Japanese

Yen

......

BNDP

Buy

7,696,725,520

54,933,410

3/15/23

4,255,326

—

Japanese

Yen

......

BOFA

Buy

27,371,868,200

195,433,077

3/15/23

15,059,847

—

Japanese

Yen

......

GSCO

Buy

22,289,000,000

153,513,218

3/15/23

17,891,844

—

Japanese

Yen

......

JPHQ

Buy

8,080,979,530

57,677,612

3/15/23

4,466,082

—

New

Zealand

Dollar

.

BOFA

Buy

56,380,000

33,887,199

3/15/23

1,931,290

—

New

Zealand

Dollar

.

CITI

Buy

66,290,000

42,460,402

3/15/23

—

(346,042)

New

Zealand

Dollar

.

JPHQ

Buy

181,180,000

109,002,417

3/15/23

6,102,120

—

South

Korean

Won

..

BNDP

Buy

350,486,200,000

253,040,358

3/15/23

25,730,057

—

South

Korean

Won

..

DBAB

Buy

66,506,000,000

51,038,717

3/15/23

1,858,958

—

South

Korean

Won

..

HSBK

Buy

247,500,000,000

189,364,958

3/15/23

7,492,087

—

South

Korean

Won

..

HSBK

Buy

169,800,000,000

122,803,211

3/23/23

12,293,574

—

Euro

.............

BZWS

Sell

32,638,000

36,250,863

4/25/23

1,049,770

—

Euro

.............

DBAB

Sell

90,939,000

90,663,819

4/25/23

—

(7,416,709)

Euro

.............

HSBK

Sell

20,687,366

28,148,471

CAD

5/03/23

—

(1,508,876)

Chinese

Yuan

......

CITI

Buy

841,154,240

122,223,484

6/07/23

764,405

—

Indian

Rupee

......

JPHQ

Buy

2,589,343,200

30,930,457

6/14/23

10,964

—

Japanese

Yen

......

DBAB

Buy

35,628,107,310

265,623,901

6/15/23

12,058,325

—

Japanese

Yen

......

MSCO

Buy

15,600,000,000

118,104,424

6/21/23

3,586,902

—

Chilean

Peso

......

GSCO

Buy

24,095,047,612

24,120,348

7/26/23

3,492,312

—

Mexican

Peso

......

MSCO

Buy

179,588,000

8,514,338

8/04/23

341,783

—

Mexican

Peso

......

MSCO

Sell

179,588,000

8,127,993

8/04/23

—

(728,128)

Mexican

Peso

......

CITI

Buy

522,579,750

24,914,790

10/23/23

487,601

—

Mexican

Peso

......

CITI

Sell

522,579,750

22,751,028

10/23/23

—

(2,651,362)

Mexican

Peso

......

MSCO

Buy

540,623,000

23,797,496

9/03/24

1,295,987

—

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

Forward

Exchange

Contracts

(continued)

Currency

Counter-

party

a

Type

Quantity

Contract

Amount*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

(continued)

Mexican

Peso

......

MSCO

Sell

540,623,000

22,984,206

9/03/24

$

—

$

(2,109,277)

Total

Forward

Exchange

Contracts

...................................................

$171,662,242

$(96,566,489)

Net

unrealized

appreciation

(depreciation)

............................................

$75,095,753

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

See

Note 

12

 regarding

other

derivative

information.

See

Abbreviations

on

page

101

.

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Total

Return

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

39

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.77

$9.98

$11.02

$11.62

$12.04

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.46

0.63

0.43

0.60

0.67

Net

realized

and

unrealized

gains

(losses)

...........

(1.55)

(1.14)

(1.01)

(0.46)

(0.47)

Total

from

investment

operations

....................

(1.09)

(0.51)

(0.58)

0.14

0.20

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(0.02)

(0.74)

(0.62)

Tax

return

of

capital

............................

(0.52)

(0.70)

(0.44)

—

—

Total

distributions

...............................

(0.52)

(0.70)

(0.46)

(0.74)

(0.62)

Net

asset

value,

end

of

year

.......................

$7.16

$8.77

$9.98

$11.02

$11.62

Total

return

c

...................................

(12.53)%

(5.39)%

(5.32)%

1.21%

1.69%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.16%

1.17%

1.08%

1.04%

1.09%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.14%

1.16%

1.06%

0.96%

1.01%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.14%

d

1.16%

d

1.04%

0.93%

1.01%

d

Net

investment

income

...........................

5.99%

6.67%

4.19%

5.27%

5.62%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$200,854

$299,056

$482,575

$769,018

$811,990

Portfolio

turnover

rate

............................

35.05%

23.94%

60.89%

27.57%

20.91%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.76

$9.96

$11.01

$11.61

$12.02

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.44

0.59

0.39

0.56

0.62

Net

realized

and

unrealized

gains

(losses)

...........

(1.56)

(1.14)

(1.02)

(0.46)

(0.46)

Total

from

investment

operations

....................

(1.12)

(0.55)

(0.63)

0.10

0.16

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(0.01)

(0.70)

(0.57)

Tax

return

of

capital

............................

(0.49)

(0.65)

(0.41)

—

—

Total

distributions

...............................

(0.49)

(0.65)

(0.42)

(0.70)

(0.57)

Net

asset

value,

end

of

year

.......................

$7.15

$8.76

$9.96

$11.01

$11.61

Total

return

c

...................................

(12.92)%

(5.72)%

(5.80)%

0.81%

1.37%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.57%

1.56%

1.48%

1.44%

1.49%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.54%

1.56%

d

1.46%

1.36%

1.41%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.54%

e

1.56%

e

1.44%

1.33%

1.41%

e

Net

investment

income

...........................

5.63%

6.21%

3.79%

4.87%

5.22%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$19,873

$40,591

$113,438

$237,215

$310,561

Portfolio

turnover

rate

............................

35.05%

23.94%

60.89%

27.57%

20.91%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

41

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.78

$9.98

$11.03

$11.63

$12.04

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.44

0.61

0.40

0.58

0.64

Net

realized

and

unrealized

gains

(losses)

...........

(1.55)

(1.14)

(1.02)

(0.47)

(0.46)

Total

from

investment

operations

....................

(1.11)

(0.53)

(0.62)

0.11

0.18

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(0.02)

(0.71)

(0.59)

Tax

return

of

capital

............................

(0.50)

(0.67)

(0.41)

—

—

Total

distributions

...............................

(0.50)

(0.67)

(0.43)

(0.71)

(0.59)

Net

asset

value,

end

of

year

.......................

$7.17

$8.78

$9.98

$11.03

$11.63

Total

return

....................................

(12.74)%

(5.54)%

(5.65)%

0.95%

1.52%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.41%

1.42%

1.32%

1.29%

1.34%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.38%

1.41%

1.30%

1.21%

1.26%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.38%

c

1.41%

c

1.28%

1.18%

1.26%

c

Net

investment

income

...........................

5.72%

6.44%

3.89%

5.02%

5.37%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$3,322

$4,823

$7,741

$7,377

$7,957

Portfolio

turnover

rate

............................

35.05%

23.94%

60.89%

27.57%

20.91%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.78

$9.98

$11.03

$11.63

$12.05

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.51

0.66

0.47

0.65

0.71

Net

realized

and

unrealized

gains

(losses)

...........

(1.58)

(1.13)

(1.02)

(0.47)

(0.47)

Total

from

investment

operations

....................

(1.07)

(0.47)

(0.55)

0.18

0.24

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(0.02)

(0.78)

(0.66)

Tax

return

of

capital

............................

(0.55)

(0.73)

(0.48)

—

—

Total

distributions

...............................

(0.55)

(0.73)

(0.50)

(0.78)

(0.66)

Net

asset

value,

end

of

year

.......................

$7.16

$8.78

$9.98

$11.03

$11.63

Total

return

....................................

(12.27)%

(4.91)%

(5.05)%

1.57%

2.06%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.85%

0.79%

0.71%

0.69%

0.73%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.80%

0.77%

0.69%

0.60%

0.65%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.80%

c

0.77%

c

0.67%

0.57%

0.65%

c

Net

investment

income

...........................

6.47%

7.01%

4.57%

5.63%

5.98%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$47,859

$170,830

$294,519

$876,665

$986,689

Portfolio

turnover

rate

............................

35.05%

23.94%

60.89%

27.57%

20.91%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

43

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.79

$10.00

$11.04

$11.64

$12.05

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.49

0.65

0.46

0.63

0.70

Net

realized

and

unrealized

gains

(losses)

...........

(1.56)

(1.14)

(1.02)

(0.46)

(0.46)

Total

from

investment

operations

....................

(1.07)

(0.49)

(0.56)

0.17

0.24

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(0.02)

(0.77)

(0.65)

Tax

return

of

capital

............................

(0.54)

(0.72)

(0.46)

—

—

Total

distributions

...............................

(0.54)

(0.72)

(0.48)

(0.77)

(0.65)

Net

asset

value,

end

of

year

.......................

$7.18

$8.79

$10.00

$11.04

$11.64

Total

return

....................................

(12.28)%

(5.14)%

(5.07)%

1.46%

2.03%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.92%

0.92%

0.83%

0.79%

0.84%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.89%

0.91%

0.81%

0.71%

0.76%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.89%

c

0.91%

c

0.78%

0.68%

0.76%

c

Net

investment

income

...........................

6.31%

6.84%

4.48%

5.52%

5.87%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$203,568

$424,413

$1,104,754

$2,684,044

$2,992,808

Portfolio

turnover

rate

............................

35.05%

23.94%

60.89%

27.57%

20.91%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Schedule

of

Investments,

December

31,

2022

Templeton

Global

Total

Return

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

a

a

Industry

Shares

a

Value

a

Common

Stocks

0.0%

South

Africa

0.0%

a,b,c

K2016470219

South

Africa

Ltd.,

A

....

Multiline

Retail

434,200,485

$

—

a,b,c

K2016470219

South

Africa

Ltd.,

B

....

Multiline

Retail

50,014,925

—

—

Total

Common

Stocks

(Cost

$1,645,359)

.......................................

—

Principal

Amount

*

a

a

a

a

a

Corporate

Bonds

0.0%

South

Africa

0.0%

a,d,e

K2016470219

South

Africa

Ltd.

,

Senior

Secured

Note,

144A,

PIK,

3%,

1/06/23

......................

Multiline

Retail

37,627,701

—

Senior

Secured

Note,

144A,

PIK,

8%,

1/06/23

......................

Multiline

Retail

14,528,882

EUR

—

a,d,e

K2016470260

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

25

%

,

1/06/23

......................

Multiline

Retail

19,186,470

—

—

Total

Corporate

Bonds

(Cost

$46,940,535)

......................................

—

a

a

Industry

Principal

Amount

*

a

Value

Foreign

Government

and

Agency

Securities

62.0%

Brazil

3.3%

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/27

..................

81,500,000

BRL

14,273,806

10%,

1/01/31

..................

8,440,000

BRL

1,398,939

15,672,745

Colombia

7.1%

Colombia

Titulos

de

Tesoreria

,

B,

10%,

7/24/24

................

7,694,100,000

COP

1,546,522

B,

6.25%,

11/26/25

..............

9,412,000,000

COP

1,663,851

B,

7.5%,

8/26/26

...............

131,496,000,000

COP

23,209,129

B,

5.75%,

11/03/27

..............

6,893,000,000

COP

1,078,510

B,

6%,

4/28/28

.................

3,883,000,000

COP

599,431

B,

7.75%,

9/18/30

..............

8,382,000,000

COP

1,303,542

f

B,

7%,

3/26/31

.................

4,593,500,000

COP

671,113

B,

7%,

6/30/32

.................

23,937,000,000

COP

3,368,841

B,

6.25%,

7/09/36

..............

1,849,000,000

COP

220,565

33,661,504

Dominican

Republic

2.9%

e

Dominican

Republic

Government

Bond

,

Senior

Bond,

144A,

5.3%,

1/21/41

..

8,400,000

6,513,138

Senior

Bond,

144A,

6.4%,

6/05/49

..

1,460,000

1,185,854

Senior

Bond,

144A,

5.875%,

1/30/60

8,320,000

6,133,255

13,832,247

Ecuador

5.9%

e

Ecuador

Government

Bond

,

Senior

Bond,

144A,

2.5%,

7/31/35

..

33,616,000

15,636,758

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

45

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Ecuador

(continued)

e

Ecuador

Government

Bond,

(continued)

Senior

Note,

144A,

5.5%,

7/31/30

..

19,217,000

$

12,443,425

28,080,183

Egypt

4.4%

e

Egypt

Government

Bond

,

Senior

Bond,

144A,

7.625%,

5/29/32

1,330,000

988,819

Senior

Bond,

144A,

7.3%,

9/30/33

..

7,530,000

5,364,974

Senior

Bond,

144A,

8.5%,

1/31/47

..

8,190,000

5,484,401

Senior

Bond,

144A,

7.903%,

2/21/48

1,080,000

686,351

Senior

Bond,

144A,

8.7%,

3/01/49

..

820,000

549,775

Senior

Bond,

144A,

8.875%,

5/29/50

3,120,000

2,120,417

Senior

Bond,

144A,

8.75%,

9/30/51

.

6,580,000

4,442,816

Senior

Bond,

144A,

7.5%,

2/16/61

..

2,370,000

1,471,533

21,109,086

Ghana

2.7%

Ghana

Government

Bond

,

16.5%,

2/06/23

................

5,060,000

GHS

499,593

18.85%,

9/28/23

................

8,700,000

GHS

765,694

19.25%,

12/18/23

...............

2,890,000

GHS

245,653

18.3%,

3/02/26

................

990,000

GHS

58,362

19%,

11/02/26

.................

107,020,000

GHS

5,968,771

19.75%,

3/15/32

................

106,234,000

GHS

4,505,619

Senior

Note,

18.5%,

1/02/23

......

1,920,000

GHS

192,192

Senior

Note,

17.6%,

2/20/23

......

480,000

GHS

47,067

Senior

Note,

17.25%,

7/31/23

......

7,010,000

GHS

630,791

12,913,742

Hungary

2.9%

Hungary

Government

Bond

,

1%,

11/26/25

..................

3,174,900,000

HUF

6,517,496

f

4.75%,

11/24/32

................

3,812,000,000

HUF

7,414,762

13,932,258

India

4.1%

India

Government

Bond

,

7.59%,

1/11/26

.................

124,600,000

INR

1,524,061

7.27%,

4/08/26

................

1,473,200,000

INR

17,860,469

19,384,530

Indonesia

8.4%

Indonesia

Government

Bond

,

FR44,

10%,

9/15/24

.............

15,790,000,000

IDR

1,080,899

FR46,

9.5%,

7/15/23

............

121,516,000,000

IDR

7,985,733

FR59,

7%,

5/15/27

..............

150,718,000,000

IDR

9,936,431

FR81,

6.5%,

6/15/25

............

14,790,000,000

IDR

959,532

FR86,

5.5%,

4/15/26

............

315,285,000,000

IDR

19,867,968

39,830,563

Malaysia

3.9%

Malaysia

Government

Bond

,

3.882%,

3/14/25

................

11,540,000

MYR

2,632,062

3.955%,

9/15/25

................

13,570,000

MYR

3,096,524

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

46

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Malaysia

(continued)

Malaysia

Government

Bond,

(continued)

3.899%,

11/16/27

...............

56,630,000

MYR

$

12,880,277

18,608,863

Mexico

1.9%

Mexican

Bonos

Desarr

Fixed

Rate

,

M,

7.5%,

5/26/33

...............

155,700,000

MXN

7,147,245

M

20,

Senior

Bond,

8.5%,

5/31/29

..

35,600,000

MXN

1,778,050

8,925,295

Mongolia

1.2%

e

Mongolia

Government

Bond

,

Senior

Bond,

144A,

4.45%,

7/07/31

.

5,570,000

4,345,816

Senior

Note,

144A,

5.125%,

4/07/26

.

200,000

173,014

Senior

Note,

144A,

3.5%,

7/07/27

..

1,380,000

1,114,497

5,633,327

Norway

4.5%

e

Norway

Government

Bond

,

Senior

Bond,

144A,

Reg

S,

2%,

5/24/23

......................

2,361,000

NOK

239,943

Senior

Bond,

144A,

Reg

S,

3%,

3/14/24

......................

205,560,000

NOK

20,944,514

21,184,457

South

Korea

3.7%

Korea

Treasury

Bonds

,

1.375%,

9/10/24

................

12,890,900,000

KRW

9,845,147

3%,

9/10/24

...................

9,675,000,000

KRW

7,591,009

17,436,156

Sri

Lanka

0.6%

e,g

Sri

Lanka

Government

Bond

,

Senior

Bond,

144A,

6.85%,

11/03/25

2,100,000

677,445

Senior

Bond,

144A,

6.2%,

5/11/27

..

5,300,000

1,691,123

Senior

Bond,

144A,

6.75%,

4/18/28

.

460,000

147,316

Senior

Bond,

144A,

7.85%,

3/14/29

.

659,000

211,046

Senior

Note,

144A,

5.75%,

4/18/23

..

200,000

63,491

Senior

Note,

144A,

6.35%,

6/28/24

..

620,000

197,623

2,988,044

Thailand

4.5%

Thailand

Government

Bond

,

0.75%,

9/17/24

................

356,560,000

THB

10,176,154

1%,

6/17/27

...................

402,200,000

THB

11,158,896

21,335,050

Total

Foreign

Government

and

Agency

Securities

(Cost

$389,992,485)

............

294,528,050

U.S.

Government

and

Agency

Securities

7.4%

United

States

7.4%

U.S.

Treasury

Notes,

4.5%,

11/30/24

..

35,265,000

35,269,133

Total

U.S.

Government

and

Agency

Securities

(Cost

$35,329,003)

.................

35,269,133

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

47

a

a

Industry

Shares

a

Value

a

a

a

a

a

a

Escrows

and

Litigation

Trusts

0.0%

a,b

K2016470219

South

Africa

Ltd.,

Escrow

Account

......................

2,168,033

$

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

...................................

—

Total

Long

Term

Investments

(Cost

$473,907,382)

...............................

329,797,183

Short

Term

Investments

27.8%

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

20.2%

Brazil

9.6%

h

Brazil

Letras

do

Tesouro

Nacional

,

7/01/24

......................

30,950,000

BRL

4,883,281

1/01/25

......................

275,720,000

BRL

41,081,726

45,965,007

Japan

10.6%

h

Japan

Treasury

Bills

,

1/25/23

......................

1,039,000,000

JPY

7,914,958

2/27/23

......................

1,450,400,000

JPY

11,050,860

5/10/23

......................

1,454,000,000

JPY

11,081,216

9/20/23

......................

2,655,700,000

JPY

20,242,898

50,289,932

Total

Foreign

Government

and

Agency

Securities

(Cost

$96,431,734)

..............

96,254,939

Shares

Money

Market

Funds

7.6%

United

States

7.6%

i,j

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

.........

36,021,294

36,021,294

Total

Money

Market

Funds

(Cost

$36,021,294)

..................................

36,021,294

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$132,453,028

)

...............................

132,276,233

a

a

a

Total

Investments

(Cost

$606,360,410)

97.2%

...................................

$462,073,416

Other

Assets,

less

Liabilities

2.8%

.............................................

13,403,458

Net

Assets

100.0%

...........................................................

$475,476,874

a

a

a

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

14

regarding

fair

value

measurements.

b

Non-income

producing.

c

See

Note

11

regarding

restricted

securities.

d

Income

may

be

received

in

additional

securities

and/or

cash.

e

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

December

31,

2022,

the

aggregate

value

of

these

securities

was

$92,827,344,

representing

19.5%

of

net

assets.

f

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

g

See

Note

7

regarding

credit

risk

and

defaulted

securities.

h

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

i

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

j

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

48

At

December

31,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(d). 

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Chinese

Yuan

......

CITI

Buy

6,291,510

938,709

1/11/23

$

—

$

(29,093)

Euro

.............

HSBK

Buy

31,020,000

32,420,700

1/11/23

800,767

—

Euro

.............

HSBK

Sell

31,020,000

30,511,582

1/11/23

—

(2,709,885)

Indian

Rupee

......

HSBK

Buy

797,617,100

9,898,222

1/11/23

—

(262,273)

South

Korean

Won

..

JPHQ

Buy

11,907,000,000

9,140,247

1/18/23

317,685

—

South

Korean

Won

..

JPHQ

Sell

11,907,000,000

8,374,596

1/18/23

—

(1,083,337)

Euro

.............

DBAB

Sell

2,851,014

30,350,750

SEK

1/19/23

—

(144,101)

Swedish

Krona

.....

DBAB

Sell

30,350,749

2,871,753

EUR

1/19/23

166,325

—

Chilean

Peso

......

GSCO

Buy

4,371,850,000

4,544,543

1/20/23

597,933

—

Chilean

Peso

......

JPHQ

Buy

1,980,493,553

2,007,087

1/24/23

321,207

—

Euro

.............

BZWS

Buy

8,627,000

9,175,410

1/25/23

73,664

—

Euro

.............

BZWS

Sell

8,627,000

8,555,223

1/25/23

—

(693,852)

Euro

.............

DBAB

Buy

10,320,000

10,933,071

1/25/23

131,083

—

Euro

.............

DBAB

Sell

11,335,000

12,491,214

1/25/23

338,871

—

South

Korean

Won

..

CITI

Buy

13,227,400,000

10,184,324

1/25/23

323,509

—

Euro

.............

MSCO

Sell

7,375,342

76,776,200

NOK

1/27/23

—

(64,133)

Norwegian

Krone

...

MSCO

Sell

35,500,000

3,454,381

EUR

1/27/23

76,994

—

Canadian

Dollar

....

HSBK

Buy

61,990,000

46,277,169

2/03/23

—

(485,849)

Canadian

Dollar

....

HSBK

Sell

61,990,000

44,309,173

EUR

2/03/23

1,745,330

—

Euro

.............

HSBK

Sell

65,005,859

86,074,583

CAD

2/03/23

—

(6,158,549)

Euro

.............

JPHQ

Sell

2,326,392

24,300,000

SEK

2/13/23

—

(163,341)

Swedish

Krona

.....

JPHQ

Sell

24,300,000

2,311,688

EUR

2/13/23

147,556

—

Indian

Rupee

......

HSBK

Buy

257,214,374

3,074,814

2/14/23

26,817

—

Chilean

Peso

......

JPHQ

Buy

1,247,506,447

1,449,999

2/15/23

11,813

—

Chilean

Peso

......

GSCO

Buy

5,443,964,441

5,957,501

2/21/23

415,721

—

Chilean

Peso

......

GSCO

Buy

2,675,860,000

3,168,198

3/07/23

—

(42,542)

Chinese

Yuan

......

BOFA

Buy

94,538,690

13,711,195

3/07/23

16,263

—

Chilean

Peso

......

GSCO

Buy

12,484,811,788

13,910,654

3/15/23

651,980

—

Chinese

Yuan

......

BOFA

Buy

58,047,670

8,367,714

3/15/23

66,065

—

Chinese

Yuan

......

HSBK

Buy

23,508,820

3,300,966

3/15/23

114,644

—

Chinese

Yuan

......

JPHQ

Buy

66,647,640

9,656,979

3/15/23

26,295

—

Euro

.............

BOFA

Buy

1,840,000

1,966,813

3/15/23

12,463

—

Euro

.............

BOFA

Sell

10,260,000

10,229,589

3/15/23

—

(807,023)

Indian

Rupee

......

CITI

Buy

1,300,727,980

15,668,355

3/15/23

23,119

(42,319)

Japanese

Yen

......

BNDP

Buy

706,082,800

5,039,485

3/15/23

390,375

—

Japanese

Yen

......

BOFA

Buy

2,511,042,560

17,928,655

3/15/23

1,381,561

—

Japanese

Yen

......

JPHQ

Buy

741,333,530

5,291,233

3/15/23

409,710

—

South

Korean

Won

..

BNDP

Buy

6,599,700,000

4,764,782

3/15/23

484,500

—

South

Korean

Won

..

CITI

Buy

22,815,900,000

16,985,595

3/15/23

1,161,762

—

South

Korean

Won

..

DBAB

Buy

71,250,000,000

54,679,406

3/15/23

1,991,562

—

British

Pound

......

DBAB

Sell

3,250,000

3,740,567

EUR

4/25/23

95,033

—

Euro

.............

BZWS

Sell

4,048,000

4,496,093

4/25/23

130,200

—

Euro

.............

DBAB

Sell

530,000

528,396

4/25/23

—

(43,225)

Euro

.............

DBAB

Sell

3,677,948

3,250,000

GBP

4/25/23

—

(27,496)

Euro

.............

HSBK

Sell

479,297

652,161

CAD

5/03/23

—

(34,959)

Japanese

Yen

......

DBAB

Buy

2,831,454,060

21,109,790

6/15/23

958,305

—

Chilean

Peso

......

GSCO

Buy

4,503,052,836

4,509,362

7/26/23

651,087

—

Mexican

Peso

......

MSCO

Buy

22,503,000

1,064,475

8/04/23

45,228

—

Mexican

Peso

......

MSCO

Sell

22,503,000

1,018,466

8/04/23

—

(91,237)

Mexican

Peso

......

MSCO

Buy

67,743,000

2,981,957

9/03/24

162,394

—

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

49

At

December

31

,

2022,

the

Fund

had

the

following

interest

rate

swap

contracts

outstanding.

See

Note

1

(

d

). 

Forward

Exchange

Contracts

(continued)

Currency

Counter-

party

a

Type

Quantity

Contract

Amount*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

(continued)

Mexican

Peso

......

MSCO

Sell

67,743,000

2,880,046

9/03/24

$

—

$

(264,304)

Total

Forward

Exchange

Contracts

...................................................

$14,267,821

$(13,147,518)

Net

unrealized

appreciation

(depreciation)

............................................

$1,120,303

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

Interest

Rate

Swap

Contracts

Description

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

*

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

aa

aa

aa

aa

Centrally

Cleared

Swap

Contracts

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

1.762%

...

Annual

3/15/27

13,000,000

$

1,064,577

$

—

$

1,064,577

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

1.811%

...

Annual

3/15/32

6,700,000

923,629

—

923,629

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.176%

...

Annual

3/28/32

3,330,000

359,057

—

359,057

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.257%

...

Annual

3/30/32

3,330,000

335,729

—

335,729

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.253%

...

Annual

3/31/32

3,320,000

345,495

—

345,495

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.418%

...

Annual

4/11/32

4,260,000

375,524

—

375,524

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.463%

...

Annual

4/18/32

1,330,000

112,810

—

112,810

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.541%

...

Annual

4/19/32

710,000

55,528

—

55,528

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.549%

...

Annual

4/19/32

1,750,000

135,670

—

135,670

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.67%

....

Annual

4/21/32

1,720,000

115,846

—

115,846

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.645%

...

Annual

5/16/32

425,000

30,406

—

30,406

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

50

Interest

Rate

Swap

Contracts

(continued)

Description

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount*

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

aa

aa

aa

aa

Centrally

Cleared

Swap

Contracts

(continued)

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.741%

...

Annual

5/19/32

1,400,000

$

88,815

$

—

$

88,815

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.662%

...

Annual

6/02/32

1,824,000

135,548

—

135,548

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.989%

...

Annual

6/30/32

1,421,000

69,328

—

69,328

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.612%

...

Annual

7/07/32

1,421,000

110,113

—

110,113

Total

Interest

Rate

Swap

Contracts

...............................

$4,258,075

$

—

$4,258,075

*

In

U.S.

dollars

unless

otherwise

indicated.

See

Note 

12

 regarding

other

derivative

information.

See

Abbreviations

on

page

101

.

Templeton

Income

Trust

Financial

Highlights

Templeton

International

Bond

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

51

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.17

$9.01

$9.77

$10.14

$10.57

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.28

0.23

0.20

0.42

0.40

Net

realized

and

unrealized

gains

(losses)

...........

(0.76)

(0.82)

(0.75)

(0.23)

(0.22)

Total

from

investment

operations

....................

(0.48)

(0.59)

(0.55)

0.19

0.18

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(—)

c

(0.56)

(0.59)

Net

realized

gains

.............................

—

—

—

—

(0.01)

Tax

return

of

capital

............................

(0.36)

(0.25)

(0.21)

—

(0.01)

Total

distributions

...............................

(0.36)

(0.25)

(0.21)

(0.56)

(0.61)

Net

asset

value,

end

of

year

.......................

$7.33

$8.17

$9.01

$9.77

$10.14

Total

return

d

...................................

(5.90)%

(6.65)%

(5.66)%

1.86%

1.82%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.73%

1.37%

1.21%

1.20%

1.26%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.04%

0.99%

1.00%

1.00%

0.99%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.04%

e

0.99%

e

0.99%

0.98%

0.98%

Net

investment

income

...........................

3.64%

2.69%

2.12%

4.18%

3.93%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$13,703

$17,129

$22,455

$39,532

$38,856

Portfolio

turnover

rate

............................

9.13%

60.68%

86.26%

24.26%

43.13%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

52

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.19

$9.02

$9.78

$10.16

$10.58

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.25

0.19

0.16

0.39

0.36

Net

realized

and

unrealized

gains

(losses)

...........

(0.76)

(0.81)

(0.75)

(0.25)

(0.21)

Total

from

investment

operations

....................

(0.51)

(0.62)

(0.59)

0.14

0.15

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(—)

c

(0.52)

(0.55)

Net

realized

gains

.............................

—

—

—

—

(0.01)

Tax

return

of

capital

............................

(0.33)

(0.21)

(0.17)

—

(0.01)

Total

distributions

...............................

(0.33)

(0.21)

(0.17)

(0.52)

(0.57)

Net

asset

value,

end

of

year

.......................

$7.35

$8.19

$9.02

$9.78

$10.16

Total

return

d

...................................

(6.30)%

(6.96)%

(6.03)%

1.35%

1.52%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

2.16%

1.71%

1.61%

1.60%

1.66%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.43%

1.39%

1.40%

1.40%

1.39%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.43%

e

1.39%

e

1.39%

1.38%

1.38%

Net

investment

income

...........................

3.28%

2.22%

1.70%

3.78%

3.53%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$842

$1,365

$3,541

$6,694

$8,654

Portfolio

turnover

rate

............................

9.13%

60.68%

86.26%

24.26%

43.13%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

53

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.17

$9.01

$9.76

$10.14

$10.56

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.25

0.21

0.17

0.41

0.39

Net

realized

and

unrealized

gains

(losses)

...........

(0.75)

(0.82)

(0.73)

(0.25)

(0.22)

Total

from

investment

operations

....................

(0.50)

(0.61)

(0.56)

0.16

0.17

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(—)

c

(0.54)

(0.57)

Net

realized

gains

.............................

—

—

—

—

(0.01)

Tax

return

of

capital

............................

(0.34)

(0.23)

(0.19)

—

(0.01)

Total

distributions

...............................

(0.34)

(0.23)

(0.19)

(0.54)

(0.59)

Net

asset

value,

end

of

year

.......................

$7.33

$8.17

$9.01

$9.76

$10.14

Total

return

....................................

(6.12)%

(6.90)%

(5.83)%

1.52%

1.67%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.94%

1.63%

1.46%

1.45%

1.51%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.29%

1.24%

1.25%

1.25%

1.24%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.29%

d

1.24%

d

1.24%

1.23%

1.23%

Net

investment

income

...........................

3.35

%

2.41%

1.82%

3.93%

3.68%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$117

$107

$138

$254

$300

Portfolio

turnover

rate

............................

9.13%

60.68%

86.26%

24.26%

43.13%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

54

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.17

$9.01

$9.77

$10.15

$10.57

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.31

0.22

0.19

0.45

0.45

Net

realized

and

unrealized

gains

(losses)

...........

(0.77)

(0.78)

(0.70)

(0.23)

(0.22)

Total

from

investment

operations

....................

(0.46)

(0.56)

(0.51)

0.22

0.23

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(—)

c

(0.60)

(0.63)

Net

realized

gains

.............................

—

—

—

—

(0.01)

Tax

return

of

capital

............................

(0.39)

(0.28)

(0.25)

—

(0.01)

Total

distributions

...............................

(0.39)

(0.28)

(0.25)

(0.60)

(0.65)

Net

asset

value,

end

of

year

.......................

$7.32

$8.17

$9.01

$9.77

$10.15

Total

return

....................................

(5.44)%

(6.29)%

(5.29)%

2.14%

2.28%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.43%

0.94%

0.80%

1.24%

1.09%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.64%

0.60%

0.61%

0.62%

0.66%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.64%

d

0.60%

d

0.60%

0.60%

0.65%

Net

investment

income

...........................

4.06%

2.55%

2.14%

4.56%

4.26%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$5,809

$8,242

$47,663

$3,878

$904

Portfolio

turnover

rate

............................

9.13%

60.68%

86.26%

24.26%

43.13%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

55

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.17

$9.02

$9.78

$10.15

$10.58

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.30

0.25

0.21

0.45

0.44

Net

realized

and

unrealized

gains

(losses)

...........

(0.76)

(0.83)

(0.73)

(0.23)

(0.23)

Total

from

investment

operations

....................

(0.46)

(0.58)

(0.52)

0.22

0.21

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(—)

c

(0.59)

(0.62)

Net

realized

gains

.............................

—

—

—

—

(0.01)

Tax

return

of

capital

............................

(0.38)

(0.27)

(0.24)

—

(0.01)

Total

distributions

...............................

(0.38)

(0.27)

(0.24)

(0.59)

(0.64)

Net

asset

value,

end

of

year

.......................

$7.33

$8.17

$9.02

$9.78

$10.15

Total

return

....................................

(5.68)%

(6.52)%

(5.41)%

2.12%

2.07%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.50%

0.99%

0.96%

0.95%

1.01%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.78%

0.74%

0.75%

0.75%

0.74%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.78%

d

0.74%

d

0.74%

0.73%

0.73%

Net

investment

income

...........................

3.95%

2.88%

2.30%

4.43%

4.18%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$16,520

$24,744

$284,611

$393,873

$346,303

Portfolio

turnover

rate

............................

9.13%

60.68%

86.26%

24.26%

43.13%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Schedule

of

Investments,

December

31,

2022

Templeton

International

Bond

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

56

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

57.5%

Australia

4.5%

a

Australia

Government

Bond,

Reg

S,

5.5%,

4/21/23

.................

2,450,000

AUD

$

1,678,918

Brazil

10.0%

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/27

..................

18,260,000

BRL

3,198,033

10%,

1/01/29

..................

2,040,000

BRL

346,550

10%,

1/01/31

..................

940,000

BRL

155,806

3,700,389

Colombia

4.6%

Colombia

Titulos

de

Tesoreria

,

B,

6.25%,

11/26/25

..............

100,000,000

COP

17,678

B,

7.5%,

8/26/26

...............

8,219,000,000

COP

1,450,659

B,

5.75%,

11/03/27

..............

68,000,000

COP

10,640

B,

6%,

4/28/28

.................

139,000,000

COP

21,458

B,

7.75%,

9/18/30

..............

399,000,000

COP

62,051

b

B,

7%,

3/26/31

.................

142,000,000

COP

20,746

B,

7%,

6/30/32

.................

670,000,000

COP

94,294

B,

6.25%,

7/09/36

..............

92,000,000

COP

10,975

1,688,501

Ghana

1.8%

Ghana

Government

Bond

,

19%,

9/18/23

..................

50,000

GHS

4,427

19.25%,

11/27/23

...............

280,000

GHS

24,022

19.25%,

6/23/25

................

3,560,000

GHS

236,349

18.3%,

3/02/26

................

3,230,000

GHS

190,413

Senior

Note,

20.75%,

1/16/23

......

50,000

GHS

5,003

Senior

Note,

21.7%,

3/17/25

......

2,980,000

GHS

214,815

675,029

India

4.4%

India

Government

Bond

,

8.2%,

9/24/25

.................

99,900,000

INR

1,237,514

7.27%,

4/08/26

................

33,000,000

INR

400,079

1,637,593

Indonesia

8.4%

Indonesia

Government

Bond

,

FR81,

6.5%,

6/15/25

............

14,200,000,000

IDR

921,254

FR86,

5.5%,

4/15/26

............

34,800,000,000

IDR

2,192,953

3,114,207

Mexico

1.7%

Mexican

Bonos

Desarr

Fixed

Rate

,

M,

7.5%,

5/26/33

...............

10,900,000

MXN

500,353

M

20,

Senior

Bond,

8.5%,

5/31/29

..

2,500,000

MXN

124,863

625,216

Singapore

0.9%

Singapore

Government

Bond,

2.375%,

6/01/25

......................

437,000

SGD

322,024

Templeton

Income

Trust

Schedule

of

Investments

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

57

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

South

Korea

17.9%

Korea

Treasury

Bonds,

1.875%,

6/10/26

8,869,220,000

KRW

$

6,615,696

Thailand

3.3%

Thailand

Government

Bond

,

0.75%,

9/17/24

................

19,320,000

THB

551,389

1%,

6/17/27

...................

14,770,000

THB

409,788

Senior

Note,

0.66%,

11/22/23

......

8,470,000

THB

243,244

1,204,421

Total

Foreign

Government

and

Agency

Securities

(Cost

$25,282,454)

..............

21,261,994

Short

Term

Investments

40.5%

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

11.8%

Japan

11.8%

c

Japan

Treasury

Bills

,

1/25/23

......................

70,000,000

JPY

533,250

2/27/23

......................

161,900,000

JPY

1,233,546

5/10/23

......................

161,000,000

JPY

1,227,012

9/20/23

......................

177,800,000

JPY

1,355,269

4,349,077

Total

Foreign

Government

and

Agency

Securities

(Cost

$4,022,762)

...............

4,349,077

Shares

Money

Market

Funds

28.7%

United

States

28.7%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

.........

10,620,409

10,620,409

Total

Money

Market

Funds

(Cost

$10,620,409)

..................................

10,620,409

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$14,643,171

)

................................

14,969,486

a

a

a

Total

Investments

(Cost

$39,925,625)

98.0%

....................................

$36,231,480

Other

Assets,

less

Liabilities

2.0%

.............................................

758,736

Net

Assets

100.0%

...........................................................

$36,990,216

a

a

a

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

December

31,

2022,

the

value

of

this

security

was

$1,678,918,

representing

4.5%

of

net

assets.

b

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

c

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

d

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

e

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Templeton

Income

Trust

Schedule

of

Investments

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

58

At

December

31,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(d). 

See

Note 

12

 regarding

other

derivative

information.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Chinese

Yuan

......

CITI

Buy

1,423,140

212,336

1/11/23

$

—

$

(6,581)

Indian

Rupee

......

JPHQ

Buy

40,526,500

491,445

1/11/23

—

(1,847)

Euro

.............

DBAB

Sell

1,545,711

16,419,498

SEK

1/19/23

—

(81,532)

Swedish

Krona

.....

DBAB

Sell

16,419,498

1,553,594

EUR

1/19/23

89,980

—

Chilean

Peso

......

GSCO

Buy

182,060,000

189,252

1/20/23

24,900

—

Chilean

Peso

......

JPHQ

Buy

182,999,365

185,457

1/24/23

29,680

—

Euro

.............

BZWS

Buy

433,000

451,625

1/25/23

12,597

—

Euro

.............

BZWS

Sell

433,000

429,397

1/25/23

—

(34,825)

Euro

.............

DBAB

Buy

570,000

593,755

1/25/23

17,346

—

Euro

.............

DBAB

Sell

570,000

628,139

1/25/23

17,038

—

South

Korean

Won

..

CITI

Buy

110,000,000

84,382

1/25/23

3,002

—

Euro

.............

MSCO

Sell

1,214,235

12,640,000

NOK

1/27/23

—

(10,559)

Canadian

Dollar

....

DBAB

Buy

500,000

374,442

2/03/23

—

(5,098)

Canadian

Dollar

....

HSBK

Buy

444,832

333,115

2/03/23

—

(4,523)

Canadian

Dollar

....

HSBK

Sell

444,832

321,421

EUR

2/03/23

16,241

—

Euro

.............

HSBK

Sell

335,949

444,832

CAD

2/03/23

—

(31,827)

Chilean

Peso

......

GSCO

Buy

414,738,856

453,862

2/21/23

31,671

—

Japanese

Yen

......

BOFA

Buy

95,569,950

691,784

2/22/23

41,073

—

South

Korean

Won

..

MSCO

Buy

1,670,000,000

1,277,002

2/22/23

50,429

—

Australian

Dollar

....

CITI

Sell

2,487,000

1,688,647

3/15/23

—

(9,514)

Canadian

Dollar

....

BOFA

Buy

970,000

721,549

3/15/23

—

(4,738)

Canadian

Dollar

....

BOFA

Sell

1,470,000

1,044,637

EUR

3/15/23

37,406

—

Chilean

Peso

......

GSCO

Buy

128,907,747

143,630

3/15/23

6,732

—

Chinese

Yuan

......

HSBK

Buy

14,981,470

2,103,607

3/15/23

73,059

—

Euro

.............

BOFA

Sell

2,168,217

2,921,000

CAD

3/15/23

—

(173,773)

Euro

.............

CITI

Sell

1,375,855

14,183,000

NOK

3/15/23

—

(27,871)

Euro

.............

DBAB

Sell

549,839

5,551,500

NOK

3/15/23

—

(23,067)

Indian

Rupee

......

CITI

Buy

52,990,400

639,440

3/15/23

—

(1,909)

Japanese

Yen

......

BNDP

Buy

47,525,120

339,198

3/15/23

26,276

—

Japanese

Yen

......

BOFA

Buy

169,013,600

1,206,744

3/15/23

92,990

—

Japanese

Yen

......

GSCO

Buy

146,000,000

1,005,561

3/15/23

117,196

—

Japanese

Yen

......

JPHQ

Buy

49,897,780

356,143

3/15/23

27,577

—

New

Zealand

Dollar

.

CITI

Buy

1,670,000

1,069,677

3/15/23

—

(8,718)

Singapore

Dollar

....

CITI

Buy

2,100,000

1,553,887

3/15/23

15,700

—

South

Korean

Won

..

HSBK

Buy

976,000,000

705,865

3/23/23

70,663

—

Euro

.............

BZWS

Buy

203,000

212,872

4/25/23

6,069

—

Euro

.............

BZWS

Sell

203,000

225,471

4/25/23

6,529

—

Euro

.............

DBAB

Buy

567,000

602,331

4/25/23

9,196

—

Euro

.............

DBAB

Sell

567,000

565,284

4/25/23

—

(46,243)

Japanese

Yen

......

DBAB

Buy

219,993,550

1,640,153

6/15/23

74,457

—

Chilean

Peso

......

GSCO

Buy

434,247,469

434,858

7/26/23

62,785

—

Total

Forward

Exchange

Contracts

...................................................

$960,592

$(472,625)

Net

unrealized

appreciation

(depreciation)

............................................

$487,967

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

See

A

bbreviations

on

page

101

.

Templeton

Income

Trust

Financial

Highlights

Templeton

Sustainable

Emerging

Markets

Bond

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

59

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$5.82

$6.70

$7.73

$8.13

$9.16

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.26

0.48

0.48

0.62

0.68

Net

realized

and

unrealized

gains

(losses)

...........

(0.86)

(0.83)

(1.00)

(0.51)

(0.99)

Total

from

investment

operations

....................

(0.60)

(0.35)

(0.52)

0.11

(0.31)

Less

distributions

from:

Net

investment

income

..........................

—

—

(0.01)

(0.51)

(0.52)

Net

realized

gains

.............................

—

—

—

—

(0.01)

Tax

return

of

capital

............................

(0.31)

(0.53)

(0.50)

—

(0.19)

Total

distributions

...............................

(0.31)

(0.53)

(0.51)

(0.51)

(0.72)

Net

asset

value,

end

of

year

.......................

$4.91

$5.82

$6.70

$7.73

$8.13

Total

return

c

...................................

(10.51)%

(5.54)%

(6.80)%

1.33%

(3.30)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

2.91%

2.77%

2.10%

2.16%

2.15%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.08%

1.13%

1.07%

1.13%

1.14%

Net

investment

income

...........................

4.90%

7.58%

6.84%

7.75%

8.03%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$10,984

$14,821

$16,004

$21,984

$20,728

Portfolio

turnover

rate

............................

58.11%

40.55%

56.59%

23.82%

18.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

Templeton

Income

Trust

Financial

Highlights

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

60

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$5.81

$6.69

$7.72

$8.12

$9.15

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.24

0.45

0.44

0.59

0.65

Net

realized

and

unrealized

gains

(losses)

...........

(0.86)

(0.83)

(0.99)

(0.52)

(1.00)

Total

from

investment

operations

....................

(0.62)

(0.38)

(0.55)

0.07

(0.35)

Less

distributions

from:

Net

investment

income

..........................

—

—

(0.01)

(0.47)

(0.49)

Net

realized

gains

.............................

—

—

—

—

(0.01)

Tax

return

of

capital

............................

(0.28)

(0.50)

(0.47)

—

(0.18)

Total

distributions

...............................

(0.28)

(0.50)

(0.48)

(0.47)

(0.68)

Net

asset

value,

end

of

year

.......................

$4.91

$5.81

$6.69

$7.72

$8.12

Total

return

c

...................................

(10.79)%

(5.96)%

(7.22)%

0.89%

(3.69)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

3.34%

3.13%

2.54%

2.56%

2.54%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.54%

1.54%

1.51%

1.53%

1.53%

Net

investment

income

...........................

4.52%

7.18%

6.33%

7.35%

7.64%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$734

$1,310

$1,821

$2,276

$2,799

Portfolio

turnover

rate

............................

58.11%

40.55%

56.59%

23.82%

18.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

Templeton

Income

Trust

Financial

Highlights

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

61

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$5.83

$6.71

$7.73

$8.14

$9.17

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.24

0.48

0.47

0.62

0.68

Net

realized

and

unrealized

gains

(losses)

...........

(0.86)

(0.83)

(0.98)

(0.52)

(1.00)

Total

from

investment

operations

....................

(0.62)

(0.35)

(0.51)

0.10

(0.32)

Less

distributions

from:

Net

investment

income

..........................

—

—

(0.01)

(0.51)

(0.51)

Net

realized

gains

.............................

—

—

—

—

(0.01)

Tax

return

of

capital

............................

(0.29)

(0.53)

(0.50)

—

(0.19)

Total

distributions

...............................

(0.29)

(0.53)

(0.51)

(0.51)

(0.71)

Net

asset

value,

end

of

year

.......................

$4.92

$5.83

$6.71

$7.73

$8.14

Total

return

....................................

(10.76)%

(5.56)%

(6.81)%

1.32%

(3.40)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

3.21%

2.81%

2.13%

2.18%

2.18%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.39%

1.16%

1.10%

1.15%

1.22%

Net

investment

income

...........................

4.59%

7.55%

6.67%

7.73%

7.95%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$10

$12

$12

$13

$12

Portfolio

turnover

rate

............................

58.11%

40.55%

56.59%

23.82%

18.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

Templeton

Income

Trust

Financial

Highlights

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

62

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$5.83

$6.71

$7.74

$8.14

$9.17

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.26

0.51

0.52

0.66

0.74

Net

realized

and

unrealized

gains

(losses)

...........

(0.86)

(0.84)

(1.02)

(0.52)

(1.02)

Total

from

investment

operations

....................

(0.60)

(0.33)

(0.50)

0.14

(0.28)

Less

distributions

from:

Net

investment

income

..........................

—

—

(0.01)

(0.54)

(0.54)

Net

realized

gains

.............................

—

—

—

—

(0.01)

Tax

return

of

capital

............................

(0.32)

(0.55)

(0.52)

—

(0.20)

Total

distributions

...............................

(0.32)

(0.55)

(0.53)

(0.54)

(0.75)

Net

asset

value,

end

of

year

.......................

$4.91

$5.83

$6.71

$7.74

$8.14

Total

return

....................................

(10.41)%

(5.19)%

(6.47)%

1.69%

(2.95)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

2.86%

2.56%

2.04%

1.94%

1.91%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.86%

0.77%

0.75%

0.75%

0.78%

Net

investment

income

...........................

5.09%

8.00%

7.37%

8.13%

8.39%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$599

$663

$598

$1,057

$831

Portfolio

turnover

rate

............................

58.11%

40.55%

56.59%

23.82%

18.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

Templeton

Income

Trust

Financial

Highlights

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

63

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$5.85

$6.73

$7.75

$8.16

$9.19

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.27

0.50

0.51

0.63

0.76

Net

realized

and

unrealized

gains

(losses)

...........

(0.86)

(0.84)

(1.01)

(0.51)

(1.05)

Total

from

investment

operations

....................

(0.59)

(0.34)

(0.50)

0.12

(0.29)

Less

distributions

from:

Net

investment

income

..........................

—

—

(0.01)

(0.53)

(0.53)

Net

realized

gains

.............................

—

—

—

—

(0.01)

Tax

return

of

capital

............................

(0.32)

(0.54)

(0.51)

—

(0.20)

Total

distributions

...............................

(0.32)

(0.54)

(0.52)

(0.53)

(0.74)

Net

asset

value,

end

of

year

.......................

$4.94

$5.85

$6.73

$7.75

$8.16

Total

return

....................................

(10.28)%

(5.28)%

(6.46)%

1.45%

(3.01)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

2.70%

2.51%

1.91%

1.91%

1.89%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.88%

0.89%

0.86%

0.88%

0.88%

Net

investment

income

...........................

5.14%

7.83%

7.20%

8.00%

8.29%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,676

$3,063

$3,950

$14,504

$10,797

Portfolio

turnover

rate

............................

58.11%

40.55%

56.59%

23.82%

18.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

Templeton

Income

Trust

Schedule

of

Investments,

December

31,

2022

Templeton

Sustainable

Emerging

Markets

Bond

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

64

a

a

Industry

Shares

a

Value

a

Common

Stocks

0.0%

South

Africa

0.0%

a,b,c

K2016470219

South

Africa

Ltd.,

A

....

Multiline

Retail

2,171,539

$

—

a,b,c

K2016470219

South

Africa

Ltd.,

B

....

Multiline

Retail

619,903

—

—

Total

Common

Stocks

(Cost

$14,998)

..........................................

—

Principal

Amount

*

a

a

a

a

a

Corporate

Bonds

3.2%

Costa

Rica

3.2%

a,c

Reventazon

Finance

Trust

,

Senior

Secured

Bond

,

144A,

8

%

,

11/15/33

.

Diversified

Financial

Services

477,900

450,492

South

Africa

0.0%

a,d,e

K2016470219

South

Africa

Ltd.

,

Senior

Secured

Note,

144A,

PIK,

3%,

1/06/23

......................

Multiline

Retail

188,190

—

Senior

Secured

Note,

144A,

PIK,

8%,

1/06/23

......................

Multiline

Retail

55,416

EUR

—

a,d,e

K2016470260

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

25

%

,

1/06/23

......................

Multiline

Retail

237,804

—

—

Total

Corporate

Bonds

(Cost

$778,936)

........................................

450,492

a

a

Industry

Principal

Amount

*

a

Value

Foreign

Government

and

Agency

Securities

87.7%

Brazil

2.8%

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/25

..................

590,000

BRL

106,913

10%,

1/01/27

..................

630,000

BRL

110,337

10%,

1/01/29

..................

280,000

BRL

47,566

10%,

1/01/31

..................

790,000

BRL

130,943

395,759

Chile

7.7%

Chile

Bonos

Tesoreria

Pesos

,

e

144A,

Reg

S,

4.7%,

9/01/30

.......

630,000,000

CLP

715,765

2.5%,

3/01/25

.................

335,000,000

CLP

368,757

1,084,522

Colombia

8.8%

Colombia

Government

Bond,

Senior

Bond,

9.85%,

6/28/27

............

13,000,000

COP

2,375

Colombia

Titulos

de

Tesoreria

,

B,

10%,

7/24/24

................

2,780,000,000

COP

558,783

B,

6.25%,

11/26/25

..............

50,000,000

COP

8,839

B,

7.5%,

8/26/26

...............

1,682,800,000

COP

297,015

B,

6%,

4/28/28

.................

428,400,000

COP

66,133

B,

7.75%,

9/18/30

..............

1,267,800,000

COP

197,164

B,

7%,

3/26/31

.................

632,200,000

COP

92,365

B,

7%,

6/30/32

.................

107,000,000

COP

15,059

1,237,733

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

65

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Czech

Republic

3.3%

e

Czech

Republic

Government

Bond,

Reg

S,

1%,

6/26/26

.................

12,000,000

CZK

$

460,970

Dominican

Republic

2.3%

e

Dominican

Republic

Government

Bond,

Senior

Bond,

144A,

5.875%,

1/30/60

441,000

325,092

Ecuador

6.2%

e

Ecuador

Government

Bond

,

Senior

Bond,

144A,

2.5%,

7/31/35

..

1,199,500

557,957

Senior

Bond,

144A,

1.5%,

7/31/40

..

534,000

219,918

Senior

Note,

144A,

5.5%,

7/31/30

..

146,000

94,538

872,413

Egypt

2.5%

e

Egypt

Government

Bond,

Senior

Note,

144A,

5.25%,

10/06/25

...........

390,000

351,180

Ghana

3.4%

Ghana

Government

Bond

,

16.5%,

2/06/23

................

1,010,000

GHS

99,721

18.85%,

9/28/23

................

1,363,000

GHS

119,959

19.25%,

11/27/23

...............

260,000

GHS

22,306

19.25%,

12/18/23

...............

243,000

GHS

20,655

17.7%,

3/18/24

................

170,000

GHS

13,580

19.75%,

3/25/24

................

270,000

GHS

21,978

18.3%,

3/02/26

................

100,000

GHS

5,895

Senior

Note,

18.5%,

1/02/23

......

50,000

GHS

5,005

Senior

Note,

20.75%,

1/16/23

......

50,000

GHS

5,003

Senior

Note,

17.6%,

2/20/23

......

1,560,000

GHS

152,967

Senior

Note,

17.25%,

7/31/23

......

70,000

GHS

6,299

473,368

Indonesia

10.6%

Indonesia

Government

Bond

,

FR70,

8.375%,

3/15/24

..........

354,000,000

IDR

23,498

FR77,

8.125%,

5/15/24

..........

7,528,000,000

IDR

499,075

FR81,

6.5%,

6/15/25

............

1,569,000,000

IDR

101,792

FR86,

5.5%,

4/15/26

............

13,560,000,000

IDR

854,496

1,478,861

Malaysia

1.6%

Malaysia

Government

Bond,

3.882%,

3/14/25

......................

970,000

MYR

221,239

Oman

4.1%

e

Oman

Government

Bond,

Senior

Bond,

144A,

4.75%,

6/15/26

............

590,000

571,619

Peru

3.8%

Peru

Bonos

de

la

Tesoreria

,

6.35%,

8/12/28

......................

2,150,000

PEN

537,083

Singapore

4.6%

Singapore

Government

Bond,

3%,

9/01/24

......................

857,000

SGD

638,949

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

66

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

South

Korea

4.7%

Korea

Monetary

Stabilization

Bond,

Senior

Note,

0.905%,

4/02/23

......

375,000,000

KRW

$

295,904

Korea

Treasury

Bonds

,

0.875%,

12/10/23

...............

370,000,000

KRW

286,033

1.875%,

6/10/26

................

96,500,000

KRW

71,981

653,918

Supranational

13.0%

f

Asian

Development

Bank,

Senior

Note,

3%,

3/22/24

...................

5,000,000

CNY

731,767

f

European

Bank

for

Reconstruction

&

Development,

Senior

Note,

4.95%,

1/22/26

......................

57,400,000

INR

652,715

f

International

Bank

for

Reconstruction

&

Development,

Senior

Note,

3.05%,

3/16/24

......................

3,000,000

CNY

437,219

1,821,701

Thailand

4.5%

Thailand

Government

Bond

,

0.92%,

3/23/23

................

60,000

THB

1,732

0.51%,

5/24/23

................

100,000

THB

2,882

0.75%,

9/17/24

................

380,000

THB

10,845

1%,

6/17/27

...................

250,000

THB

6,936

Senior

Note,

0.66%,

11/22/23

......

20,140,000

THB

578,386

Senior

Note,

2.65%,

6/17/28

......

1,170,000

THB

34,921

635,702

Uruguay

3.8%

Uruguay

Government

Bond,

Senior

Bond,

8.25%,

5/21/31

............

24,200,000

UYU

525,771

Total

Foreign

Government

and

Agency

Securities

(Cost

$14,334,279)

..............

12,285,880

Shares

Escrows

and

Litigation

Trusts

0.0%

a,b

K2016470219

South

Africa

Ltd.,

Escrow

Account

......................

12,498

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

...................................

—

Total

Long

Term

Investments

(Cost

$15,128,213)

................................

12,736,372

Short

Term

Investments

7.7%

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

2.7%

Brazil

2.7%

g

Brazil

Letras

do

Tesouro

Nacional

,

1/01/24

......................

150,000

BRL

25,048

7/01/24

......................

1,280,000

BRL

201,958

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

67

At

December

31,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Not

e

1(d)

.

Short

Term

Investments

(continued)

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Brazil

(continued)

g

Brazil

Letras

do

Tesouro

Nacional,

(continued)

1/01/25

......................

960,000

BRL

$

143,038

370,044

Total

Foreign

Government

and

Agency

Securities

(Cost

$395,859)

................

370,044

Shares

Money

Market

Funds

5.0%

United

States

5.0%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

.........

706,837

706,837

Total

Money

Market

Funds

(Cost

$706,837)

.....................................

706,837

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$1,102,696

)

.................................

1,076,881

a

a

a

Total

Investments

(Cost

$16,230,909)

98.6%

....................................

$13,813,253

Other

Assets,

less

Liabilities

1.4%

.............................................

190,992

Net

Assets

100.0%

...........................................................

$14,004,245

a

a

a

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

14

regarding

fair

value

measurements.

b

Non-income

producing.

c

See

Note

11

regarding

restricted

securities.

d

Income

may

be

received

in

additional

securities

and/or

cash.

e

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

December

31,

2022,

the

aggregate

value

of

these

securities

was

$3,297,039,

representing

23.5%

of

net

assets.

f

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

g

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

h

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

i

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Indian

Rupee

......

HSBK

Buy

32,799,900

401,577

1/11/23

$

—

$

(5,324)

Indian

Rupee

......

JPHQ

Buy

12,453,500

151,017

1/11/23

—

(568)

Columbian

Peso

....

MSCO

Buy

4,126,000,000

829,931

1/30/23

16,663

—

Chilean

Peso

......

GSCO

Buy

154,749,056

169,347

2/21/23

11,817

—

Malaysian

Ringgit

...

GSCO

Buy

1,220,000

279,752

2/22/23

—

(327)

Columbian

Peso

....

GSCO

Buy

370,000,000

82,920

2/23/23

—

(7,351)

Chilean

Peso

......

GSCO

Buy

6,900,000

8,169

3/07/23

—

(110)

Chilean

Peso

......

GSCO

Buy

403,296,259

449,355

3/15/23

21,061

—

Indian

Rupee

......

CITI

Buy

12,814,700

154,636

3/15/23

—

(461)

Euro

.............

JPHQ

Buy

435,000

463,137

5/03/23

6,244

—

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

68

At

December

31,

2022,

the

Fund

had

the

following

interest

rate

swap

contracts

outstanding.

See

Note

1(d). 

See

Abbreviations

on

page

101

.

See

Note

12

regarding

other

derivative

information.

Forward

Exchange

Contracts

(continued)

Currency

Counter-

party

a

Type

Quantity

Contract

Amount*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

(continued)

Euro

.............

JPHQ

Sell

435,000

436,044

5/03/23

$

—

$

(33,337)

Brazilian

Real

......

MSCO

Buy

3,700,000

676,071

5/04/23

10,183

—

Indian

Rupee

......

JPHQ

Buy

37,911,100

452,859

6/14/23

161

—

Japanese

Yen

......

DBAB

Buy

101,100,000

753,747

6/15/23

34,217

—

Chilean

Peso

......

GSCO

Buy

194,152,806

194,335

7/26/23

28,162

—

Total

Forward

Exchange

Contracts

...................................................

$128,508

$(47,478)

Net

unrealized

appreciation

(depreciation)

............................................

$81,030

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

Interest

Rate

Swap

Contracts

Description

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

*

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

aa

aa

aa

aa

Centrally

Cleared

Swap

Contracts

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.989%

...

Annual

6/30/32

282,000

$

13,758

$

—

$

13,758

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.612%

...

Annual

7/07/32

283,000

21,930

—

21,930

Total

Interest

Rate

Swap

Contracts

...............................

$35,688

$

—

$35,688

Templeton

Income

Trust

Financial

Statements

Statements

of

Assets

and

Liabilities

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

69

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

................

$5,950,384,281

$570,339,116

$29,305,216

$15,524,072

Cost

-

Non-controlled

affiliates

(Note

3

f

)

.....

428,932,984

36,021,294

10,620,409

706,837

Value

-

Unaffiliated

issuers

...............

$5,113,334,627

$426,052,122

$25,611,071

$13,106,416

Value

-

Non-controlled

affiliates

(Note

3

f

)

.....

428,932,984

36,021,294

10,620,409

706,837

Cash

.................................

2,480,000

378,651

184

1,331

Restricted

cash

for

OTC

derivative

contracts

(Note

1

e

)

...................................

28,531,000

4,241,000

—

—

Foreign

currency,

at

value

(cost

$17,130,

$41,836,

$34,324

and

$

–

respectively)

...............

16,856

38,854

34,361

—

Receivables:

Investment

securities

sold

................

—

4,667

—

—

Capital

shares

sold

.....................

2,249,706

232,629

393

1,648

Interest

..............................

67,763,527

6,914,152

450,398

262,089

Foreign

tax

refund

......................

—

76,403

1,486

—

Affiliates

.............................

—

—

—

5,626

Deposits

with

brokers

for:

OTC

derivative

contracts

...............

44,350,471

7,483,802

110,000

—

Centrally

cleared

swap

contracts

.........

—

1,723,268

—

26,554

Variation

margin

on

centrally

cleared

swap

contracts

............................

—

156,293

—

2,221

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..............................

171,662,242

14,267,821

960,592

128,508

Total

assets

.......................

5,859,321,413

497,590,956

37,788,894

14,241,230

Liabilities:

Payables:

Investment

securities

purchased

...........

5,524,858

1,352,838

27,535

—

Capital

shares

redeemed

................

15,641,818

2,058,659

36,346

100,166

Management

fees

......................

2,170,116

257,074

78,238

—

Distribution

fees

.......................

646,711

55,230

3,400

2,746

Transfer

agent

fees

.....................

3,531,891

260,427

79,918

6,036

Professional

fees

......................

189,156

57,897

40,142

58,604

Trustees'

fees

and

expenses

..............

—

22,102

1,011

1,123

Deposits

from

brokers

for:

OTC

derivative

contracts

...............

28,531,000

4,241,000

—

—

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..............................

96,566,489

13,147,518

472,625

47,478

Deferred

tax

............................

896,906

—

—

—

Accrued

expenses

and

other

liabilities

........

1,742,806

661,337

59,463

20,832

Total

liabilities

......................

155,441,751

22,114,082

798,678

236,985

Net

assets,

at

value

..............

$5,703,879,662

$475,476,874

$36,990,216

$14,004,245

Net

assets

consist

of:

Paid-in

capital

..........................

$8,965,200,695

$1,207,910,196

$63,981,735

$20,060,600

Total

distributable

earnings

(losses)

..........

(3,261,321,033)

(732,433,322)

(26,991,519)

(6,056,355)

Net

assets,

at

value

..............

$5,703,879,662

$475,476,874

$36,990,216

$14,004,245

Templeton

Income

Trust

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2022

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Class

A:

Net

assets,

at

value

....................

$2,492,811,761

$200,853,817

$13,702,821

$10,984,159

Shares

outstanding

.....................

315,789,011

28,042,658

1,869,892

2,236,917

Net

asset

value

per

share

a

...............

$7.89

$7.16

$7.33

$4.91

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

...............

$8.20

$7.44

$7.62

$5.10

Class

C:

Net

assets,

at

value

....................

$126,599,915

$19,873,138

$841,725

$734,023

Shares

outstanding

.....................

15,960,179

2,777,669

114,552

149,624

Net

asset

value

and

maximum

offering

price

per

share

a

...............................

$7.93

$7.15

$7.35

$4.91

Class

R:

Net

assets,

at

value

....................

$111,600,745

$3,322,196

$117,427

$10,477

Shares

outstanding

.....................

14,137,221

463,508

16,029

2,131

Net

asset

value

and

maximum

offering

price

per

share

...............................

$7.89

$7.17

$7.33

$4.92

Class

R6:

Net

assets,

at

value

....................

$688,345,225

$47,859,362

$5,808,507

$599,296

Shares

outstanding

.....................

87,707,727

6,681,091

793,325

121,953

Net

asset

value

and

maximum

offering

price

per

share

...............................

$7.85

$7.16

$7.32

$4.91

Advisor

Class:

Net

assets,

at

value

....................

$2,284,522,016

$203,568,361

$16,519,736

$1,676,290

Shares

outstanding

.....................

290,912,573

28,362,668

2,254,189

339,661

Net

asset

value

and

maximum

offering

price

per

share

...............................

$7.85

$7.18

$7.33

$4.94

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Templeton

Income

Trust

Financial

Statements

Statements

of

Operations

for

the

year

ended

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

71

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Note

3

f

)

..........

$7,050,194

$384,944

$132,469

$11,515

Interest:

(net

of

foreign

taxes

of

$8,933,080,

$771,291,

$44,926

and

$21,523

respectively)

Unaffiliated

issuers:

Inflation

principal

adjustments

...........

76,918,185

11,017,455

597,554

76,833

Paid

in

cash

a

........................

264,107,001

37,406,657

1,316,013

898,764

Total

investment

income

................

348,075,380

48,809,056

2,046,036

987,112

Expenses:

Management

fees

(Note

3

a

)

................

33,790,959

4,517,248

303,867

139,979

Distribution

fees:

(Note

3c

)

    Class

A

.............................

7,379,864

596,994

36,966

23,960

    Class

C

.............................

1,098,957

184,938

6,943

6,058

    Class

R

.............................

593,254

18,744

551

54

Transfer

agent

fees:

(Note

3e

)

    Class

A

.............................

5,813,381

309,413

31,750

24,928

    Class

C

.............................

334,764

36,886

2,274

1,840

    Class

R

.............................

233,054

4,857

235

21

    Class

R6

............................

463,322

53,643

9,961

2,236

    Advisor

Class

.........................

5,540,770

400,060

43,738

4,467

Custodian

fees

(Note

4

)

...................

802,960

450,157

48,402

10,815

Reports

to

shareholders

fees

...............

(627,132)

—

(51,514)

(36,250)

Registration

and

filing

fees

.................

11,056

72,458

77,112

80,100

Professional

fees

........................

379,842

133,115

86,497

188,011

Trustees'

fees

and

expenses

...............

719,793

105,765

9,430

1,033

Pricing

fees

............................

103,759

51,572

46,360

16,912

Interest

expense

........................

—

—

18,545

—

Other

.................................

218,482

3,914

16,655

14,228

Total

expenses

......................

56,857,085

6,939,764

687,772

478,392

Expense

reductions

(Note

4

)

............

—

(7,130)

(1,035)

—

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

...........................

(1,904,299)

(173,190)

(310,589)

(301,959)

Net

expenses

......................

54,952,786

6,759,444

376,148

176,433

Net

investment

income

.............

293,122,594

42,049,612

1,669,888

810,679

Templeton

Income

Trust

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

December

31,

2022

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

72

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$5,922,408,

$368,376,

$40

and

$4,009

respectively)

Unaffiliated

issuers

...................

(1,946,644,255)

(250,581,045)

(2,485,914)

(1,890,446)

Written

options

........................

20,318,262

2,525,115

—

—

Foreign

curre

ncy

transactions

.............

(47,982,018)

(2,803,281)

(350,116)

(61,244)

Forward

exchange

contracts

..............

6,705,614

(44,047,395)

1,038,249

(902,158)

Net

realized

gain

(loss)

...............

(1,967,602,397)

(294,906,606)

(1,797,781)

(2,853,848)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

...................

1,108,769,466

136,085,855

(1,989,610)

(172,987)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

........

490,196

141,845

(2,088)

54,253

Written

options

........................

(15,577,343)

(1,708,270)

—

—

Forward

exchange

contracts

..............

80,672,571

2,138,080

(872,428)

86,777

Swap

contracts

........................

—

4,258,075

—

35,688

Change

in

deferred

taxes

on

unrealized

appreciation

..........................

8,786,344

607,866

9,923

6,031

Net

change

in

unrealized

appreciation

(depreciation)

......................

1,183,141,234

141,523,451

(2,854,203)

9,762

Net

realized

and

unrealized

gain

(loss)

.........

(784,461,163)

(153,383,155)

(4,651,984)

(2,844,086)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

...............................

$(491,338,569)

$(111,333,543)

$(2,982,096)

$(2,033,407)

a

Includes

amortization

of

premium

and

accretion

of

discount.

Templeton

Income

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

consolidated

financial

statements.

Annual

Report

73

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$293,122,594

$540,121,289

$42,049,612

$99,109,733

Net

realized

gain

(loss)

............

(1,967,602,397)

(2,006,022,254)

(294,906,606)

(292,219,793)

Net

change

in

unrealized

appreciation

(depreciation)

.................

1,183,141,234

855,771,203

141,523,451

117,035,760

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(491,338,569)

(610,129,762)

(111,333,543)

(76,074,300)

Distributions

to

shareholders

from

tax

return

of

capital:

Class

A

........................

(147,267,709)

(209,944,924)

(16,262,470)

(30,448,824)

Class

C

........................

(7,671,642)

(19,709,087)

(1,806,903)

(5,080,573)

Class

R

........................

(5,631,820)

(7,458,286)

(245,918)

(484,917)

Class

R6

.......................

(42,914,162)

(81,909,746)

(6,897,572)

(17,832,933)

Advisor

Class

...................

(147,389,545)

(292,507,439)

(21,714,210)

(54,993,271)

Total

distributions

to

shareholders

.....

(350,874,878)

(611,529,482)

(46,927,073)

(108,840,518)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(623,315,941)

(843,885,623)

(46,269,330)

(131,576,618)

Class

C

........................

(76,635,190)

(412,473,388)

(14,249,190)

(63,666,922)

Class

R

........................

(12,137,917)

(17,094,511)

(709,770)

(2,105,564)

Class

R6

.......................

(160,249,495)

(1,171,294,552)

(97,843,454)

(94,091,202)

Advisor

Class

...................

(1,008,034,785)

(2,833,837,735)

(146,903,363)

(586,959,303)

Total

capital

share

transactions

.......

(1,880,373,328)

(5,278,585,809)

(305,975,107)

(878,399,609)

Net

increase

(decrease)

in

net

assets

.....................

(2,722,586,775)

(6,500,245,053)

(464,235,723)

(1,063,314,427)

Net

assets:

Beginning

of

year

..................

8,426,466,437

14,926,711,490

939,712,597

2,003,027,024

End

of

year

......................

$5,703,879,662

$8,426,466,437

$475,476,874

$939,712,597

Templeton

Income

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

consolidated

financial

statements.

74

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$1,669,888

$8,246,569

$810,679

$1,701,818

Net

realized

gain

(loss)

............

(1,797,781)

(50,654,210)

(2,853,848)

(1,765,411)

Net

change

in

unrealized

appreciation

(depreciation)

.................

(2,854,203)

23,754,743

9,762

(1,198,645)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(2,982,096)

(18,652,898)

(2,033,407)

(1,262,238)

Distributions

to

shareholders

from

tax

return

of

capital:

Class

A

........................

(703,947)

(578,991)

(736,000)

(1,357,541)

Class

C

........................

(45,520)

(61,065)

(48,465)

(127,173)

Class

R

........................

(4,981)

(2,897)

(602)

(1,022)

Class

R6

.......................

(351,614)

(540,507)

(41,315)

(102,534)

Advisor

Class

...................

(1,014,639)

(8,663,500)

(135,661)

(291,844)

Total

distributions

to

shareholders

.....

(2,120,701)

(9,846,960)

(962,043)

(1,880,114)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(1,741,270)

(3,379,488)

(1,556,222)

1,096,130

Class

C

........................

(393,821)

(1,935,439)

(411,760)

(287,395)

Class

R

........................

21,898

(19,647)

518

1,073

Class

R6

.......................

(1,636,131)

(37,414,170)

59,884

225,841

Advisor

Class

...................

(5,744,903)

(235,572,264)

(962,377)

(408,822)

Total

capital

share

transactions

.......

(9,494,227)

(278,321,008)

(2,869,957)

626,827

Net

increase

(decrease)

in

net

assets

.....................

(14,597,024)

(306,820,866)

(5,865,407)

(2,515,525)

Net

assets:

Beginning

of

year

..................

51,587,240

358,408,106

19,869,652

22,385,177

End

of

year

......................

$36,990,216

$51,587,240

$14,004,245

$19,869,652

Templeton

Income

Trust

75

franklintempleton.com

Annual

Report

Notes

to

Financial

Statements

1.

Organization

and

Significant

Accounting

Policies

Templeton

Income

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-

end

management

investment

company,

consisting

of

four

separate

funds

(Funds).

The

Funds

follow

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

following

summarizes

the Funds'

significant

accounting

policies

. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Funds’

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Funds'

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the

OTC

market

rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Certain

derivative

financial

instruments

are

centrally

cleared

or

trade

in

the

OTC

market.

The

Funds' pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Funds' net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Funds

have

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

Templeton

Income

Trust

Notes

to

Financial

Statements

76

franklintempleton.com

Annual

Report

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Funds'

business

day.

Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Funds'

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Funds'

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Funds'

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Funds'

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Funds

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Funds

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Funds

do

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statements

of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Securities

Purchased

on

a

Delayed

Delivery

Basis

Certain

or

all

Funds

purchase

securities

on

a

delayed

delivery

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Funds

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities,

they

may

sell

the

securities

before

the

settlement

date.

d.

Derivative

Financial

Instruments

Certain

or

all

Funds

invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

77

franklintempleton.com

Annual

Report

losses

in

excess

of

the

amounts

shown

in

the

Statements

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statements

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

Certain

or

all

Funds

attempt

to

reduce

their exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Funds

include

failure

of

the

Funds

to

maintain

certain

net

asset

levels

and/

or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statements

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the Funds

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement. 

Collateral

requirements

differ

by

type

of

derivative.

Collateral

or

initial

margin

requirements

are

set

by

the

broker

or

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

is

held

at

the

exchange

and

can

be

in

the

form

of

cash

and/or

securities.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund

for

OTC

derivatives,

if

any,

is

held

in

segregated

accounts

with

the

Fund's

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Funds'

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

Certain

or

all

Funds

entered

into

OTC

forward

exchange

contracts

primarily

to

manage

and/or

gain

exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date. 

Certain

or

all

Funds entered

into

interest

rate

swap

contracts

primarily

to

manage

interest

rate

risk.

An

interest

rate

swap

is

an

agreement

between

the

Fund

and

a

counterparty

to

exchange

cash

flows

based

on

the

difference

between

two

interest

rates,

applied

to

a

notional

amount.

These

agreements

may

be

privately

negotiated

in

the

over-the-

counter

market

(OTC

interest

rate

swaps)

or

may

be

executed

on

a

registered

exchange

(centrally

cleared

interest

rate

swaps).

For

centrally

cleared

interest

rate

swaps,

required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the Statements

of

Assets

and

Liabilities.

Over

the

term

of

the

contract,

contractually

required

payments

to

be

paid

and

to

be

received

are

accrued

daily

and

recorded

as

unrealized

appreciation

or

depreciation

until

the

payments

are

made,

at

which

time

they

are

realized.

At

December

31,

2022,

Templeton

Global

Bond

Fund

and

Templeton

International

Bond

Fund

had

no

interest

rate

swap

contracts.

Certain

or

all

Funds

purchased

or

wrote

OTC

option

contracts

primarily

to

manage

and/or

gain

exposure

to

foreign

exchange

rate

risk.

An

option

is

a

contract

entitling

the

holder

to

purchase

or

sell

a

specific

amount

of

shares

or

units

of

an

asset

or

notional

amount

of

a

swap

(swaption),

at

a

specified

price.

When

an

option

is

purchased

or

written,

an

amount

equal

to

the

premium

paid

or

received

is

recorded

as

an

asset

or

liability,

respectively.

Upon

exercise

of

an

option,

the

acquisition

cost

or

sales

proceeds

of

the

underlying

investment

is

adjusted

by

any

premium

received

or

paid.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

78

franklintempleton.com

Annual

Report

Upon

expiration

of

an

option,

any

premium

received

or

paid

is

recorded

as

a

realized

gain

or

loss.

Upon

closing

an

option

other

than

through

expiration

or

exercise,

the

difference

between

the

premium

received

or

paid

and

the

cost

to

close

the

position

is

recorded

as

a

realized

gain

or

loss.

At

December

31,

2022,

the

Funds

had

no

options.

See

Note

12 regarding

other

derivative

information.

e.

Restricted

Cash

At

December

31,

2022, certain

or

all

Funds

held

restricted

cash

in

connection

with

investments

in

certain

derivative

securities.

Restricted

cash

is

held

in

a

segregated

account

with

the

Fund’s

custodian

and/or

counterparty

broker

and

is

reflected

in

the

Statements

of

Assets

and

Liabilities.

f.

Income

and

Deferred

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Funds

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

the

Funds

invest.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Funds

invest.

When

a

capital

gain

tax

is

determined

to

apply,

certain

or

all

Funds

record

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

December

31,

2022, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

g.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Funds.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

Inflation-indexed

bonds

are

adjusted

for

inflation

through

periodic

increases

or

decreases

in

the

security's

interest

accruals,

face

amount,

or

principal

redemption

value,

by

amounts

corresponding

to

the

rate

of

inflation

as

measured

by

an

index.

Any

increase

or

decrease

in

the

face

amount

or

principal

redemption

value

will

be

included

as

inflation

principal

adjustments

in

the

Statements

of

Operations.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

79

franklintempleton.com

Annual

Report

h.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

i.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

December

31,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2022

Shares

sold

a

...................................

21,914,143

$180,832,868

3,961,719

$30,610,842

Shares

issued

in

reinvestment

of

distributions

..........

16,970,881

138,439,645

1,928,306

14,641,467

Shares

redeemed

...............................

(116,371,457)

(942,588,454)

(11,931,163)

(91,521,639)

Net

increase

(decrease)

..........................

(77,486,433)

$(623,315,941)

(6,041,138)

$(46,269,330)

Year

ended

December

31,

2021

Shares

sold

a

...................................

61,352,126

$571,486,366

10,894,207

$102,795,619

Shares

issued

in

reinvestment

of

distributions

..........

21,080,149

195,552,208

2,590,205

24,336,012

Shares

redeemed

...............................

(173,852,402)

(1,610,924,197)

(27,770,053)

(258,708,249)

Net

increase

(decrease)

..........................

(91,420,127)

$(843,885,623)

(14,285,641)

$(131,576,618)

Class

C

Class

C

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

1,122,006

$9,231,363

455,140

$3,357,318

Shares

issued

in

reinvestment

of

distributions

..........

910,902

7,501,548

229,588

1,756,003

Shares

redeemed

a

..............................

(11,358,734)

(93,368,101)

(2,539,227)

(19,362,511)

Net

increase

(decrease)

..........................

(9,325,826)

$(76,635,190)

(1,854,499)

$(14,249,190)

Year

ended

December

31,

2021

Shares

sold

...................................

1,917,322

$17,969,247

526,361

$4,902,146

Shares

issued

in

reinvestment

of

distributions

..........

2,051,987

19,259,827

518,088

4,903,645

Shares

redeemed

a

..............................

(48,119,953)

(449,702,462)

(7,799,867)

(73,472,713)

Net

increase

(decrease)

..........................

(44,150,644)

$(412,473,388)

(6,755,418)

$(63,666,922)

Class

R

1.

Organization

and

Significant

Accounting

Policies

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

80

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Shares

Amount

Shares

Amount

Class

R

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

1,938,103

$15,936,832

57,905

$437,474

Shares

issued

in

reinvestment

of

distributions

..........

687,678

5,603,555

31,532

239,283

Shares

redeemed

...............................

(4,039,305)

(33,678,304)

(175,234)

(1,386,527)

Net

increase

(decrease)

..........................

(1,413,524)

$(12,137,917)

(85,797)

$(709,770)

Year

ended

December

31,

2021

Shares

sold

...................................

3,459,188

$32,312,942

181,030

$1,731,229

Shares

issued

in

reinvestment

of

distributions

..........

798,274

7,402,232

50,428

475,946

Shares

redeemed

...............................

(6,110,531)

(56,809,685)

(457,595)

(4,312,739)

Net

increase

(decrease)

..........................

(1,853,069)

$(17,094,511)

(226,137)

$(2,105,564)

Class

R6

Class

R6

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

15,219,413

$127,172,494

873,525

$6,670,920

Shares

issued

in

reinvestment

of

distributions

..........

4,630,007

37,571,274

520,226

3,961,261

Shares

redeemed

...............................

(39,509,104)

(324,993,263)

(14,173,238)

(108,475,635)

Net

increase

(decrease)

..........................

(19,659,684)

$(160,249,495)

(12,779,487)

$(97,843,454)

Year

ended

December

31,

2021

Shares

sold

...................................

38,421,013

$362,388,556

4,889,790

$45,765,527

Shares

issued

in

reinvestment

of

distributions

..........

7,914,365

73,490,988

1,088,543

10,318,585

Shares

redeemed

...............................

(172,067,560)

(1,607,174,096)

(16,020,781)

(150,175,314)

Net

increase

(decrease)

..........................

(125,732,182)

$(1,171,294,552)

(10,042,448)

$(94,091,202)

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

76,607,293

$629,457,620

12,795,213

$99,705,549

Shares

issued

in

reinvestment

of

distributions

..........

16,534,845

134,402,064

2,492,328

19,149,905

Shares

redeemed

...............................

(216,010,042)

(1,771,894,469)

(35,201,940)

(265,758,817)

Net

increase

(decrease)

..........................

(122,867,904)

$(1,008,034,785)

(19,914,399)

$(146,903,363)

Year

ended

December

31,

2021

Shares

sold

...................................

138,423,255

$1,290,069,401

30,970,594

$291,205,951

Shares

issued

in

reinvestment

of

distributions

..........

28,836,253

266,893,652

5,072,593

48,042,025

Shares

redeemed

...............................

(476,325,785)

(4,390,800,788)

(98,294,651)

(926,207,279)

Net

increase

(decrease)

..........................

(309,066,277)

$(2,833,837,735)

(62,251,464)

$(586,959,303)

2.

Shares

of

Beneficial

Interest

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

81

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2022

Shares

sold

a

...................................

259,283

$1,896,749

162,956

$880,102

Shares

issued

in

reinvestment

of

distributions

..........

89,343

671,735

92,915

480,302

Shares

redeemed

...............................

(574,823)

(4,309,754)

(564,983)

(2,916,626)

Net

increase

(decrease)

..........................

(226,197)

$(1,741,270)

(309,112)

$(1,556,222)

Year

ended

December

31,

2021

Shares

sold

a

...................................

563,671

$4,822,417

683,172

$4,403,469

Shares

issued

in

reinvestment

of

distributions

..........

64,142

551,459

146,438

913,031

Shares

redeemed

...............................

(1,023,797)

(8,753,364)

(671,241)

(4,220,370)

Net

increase

(decrease)

..........................

(395,984)

$(3,379,488)

158,369

$1,096,130

Class

C

Class

C

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

17,080

$129,477

10,790

$58,274

Shares

issued

in

reinvestment

of

distributions

..........

5,714

43,171

8,681

44,852

Shares

redeemed

a

..............................

(74,848)

(566,469)

(95,122)

(514,886)

Net

increase

(decrease)

..........................

(52,054)

$(393,821)

(75,651)

$(411,760)

Year

ended

December

31,

2021

Shares

sold

...................................

21,151

$179,863

45,798

$288,307

Shares

issued

in

reinvestment

of

distributions

..........

6,686

57,886

19,642

122,692

Shares

redeemed

a

..............................

(253,705)

(2,173,188)

(112,212)

(698,394)

Net

increase

(decrease)

..........................

(225,868)

$(1,935,439)

(46,772)

$(287,395)

Class

R

Class

R

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

3,071

$22,995

49

$253

Shares

issued

in

reinvestment

of

distributions

..........

666

4,981

61

312

Shares

redeemed

...............................

(840)

(6,078)

(10)

(47)

Net

increase

(decrease)

..........................

2,897

$21,898

100

$518

Year

ended

December

31,

2021

Shares

sold

...................................

2,803

$24,024

97

$612

Shares

issued

in

reinvestment

of

distributions

..........

337

2,897

79

496

Shares

redeemed

...............................

(5,359)

(46,568)

(6)

(35)

Net

increase

(decrease)

..........................

(2,219)

$(19,647)

170

$1,073

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

82

franklintempleton.com

Annual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Trust

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

86,993

$661,357

67,514

$380,036

Shares

issued

in

reinvestment

of

distributions

..........

45,859

344,932

8,015

41,315

Shares

redeemed

...............................

(348,089)

(2,642,420)

(67,336)

(361,467)

Net

increase

(decrease)

..........................

(215,237)

$(1,636,131)

8,193

$59,884

Year

ended

December

31,

2021

Shares

sold

...................................

1,393,741

$11,826,154

240,016

$1,553,190

Shares

issued

in

reinvestment

of

distributions

..........

61,097

533,936

16,313

102,534

Shares

redeemed

...............................

(5,734,293)

(49,774,260)

(231,593)

(1,429,883)

Net

increase

(decrease)

..........................

(4,279,455)

$(37,414,170)

24,736

$225,841

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

1,425,417

$11,004,379

48,153

$265,788

Shares

issued

in

reinvestment

of

distributions

..........

127,093

958,925

25,237

131,733

Shares

redeemed

...............................

(2,326,444)

(17,708,207)

(257,410)

(1,359,898)

Net

increase

(decrease)

..........................

(773,934)

$(5,744,903)

(184,020)

$(962,377)

Year

ended

December

31,

2021

Shares

sold

...................................

5,047,083

$43,716,266

171,112

$1,101,536

Shares

issued

in

reinvestment

of

distributions

..........

996,551

8,574,865

45,445

284,873

Shares

redeemed

...............................

(34,571,498)

(287,863,395)

(279,547)

(1,795,231)

Net

increase

(decrease)

..........................

(28,527,864)

$(235,572,264)

(62,990)

$(408,822)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Templeton

Asset

Management

Ltd

(Asset

Management)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

83

franklintempleton.com

Annual

Report

a.

Management

Fees

Templeton

Global

Bond

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Templeton

Global

Total

Return

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Templeton

International

Bond

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Templeton

Sustainable

Emerging

Markets

Bond

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Annualized

Fee

Rate

Net

Assets

0.650%

Up

to

and

including

$200

million

0.585%

Over

$200

million,

up

to

and

including

$700

million

0.550%

Over

$700

million,

up

to

and

including

$1.2

billion

0.525%

Over

$1.2

billion,

up

to

and

including

$1.3

billion

0.475%

Over

$1.3

billion,

up

to

and

including

$35

billion

0.470%

Over

$35

billion,

up

to

and

including

$50

billion

0.465%

Over

$50

billion,

up

to

and

including

$65

billion

0.460%

Over

$65

billion,

up

to

and

including

$80

billion

0.455%

In

excess

of

$80

billion

Annualized

Fee

Rate

Net

Assets

0.700%

Up

to

and

including

$200

million

0.650%

Over

$200

million,

up

to

and

including

$1.3

billion

0.600%

Over

$1.3

billion,

up

to

and

including

$2.5

billion

0.585%

Over

$2.5

billion,

up

to

and

including

$5

billion

0.575%

Over

$5

billion,

up

to

and

including

$10

billion

0.565%

In

excess

of

$10

billion

Annualized

Fee

Rate

Net

Assets

0.700%

Up

to

and

including

$200

million

0.650%

Over

$200

million,

up

to

and

including

$1.3

billion

0.600%

In

excess

of

$1.3

billion

Annualized

Fee

Rate

Net

Assets

0.850%

Up

to

and

including

$500

million

0.800%

Over

$500

million,

up

to

and

including

$1

billion

0.750%

Over

$1

billion

3.

Transactions

with

Affiliates

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

84

franklintempleton.com

Annual

Report

For

the

year

ended

December

31,

2022,

each

Fund's

gross

effective

investment

management

fee

rate

based

on

average

daily

net

assets

was

as

follows:

Under

a

subadvisory

agreement,

Asset

Management,

an

affiliate

of

Advisers,

provides

subadvisory

services

to

Templeton

Sustainable

Emerging

Markets

Bond

Fund.

The

subadvisory

fee

is

paid

by

Advisers,

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds.

The

fee

is

paid

by

Advisers

based

on

each

of

the

Funds’

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Funds.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class

A

reimbursement

distribution

plan,

the

Funds reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class

C

and

R

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

For

Templeton

International

Bond

Fund

the

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Gross

effective

investment

management

fee

rate

........

0.495%

0.666%

0.700%

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Gross

effective

investment

management

fee

rate

........

0.850%

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Class

A

...............................

0.25%

0.25%

0.35%

0.25%

Class

C

...............................

0.65%

0.65%

0.65%

0.65%

Class

R

...............................

0.50%

0.50%

0.50%

0.50%

3.

Transactions

with

Affiliates

(continued)

a.

Management

Fees

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

85

franklintempleton.com

Annual

Report

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

year:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

year

ended

December

31,

2022,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

f.

Investments

in

Affiliated

Management

Investment

Companies

Certain

or

all

Funds

invest

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Funds

do

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

year

ended

December

31,

2022,

investments

in

affiliated

management

investment

companies

were

as

follows:

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$21,662

$3,006

$219

$189

CDSC

retained

...........................

$27,213

$33,338

$461

$792

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Transfer

agent

fees

........................

$3,902,132

$438,931

$45,105

$16,361

3.

Transactions

with

Affiliates

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

86

franklintempleton.com

Annual

Report

g.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

Templeton

International

Bond

Fund

and

Templeton

Sustainable

Emerging

Markets

Bond

Fund

so

that

the

operating

expenses

(excluding

interest

expense,

distribution

fees

and

acquired

fund

fees

and

expenses

and

certain

non-

routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Funds

do

not

exceed

0.74%

and

0.89%,

respectively,

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2023.

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Templeton

Global

Bond

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$

509,242,008

$

3,187,172,431

$

(3,267,481,455)

$

—

$

—

$

428,932,984

428,932,984

$

7,050,194

Total

Affiliated

Securities

...

$509,242,008

$3,187,172,431

$(3,267,481,455)

$—

$—

$428,932,984

$7,050,194

Templeton

Global

Total

Return

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$

21,628,901

$

566,636,165

$

(552,243,772)

$

—

$

—

$

36,021,294

36,021,294

$

384,944

Total

Affiliated

Securities

...

$21,628,901

$566,636,165

$(552,243,772)

$—

$—

$36,021,294

$384,944

Templeton

International

Bond

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$

14,191,046

$

21,534,098

$

(25,104,735)

$

—

$

—

$

10,620,409

10,620,409

$

132,469

Total

Affiliated

Securities

...

$14,191,046

$21,534,098

$(25,104,735)

$—

$—

$10,620,409

$132,469

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$

1,351,150

$

10,110,742

$

(10,755,055)

$

—

$

—

$

706,837

706,837

$

11,515

Total

Affiliated

Securities

...

$1,351,150

$10,110,742

$(10,755,055)

$—

$—

$706,837

$11,515

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

87

franklintempleton.com

Annual

Report

h.

Other

Affiliated

Transactions

At

December

31,

2022,

Advisers

owned

27.6%

of

the

Templeton

Sustainable

Emerging

Markets

Bond

Fund's

outstanding

shares.

4.

Expense

Offset

Arrangement

Templeton

Global

Total

Return

Fund

and

Templeton

International

Bond

Fund

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the year

ended

December

31,

2022, the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2022,

the

capital

loss

carryforwards

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021

,

was

as

follows:

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

1

1

1

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

.............................

$

60,632,352

$

9,125,244

$

4,710,165

$

1,196,619

Long

term

.............................

2,248,229,060

537,216,520

18,093,380

1,969,801

Total

capital

loss

carryforwards

............

$2,308,861,412

$546,341,764

$22,803,545

$3,166,420

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

2022

2021

2022

2021

Distributions

paid

from:

Return

of

capital

.........................

$350,874,878

$611,529,482

$46,927,073

$108,840,518

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

2022

2021

2022

2021

Distributions

paid

from:

Return

of

capital

.........................

$2,120,701

$9,846,960

$962,043

$1,880,114

3.

Transactions

with

Affiliates

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

88

franklintempleton.com

Annual

Report

At

December

31,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

defaulted

securities,

foreign

currency

transactions,

foreign

capital

gains

tax,

payments-in-kind,

bond

discounts

and

premiums

and

tax

straddles.

In

accordance

with

U.S.

GAAP

permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

At

the

year

ended

December

31,

2022,

such

reclassifications

were

as

follows:

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2022,

were

as

follows:

7.

Credit Risk

and

Defaulted

Securities

At

December

31,

2022,

Templeton

Global

Bond

Fund,

Templeton

Global

Total

Return

Fund,

Templeton

International

Bond

Fund

and

Templeton

Sustainable

Emerging

Markets

Bond

Fund

had

12.9%,

31.6%,

12.1%

and

27.6%,

respectively,

of

their

portfolio

invested

in

high

yield

securities

or

other

securities

rated

below

investment

grade and

unrated

securities.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

a

a

a

a

a

Cost

of

investments

.......................

$6,568,508,749

$653,525,963

$40,896,352

$16,843,316

Unrealized

appreciation

.....................

$225,375,036

$23,037,580

$1,290,457

$352,186

Unrealized

depreciation

.....................

(1,176,520,421)

(209,111,749)

(5,467,362)

(3,265,531)

Net

unrealized

appreciation

(depreciation)

.......

$(951,145,385)

$(186,074,169)

$(4,176,905)

$(2,913,345)

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

1

1

1

1

1

Paid-in

Capital.

.........................

$(1,369,991,390)

$(224,617,372)

$(26,180,493)

$(1,009,065)

Total

distributable

earnings

(loss)

............

 $1,369,991,390

$224,617,372

 $26,180,493

$1,009,065

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Purchases

..............................

$858,557,111

$184,543,446

$2,317,440

$8,588,960

Sales

..................................

$2,857,470,416

$446,855,805

$9,686,306

$10,629,483

5.

Income

Taxes

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

89

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

held

defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

December

31,

2022,

the

aggregate

value

of

these

securities

was

$2,988,044

representing

0.6%

of

the

Fund's

net

assets.

The

Fund

discontinues

accruing

income

on

securities

for

which

income

has

been

deemed

uncollectible

and

provides

an

estimate

for

losses

on

interest

receivable.

The

securities

have

been

identified

in

the

accompanying

Schedule

of

Investments.

8.

Concentration

of

Risk

Investing

in

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities,

such

as

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

Political

and

financial

uncertainty

in

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

of

investing

in

foreign

securities.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

9.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Funds

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

10.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the

Funds, their ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and their ability

to

achieve their investment

objectives.

11.

Restricted

Securities

Certain

or

all

Funds

invest

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The

Funds

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

December

31,

2022,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

Shares

Issuer

Acquisition

Date

Cost

Value

Templeton

Global

Total

Return

Fund

434,200,485

a

K2016470219

South

Africa

Ltd.,

A

...............

2/22/11

-

2/01/17

$

1,608,225

$

—

50,014,925

a

K2016470219

South

Africa

Ltd.,

B

...............

2/01/17

37,134

—

Total

Restricted

Securities

(Value

is

—%

of

Net

Assets)

..............

$1,645,359

$—

7.

Credit Risk

and

Defaulted

Securities

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

90

franklintempleton.com

Annual

Report

12.

Other

Derivative

Information

At

December

31,

2022,

investments

in

derivative

contracts

are

reflected

in

the

Statements

of

Assets

and

Liabilities

as

follows:

Principal

Amount

*

/

Shares

Issuer

Acquisition

Date

Cost

Value

Templeton

Sustainable

Emerging

Markets

Bond

Fund

2,171,539

a

K2016470219

South

Africa

Ltd.,

A

...............

5/16/13

-

2/01/17

$

14,538

$

—

619,903

a

K2016470219

South

Africa

Ltd.,

B

...............

2/01/17

460

—

477,900

Reventazon

Finance

Trust,

Senior

Secured

Bond,

144A,

8%,

11/15/33

..............................

12/18/13

477,900

450,492

Total

Restricted

Securities

(Value

is

3.2%

of

Net

Assets)

..............

$492,898

$450,492

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$

0

as

of

December

31,

2022.

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Templeton

Global

Bond

Fund

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

$

171,662,242

Unrealized

depreciation

on

OTC

forward

exchange

contracts

$

96,566,489

Total

....................

$171,662,242

$96,566,489

Templeton

Global

Total

Return

Fund

Interest

rate

contracts

.......

Variation

margin

on

centrally

cleared

swap

contracts

4,258,075

a

Variation

margin

on

centrally

cleared

swap

contracts

—

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

14,267,821

Unrealized

depreciation

on

OTC

forward

exchange

contracts

13,147,518

Total

....................

$18,525,896

$13,147,518

Templeton

International

Bond

Fund

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

960,592

Unrealized

depreciation

on

OTC

forward

exchange

contracts

472,625

Total

....................

$960,592

$472,625

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Interest

rate

contracts

.......

Variation

margin

on

centrally

cleared

swap

contracts

35,688

a

Variation

margin

on

centrally

cleared

swap

contracts

—

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

128,508

Unrealized

depreciation

on

OTC

forward

exchange

contracts

47,478

Total

....................

$164,196

$47,478

11.

Restricted

Securities

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

91

franklintempleton.com

Annual

Report

For

the

year

ended

December

31,

2022,

the

effect

of

derivative

contracts

in

the

Statements

of

Operations

was

as

follows:

a

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

centrally

cleared

swap

contracts

as

reported

in

the

Schedules

of

Investments.

Only

the

variation

margin

receivable/payable

at

year

end

is

separately

reported

within

the

Statements

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Year

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Year

Templeton

Global

Bond

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Investments

$(45,848,428)

a

Investments

$33,435,035

a

Written

options

20,318,262

Written

options

(15,577,343)

Forward

exchange

contracts

6,705,614

Forward

exchange

contracts

80,672,571

Total

.......................

$(18,824,552)

$98,530,263

Templeton

Global

Total

Return

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Swap

contracts

—

Swap

contracts

4,258,075

Foreign

exchange

contracts

.....

Investments

(4,914,079)

a

Investments

3,478,917

a

Written

options

2,525,115

Written

options

(1,708,270)

Forward

exchange

contracts

(44,047,395)

Forward

exchange

contracts

2,138,080

Total

.......................

$(46,436,359)

$8,166,802

Templeton

International

Bond

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Forward

exchange

contracts

1,038,249

Forward

exchange

contracts

(872,428)

Total

.......................

$1,038,249

$(872,428)

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

.

.

.

.

.

.

.

.

.

.

Swap

contracts

—

Swap

contracts

35,688

Foreign

exchange

contracts

.....

Forward

exchange

contracts

(902,158)

Forward

exchange

contracts

86,777

Total

.......................

$(902,158)

$122,465

a

Purchased

option

contracts

are

included

in

net

realized

gain

(loss)

from

investments

and

net

change

in

unrealized

appreciation

(depreciation)

on

investments

in

the

Statements

of

Operations.

12.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

92

franklintempleton.com

Annual

Report

For

the year

ended

December

31,

2022,

the

average

month

end

notional

amount

of

options

and

swap

contracts,

and

the

average

month

end

contract

value

for

forward

exchange

contracts,

were

as

follows:

At

December

31,

2022,

the

Funds'

OTC

derivative

assets

and

liabilities

are

as

follows:

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Swap

Contracts

..........................................................

$—

$33,120,846

$—

$282,462

Forward

exchange

contracts

......................................

6,566,236,778

927,036,193

91,148,040

10,074,269

Options

.......................................................................

816,776,200

89,770,077

—

—

Gross

Amounts

of

Assets

and

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Assets

a

Liabilities

a

Templeton

Global

Bond

Fund

Derivatives

Forward

exchange

contracts

.............................

$

171,662,242

$

96,566,489

Total

.............................................

$171,662,242

$96,566,489

Templeton

Global

Total

Return

Fund

Forward

exchange

contracts

.............................

14,267,821

13,147,518

Total

.............................................

$14,267,821

$13,147,518

Templeton

International

Bond

Fund

Forward

exchange

contracts

.............................

960,592

472,625

Total

.............................................

$960,592

$472,625

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Forward

exchange

contracts

.............................

128,50

8

47,478

Total

.............................................

$128,508

$47,478

a

Absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statements

of

Assets

and

Liabilities.

12.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

93

franklintempleton.com

Annual

Report

At

December

31,

2022,

OTC

derivative

assets,

which

may

be

offset

against

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Assets

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Received

a

Cash

Collateral

Received

Net

Amount

(Not

less

than

zero)

Templeton

Global

Bond

Fund

Counterparty

BNDP

...................

$29,985,383

$—

$(28,401,953)

$—

$1,583,430

BOFA

....................

23,703,876

—

(16,365,219)

(2,510,000)

4,828,657

BZWS

...................

1,049,770

(1,049,770)

—

—

—

CITI

.....................

3,052,248

(3,052,248)

—

—

—

DBAB

...................

25,664,764

(16,259,386)

(4,715,028)

(1,221,000)

3,469,350

GSCO

...................

29,170,247

(764,288)

—

(24,800,000)

3,605,959

HSBK

...................

30,227,812

(30,227,812)

—

—

—

JPHQ

...................

16,370,673

(288,682)

(14,197,297)

—

1,884,694

MSCO

...................

12,437,469

(2,837,405)

(7,538,378)

—

2,061,686

Total

...................

$171,662,242

$(54,479,591)

$

(71,217,875)

$(28,531,000)

$17,433,776

Templeton

Global

Total

Return

Fund

Counterparty

BNDP

...................

874,875

—

(589,441)

—

285,434

BOFA

....................

1,476,352

(807,023)

(107,685)

(150,000)

411,644

BZWS

...................

203,864

(203,864)

—

—

—

CITI

.....................

1,508,390

(71,412)

—

(1,120,000)

316,978

DBAB

...................

3,681,179

(214,822)

(2,036,582)

(1,011,000)

418,775

GSCO

...................

2,316,721

(42,542)

—

(1,960,000)

314,179

HSBK

...................

2,687,558

(2,687,558)

—

—

—

JPHQ

...................

1,234,266

(1,234,266)

—

—

—

MSCO

...................

284,616

(284,616)

—

—

—

Total

...................

$14,267,821

$(5,546,103)

$

(2,733,708)

$(4,241,000)

$1,747,010

2

12.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

94

franklintempleton.com

Annual

Report

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Assets

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Received

Cash

Collateral

Received

Net

Amount

(Not

less

than

zero)

Templeton

International

Bond

Fund

Counterparty

BNDP

...................

$26,276

$—

$—

$—

$26,276

BOFA

....................

171,469

(171,469)

—

—

—

BZWS

...................

25,195

(25,195)

—

—

—

CITI

.....................

18,702

(18,702)

—

—

—

DBAB

...................

208,017

(155,940)

—

—

52,077

GSCO

...................

243,284

—

—

—

243,284

HSBK

...................

159,963

(36,350)

—

—

123,613

JPHQ

...................

57,257

(1,847)

—

—

55,410

MSCO

...................

50,429

(10,559)

—

—

39,870

Total

...................

$960,592

$(420,062)

$

—

$—

$540,530

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Counterparty

CITI

.....................

—

—

—

—

—

DBAB

...................

34,217

—

—

—

34,217

GSCO

...................

61,040

(7,788)

—

—

53,252

HSBK

...................

—

—

—

—

—

JPHQ

...................

6,405

(6,405)

—

—

—

MSCO

...................

26,846

—

—

—

26,846

Total

...................

$128,508

$(14,193)

$

—

$—

$114,315

2

12.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

95

franklintempleton.com

Annual

Report

At

December

31,

2022,

OTC

derivative

liabilities,

which

may

be

offset

against

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Pledged

Cash

Collateral

Pledged

b

Net

Amount

(Not

less

than

zero)

Templeton

Global

Bond

Fund

Counterparty

BNDP

...................

$—

$—

$—

$—

$—

BOFA

....................

—

—

—

—

—

BZWS

...................

5,593,764

(1,049,770)

—

(4,220,000)

323,994

CITI

.....................

7,059,417

(3,052,248)

—

(4,007,169)

—

DBAB

...................

16,259,386

(16,259,386)

—

—

—

GSCO

...................

764,288

(764,288)

—

—

—

HSBK

...................

63,763,547

(30,227,812)

—

(33,535,735)

—

JPHQ

...................

288,682

(288,682)

—

—

—

MSCO

...................

2,837,405

(2,837,405)

—

—

—

Total

...................

$96,566,489

$(54,479,591)

$—

$(41,762,904)

$323,994

Templeton

Global

Total

Return

Fund

Counterparty

BNDP

...................

—

—

—

—

—

BOFA

....................

807,023

(807,023)

—

—

—

BZWS

...................

693,852

(203,864)

—

(370,000)

119,988

CITI

.....................

71,412

(71,412)

—

—

—

DBAB

...................

214,822

(214,822)

—

—

—

GSCO

...................

42,542

(42,542)

—

—

—

HSBK

...................

9,651,515

(2,687,558)

—

(6,953,802)

10,155

JPHQ

...................

1,246,678

(1,234,266)

—

(12,412)

—

MSCO

...................

419,674

(284,616)

—

(130,000)

5,058

Total

...................

$13,147,518

$(5,546,103)

$—

$(7,466,214)

$135,201

12.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

96

franklintempleton.com

Annual

Report

See

Note

1(d)

regarding

other

derivative

information.

See

Abbreviations

on

page

101

.

13.

Credit

Facility

The

Funds

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matured

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Pledged

Cash

Collateral

Pledged

b

Net

Amount

(Not

less

than

zero)

Templeton

International

Bond

Fund

Counterparty

BNDP

...................

$—

$—

$—

$—

$—

BOFA

....................

178,511

(171,469)

—

(7,042)

—

BZWS

...................

34,825

(25,195)

—

—

9,630

CITI

.....................

54,593

(18,702)

—

—

35,891

DBAB

...................

155,940

(155,940)

—

—

—

GSCO

...................

—

—

—

—

—

HSBK

...................

36,350

(36,350)

—

—

—

JPHQ

...................

1,847

(1,847)

—

—

—

MSCO

...................

10,559

(10,559)

—

—

—

Total

...................

$472,625

$(420,062)

$—

$(7,042)

$45,521

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Counterparty

CITI

.....................

461

—

—

—

461

DBAB

...................

—

—

—

—

—

GSCO

...................

7,788

(7,788)

—

—

—

HSBK

...................

5,324

—

—

—

5,324

JPHQ

...................

33,905

(6,405)

—

—

27,500

MSCO

...................

—

—

—

—

—

Total

...................

$47,478

$(14,193)

$—

$—

$33,285

a

At

December

31,

2022,

the

Fund

received

U.S.

Treasury

Bills,

Bonds,

Notes

and

Inflation

Indexed

Bonds

as

collateral

for

derivatives.

b

In

some

instances,

the

collateral

amounts

disclosed

in

the

table

above

were

adjusted

due

to

the

requirement

to

limit

collateral

amounts

to

avoid

of

over

collateralization. Actual

collateral

received

and/or

pledged

may

be

more

than

the

amounts

disclosed

herein.

12.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

97

franklintempleton.com

Annual

Report

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

year ended

December

31,

2022,

the

Funds

did

not

use

the

Global

Credit

Facility.

14.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

December

31,

2022,

in

valuing

the

Funds’

assets

and

liabilities

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Templeton

Global

Bond

Fund

Assets:

Investments

in

Securities:

Foreign

Government

and

Agency

Securities

....

$

—

$

2,534,457,835

$

—

$

2,534,457,835

U.S.

Government

and

Agency

Securities

.......

—

1,234,364,625

—

1,234,364,625

Short

Term

Investments

...................

428,932,984

1,344,512,167

—

1,773,445,151

Total

Investments

in

Securities

...........

$428,932,984

$5,113,334,627

$—

$5,542,267,611

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

171,662,242

$

—

$

171,662,242

Total

Other

Financial

Instruments

.........

$—

$171,662,242

$—

$171,662,242

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

96,566,489

$

—

$

96,566,489

Total

Other

Financial

Instruments

.........

$—

$96,566,489

$—

$96,566,489

Templeton

Global

Total

Return

Fund

Assets:

Investments

in

Securities:

Common

Stocks

........................

—

—

—

a

—

Corporate

Bonds

........................

—

—

—

a

—

Foreign

Government

and

Agency

Securities

....

—

294,528,050

—

294,528,050

U.S.

Government

and

Agency

Securities

.......

—

35,269,133

—

35,269,133

Escrows

and

Litigation

Trusts

...............

—

—

—

a

—

Short

Term

Investments

...................

36,021,294

96,254,939

—

132,276,233

Total

Investments

in

Securities

...........

$36,021,294

$426,052,122

$—

$462,073,416

13.

Credit

Facility

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

98

franklintempleton.com

Annual

Report

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the year.

At

December

31,

2022,

the

reconciliation is

as follows:

Level

1

Level

2

Level

3

Total

Templeton

Global

Total

Return

Fund

(continued)

Assets:

(continued)

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

14,267,821

$

—

$

14,267,821

Swap

contracts

.........................

—

4,258,075

—

4,258,075

Total

Other

Financial

Instruments

.........

$—

$18,525,896

$—

$18,525,896

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

13,147,518

$

—

$

13,147,518

Total

Other

Financial

Instruments

.........

$—

$13,147,518

$—

$13,147,518

Templeton

International

Bond

Fund

Assets:

Investments

in

Securities:

Foreign

Government

and

Agency

Securities

....

—

21,261,994

—

21,261,994

Short

Term

Investments

...................

10,620,409

4,349,077

—

14,969,486

Total

Investments

in

Securities

...........

$10,620,409

$25,611,071

$—

$36,231,480

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

960,592

$

—

$

960,592

Total

Other

Financial

Instruments

.........

$—

$960,592

$—

$960,592

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

472,625

$

—

$

472,625

Total

Other

Financial

Instruments

.........

$—

$472,625

$—

$472,625

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Assets:

Investments

in

Securities:

Common

Stocks

........................

—

—

—

a

—

Corporate

Bonds

........................

—

—

450,492

a

450,492

Foreign

Government

and

Agency

Securities

....

—

12,285,880

—

12,285,880

Escrows

and

Litigation

Trusts

...............

—

—

—

a

—

Short

Term

Investments

...................

706,837

370,044

—

1,076,881

Total

Investments

in

Securities

...........

$706,837

$12,655,924

$450,492

$13,813,253

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

128,508

$

—

$

128,508

Swap

contracts

.........................

—

35,688

—

35,688

Total

Other

Financial

Instruments

.........

$—

$164,196

$—

$164,196

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

47,478

$

—

$

47,478

Total

Other

Financial

Instruments

.........

$—

$47,478

$—

$47,478

a

Includes

financial

instruments

determined

to

have

no

value

at

December

31,

2022.

14.

Fair

Value

Measurements

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

99

franklintempleton.com

Annual

Report

Significant

unobservable

valuation

inputs

for

material

Level

3

assets

and/or

liabilities

and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

December

31,

2022,

are

as

follows:

Balance

at

Beginning

of

Year

Purchases

Sales

a

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciation

(Depreciation)

Balance

at

End

of

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

End

a

a

a

a

a

a

a

a

a

a

a

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

South

Africa

..

$

—

b

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

b

$

—

Corporate

Bonds

:

Costa

Rica

...

539,971

—

(25,020)

—

—

—

—

(64,459)

450,492

(62,616)

South

Africa

..

—

b

—

b

—

—

—

—

—

—

—

b

—

Escrows

and

Litigation

Trusts

—

b

—

—

—

—

—

—

—

—

b

—

Total

Investments

in

Securities

.......

$539,971

$—

$(25,020)

$—

$—

$—

$—

$(64,459)

$450,492

$(62,616)

a

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

b

Includes

financial

instruments

determined

to

have

no

value.

Description

Fair

Value

at

End

of

Year

Valuation

Technique

Unobservable

Inputs

Amount

Impact

to

Fair

Value

if

Input

Increases

a

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Assets:

Investments

in

Securities:

Corporate

Bonds:

Costa

Rica

..........

$450,492

Discounted

cash

flow

Discount

rate

(

b

)

9.3%

Decrease

All

Other

............

—

c

Total

...............

$450,492

a

Represents

the

directional

change

in

the

fair

value

of

the

Level

3

financial

instruments

that

would

result

from

a

significant

and

reasonable

increase

in

the

corresponding

input.

A

significant

and

reasonable

decrease

in

the

input

would

have

the

opposite

effect.

Significant

increases

and

decreases

in

these

inputs

in

isolation

could

result

in

significantly

higher

or

lower

fair

value

measurements.

b

The

discount

rate

is

comprised

of

the

risk-free

rate,

the

10-year

Costa

Rican

CDS

spread,

and

an

incremental

issuer

credit

spread

combined

to

arrive

at

an

8%

yield

on

issue

date

for

an

8%

coupon

bond

issued

at

par.

The

incremental

issuer

spread

is

further

adjusted

to

reflect

the

current

market

spread

for

similar

credits

above

the

Costa

Rican

credit

spread.

c

Includes

financial

instruments

determined

to

have

no

value

at

December

31,

2022.

14.

Fair

Value

Measurements

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

100

franklintempleton.com

Annual

Report

15.

New

Accounting

Pronouncements

In June

2022,

the

FASB

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

16.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

Templeton

Income

Trust

Notes

to

Financial

Statements

101

franklintempleton.com

Annual

Report

Abbreviations

Counterparty

BNDP

BNP

Paribas

SA

BOFA

Bank

of

America

Corp.

BZWS

Barclays

Bank

plc

CITI

Citibank

NA

DBAB

Deutsche

Bank

AG

GSCO

Goldman

Sachs

Group,

Inc.

HSBK

HSBC

Bank

plc

JPHQ

JPMorgan

Chase

Bank

NA

MSCO

Morgan

Stanley

Currency

ARS

Argentine

Peso

AUD

Australian

Dollar

BRL

Brazilian

Real

CAD

Canadian

Dollar

CLP

Chilean

Peso

CNY

Chinese

Yuan

COP

Colombian

Peso

CZK

Czech

Koruna

EUR

Euro

GBP

British

Pound

GHS

Ghanaian

Cedi

HUF

Hungarian

Forint

IDR

Indonesian

Rupiah

INR

Indian

Rupee

JPY

Japanese

Yen

KRW

South

Korean

Won

MXN

Mexican

Peso

MYR

Malaysian

Ringgit

NOK

Norwegian

Krone

PEN

Peruvian

Nuevo

Sol

SEK

Swedish

Krona

SGD

Singapore

Dollar

THB

Thai

Baht

UYU

Uruguayan

Peso

Selected

Portfolio

PIK

Payment-In-Kind

SOFR

Secured

Overnight

Financing

Rate

Templeton

Income

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

102

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Templeton

Income

Trust

and

Shareholders

of

Templeton

Global

Bond

Fund,

Templeton

Global

Total

Return

Fund,

Templeton

International

Bond

Fund

and

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Opinions

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

schedules

of

investments,

of

Templeton

Global

Bond

Fund,

Templeton

Global

Total

Return

Fund,

Templeton

International

Bond

Fund

and

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(constituting

Templeton

Income

Trust,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

December

31,

2022,

the

related

statements

of

operations

for

the

year

ended

December

31,

2022,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

as

of

December

31,

2022,

the

results

of

each

of

their

operations

for

the

year

then

ended,

the

changes

in

each

of

their

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinions

These

financial

statements

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Templeton

Income

Trust

Tax

Information

(unaudited)

103

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Funds

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

Under

Section

853

of

the

Internal

Revenue

Code,

the

Fund

intends

to

elect

to

pass

through

to

its

shareholders

the

following

amounts,

or

amounts

as

finally

determined,

of

foreign

taxes

paid

and

foreign

source

income

earned

by

the

fund

during

the

fiscal

year

ended

December

31,

2022:

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Foreign

Taxes

Paid

$14,918,677

$1,493,731

$48,984

$28,813

Foreign

Source

Income

Earned

$342,613,472

$57,238,539

$2,174,247

$1,015,843

Templeton

Income

Trust

Board

Members

and

Officers

104

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1992

119

Bar-S

Foods

(meat

packing

company)

(1981-2010).

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Ann

Torre

Bates

(1958)

Trustee

Since

2008

30

Ares

Strategic

Income

Fund

(closed-end

investment

management

company)

(September

2022-present);

Ares

Capital

Corporation

(specialty

finance

company)

(2010-present),

United

Natural

Foods,

Inc.

(food

distribution)

(2013-present),

formerly

,

Navient

Corporation

(loan

management,

servicing

and

asset

recovery)

(2014-2016).

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Executive

Vice

President

and

Chief

Financial

Officer,

NHP

Incorporated

(manager

of

multifamily

housing)

(1995-1997);

and

Vice

President

and

Treasurer,

US

Airways,

Inc.

(until

1995).

Terrence

J.

Checki

(1945)

Trustee

Since

January

2023

119

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2016

120

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Templeton

Income

Trust

105

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

2001

and

Lead

Independent

Trustee

since

2007

120

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

120

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

the

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(2019-2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

David

W.

Niemiec

(1949)

Trustee

Since

2005

30

Hess

Midstream

LP

(oil

and

gas

midstream

infrastructure)

(2017-present).

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Advisor,

Saratoga

Partners

(private

equity

fund);

and

formerly

,

Managing

Director,

Saratoga

Partners

(1998-2001)

and

SBC

Warburg

Dillon

Read

(investment

banking)

(1997-1998);

Vice

Chairman,

Dillon,

Read

&

Co.

Inc.

(investment

banking)

(1991-1997);

and

Chief

Financial

Officer,

Dillon,

Read

&

Co.

Inc.

(1982-1997).

Larry

D.

Thompson

(1945)

Trustee

Since

2005

120

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Templeton

Income

Trust

106

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Constantine

D.

Tseretopoulos

(1954)

Trustee

Since

2003

20

None

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Physician,

Chief

of

Staff,

owner

and

operator

of

the

Lyford

Cay

Hospital

(1987-present);

director

of

various

nonprofit

organizations;

and

formerly

,

Cardiology

Fellow,

University

of

Maryland

(1985-1987);

and

Internal

Medicine

Resident,

Greater

Baltimore

Medical

Center

(1982-

1985).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Chairman

of

the

Board,

Trustee

and

Vice

President

Chairman

of

the

Board

and

Vice

President

since

January

2023

and

Trustee

since

2007

131

None.

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Trustee

Since

2013

120

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Independent

Board

Members

(continued)

Templeton

Income

Trust

107

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Steven

J.

Gray

(1955)

Vice

President

Since

2009

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Distributors,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Michael

Hasenstab,

Ph.D.

(1973)

President

and

Chief

Executive

Officer

-

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Vice

President,

Franklin

Advisers,

Inc.;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

-

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Susan

Kerr

(1949)

Vice

President

-

AML

Compliance

Since

2021

Not

Applicable

Not

Applicable

620

Eighth

Avenue

New

York,

NY

10018

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Lori

A.

Weber

(1964)

Vice

President

and

Secretary

Vice

President

since

2011

and

Secretary

since

2013

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Templeton

Income

Trust

108

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

Note

3:

Effective

December

31,

2022,

Robert

E.

Wade

ceased

to

be

a

trustee

of

the

Trust.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

U.S.

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

each

of

Ann

Torre

Bates

and

David

W.

Niemiec

as

an

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Bates

and

Mr.

Niemiec

qualify

as

such

an

expert

in

view

of

their

extensive

business

background

and

experience.

Ms.

Bates

has

served

as

a

member

of

the

Fund

Audit

Committee

since

2008.

She

currently

serves

as

a

director

of

Ares

Capital

Corporation

(2010-present)

and

United

Natural

Foods,

Inc.

(2013-present)

and

was

formerly

a

director

of

Navient

Corporation

from

2014

to

2016,

SLM

Corporation

from

1997

to

2014

and

Allied

Capital

Corporation

from

2003

to

2010,

Executive

Vice

President

and

Chief

Financial

Officer

of

NHP

Incorporated

from

1995

to

1997

and

Vice

President

and

Treasurer

of

US

Airways,

Inc.

until

1995.

Mr.

Niemiec

has

served

as

a

member

of

the

Fund

Audit

Committee

since

2005,

currently

serves

as

an

Advisor

to

Saratoga

Partners

and

was

formerly

its

Managing

Director

from

1998

to

2001

and

serves

as

a

director

of

Hess

Midstream

LP

(2017-present).

Mr.

Niemiec

was

formerly

a

director

of

Emeritus

Corporation

from

1999

to

2010

and

OSI

Pharmaceuticals,

Inc.

from

2006

to

2010,

Managing

Director

of

SBC

Warburg

Dillon

Read

from

1997

to

1998,

and

was

Vice

Chairman

from

1991

to

1997

and

Chief

Financial

Officer

from

1982

to

1997

of

Dillon,

Read

&

Co.

Inc.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Bates

and

Mr.

Niemiec

have

each

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Bates

and

Mr.

Niemiec

are

independent

Board

members

as

that

term

is

defined

under

the

applicable

U.S.

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Christine

Zhu

(1975)

Vice

President

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Advisers,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Templeton

Income

Trust

Shareholder

Information

109

franklintempleton.com

Annual

Report

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust,

on

behalf

of

the

Fund,

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

TINT

A

02/23

©

2023

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Templeton

Income

Trust

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics. 

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial experts are Ann Torre Bates and David W. Niemiec and they are "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services.

(a)      Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $351,385 for the fiscal year ended December 31, 2022 and $352,867 for the fiscal year ended December 31, 2021.

(b)      Audit-Related Fees

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements. 

(c)      Tax Fees

There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $70,000 for the fiscal year ended December 31, 2022 and $0 for the fiscal year ended December 31, 2021. The services for which these fees were paid included global access to tax platform International Tax View.

(d)      All Other Fees

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $0 for the fiscal year ended December 31, 2022 and $4,074 for the fiscal year ended December 31, 2021. The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process.

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $240,211 for the fiscal year ended December 31, 2022 and $90,743 for the fiscal year ended December 31, 2021. The services for which these fees were paid included benchmarking services in connection with the ICI TA survey, professional fees in connection with determining the feasibility of a U.S. direct lending structure, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection with a license for accounting and business knowledge platform Viewpoint, fees in connection with a license for employee development tool ProEdge and professional fees in connection with SOC 1 Reports. 

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:

      (i)   pre-approval of all audit and audit related services;

      (ii)  pre-approval of all non-audit related services to be provided to the Fund by the auditors;

      (iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and

      (iv)  establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.

(f) No disclosures are required by this Item 4(f).

(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $310,211 for the fiscal year ended December 31, 2022 and $94,817 for the fiscal year ended December 31, 2021.

(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

(i) N/A

(j) N/A

Item 5. Audit Committee

of Listed Registrants.       

N/A

Item 6. Schedule of Investments.                     

N/A

Item 7

. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.         N/A

Item 8. Portfolio Managers of Closed-End Management Investment Companies.  N/A

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.        N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSRS, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) Changes in Internal Controls.

There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                                               N/A

Item 13. Exhibits.

(a)(1) Code of Ethics

codeofethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section302

(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.

(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section906

SIGNATURES

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

TEMPLETON INCOME TRUST

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  February 27, 2023

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\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  February 27, 2023

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  February 27, 2023