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)

Craig S. Tyle, 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: 12/31/21

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

Global

Total

Return

Fund

A

Series

of

Templeton

Income

Trust

December

31,

2021

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Annual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

The

12

months

ended

December

31,

2021,

saw

extraordinary

conditions

across

global

financial

markets

as

the

world

attempted

to

emerge

from

the

COVID-19

pandemic.

During

2021,

global

fixed

income

markets

endured

multiple

cycles

of

sharply

rising

and

falling

yields,

broad

U.S.

dollar

strengthening

and

reversals,

idiosyncratic

drivers

in

individual

local-currency

markets,

massive

economic

recoveries

and

setbacks,

global

supply

chain

disruptions,

rising

inflationary

pressures

in

the

Americas

and

Europe,

and

a

major

pivot

toward

global

monetary

tightening

in

2021’s

second

half

after

extraordinary,

highly

correlated

global

easing

in

2020

and

early

2021.

Overall,

sovereign

bond

yields

rose

in

most

countries

while

the

U.S.

dollar

strengthened,

although

with

intermittently

declining

yields

in

various

countries

and

shifting

cycles

of

currency

appreciation/depreciation

in

individual

currency

pairings.

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

-6.97%

and

-2.57%

in

U.S.

dollar

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

Global

Total

Return

Fund’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,

2021,

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

Templeton

Global

Total

Return

Fund

3

Performance

Summary

8

Your

Fund’s

Expenses

11

Financial

Highlights

and

Statement

of

Investments

12

Financial

Statements

27

Notes

to

Financial

Statements

31

Report

of

Independent

Registered

Public

Accounting

Firm

46

Tax

Information

47

Board

Members

and

Officers

48

Shareholder

Information

53

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Templeton

Global

Total

Return

Fund

This

annual

report

for

Templeton

Global

Total

Return

Fund

covers

the

fiscal

year

ended

December

3

1

,

2021

.

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

-5.39%

cumulative

total

return.

In

comparison,

the

global

fixed

income

market,

as

measured

by

the

Fund’s

benchmark,

the

Bloomberg

Multiverse

Index,

posted

a

-4.51%

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

8

.

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

The

12-month

period

ended

December

31,

2021,

was

a

tale

of

two

halves.

The

first

half

was

characterized

by

exuberant

optimism

for

an

end

to

the

COVID-19

pandemic,

punctuated

by

a

surge

in

economic

activity

in

the

spring

as

lockdowns

were

eased

and

economies

reopened.

The

second

half

was

characterized

by

rising

inflation

and

incremental

shifts

towards

monetary

tightening,

with

several

emerging

markets

entering

rate

hiking

cycles

ahead

of

the

major

developed

markets.

On

the

whole,

sovereign

bond

yields

rose

in

most

countries

during

the

period

while

the

U.S.

dollar

(USD)

broadly

strengthened,

albeit

with

intermittent

episodes

of

declining

yields

in

various

countries

and

shifting

cycles

of

currency

appreciation/depreciation

in

individual

currency

pairings.

*Includes

foreign

government

and

agency

securities,

money

market

funds

and

other

net

assets

(including

derivatives).

**Includes

securities

determined

to

have

no

value

at

12/31/21.

The

period

began

with

sovereign

bond

yields

rising

sharply

across

much

of

the

world

over

the

first

three

months.

The

yield

on

the

10-year

U.S.

Treasury

(UST)

note

would

reach

its

high

mark

for

the

entire

period

on

March

31

at

1.74%,

82

basis

points

(bps)

higher

than

where

it

finished

2020.

Vaccine

distributions,

ongoing

stimulus

measures

and

optimism

for

improving

economic

conditions

appeared

to

fuel

reflation

expectations

across

global

financial

markets.

However,

the

harsh

realities

of

the

worldwide

health

crisis

and

economic

hardship

continued

to

have

profound

consequences

for

lives

and

livelihoods

around

the

world

in

the

winter

and

early

spring

months

of

2021.

Vaccine

distributions

progressively

accelerated

in

many

countries

during

the

first

half

of

2021,

though

supply

setbacks

notably

affected

areas

of

Europe

in

March

and

April.

Governments

continued

to

struggle

with

balancing

the

needs

of

their

economies

with

the

health

of

their

citizens

during

much

of

the

first

quarter

of

2021

before

higher

vaccination

rates

and

lower

case

levels

enabled

many

regions

to

progressively

reopen

their

economies

in

the

spring.

Rising

yields

strained

valuations

across

many

areas

of

the

global

fixed

income

markets

during

2021’s

first

three

months.

USD-denominated

sovereign

credit

sectors

broadly

saw

negative

returns

in

January,

February

and

March

before

sharply

reversing

to

generate

offsetting

positive

returns

in

Portfolio

Composition

12/31/21

%

of

Total

Net

Assets

Foreign

Government

and

Agency

Securities

61.1%

U.S.

Government

and

Agency

Securities

9.1%

Other

0.0%

**

Short-Term

Investments

&

Other

Net

Assets*

29.8%

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

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

17

.

Templeton

Global

Total

Return

Fund

4

franklintempleton.com

Annual

Report

April,

May

and

June

as

UST

yields

pulled

back

from

their

late-March

peaks.

Sovereign

bond

yields

generally

resumed

their

rising

trends

in

May

and

June

amid

rising

inflation

in

many

areas

of

Europe

and

the

Americas.

In

currency

markets,

the

USD

broadly

strengthened

against

a

number

of

developed

market

and

emerging

market

currencies

in

the

first

quarter

of

2021,

reversing

the

broad-based

weakening

trend

from

the

second

half

of

2020.

Broad

USD

weakness

returned

in

April

and

May

before

the

strengthening

pattern

returned

in

June.

Business

and

consumer

confidence

surveys

notably

strengthened

in

multiple

regions

during

the

second

quarter

of

2021,

despite

some

growing

concerns

over

the

proliferation

of

the

Delta

variant

of

COVID-19

in

several

parts

of

the

world

in

June.

Economic

activity

continued

to

broadly

expand

in

many

countries

in

the

second

quarter,

largely

driven

by

strength

in

goods

sectors

and

manufacturing,

as

well

as

historically

high

savings

rates

in

many

countries

that

helped

fuel

demand.

On

the

whole,

the

second

quarter

would

represent

the

largest

quarterly

surge

in

GDP

for

most

countries

in

2021.

In

the

second

half

of

2021,

sovereign

bond

yields

would

largely

continue

to

rise

across

much

of

the

world

as

central

banks

continued

to

wade

deeper

into

monetary

tightening

cycles.

Developed

market

sovereign

bond

yields

initially

declined

in

July

and

early

August

as

the

Delta

variant

proliferated

across

multiple

regions.

The

10-year

UST

note’s

yield

dropped

to

1.17%

on

August

3

as

risk

aversion

resurfaced,

its

lowest

level

since

mid-February.

However,

sovereign

bond

yields

largely

trended

higher

from

that

point

through

the

end

of

the

year

as

investor

sentiments

appeared

to

refortify.

In

September,

the

U.S.

Federal

Reserve

(Fed)

announced

it

would

begin

tapering

its

asset

purchases

in

the

fourth

quarter

of

2021.

The

hawkish

shift

added

further

upward

pressure

on

UST

yields

and

drove

broad

strengthening

of

the

USD.

Sovereign

bond

yields

continued

to

trend

higher

in

many

regions

over

the

following

month,

with

the

10-

year

UST

note

reaching

1.70%

on

October

21,

its

highest

yield

since

early

April.

Sovereign

bond

yields

largely

maintained

their

levels

over

subsequent

weeks

until

the

Omicron

variant

of

COVID-19

emerged

in

the

final

days

of

November,

triggering

broad-based

risk

aversion

across

global

financial

markets

and

perceived

safe-haven

rallies

in

several

developed

market

assets.

Crude

oil

prices

dropped

around

20%

in

November

on

global

growth

concerns,

with

the

bulk

of

the

price

adjustments

occurring

in

the

wake

of

the

Omicron

news.

Sovereign

bond

yields

declined

in

several

developed

markets

in

late

November

and

early

December

on

the

heightened

risk

aversion

before

global

growth

concerns

eventually

dissipated

in

the

second

half

of

the

month,

even

as

COVID-19

cases

surged

to

record

levels.

Disease

severity

from

Omicron

appeared

milder

than

previous

variants,

leading

to

a

significant

decoupling

of

the

trend

lines

for

case

numbers

(rising

sharply)

and

mortality

rates

(moderating).

We

expected

COVID-19

variants

to

not

derail

global

growth

momentum,

though

the

risks

continued

to

bear

monitoring.

Commodity

and

energy

prices

ultimately

rebounded

in

December,

recovering

much

of

the

price

corrections

from

the

prior

month

as

reflation

sentiments

returned

to

global

financial

markets.

Manufacturing

and

business

surveys

largely

continued

to

remain

at

expansionary

levels

across

much

of

the

world

during

the

second

half

of

2021

but

moderated

from

their

mid-year

peaks.

Consumer

confidence

surveys

showed

similar

trends.

Labor

market

conditions

generally

continued

to

improve

in

many

countries,

though

labor

shortages

and

unemployment

remained

above

prepandemic

levels

in

several

regions.

Overall,

global

growth

showed

signs

of

moderating

from

the

historically

strong

rebound

in

the

first

half

of

2021

but

remained

largely

resilient,

in

our

view.

Inflation

figures

remained

historically

high

across

many

parts

of

the

world

during

the

second

half

of

the

period,

driven

by

a

combination

of

factors

that

included

resurgent

economic

activity,

supply

disruptions

in

certain

sectors,

and

the

effects

of

massive

fiscal

and

monetary

stimulus

measures.

Headline

inflation

(Consumer

Price

Index)

in

the

U.S.

remained

at

or

above

5.0%

year-over-year

from

May

through

the

end

of

2021,

coming

in

at

6.8%

in

November,

its

highest

level

since

1982.

A

growing

number

of

central

banks

pursued

monetary

tightening

measures

in

the

second

half

of

the

year,

with

persistent

inflationary

pressures

in

several

emerging

markets

motivating

aggressive

tightening

responses.

In

Latin

America,

Brazil’s

central

bank

hiked

its

policy

rate

by

725

bps

in

2021,

Chile

by

350

bps,

Peru

by

225

bps,

Mexico

by

150

bps

and

Colombia

by

125

bps.

In

eastern

Europe,

Russia

hiked

its

policy

rate

by

425

bps,

the

Czech

Republic

by

300

bps,

Hungary

by

180

bps

and

Poland

by

165

bps.

Most

countries

in

Asia

kept

policy

rates

unchanged

as

inflation

generally

remained

more

contained

and

within

central

bank

targets.

In

developed

markets,

most

central

banks

continued

to

keep

their

policy

rates

unchanged

at

extraordinarily

low

levels

during

the

year,

with

some

exceptions.

Norway

posted

two

25-bp

hikes

in

2021

to

bring

its

policy

rate

to

0.50%;

the

U.K.

Templeton

Global

Total

Return

Fund

5

franklintempleton.com

Annual

Report

hiked

its

policy

rate

by

15

bps

to

0.25%

in

December,

its

first

rate

adjustment

since

March

2020;

New

Zealand

posted

consecutive

25-bp

hikes

in

October

and

November,

bringing

its

policy

rate

to

0.75%;

and

South

Korea

hiked

its

policy

rate

25

bps

in

August

and

November

to

1.00%.

Other

developed

market

central

banks,

such

as

in

Canada,

Sweden

and

Australia,

remained

on

hold

with

policy

rates

in

2021,

but

were

at

various

stages

of

tapering

their

asset

purchase

programs.

The

Fed

kept

the

federal

funds

target

rate

unchanged

(0.00%

to

0.25%)

at

each

of

its

policy

meetings

during

the

period

but

it

began

tapering

its

asset

purchases

in

November.

However,

the

Fed

quickly

shifted

in

a

hawkish

direction

at

its

December

meeting,

doubling

the

pace

of

its

asset

purchase

tapering

for

January.

The

accelerated

pace

put

the

asset

purchase

program

on

schedule

to

conclude

by

March

2022,

enabling

a

rate

hiking

cycle

to

start

in

March

or

May,

earlier

than

previously

indicated

at

the

November

meeting.

Additionally,

the

Fed’s

dot

plot

survey

in

December

showed

that

12

of

18

officials

expect

at

least

three

rate

hikes

in

2022,

a

substantial

change

from

the

September

survey

that

saw

nine

of

18

officials

project

no

hikes

until

2023.

We

expected

UST

term

premiums

to

ratchet

higher

in

upcoming

quarters,

with

a

bear-flattening

effect

driven

by

rising

yields

in

the

short-

to

intermediate-term

range

of

the

yield

curve.

The

European

Central

Bank

(ECB)

kept

monetary

policy

largely

unchanged

during

the

period,

leaving

the

main

refinancing

operations

rate

at

0.0%

and

the

main

deposit

facility

rate

at

-0.5%.

ECB

President

Christine

Lagarde

reaffirmed

at

the

October

and

December

meetings

that

key

rates

will

likely

remain

unchanged

through

2022.

The

ongoing

accommodative

policy

stance

from

the

ECB

appeared

likely

to

diverge

substantially

from

the

tightening

trajectory

of

the

Fed

in

2022.

We

expected

the

euro

to

weaken

against

the

USD

given

negative

rates

and

widening

rate

differentials

with

the

U.S.,

as

well

as

greater

headwinds

to

growth

in

Europe.

The

Bank

of

Japan

(BOJ)

also

kept

monetary

policy

largely

unchanged

during

the

period,

leaving

the

overnight

interest

rate

at

-0.1%

and

the

yield

target

on

the

10-

year

Japanese

government

bond

at

0.0%.

In

December,

the

BOJ

announced

plans

to

scale

down

its

emergency

pandemic

purchasing

measures

by

tapering

its

corporate

debt

purchases

to

precrisis

levels

by

April.

We

expected

the

Japanese

yen

to

face

headwinds

from

widening

rate

differentials

with

the

U.S.

Overall,

most

developed

markets

saw

10-year

sovereign

bond

yields

rise

during

the

period,

including

Norway,

Sweden,

the

U.K.,

South

Korea,

Canada

and

core

Europe.

The

yield

on

the

10-year

UST

note

finished

the

year

at

1.51%,

59

bps

higher

than

where

it

ended

2020.

In

emerging

markets,

10-year

sovereign

bond

yields

rose

sharply

across

much

of

Latin

America,

including

Brazil,

Mexico,

Colombia,

Chile

and

Peru.

In

eastern

Europe,

10-year

yields

trended

higher

in

Poland,

Hungary,

Russia

and

The

Czech

Republic

on

elevated

inflation

and

ongoing

monetary

tightening.

Yields

also

rose

in

much

of

Asia,

including

India,

Indonesia,

Thailand

and

Singapore,

but

declined

in

China.

USD-denominated

sovereign

credit

sectors

broadly

saw

moderately

negative

returns

for

the

period

(with

some

exceptions

in

individual

countries),

as

the

investment-

grade

credit

tiers

came

under

pressure

from

the

rising

yield

environment

while

high-yield

credit

tiers

largely

endured

additional

spread

widening.

In

currency

markets,

the

USD

broadly

strengthened

against

most

developed

market

and

emerging

market

currencies

in

2021,

appreciating

against

the

euro,

the

British

pound,

the

Japanese

yen,

the

South

Korean

won,

the

Australian

dollar

and

the

New

Zealand

dollar.

In

specific

pairings,

the

Norwegian

krone

and

the

Canadian

dollar

appreciated

against

the

euro,

while

the

Swedish

krona

depreciated.

In

emerging

markets,

the

USD

depreciated

against

the

Chinese

yuan,

but

appreciated

against

most

currencies

in

Latin

America

and

Asia,

including

the

Brazilian

real,

Mexican

peso,

Colombian

peso,

Chilean

peso,

Indian

rupee,

Indonesian

rupiah,

Singapore

dollar

and

Thai

baht.

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

The

successful

development

of

vaccines

against

COVID-19

in

final

months

of

2020

substantially

changed

our

outlook

and

positioning

for

2021.

In

the

weeks

before

the

12-month

reporting

period

began,

we

significantly

shifted

the

emphasis

of

the

Fund’s

strategic

positioning

from

a

safe-haven

stance

toward

an

increasing

allocation

to

risk

assets.

We

expected

a

rebound

in

global

economic

activity

and

improving

economic

conditions

in

the

spring

and

summer

months

of

Templeton

Global

Total

Return

Fund

6

franklintempleton.com

Annual

Report

2021

as

vaccines

were

progressively

distributed

and

people

increasingly

reengaged

with

the

world.

We

were

actively

constructive

in

a

number

of

regions

throughout

the

12-month

period,

particularly

in

areas

of

Asia

that

appeared

to

be

at

the

forefront

of

the

global

economic

recovery.

Overall,

the

Fund

was

focused

on

three

core

themes

during

the

period:

(1)

value

in

select

currencies

against

the

USD

and

the

euro,

specifically

in

countries

with

strong

trade

dynamics,

current

account

surpluses,

better

fiscal

management

and

stronger

growth

potential,

notably

in

Asia;

(2)

avoiding

interest-rate

risks

in

low-yielding

developed

markets;

and

(3)

pursuing

sovereign

bonds

with

relatively

higher

yields

in

a

select

set

of

resilient

emerging

markets.

At

the

beginning

of

the

period,

the

Fund

held

overweighted

positions

in

specific

currencies

against

the

USD

and

the

euro.

We

held

notable

exposures

to

the

Chinese

yuan,

the

South

Korean

won,

the

Indian

rupee,

the

Indonesian

rupiah

and

the

Japanese

yen

against

the

USD.

We

added

exposure

to

the

Singapore

dollar

in

April,

the

New

Zealand

dollar

in

June

and

the

Thai

baht

in

December.

We

held

a

significant

overweighted

position

in

the

Japanese

yen

through

the

first

quarter

of

2021

before

reducing

it

to

a

modest

overweighting

in

the

second

quarter

and

reducing

it

to

an

underweighted

position

in

the

fourth

quarter.

In

EMEA,

we

held

exposures

in

the

Norwegian

krone

and

Swedish

krona

against

the

euro

throughout

2021,

as

well

as

exposures

to

the

Russian

ruble

and

the

Egyptian

pound

against

the

USD.

In

the

Americas,

we

held

long

exposure

to

the

Canadian

dollar

against

the

euro,

and

long

exposures

to

the

Colombian

peso

and

Brazilian

real

against

the

USD.

In

May,

we

added

exposure

to

the

Chilean

peso

against

the

USD.

During

the

period,

we

used

currency

forwards

and

currency

options

to

actively

manage

currency

exposures.

We

also

continued

to

focus

on

compelling

risk-adjusted

yields

in

various

local-currency

bond

markets,

specifically

in

countries

with

resilient

economies

and

strong

trade

dynamics.

We

continued

to

largely

avoid

developed

market

duration

exposures

in

preference

for

higher

yields

available

in

select

emerging

markets,

notably

including

Indonesia,

India,

Mexico,

Colombia,

Brazil

and

Ghana,

among

others.

After

exiting

our

local-currency

position

in

Brazil

in

the

first

quarter

of

2021

due

to

acute

political

and

economic

risks,

we

reestablished

the

position

in

the

second

quarter

as

political

compromises

in

the

spring

and

better-than

expected

economic

figures

supported

an

improved

outlook.

In

July,

we

added

to

our

local-currency

position

in

Brazil.

We

also

saw

pockets

of

value

in

certain

USD-denominated

sovereign

credits

during

the

reporting

period,

but

we

continued

to

largely

prefer

specific

valuations

in

the

local-currency

markets

over

the

more

fully

valued

credit

markets.

During

the

period,

the

Fund’s

negative

absolute

performance

was

primarily

due

to

currency

positions.

Interest-rate

strategies

contributed

to

absolute

results,

as

did

overall

credit

exposures.

Among

currencies,

positions

in

the

Japanese

yen,

Argentine

peso,

South

Korean

won,

Turkish

lira,

Chilean

peso

and

Colombian

peso

detracted

from

absolute

performance.

However,

the

Fund’s

positions

in

the

Canadian

dollar

and

the

Norwegian

krone

against

the

euro

contributed

to

absolute

results,

as

did

its

position

in

the

Chinese

yuan

against

the

USD.

The

Fund

maintained

a

defensive

approach

regarding

interest

rates

in

developed

markets,

while

holding

duration

exposures

in

select

emerging

markets.

Duration

exposures

in

Argentina,

Ghana

and

Indonesia

contributed

to

absolute

performance.

Among

credit

exposures,

subinvestment-grade

sovereign

credits

contributed

to

absolute

return.

On

a

relative

basis,

the

Fund’s

underperformance

was

primarily

due

to

currency

positions.

Interest-rate

strategies

contributed

to

relative

results,

as

did

overall

credit

exposures.

Among

currencies,

overweighted

positions

in

the

Argentine

peso,

South

Korean

won,

Turkish

lira,

Chilean

peso

and

Colombian

peso

detracted

from

relative

performance,

as

did

the

Fund’s

overweighted

position

in

the

Japanese

yen

for

most

of

the

period.

However,

its

underweighted

exposure

to

the

euro

contributed

to

relative

return,

as

did

overweighted

positions

in

the

Canadian

dollar

and

the

Norwegian

krone

against

the

euro.

Its

position

in

the

Chinese

yuan

against

the

USD

also

contributed

to

relative

results.

The

Fund

maintained

a

defensive

approach

regarding

interest

rates

in

developed

markets,

while

holding

duration

exposures

in

select

emerging

markets.

Overweighted

duration

exposures

in

Argentina,

Ghana

and

Indonesia

contributed

to

relative

performance,

as

did

the

Fund’s

lack

of

duration

exposure

in

the

euro

area.

Among

credit

exposures,

overweighted

exposure

to

subinvestment-

grade

sovereign

credits

contributed

to

relative

return.

Geographic

Composition

12/31/21

%

of

Total

Net

Assets

Americas

31.3%

Asia

Pacific

23.3%

Other

Europe

8.6%

Middle

East

&

Africa

7.0%

Short-Term

Investments

&

Other

Net

Assets

29.8%

Templeton

Global

Total

Return

Fund

7

franklintempleton.com

Annual

Report

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

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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,

2021

Templeton

Global

Total

Return

Fund

8

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

12/31/21

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

-5.39%

-8.95%

5-Year

-5.20%

-1.81%

10-Year

+20.93%

+1.53%

Advisor

1-Year

-5.14%

-5.14%

5-Year

-3.91%

-0.79%

10-Year

+24.08%

+2.18%

See

page

10

for

Performance

Summary

footnotes.

Templeton

Global

Total

Return

Fund

Performance

Summary

9

franklintempleton.com

Annual

Report

See

page

10

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

(1/1/12–12/31/21)

Advisor

Class

(1/1/12–12/31/21)

Templeton

Global

Total

Return

Fund

Performance

Summary

10

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

sig-

nificant

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.

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.

1.

The

Fund

has

a

fee

waiver

associated

with

any

investment

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

fee

waiver;

without

this

waiver,

the

results

would

have

been

lower.

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:

Morningstar.

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

(1/1/21–12/31/21)

Share

Class

Tax

Return

of

Capital

A

$0.6952

C

$0.6536

R

$0.6701

R6

$0.7330

Advisor

$0.7191

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

1.05%

1.10%

Advisor

0.80%

0.85%

Your

Fund’s

Expenses

Templeton

Global

Total

Return

Fund

11

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$959.70

$5.82

$1,019.27

$5.99

1.18%

C

$1,000

$957.40

$7.75

$1,017.29

$7.99

1.57%

R

$1,000

$958.40

$7.06

$1,017.99

$7.28

1.43%

R6

$1,000

$961.80

$3.93

$1,021.20

$4.05

0.80%

Advisor

$1,000

$961.00

$4.57

$1,020.55

$4.71

0.92%

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Total

Return

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$9.98

$11.02

$11.62

$12.04

$12.09

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.63

0.43

0.60

0.67

0.63

Net

realized

and

unrealized

gains

(losses)

...........

(1.14)

(1.01)

(0.46)

(0.47)

(0.28)

Total

from

investment

operations

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

(0.51)

(0.58)

0.14

0.20

0.35

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(0.02)

(0.74)

(0.62)

(0.16)

Tax

return

of

capital

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

(0.70)

(0.44)

—

—

(0.24)

Total

distributions

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

(0.70)

(0.46)

(0.74)

(0.62)

(0.40)

Net

asset

value,

end

of

year

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

$8.77

$9.98

$11.02

$11.62

$12.04

Total

return

c

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

(5.39)%

(5.32)%

1.21%

1.69%

2.83%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.17%

1.08%

1.04%

1.09%

1.07%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.16%

1.06%

0.96%

1.01%

1.02%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.16%

d

1.04%

0.93%

1.01%

d

1.02%

d

Net

investment

income

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

6.67%

4.19%

5.27%

5.62%

5.15%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$299,056

$482,575

$769,018

$811,990

$921,181

Portfolio

turnover

rate

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

23.94%

60.89%

27.57%

20.91%

41.66%

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

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

13

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$9.96

$11.01

$11.61

$12.02

$12.07

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.59

0.39

0.56

0.62

0.58

Net

realized

and

unrealized

gains

(losses)

...........

(1.14)

(1.02)

(0.46)

(0.46)

(0.28)

Total

from

investment

operations

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

(0.55)

(0.63)

0.10

0.16

0.30

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(0.01)

(0.70)

(0.57)

(0.14)

Tax

return

of

capital

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

(0.65)

(0.41)

—

—

(0.21)

Total

distributions

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

(0.65)

(0.42)

(0.70)

(0.57)

(0.35)

Net

asset

value,

end

of

year

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

$8.76

$9.96

$11.01

$11.61

$12.02

Total

return

c

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

(5.72)%

(5.80)%

0.81%

1.37%

2.43%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.56%

1.48%

1.44%

1.49%

1.47%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.56%

d

1.46%

1.36%

1.41%

1.42%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.56%

e

1.44%

1.33%

1.41%

e

1.42%

e

Net

investment

income

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

6.21%

3.79%

4.87%

5.22%

4.75%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$40,591

$113,438

$237,215

$310,561

$398,445

Portfolio

turnover

rate

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

23.94%

60.89%

27.57%

20.91%

41.66%

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

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%.

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.

14

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$9.98

$11.03

$11.63

$12.04

$12.09

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.61

0.40

0.58

0.64

0.60

Net

realized

and

unrealized

gains

(losses)

...........

(1.14)

(1.02)

(0.47)

(0.46)

(0.28)

Total

from

investment

operations

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

(0.53)

(0.62)

0.11

0.18

0.32

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(0.02)

(0.71)

(0.59)

(0.15)

Tax

return

of

capital

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

(0.67)

(0.41)

—

—

(0.22)

Total

distributions

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

(0.67)

(0.43)

(0.71)

(0.59)

(0.37)

Net

asset

value,

end

of

year

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

$8.78

$9.98

$11.03

$11.63

$12.04

Total

return

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

(5.54)%

(5.65)%

0.95%

1.52%

2.58%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.42%

1.32%

1.29%

1.34%

1.32%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.41%

1.30%

1.21%

1.26%

1.27%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.41%

c

1.28%

1.18%

1.26%

c

1.27%

c

Net

investment

income

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

6.44%

3.89%

5.02%

5.37%

4.90%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$4,823

$7,741

$7,377

$7,957

$8,788

Portfolio

turnover

rate

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

23.94%

60.89%

27.57%

20.91%

41.66%

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

15

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$9.98

$11.03

$11.63

$12.05

$12.10

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.66

0.47

0.65

0.71

0.68

Net

realized

and

unrealized

gains

(losses)

...........

(1.13)

(1.02)

(0.47)

(0.47)

(0.29)

Total

from

investment

operations

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

(0.47)

(0.55)

0.18

0.24

0.39

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(0.02)

(0.78)

(0.66)

(0.17)

Tax

return

of

capital

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

(0.73)

(0.48)

—

—

(0.27)

Total

distributions

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

(0.73)

(0.50)

(0.78)

(0.66)

(0.44)

Net

asset

value,

end

of

year

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

$8.78

$9.98

$11.03

$11.63

$12.05

Total

return

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

(4.91)%

(5.05)%

1.57%

2.06%

3.22%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.79%

0.71%

0.69%

0.73%

0.69%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.77%

0.69%

0.60%

0.65%

0.64%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.77%

c

0.67%

0.57%

0.65%

c

0.64%

c

Net

investment

income

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

7.01%

4.57%

5.63%

5.98%

5.53%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$170,830

$294,519

$876,665

$986,689

$1,058,884

Portfolio

turnover

rate

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

23.94%

60.89%

27.57%

20.91%

41.66%

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.

16

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$10.00

$11.04

$11.64

$12.05

$12.10

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.65

0.46

0.63

0.70

0.66

Net

realized

and

unrealized

gains

(losses)

...........

(1.14)

(1.02)

(0.46)

(0.46)

(0.28)

Total

from

investment

operations

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

(0.49)

(0.56)

0.17

0.24

0.38

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(0.02)

(0.77)

(0.65)

(0.17)

Tax

return

of

capital

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

(0.72)

(0.46)

—

—

(0.26)

Total

distributions

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

(0.72)

(0.48)

(0.77)

(0.65)

(0.43)

Net

asset

value,

end

of

year

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

$8.79

$10.00

$11.04

$11.64

$12.05

Total

return

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

(5.14)%

(5.07)%

1.46%

2.03%

3.08%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.92%

0.83%

0.79%

0.84%

0.82%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.91%

0.81%

0.71%

0.76%

0.77%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.91%

c

0.78%

0.68%

0.76%

c

0.77%

c

Net

investment

income

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

6.84%

4.48%

5.52%

5.87%

5.40%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$424,413

$1,104,754

$2,684,044

$2,992,808

$3,117,593

Portfolio

turnover

rate

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

23.94%

60.89%

27.57%

20.91%

41.66%

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

Statement

of

Investments,

December

31,

2021

Templeton

Global

Total

Return

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

17

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%,

12/31/22

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

Multiline

Retail

36,523,770

—

Senior

Secured

Note,

144A,

PIK,

8%,

12/31/22

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

Multiline

Retail

13,432,767

EUR

—

a,d,e

K2016470260

South

Africa

Ltd.,

Senior

Secured

Note,

144A,

PIK,

25%,

12/31/22

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

Multiline

Retail

15,159,679

—

—

Total

Corporate

Bonds

(Cost

$46,940,536)

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

—

a

a

Industry

Principal

Amount

*

a

Value

Foreign

Government

and

Agency

Securities

61.1%

Argentina

4.3%

f

Argentina

BONCER

,

Index

Linked,

1.4%,

3/25/23

.......

2,967,027,885

ARS

14,469,972

Index

Linked,

1.5%,

3/25/24

.......

4,087,641,323

ARS

19,564,453

Argentina

Government

Bond

,

16%,

10/17/23

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

483,949,200

ARS

1,482,047

15.5%,

10/17/26

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

2,527,300,600

ARS

4,824,784

40,341,256

Brazil

3.8%

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/25

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

43,020,000

BRL

7,612,489

10%,

1/01/27

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

113,150,000

BRL

19,864,019

10%,

1/01/29

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

18,580,000

BRL

3,231,223

10%,

1/01/31

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

29,620,000

BRL

5,102,787

35,810,518

Colombia

4.6%

Colombia

Titulos

de

Tesoreria

,

B,

10%,

7/24/24

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

32,209,000,000

COP

8,480,012

B,

7.5%,

8/26/26

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

131,221,000,000

COP

32,033,395

B,

7%,

6/30/32

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

11,774,000,000

COP

2,641,828

43,155,235

Ecuador

4.6%

e

Ecuador

Government

Bond

,

Senior

Bond,

144A,

1%,

7/31/35

....

41,176,000

27,227,630

Senior

Note,

144A,

5%,

7/31/30

....

19,217,000

15,974,131

43,201,761

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Ghana

7.0%

Ghana

Government

Bond

,

18.75%,

1/24/22

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

46,810,000

GHS

$

7,660,919

18.25%,

7/25/22

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

25,100,000

GHS

4,120,015

17.6%,

11/28/22

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

1,250,000

GHS

202,186

20.75%,

1/16/23

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

3,200,000

GHS

529,811

16.5%,

2/06/23

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

5,210,000

GHS

828,620

19%,

4/17/23

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

29,000,000

GHS

4,711,377

18.85%,

9/28/23

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

8,700,000

GHS

1,401,412

19.25%,

12/18/23

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

2,890,000

GHS

466,889

19.75%,

3/25/24

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

36,690,000

GHS

5,953,876

19%,

11/02/26

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

134,400,000

GHS

20,688,721

19.75%,

3/15/32

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

117,734,000

GHS

18,124,085

Senior

Note,

17.6%,

2/20/23

......

480,000

GHS

77,073

Senior

Note,

18.3%,

3/02/26

......

990,000

GHS

151,597

Senior

Note,

18.5%,

1/02/23

......

1,920,000

GHS

311,807

Senior

Note,

17.25%,

7/31/23

......

7,010,000

GHS

1,109,332

66,337,720

India

5.8%

India

Government

Bond

,

7.59%,

1/11/26

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

1,166,100,000

INR

16,661,926

7.27%,

4/08/26

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

2,423,700,000

INR

34,273,330

Senior

Note,

5.22%,

6/15/25

......

285,000,000

INR

3,786,047

54,721,303

Indonesia

12.7%

Indonesia

Government

Bond

,

FR39,

11.75%,

8/15/23

..........

20,613,000,000

IDR

1,627,572

FR44,

10%,

9/15/24

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

15,790,000,000

IDR

1,264,527

FR46,

9.5%,

7/15/23

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

651,100,000,000

IDR

49,586,844

FR59,

7%,

5/15/27

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

150,718,000,000

IDR

11,357,022

FR70,

8.375%,

3/15/24

..........

418,021,000,000

IDR

31,945,266

FR81,

6.5%,

6/15/25

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

14,790,000,000

IDR

1,093,749

FR86,

5.5%,

4/15/26

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

315,285,000,000

IDR

22,477,538

119,352,518

Mexico

4.9%

Mexican

Bonos

Desarr

Fixed

Rate

,

M,

Senior

Bond,

8%,

12/07/23

.....

864,345,000

MXN

42,706,936

M,

Senior

Note,

6.75%,

3/09/23

....

63,470,000

MXN

3,098,073

45,805,009

Norway

6.7%

e

Norway

Government

Bond

,

144A,

Reg

S,

2%,

5/24/23

........

315,611,000

NOK

36,246,648

144A,

Reg

S,

3%,

3/14/24

........

224,500,000

NOK

26,360,242

62,606,890

South

Korea

4.3%

Korea

Treasury

Bond

,

1.375%,

9/10/24

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

26,551,900,000

KRW

22,083,811

3%,

9/10/24

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

20,810,000,000

KRW

18,049,531

40,133,342

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

19

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Sri

Lanka

0.5%

e

Sri

Lanka

Government

Bond

,

Senior

Bond,

144A,

6.85%,

11/03/25

2,100,000

$

1,092,378

Senior

Bond,

144A,

6.2%,

5/11/27

..

5,300,000

2,718,158

Senior

Bond,

144A,

6.75%,

4/18/28

.

460,000

234,352

Senior

Bond,

144A,

7.85%,

3/14/29

.

659,000

336,841

Senior

Note,

144A,

5.75%,

4/18/23

..

200,000

112,904

Senior

Note,

144A,

6.35%,

6/28/24

..

620,000

327,583

4,822,216

Turkey

1.9%

Turkey

Government

Bond

,

13.9%,

11/09/22

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

124,600,000

TRY

8,836,147

12.2%,

1/18/23

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

8,390,000

TRY

579,503

7.1%,

3/08/23

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

35,770,000

TRY

2,302,267

16.2%,

6/14/23

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

44,310,000

TRY

3,088,949

8.8%,

9/27/23

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

23,020,000

TRY

1,416,615

10.4%,

3/20/24

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

1,950,000

TRY

117,797

12.6%,

10/01/25

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

21,490,000

TRY

1,184,874

17,526,152

Total

Foreign

Government

and

Agency

Securities

(Cost

$794,502,897)

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

573,813,920

U.S.

Government

and

Agency

Securities

9.1%

United

States

9.1%

U.S.

Treasury

Notes

,

1.75%,

12/31/24

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

5,789,400

5,922,375

2.125%,

5/15/25

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

4,060,000

4,203,210

2.875%,

5/31/25

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

32,610,000

34,580,612

2.625%,

12/31/25

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

16,863,000

17,832,623

1.625%,

2/15/26

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

9,110,000

9,268,002

2.125%,

5/31/26

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

4,164,000

4,325,680

1.625%,

10/31/26

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

9,120,000

9,277,106

85,409,608

Total

U.S.

Government

and

Agency

Securities

(Cost

$85,305,595)

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

85,409,608

Shares

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

$928,394,387)

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

659,223,528

Number

of

Contracts

Notional

Amount

#

a

a

aa

Options

Purchased

0.4%

Calls

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

March

Strike

Price

21.03

MXN,

Expires

3/04/22

..

1

7,928,000

106,112

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

aa

a

a

Options

Purchased

(continued)

Calls

-

Over-the-Counter

(continued)

Currency

Options

(continued)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

21.41

MXN,

Expires

2/03/22

..

1

28,172,000

$

109,669

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

June

Strike

Price

22.02

MXN,

Expires

6/09/22

..

1

8,516,000

147,117

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

22.32

MXN,

Expires

8/29/22

..

1

10,215,000

252,676

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

May

Strike

Price

22.34

MXN,

Expires

5/31/22

.......

1

26,955,000

351,940

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

December

Strike

Price

23.44

MXN,

Expires

12/22/22

.

1

33,221,000

870,137

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

26.30

MXN,

Expires

10/19/23

.

1

2,898,000

82,590

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

26.30

MXN,

Expires

10/19/23

.

1

1,547,000

44,088

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

26.30

MXN,

Expires

10/19/23

.

1

7,827,000

223,061

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

29.19

MXN,

Expires

8/29/24

..

1

12,817,000

392,897

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

29.71

MXN,

Expires

8/09/24

..

1

12,818,000

348,971

2,929,258

Puts

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

June

Strike

Price

18.70

MXN,

Expires

6/09/22

..

1

4,506,000

4,979

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

June

Strike

Price

19.04

MXN,

Expires

6/09/22

..

1

4,506,000

8,810

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

February

Strike

Price

19.37

MXN,

Expires

2/24/22

..

1

5,107,000

3,428

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

19.41

MXN,

Expires

8/11/22

..

1

5,983,000

27,798

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

19.85

MXN,

Expires

10/19/23

.

1

1,449,000

14,433

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

19.85

MXN,

Expires

10/19/23

.

1

773,000

7,700

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

21

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

aa

a

a

Options

Purchased

(continued)

Puts

-

Over-the-Counter

(continued)

Currency

Options

(continued)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

19.85

MXN,

Expires

10/19/23

.

1

3,914,000

$

38,987

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

20.64

MXN,

Expires

2/08/22

..

1

8,187,000

118,760

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

21.27

MXN,

Expires

2/28/22

..

1

4,492,000

162,396

387,291

Total

Options

Purchased

(Cost

$6,795,466)

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

3,316,549

Short

Term

Investments

27.1%

a

a

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

24.8%

Brazil

7.4%

g

Brazil

Letras

do

Tesouro

Nacional

,

1/01/24

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

74,600,000

BRL

10,859,959

7/01/24

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

116,410,000

BRL

16,171,931

1/01/25

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

320,650,000

BRL

42,523,113

69,555,003

Egypt

3.6%

g

Egypt

Treasury

Bills

,

1/04/22

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

20,400,000

EGP

1,299,478

1/11/22

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

99,700,000

EGP

6,342,060

2/15/22

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

40,900,000

EGP

2,574,070

2/22/22

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

6,300,000

EGP

395,854

3/01/22

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

18,900,000

EGP

1,185,103

3/22/22

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

42,800,000

EGP

2,665,236

4/26/22

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

72,700,000

EGP

4,474,839

6/14/22

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

65,325,000

EGP

3,960,824

h

9/20/22

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

112,700,000

EGP

6,593,656

h

11/01/22

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

12,900,000

EGP

743,839

h

11/08/22

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

25,800,000

EGP

1,484,111

h

11/15/22

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

19,300,000

EGP

1,107,546

h

11/22/22

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

12,700,000

EGP

727,051

33,553,667

Japan

4.8%

g

Japan

Treasury

Bills

,

2/07/22

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

2,529,500,000

JPY

21,978,813

2/10/22

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

1,160,500,000

JPY

10,083,675

3/28/22

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

1,536,600,000

JPY

13,353,645

45,416,133

Singapore

5.0%

g

Singapore

Treasury

Bills

,

1/14/22

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

2,950,000

SGD

2,186,962

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

Short

Term

Investments

(continued)

a

a

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Singapore

(continued)

g

Singapore

Treasury

Bills,

(continued)

2/11/22

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

4,560,000

SGD

$

3,379,130

10/18/22

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

55,300,000

SGD

40,836,218

46,402,310

Thailand

4.0%

g

Thailand

Treasury

Bills

,

3/24/22

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

733,440,000

THB

22,062,182

5/11/22

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

21,350,000

THB

641,810

6/22/22

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

504,860,000

THB

15,168,070

37,872,062

Total

Foreign

Government

and

Agency

Securities

(Cost

$240,522,248)

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

232,799,175

Industry

Shares

Money

Market

Funds

2.3%

United

States

2.3%

i,j

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

..........

21,628,901

21,628,901

Total

Money

Market

Funds

(Cost

$21,628,901)

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

21,628,901

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$262,151,149

)

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

254,428,076

a

a

a

Total

Investments

(Cost

$1,197,341,002)

97.7%

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

$916,968,153

Options

Written

(0.3)%

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

(2,310,193)

Other

Assets,

less

Liabilities

2.6%

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

25,054,637

Net

Assets

100.0%

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

$939,712,597

a

a

a

a

Number

of

Contracts

Notional

Amount

#

a

a

a

a

a

k

Options

Written

(0.3)%

a

Calls

-

Over-the-Counter

a

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

March

Strike

Price

20.56

MXN,

Expires

3/04/22

..

1

2,973,000

(67,328)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

20.64

MXN,

Expires

2/08/22

..

1

8,187,000

(117,279)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

20.86

MXN,

Expires

2/03/22

..

1

9,391,000

(87,575)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

February

Strike

Price

21.71

MXN,

Expires

2/24/22

..

1

5,874,000

(30,274)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

22.06

MXN,

Expires

8/11/22

..

1

5,983,000

(154,059)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

March

Strike

Price

22.55

MXN,

Expires

3/04/22

..

1

2,973,000

(7,954)

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

a

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

a

a

k

Options

Written

(continued)

a

Calls

-

Over-the-Counter

(continued)

a

Currency

Options

(continued)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

22.73

MXN,

Expires

2/03/22

..

1

18,782,000

$

(11,743)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

December

Strike

Price

22.75

MXN,

Expires

12/22/22

.

1

8,969,000

(307,515)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

December

Strike

Price

22.75

MXN,

Expires

12/22/22

.

1

997,000

(34,184)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

23.79

MXN,

Expires

2/28/22

..

1

8,985,000

(6,481)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

May

Strike

Price

23.80

MXN,

Expires

5/31/22

.......

1

13,477,000

(73,900)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

December

Strike

Price

24.95

MXN,

Expires

12/22/22

.

1

9,967,000

(152,483)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

June

Strike

Price

25.41

MXN,

Expires

6/09/22

..

1

6,008,000

(16,150)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

34.95

MXN,

Expires

10/19/23

.

1

533,000

(3,224)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

34.95

MXN,

Expires

10/19/23

.

1

2,640,000

(15,968)

(1,086,117)

Puts

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

June

Strike

Price

19.84

MXN,

Expires

6/09/22

..

1

8,516,000

(57,840)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

December

Strike

Price

19.93

MXN,

Expires

12/22/22

.

1

8,969,000

(91,759)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

December

Strike

Price

19.93

MXN,

Expires

12/22/22

.

1

997,000

(10,200)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

20.50

MXN,

Expires

8/11/22

..

1

5,983,000

(98,882)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

20.72

MXN,

Expires

2/28/22

..

1

4,492,000

(81,478)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

21.35

MXN,

Expires

8/29/22

..

1

10,215,000

(357,125)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

22.32

MXN,

Expires

10/19/23

.

1

1,547,000

(66,407)

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

a

a

k

Options

Written

(continued)

a

Puts

-

Over-the-Counter

(continued)

a

Currency

Options

(continued)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

22.32

MXN,

Expires

10/19/23

.

1

7,827,000

$

(335,984)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

22.32

MXN,

Expires

10/19/23

.

1

2,898,000

(124,40

1

)

(1,224,07

6

)

Total

Options

Written

(Premiums

received

$4,018,463)

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

$

(2,310,193

)

#

Notional

amount

is

the

number

of

units

specified

in

the

contract,

and

can

include

currency

units,

bushels,

shares,

pounds,

barrels

or

other

units.

Currency

units

are

stated

in

U.S.

dollars

unless

otherwise

indicated.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

13

regarding

fair

value

measurements.

b

Non-income

producing.

c

See

Note

10

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,

2021,

the

aggregate

value

of

these

securities

was

$110,630,867,

representing

11.8%

of

net

assets.

f

Redemption

price

at

maturity

is

adjusted

for

inflation.

See

Note

1(h).

g

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

h

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

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.

k

See

Note

1(d)

regarding

written

options.

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

25

At

December

31,

2021,

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

Chilean

Peso

......

JPHQ

Buy

4,526,506,447

5,531,530

1/07/22

$

—

$

(220,969)

Chilean

Peso

......

GSCO

Buy

3,189,646,324

3,885,974

1/10/22

—

(145,415)

Chinese

Yuan

......

CITI

Buy

169,481,510

25,819,852

1/12/22

787,395

—

Chilean

Peso

......

JPHQ

Buy

7,468,900,000

9,406,675

1/13/22

—

(651,459)

Mexican

Peso

......

MSCO

Buy

140,870,000

6,720,737

1/13/22

133,018

—

Mexican

Peso

......

MSCO

Sell

407,335,000

19,359,522

1/13/22

—

(458,568)

Chilean

Peso

......

GSCO

Buy

2,210,334,820

2,735,563

1/14/22

—

(144,922)

Chinese

Yuan

......

HSBK

Buy

23,508,820

3,611,996

1/18/22

77,245

—

Euro

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

DBAB

Sell

14,196,079

144,392,577

SEK

1/18/22

—

(189,401)

Mexican

Peso

......

CITI

Buy

9,622,070

447,187

1/18/22

20,549

—

Mexican

Peso

......

CITI

Sell

16,827,714

812,423

1/18/22

—

(5,584)

South

Korean

Won

..

JPHQ

Buy

22,871,500,000

19,912,502

1/19/22

—

(684,684)

South

Korean

Won

..

JPHQ

Sell

7,800,000,000

6,567,315

1/19/22

9,941

—

Chilean

Peso

......

JPHQ

Buy

4,426,090,000

5,424,130

1/21/22

—

(241,608)

South

Korean

Won

..

CITI

Buy

22,686,600,000

19,753,243

1/21/22

—

(682,252)

South

Korean

Won

..

CITI

Sell

22,686,600,000

19,383,629

1/21/22

312,638

—

Singapore

Dollar

....

MSCO

Buy

3,270,000

2,407,102

1/24/22

17,131

—

South

Korean

Won

..

JPHQ

Buy

22,407,000,000

19,460,657

1/24/22

—

(626,766)

Singapore

Dollar

....

CITI

Buy

3,280,000

2,433,361

1/26/22

—

(1,746)

Indian

Rupee

......

JPHQ

Buy

850,416,900

11,017,190

1/27/22

370,783

—

Canadian

Dollar

....

HSBK

Sell

20,000,000

13,981,642

EUR

2/03/22

99,213

—

Euro

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

HSBK

Sell

27,490,246

40,751,815

CAD

2/03/22

934,574

—

South

Korean

Won

..

BNDP

Buy

26,013,700,000

22,582,317

2/03/22

—

(724,820)

South

Korean

Won

..

CITI

Buy

13,227,400,000

11,438,430

2/03/22

—

(324,368)

Chilean

Peso

......

JPHQ

Buy

4,526,493,553

5,515,003

2/07/22

—

(228,117)

Chilean

Peso

......

GSCO

Buy

2,530,950,000

3,116,281

2/10/22

—

(161,627)

Euro

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

HSBK

Buy

17,840,000

20,156,317

2/10/22

153,660

—

Euro

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

HSBK

Sell

23,270,000

26,962,600

2/10/22

470,831

—

Indian

Rupee

......

CITI

Buy

619,835,000

8,190,209

2/10/22

97,612

—

Chilean

Peso

......

GSCO

Buy

4,748,107,280

6,013,307

2/11/22

—

(471,240)

Chinese

Yuan

......

JPHQ

Buy

145,169,010

22,791,487

2/14/22

—

(48,509)

Australian

Dollar

....

MSCO

Sell

27,013,000

19,834,889

2/17/22

203,553

—

Chinese

Yuan

......

JPHQ

Buy

69,110,470

10,743,284

2/22/22

78,950

—

Russian

Ruble

.....

JPHQ

Buy

455,017,800

6,056,104

3/03/22

—

(64,090)

South

Korean

Won

..

CITI

Buy

48,080,000,000

41,201,423

3/03/22

—

(828,454)

South

Korean

Won

..

CITI

Buy

18,190,000,000

15,689,150

3/07/22

—

(416,098)

Chinese

Yuan

......

BOFA

Buy

88,647,670

13,554,275

3/09/22

314,852

—

Chilean

Peso

......

GSCO

Buy

5,165,890,000

6,088,045

3/10/22

—

(84,971)

Russian

Ruble

.....

DBAB

Buy

791,496,100

10,519,702

3/11/22

—

(118,050)

Chinese

Yuan

......

HSBK

Buy

184,710,190

28,848,797

3/15/22

37,984

—

Chilean

Peso

......

GSCO

Buy

17,483,970,258

20,848,148

3/16/22

—

(550,028)

Euro

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

DBAB

Sell

20,550,371

209,727,413

SEK

3/16/22

—

(210,582)

Indian

Rupee

......

HSBK

Buy

257,214,374

3,369,216

3/16/22

54,969

—

South

Korean

Won

..

DBAB

Buy

73,000,000,000

62,112,858

3/16/22

—

(827,606)

Australian

Dollar

....

CITI

Sell

9,570,100

6,845,397

3/21/22

—

(110,081)

New

Zealand

Dollar

.

CITI

Buy

8,370,000

5,651,005

3/21/22

68,678

—

New

Zealand

Dollar

.

JPHQ

Buy

31,800,000

21,434,045

3/21/22

296,654

—

Indian

Rupee

......

SCNY

Buy

556,800,000

7,262,293

3/22/22

141,977

—

Euro

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

JPHQ

Sell

2,371,499

24,300,000

SEK

3/31/22

—

(14,015)

Euro

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

JPHQ

Sell

44,601,685

456,136,972

NOK

4/01/22

842,393

—

Indian

Rupee

......

CITI

Buy

828,586,800

10,938,440

4/08/22

48,268

—

Indian

Rupee

......

CITI

Buy

270,784,000

3,551,731

4/12/22

36,979

—

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

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)

Indian

Rupee

......

HSBK

Buy

999,725,100

13,090,547

4/12/22

$

158,847

$

—

Euro

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

DBAB

Sell

2,627,113

26,627,663

SEK

4/14/22

—

(48,413)

Indian

Rupee

......

HSBK

Buy

993,891,817

12,899,812

4/18/22

262,530

—

Euro

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

DBAB

Sell

3,024,670

30,350,750

SEK

4/19/22

—

(89,928)

Euro

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

HSBK

Sell

28,476,693

3,782,544,856

JPY

4/25/22

425,502

—

Euro

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

HSBK

Sell

27,435,143

40,752,161

CAD

5/03/22

917,933

—

Chilean

Peso

......

GSCO

Buy

4,545,115,082

5,730,244

5/11/22

—

(503,694)

Euro

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

DBAB

Sell

37,328,237

382,130,248

SEK

5/18/22

—

(292,252)

Russian

Ruble

.....

MSCO

Buy

1,977,888,300

25,333,183

5/23/22

193,443

—

Australian

Dollar

....

CITI

Sell

29,836,000

22,300,897

6/07/22

609,788

—

Japanese

Yen

......

CITI

Buy

2,517,664,000

22,301,046

6/07/22

—

(385,840)

Japanese

Yen

......

CITI

Sell

2,517,664,000

22,085,741

6/07/22

170,535

—

Chinese

Yuan

......

BOFA

Buy

134,698,690

20,852,740

6/08/22

96,413

—

Chinese

Yuan

......

JPHQ

Buy

66,647,640

10,322,531

6/10/22

41,568

—

Russian

Ruble

.....

DBAB

Buy

576,087,600

7,339,116

6/10/22

64,011

—

Euro

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

DBAB

Sell

6,440,736

65,125,500

SEK

6/15/22

—

(143,220)

Indian

Rupee

......

CITI

Buy

821,108,979

10,634,749

6/15/22

161,569

—

New

Zealand

Dollar

.

BOFA

Buy

7,120,000

4,773,248

6/17/22

80,769

—

Euro

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

CITI

Sell

22,221,186

228,796,000

NOK

6/21/22

497,537

—

Euro

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

DBAB

Sell

3,019,074

30,350,750

SEK

7/19/22

—

(88,556)

Japanese

Yen

......

CITI

Buy

4,406,667,000

38,926,006

7/20/22

—

(535,449)

Japanese

Yen

......

CITI

Sell

4,406,667,000

38,830,538

7/20/22

439,982

—

Euro

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

CITI

Sell

5,620,000

6,583,673

7/21/22

158,069

—

Euro

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

CITI

Sell

14,070,000

16,479,347

7/26/22

389,789

—

Euro

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

HSBK

Sell

63,827,138

92,232,767

CAD

8/03/22

—

(158,729)

Russian

Ruble

.....

JPHQ

Buy

409,323,200

5,123,247

8/24/22

47,038

—

Russian

Ruble

.....

DBAB

Buy

1,193,258,200

14,858,152

9/15/22

139,164

—

Total

Forward

Exchange

Contracts

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

$10,464,334

$(11,482,111)

Net

unrealized

appreciation

(depreciation)

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

$(1,017,777)

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

See

Note 11 regarding

other

derivative

information.

See

Abbreviations

on

page

45.

Templeton

Income

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

27

Templeton

Global

Total

Return

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$1,175,712,101

Cost

-

Non-controlled

affiliates

(Note

3

f

)

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

21,628,901

Value

-

Unaffiliated

issuers

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

$895,339,252

Value

-

Non-controlled

affiliates

(Note

3

f

)

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

21,628,901

Restricted

cash

for

OTC

derivative

contracts

(Note

1

e

)

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

2,270,000

Restricted

currency,

at

value

(cost

$3,236)

(Note

1f)

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

3,206

Foreign

currency,

at

value

(cost

$10,550,877)

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

10,584,457

Receivables:

Investment

securities

sold

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

16,492,253

Capital

shares

sold

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

2,107,246

Dividends

and

interest

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

13,785,156

Deposits

with

brokers

for:

OTC

derivative

contracts

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

4,395,000

Unrealized

appreciation

on

OTC

forward

exchange

contracts

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

10,464,334

Total

assets

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

977,069,805

Liabilities:

Payables:

Investment

securities

purchased

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

9,851,971

Capital

shares

redeemed

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

8,776,388

Management

fees

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

557,133

Distribution

fees

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

92,442

Transfer

agent

fees

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

597,471

Deposits

from

brokers

for:

OTC

derivative

contracts

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

2,270,000

Options

written,

at

value

(premiums

received

$4,018,463)

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

2,310,193

Unrealized

depreciation

on

OTC

forward

exchange

contracts

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

11,482,111

Deferred

tax

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

531,463

Accrued

expenses

and

other

liabilities

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

888,036

Total

liabilities

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

37,357,208

Net

assets,

at

value

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

$939,712,597

Net

assets

consist

of:

Paid-in

capital

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

$1,785,429,748

Total

distributable

earnings

(losses)

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

(845,717,151

)

Net

assets,

at

value

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

$939,712,597

Templeton

Income

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

Templeton

Global

Total

Return

Fund

Class

A:

Net

assets,

at

value

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

$299,056,163

Shares

outstanding

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

34,083,796

Net

asset

value

per

share

a

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

$8.77

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

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

$9.11

Class

C:

Net

assets,

at

value

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

$40,591,256

Shares

outstanding

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

4,632,168

Net

asset

value

and

maximum

offering

price

per

share

a

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

$8.76

Class

R:

Net

assets,

at

value

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

$4,822,724

Shares

outstanding

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

549,305

Net

asset

value

and

maximum

offering

price

per

share

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

$8.78

Class

R6:

Net

assets,

at

value

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

$170,829,714

Shares

outstanding

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

19,460,578

Net

asset

value

and

maximum

offering

price

per

share

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

$8.78

Advisor

Class:

Net

assets,

at

value

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

$424,412,740

Shares

outstanding

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

48,277,067

Net

asset

value

and

maximum

offering

price

per

share

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

$8.79

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Templeton

Income

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

29

Templeton

Global

Total

Return

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Note

3

f

)

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

$13,431

Interest:

(net

of

foreign

taxes

of

$2,476,164)

Unaffiliated

issuers:

Inflation

principal

adjustments

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

32,007,053

Paid

in

cash

a

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

81,633,387

Total

investment

income

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

113,653,871

Expenses:

Management

fees

(Note

3

a

)

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

9,499,828

Distribution

fees:

(Note

3c

)

    Class

A

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

1,038,828

    Class

C

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

494,716

    Class

R

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

34,330

Transfer

agent

fees:

(Note

3e

)

    Class

A

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

707,048

    Class

C

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

129,226

    Class

R

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

11,675

    Class

R6

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

101,211

    Advisor

Class

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

1,248,253

Custodian

fees

(Note

4

)

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

728,494

Reports

to

shareholders

fees

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

169,483

Registration

and

filing

fees

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

141,216

Professional

fees

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

161,360

Trustees'

fees

and

expenses

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

126,995

Other

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

99,052

Total

expenses

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

14,691,715

Expense

reductions

(Note

4

)

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

(15,002)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

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

(132,575)

Net

expenses

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

14,544,138

Net

investment

income

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

99,109,733

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$277,636)

Unaffiliated

issuers

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

(238,411,456)

Written

options

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

3,565,344

Foreign

currency

transactions

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

(2,856,913)

Forward

exchange

contracts

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

(54,516,768)

Net

realized

gain

(loss)

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

(292,219,793)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

64,262,417

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

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

(897,259)

Written

options

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

4,421,734

Forward

exchange

contracts

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

48,126,771

Change

in

deferred

taxes

on

unrealized

appreciation

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

1,122,097

Net

change

in

unrealized

appreciation

(depreciation)

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

117,035,760

Net

realized

and

unrealized

gain

(loss)

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

(175,184,033)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

$(76,074,300)

a

Includes

amortization

of

premium

and

accretion

of

discount.

Templeton

Income

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Annual

Report

{Footer

Text}

30

Templeton

Global

Total

Return

Fund

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

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

$99,109,733

$133,933,600

Net

realized

gain

(loss)

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

(292,219,793)

(521,409,279)

Net

change

in

unrealized

appreciation

(depreciation)

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

117,035,760

170,125,768

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

(76,074,300)

(217,349,911)

Distributions

to

shareholders:

Class

A

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

—

(992,841)

Class

C

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

—

(241,971)

Class

R

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

—

(11,071)

Class

R6

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

—

(953,591)

Advisor

Class

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

—

(2,811,103)

Distributions

to

shareholders

from

tax

return

of

capital:

Class

A

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

(30,448,824)

(27,465,171)

Class

C

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

(5,080,573)

(6,693,699)

Class

R

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

(484,917)

(306,249)

Class

R6

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

(17,832,933)

(26,379,395)

Advisor

Class

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

(54,993,271)

(77,764,112)

Total

distributions

to

shareholders

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

(108,840,518)

(143,619,203)

Capital

share

transactions:

(Note

2

)

Class

A

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

(131,576,618)

(217,260,963)

Class

C

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

(63,666,922)

(104,199,862)

Class

R

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

(2,105,564)

1,086,048

Class

R6

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

(94,091,202)

(510,743,871)

Advisor

Class

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

(586,959,303)

(1,379,205,858)

Total

capital

share

transactions

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

(878,399,609)

(2,210,324,506)

Net

increase

(decrease)

in

net

assets

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

(1,063,314,427)

(2,571,293,620)

Net

assets:

Beginning

of

year

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

2,003,027,024

4,574,320,644

End

of

year

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

$939,712,597

$2,003,027,024

Templeton

Income

Trust

31

franklintempleton.com

Annual

Report

Notes

to

Financial

Statements

Templeton

Global

Total

Return

Fund

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

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Templeton

Global

Total

Return

Fund

(Fund)

is

included

in

this

report.

The

Fund

offers five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class. Effective

August

2,

2021,

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Prior

to

August

2,

2021,

Class

C

shares

converted

to

Class

A

shares

after

a

10-year

holding

period.

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 Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

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

Fund

calculates

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 Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

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

Fund's

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

trade

in

the

OTC

market.

The

Fund's

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

Fund's

net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

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

Templeton

Income

Trust

Notes

to

Financial

Statements

32

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

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

Fund's

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

Fund's

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

Fund's

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

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

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 Fund

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

Fund

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

Fund

does

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

Statement 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

The

Fund

purchases

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

Fund

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities,

it

may

sell

the

securities

before

the

settlement

date.

d.

Derivative

Financial

Instruments

The

Fund 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

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

33

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce its

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 Fund

include

failure

of

the

Fund

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

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

terms

are

contract

specific

for

OTC

derivatives.

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,

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

Fund's

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.

The

Fund 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.

The

Fund

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.

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.

See

Note

11

regarding

other

derivative

information.

e.

Restricted

Cash

At

December

31,

2021, the

Fund

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

is

reflected

in

the

Statement

of

Assets

and

Liabilities.

f.

Restricted

Currency

At

December

31,

2021,

the

Fund

held

currencies

in

certain

markets

in

which

the

ability

to

repatriate

such

currency

is

limited.

As

a

result

of

such

limitations

on

repatriation,

the

Fund

may

incur

substantial

delays

in

gaining

access

to

these

assets

and

may

be

exposed

to

potential

adverse

movements

in

currency

value.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

34

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

g.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The 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 Fund

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

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The

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,

2021,

the

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. 

h.

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

Fund.

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

Statement

of

Operations.

i.

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.

j.

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

Fund,

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.

1.

Organization

and

Significant

Accounting

Policies

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

35

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

December

31,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

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

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

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

10,894,207

$102,795,619

18,417,702

$189,471,069

Shares

issued

in

reinvestment

of

distributions

..........

2,590,205

24,336,012

2,048,612

21,146,454

Shares

redeemed

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

(27,770,053)

(258,708,249)

(41,849,275)

(427,878,486)

Net

increase

(decrease)

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

(14,285,641)

$(131,576,618)

(21,382,961)

$(217,260,963)

Class

C

Shares:

Shares

sold

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

526,361

$4,902,146

1,324,479

$13,677,606

Shares

issued

in

reinvestment

of

distributions

..........

518,088

4,903,645

600,638

6,200,018

Shares

redeemed

a

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

(7,799,867)

(73,472,713)

(12,084,491)

(124,077,486)

Net

increase

(decrease)

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

(6,755,418)

$(63,666,922)

(10,159,374)

$(104,199,862)

Class

R

Shares:

Shares

sold

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

181,030

$1,731,229

693,427

$7,104,295

Shares

issued

in

reinvestment

of

distributions

..........

50,428

475,946

30,150

309,106

Shares

redeemed

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

(457,595)

(4,312,739)

(616,867)

(6,327,353)

Net

increase

(decrease)

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

(226,137)

$(2,105,564)

106,710

$1,086,048

Class

R6

Shares:

Shares

sold

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

4,889,790

$45,765,527

10,273,374

$109,626,734

Shares

issued

in

reinvestment

of

distributions

..........

1,088,543

10,318,585

2,177,213

22,631,186

Shares

redeemed

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

(16,020,781)

(150,175,314)

(62,403,556)

(643,001,791)

Net

increase

(decrease)

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

(10,042,448)

$(94,091,202)

(49,952,969)

$(510,743,871)

Advisor

Class

Shares:

Shares

sold

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

30,970,594

$291,205,951

56,929,039

$591,194,306

Shares

issued

in

reinvestment

of

distributions

..........

5,072,593

48,042,025

6,796,675

70,563,584

Shares

redeemed

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

(98,294,651)

(926,207,279)

(196,224,056)

(2,040,963,748)

Net

increase

(decrease)

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

(62,251,464)

$(586,959,303)

(132,498,342)

$(1,379,205,858)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

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

Templeton

Income

Trust

Notes

to

Financial

Statements

36

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

a.

Management

Fees

The

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

year

ended

December

31,

2021,

the

gross

effective

investment

management

fee

rate

was

0.651%

of

the

Fund’s

average

daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

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

Fund’s

Class A reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

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

Fund’s

Class C

and

R

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

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.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

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

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

year:

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

Class

A

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

0.25%

Class

C

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

0.65%

Class

R

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

0.50%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

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

$3,775

CDSC

retained

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

$61,109

3.

Transactions

with

Affiliates

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

37

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

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,

2021,

the

Fund

paid

transfer

agent

fees

of

$2,197,413,

of

which $773,542

was

retained

by

Investor

Services.

f.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

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

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

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,

2021,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

g.

Waiver

and

Expense

Reimbursements

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,

2022.

4.

Expense

Offset

Arrangement

The

Fund

has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

year

ended

December

31,

2021,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations.

    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

Total

Return

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

$

189,612,936

$

1,061,242,662

$

(1,229,226,697)

$

—

$

—

$

21,628,901

21,628,901

$

13,431

Total

Affiliated

Securities

...

$189,612,936

$1,061,242,662

$(1,229,226,697)

$—

$—

$21,628,901

$13,431

3.

Transactions

with

Affiliates

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

38

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2021,

the

capital

loss

carryforwards

were

as

follows:

For

tax

purposes,

the

Fund

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

December

31,

2021,

the

Fund

deferred

late-year

ordinary

losses

of

$22,520,057.

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2021

and

2020,

was

as

follows:

At

December

31,

2021,

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

foreign

currency

transactions,

foreign

capital

gains

tax,

payments-in-kind,

bond

discounts

and

premiums,

tax

straddles

and

inflation

related

adjustments

on

foreign

securities.

In

accordance

with

U.S.

GAAP

permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

At

the

year

ended

December

31,

2021,

such

reclassifications

were

as

follows:

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2021,

aggregated

$259,668,432

and

$1,001,328,544,

respectively.

Capital

loss

carryforwards

not

subject

to

expiration:

Long

term

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

$519,629,681

2021

2020

Distributions

paid

from:

Ordinary

income

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

$—

$5,010,577

Return

of

capital

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

108,840,518

138,608,626

$108,840,518

$143,619,203

Cost

of

investments

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

$1,216,440,496

Unrealized

appreciation

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

$45,129,287

Unrealized

depreciation

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

(347,929,600)

Net

unrealized

appreciation

(depreciation)

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

$(302,800,313)

Paid-in

Capital

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

Total

distributable

earnings

(loss)

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

$(221,156,363)

$221,156,363

Templeton

Income

Trust

Notes

to

Financial

Statements

39

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

7.

Credit

Risk

At

December

31,

2021,

the

Fund

had

33.9%

of

its

portfolio

invested

in

high

yield

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.

8.

Concentration

of

Risk

Investments

in

issuers

domiciled

or

with

significant

operations

in

developing

or

emerging

market

countries

may

be

subject

to

higher

risks

than

investments

in

developed

countries.

These

risks

include

fluctuating

currency

values,

underdeveloped

legal

or

business

systems,

and

changing

local

and

regional

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

Currencies

of

developing

or

emerging

market

countries

may

be

subject

to

significantly

greater

risks

than

currencies

of

developed

countries,

including

the

potential

inability

to

repatriate

those

currencies

into

U.S.

dollars.

At

December

31,

2021,

the

Fund

had

4.4%

of

its

net

assets

denominated

in

Argentine

Pesos. Argentina

has

restricted

currency

repatriation

since

September

2019,

and

had

restructured

certain

issues

of

its

debt.

Political

and

economic

conditions

in

Argentina

could

continue

to

affect

the

value

of

the

Fund's

holdings.

9.

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 Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

10.

Restricted

Securities

The

Fund

invests

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 Fund

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

December

31,

2021,

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

$—

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$0

as

of

December

31,

2021.

Templeton

Income

Trust

Notes

to

Financial

Statements

40

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

11.

Other

Derivative

Information

At

December

31,

2021,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

For

the

year

ended

December

31,

2021,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

year

ended

December

31,

2021,

the

average

month

end

notional

amount

of

options

represented

$1,598,885,159.

The

average

month

end

contract

value

of

forward

exchange

contracts

was

$2,170,302,300.

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

Total

Return

Fund

Foreign

exchange

contracts

..

Investments

in

securities,

at

value

$

3,316,549

a

Options

written,

at

value

$

2,310,19

3

Unrealized

appreciation

on

OTC

forward

exchange

contracts

10,464,334

Unrealized

depreciation

on

OTC

forward

exchange

contracts

11,482,111

Total

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

$13,780,883

$13,792,304

a

Purchased

option

contracts

are

included

in

investments

in

securities,

at

value

in

the

Statement

of

Assets

and

Liabilities.

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

Total

Return

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Investments

$(37,972,676)

a

Investments

$18,291,849

a

Written

options

3,565,344

Written

options

4,421,734

Forward

exchange

contracts

(54,516,768)

Forward

exchange

contracts

48,126,771

Total

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

$(88,924,100)

$70,840,354

a

Purchased

option

contracts

are

included

in

net

realized

gain

(loss)

from

investments

and

net

change

in

unrealized

appreciation

(depreciation)

on

investments

in

the

Statement

of

Operations.

Templeton

Income

Trust

Notes

to

Financial

Statements

41

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

At

December

31,

2021,

OTC

derivative

assets

and

liabilities

are

as

follows:

At

December

31,

2021,

OTC

derivative

assets,

which

may

be

offset

against

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

Gross

Amounts

of

Assets

and

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Assets

a

Liabilities

a

Templeton

Global

Total

Return

Fund

Derivatives

Forward

exchange

contracts

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

$

10,464,334

$

11,482,111

Options

purchased

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

3,316,549

—

Options

written

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

—

2,310,193

Total

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

$13,780,883

$13,792,304

a

Absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

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

b

Net

Amount

(Not

less

than

zero)

Templeton

Global

Total

Return

Fund

Counterparty

BNDP

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

$—

$—

$—

$—

$—

BOFA

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

492,034

—

—

(400,000)

92,034

CITI

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

4,953,012

(4,214,312)

—

(738,700)

—

DBAB

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

203,175

(203,175)

—

—

—

GSCO

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

—

—

—

—

—

HSBK

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

3,593,288

(158,729)

(2,247,372)

—

1,187,187

JPHQ

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

1,687,327

(1,687,327)

—

—

—

MSCO

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

2,710,070

(1,844,321)

—

(865,749)

—

SCNY

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

141,977

—

—

—

141,977

Total

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

$13,780,883

$(8,107,864)

$

(2,247,372)

$(2,004,449)

$1,421,198

$

1

11.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

42

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

At

December

31,

2021,

OTC

derivative

liabilities,

which

may

be

offset

against

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

See

Note

1(d)

regarding

derivative

financial

instruments. 

See

Abbreviations

on

page

45

.

12.

Credit

Facility

The

Fund,

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

4,

2022.

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

4,

2022,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

3,

2023,

for

a

total

of

$2.675

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

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

Statement

of

Operations.

During

the

year

ended

December

31,

2021,

the Fund

did

not

use

the

Global

Credit

Facility.

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

Net

Amount

(Not

less

than

zero)

Templeton

Global

Total

Return

Fund

Counterparty

BNDP

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

$724,820

$—

$—

$(630,000)

$94,820

BOFA

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

—

—

—

—

—

CITI

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

4,214,312

(4,214,312)

—

—

—

DBAB

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

2,008,008

(203,175)

—

(1,050,000)

754,833

GSCO

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

2,061,897

—

—

(2,010,000)

51,897

HSBK

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

158,729

(158,729)

—

—

—

JPHQ

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

2,780,217

(1,687,327)

—

(705,000)

387,890

MSCO

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

1,844,321

(1,844,321)

—

—

—

SCNY

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

—

—

—

—

—

Total

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

$13,792,304

$(8,107,864)

$—

$(4,395,000)

$1,289,440

a

At

December

31,

2021,

the

Fund

received

U.K

Inflation-Linked

Gilt

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

the

effect

of

overcollateralization.

Actual

collateral

received

and/or

pledged

may

be

more

than

the

amounts

disclosed

herein.

11.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

43

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

13.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's 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

Fund's

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,

2021,

in

valuing

the

Fund's

assets

and

liabilities

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Templeton

Global

Total

Return

Fund

Assets:

Investments

in

Securities:

Common

Stocks

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

$

—

$

—

$

—

a

$

—

Corporate

Bonds

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

—

—

—

a

—

Foreign

Government

and

Agency

Securities

....

—

573,813,920

—

573,813,920

U.S.

Government

and

Agency

Securities

.......

—

85,409,608

—

85,409,608

Escrows

and

Litigation

Trusts

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

—

—

—

a

—

Options

purchased

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

—

3,316,549

—

3,316,549

Short

Term

Investments

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

21,628,901

232,799,175

—

254,428,076

Total

Investments

in

Securities

...........

$21,628,901

$895,339,252

$—

$916,968,153

Other

Financial

Instruments:

Forward

exchange

contracts

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

$

—

$

10,464,334

$

—

$

10,464,334

Restricted

Currency

(ARS)

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

—

3,206

—

3,206

Total

Other

Financial

Instruments

.........

$—

$10,467,540

$—

$10,467,540

Receivables:

Interest

(ARS)

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

$—

$607,318

$—

$607,318

Liabilities:

Other

Financial

Instruments:

Options

written

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

$

—

$

2,310,19

3

$

—

$

2,310,193

Forward

exchange

contracts

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

—

11,482,111

—

11,482,111

Total

Other

Financial

Instruments

.........

$—

$13,792,304

$—

$13,792,304

Payables:

Deferred

Tax

(ARS)

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

$—

$2,958

$—

$2,958

a

Includes

securities

determined

to

have

no

value

at

December

31,

2021.

Templeton

Income

Trust

Notes

to

Financial

Statements

44

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

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,

2021,

the

reconciliation

is

as

follows:

14.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

Balance

at

Beginning

of

Year

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

c

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

Global

Total

Return

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

South

Africa

..

$

—

d

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

d

$

—

Corporate

Bonds

:

South

Africa

..

74,652

d

8,245

—

—

—

1,359,053

—

(1,441,950)

—

d

(1,441,950)

Foreign

Government

and

Agency

Securities

:

Argentina

....

88,185,397

—

—

—

(88,185,397)

—

—

—

—

—

Escrows

and

Litigation

Trusts

—

—

d

(46,977)

—

—

—

46,977

—

—

d

—

Short

Term

Investments

..

4,977,605

—

—

—

(4,977,605)

—

—

—

—

—

Total

Investments

in

Securities

.......

$93,237,654

$8,245

$(46,977)

$—

$(93,163,002)

$1,359,053

$46,977

$(1,441,950)

$—

$(1,441,950)

Other

Financial

Instruments:

Restricted

Currency

(ARS)

......

$5,195

$—

$—

$—

$(5,195)

$—

$—

$—

$—

$—

Receivables:

Interest

(ARS)

.

$1,629,514

$—

$—

$—

$(1,629,514)

$—

$—

$—

$—

$—

Liabilities:

Payables:

Investment

Securities

Purchased

(ARS)

$763,524

$—

$—

$—

$(763,524)

$—

$—

$—

$—

$—

Deferred

Tax

(ARS)

$4,195

$—

$—

$—

$(4,195)

$—

$—

$—

$—

$—

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

c

Transfers

out

of

level

3

were

as

a

result

of

changes

in

the

levels

of

observable

liquidity

and

the

improved

reliability

of

a

significant

input.

d

Includes

securities

determined

to

have

no

value.

13.

Fair

Value

Measurements

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

45

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

(continued)

15.

Subsequent

Events

The

Fund

has

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.

Abbreviations

Counterparty

BNDP

BNP

Paribas

SA

BOFA

Bank

of

America

Corp.

CITI

Citibank

NA

DBAB

Deutsche

Bank

AG

GSCO

Goldman

Sachs

Group,

Inc.

HSBK

HSBC

Bank

plc

JPHQ

JPMorgan

Chase

Bank

NA

MSCO

Morgan

Stanley

SCNY

Standard

Chartered

Bank

Selected

Portfolio

PIK

Payment-In-Kind

Currency

ARS

Argentine

Peso

BRL

Brazilian

Real

CAD

Canadian

Dollar

COP

Colombian

Peso

EGP

Egyptian

Pound

EUR

Euro

GHS

Ghanaian

Cedi

IDR

Indonesian

Rupiah

INR

Indian

Rupee

JPY

Japanese

Yen

KRW

South

Korean

Won

MXN

Mexican

Peso

NOK

Norwegian

Krone

SEK

Swedish

Krona

SGD

Singapore

Dollar

THB

Thai

Baht

TRY

Turkish

Lira

USD

United

States

Dollar

Templeton

Income

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

46

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Templeton

Income

Trust

and

Shareholders

of

Templeton

Global

Total

Return

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

statement

of

investments,

of

Templeton

Global

Total

Return

Fund

(one

of

the

funds

constituting

Templeton

Income

Trust,

referred

to

hereafter

as

the

"Fund")

as

of

December

31,

2021,

the

related

statement

of

operations

for

the

year

ended

December

31,

2021,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2021,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

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

Fund

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,

2021

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,

2022

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)

47

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

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

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amount,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amount,

for

the

fiscal

year

ended

December

31,

2021

:

Note

(1)

-

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

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,

2021:

Pursuant

to:

Amount

Reported

Interest

Earned

from

Federal

Obligations

Note

(1)

$2,827,068

Amount

Reported

Foreign

Taxes

Paid

$3,792,084

Foreign

Source

Income

Earned

$114,523,469

Templeton

Income

Trust

Board

Members

and

Officers

48

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

120

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

Capital

Corporation

(specialty

finance

company)

(2010-present),

United

Natural

Foods,

Inc.

(distributor

of

natural,

organic

and

specialty

foods)

(2013-present),

formerly

,

Allied

Capital

Corporation

(financial

services)

(2003-

2010),

SLM

Corporation

(Sallie

Mae)

(1997-2014)

and

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).

Mary

C.

Choksi

(1950)

Trustee

Since

2016

121

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

49

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

121

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

121

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

(May

2019-January

1,

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

121

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

50

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).

Robert

E.

Wade

(1946)

Trustee

Since

2006

30

El

Oro

Ltd

(investments)

(2003-

2019).

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Attorney

at

law

engaged

in

private

practice

as

a

sole

practitioner

(1972-2008)

and

member

of

various

boards.

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)

Trustee

Since

2007

132

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)

Chairman

of

the

Board,

Trustee

and

Vice

President

Chairman

of

the

Board

and

Trustee

since

2013

and

Vice

President

since

1996

121

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

51

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;

Vice

President,

FASA,

LLC;

Assistant

Secretary,

Franklin

Distributors,

LLC;

and

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

July

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.

Craig

S.

Tyle

(1960)

Vice

President

Since

2005

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

General

Counsel

and

Executive

Vice

President,

Franklin

Resources,

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.

Interested

Board

Members

and

Officers

(continued)

Templeton

Income

Trust

52

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.

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

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.

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:

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

53

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

Statement

of

Investments

The

Trust,

on

behalf

of

the

Fund,

files

a

complete

statement

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

as

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.

407

A

02/22

©

2022

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

Global

Total

Return

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Formerly,

Templeton

Emerging

Markets

Bond

Fund

A

Series

of

Templeton

Income

Trust

December

31,

2021

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Annual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

The

12

months

ended

December

31,

2021,

saw

extraordinary

conditions

across

global

financial

markets

as

the

world

attempted

to

emerge

from

the

COVID-19

pandemic.

During

2021,

global

fixed

income

markets

endured

multiple

cycles

of

sharply

rising

and

falling

yields,

broad

U.S.

dollar

strengthening

and

reversals,

idiosyncratic

drivers

in

individual

local-currency

markets,

massive

economic

recoveries

and

setbacks,

global

supply

chain

disruptions,

rising

inflationary

pressures

in

the

Americas

and

Europe,

and

a

major

pivot

toward

global

monetary

tightening

in

2021’s

second

half

after

extraordinary,

highly

correlated

global

easing

in

2020

and

early

2021.

Overall,

sovereign

bond

yields

rose

in

most

countries

while

the

U.S.

dollar

strengthened,

although

with

intermittently

declining

yields

in

various

countries

and

shifting

cycles

of

currency

appreciation/depreciation

in

individual

currency

pairings.

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

-6.97%

and

-2.57%

in

U.S.

dollar

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

Sustainable

Emerging

Markets

Bond

Fund’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,

2021,

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

Templeton

Sustainable

Emerging

Markets

Bond

Fund

3

Performance

Summary

7

Your

Fund’s

Expenses

10

Financial

Highlights

and

Statement

of

Investments

11

Financial

Statements

22

Notes

to

Financial

Statements

26

Report

of

Independent

Registered

Public

Accounting

Firm

42

Tax

Information

43

Board

Members

and

Officers

44

Shareholder

Information

49

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Formerly,

Templeton

Emerging

Markets

Bond

Fund

This

annual

report

for

Templeton

Sustainable

Emerging

Markets

Bond

Fund

covers

the

fiscal

year

ended

December

31,

2021.

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

governments

or

government-

related

entities

that

are

located

in

emerging

market

countries

that

the

investment

manager

believes

exhibit

a

higher

level

of,

or

are

progressing

toward

greater

sustainability

practices

at

the

time

of

purchase.

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

foreign

government

and

agency

securities,

money

market

funds

and

other

net

assets

(including

derivatives).

**Includes

securities

determined

to

have

no

value

at

12/31/21.

Performance

Overview

For

the

12

months

under

review,

the

Fund’s

Class

A

shares

posted

a

-5.54%

cumulative

total

return.

In

comparison,

U.S.

dollar-denominated

emerging

market

bonds,

as

measured

by

the

Fund’s

benchmark,

the

J.P.

Morgan

(JPM)

Emerging

Markets

Bond

Index

(EMBI)

Global

Index,

posted

a

-1.51%

cumulative

total

return

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

7

.

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

The

12-month

period

ended

December

31,

2021,

was

a

tale

of

two

halves.

The

first

half

was

characterized

by

exuberant

optimism

for

an

end

to

the

COVID-19

pandemic,

punctuated

by

a

surge

in

economic

activity

in

the

spring

as

lockdowns

were

eased

and

economies

reopened.

The

second

half

was

characterized

by

rising

inflation

and

incremental

shifts

towards

monetary

tightening,

with

several

emerging

markets

entering

rate

hiking

cycles

ahead

of

the

major

developed

markets.

On

the

whole,

sovereign

bond

yields

rose

in

most

countries

during

the

period

while

the

U.S.

dollar

(USD)

broadly

strengthened,

albeit

with

intermittent

episodes

of

declining

yields

in

various

countries

and

shifting

cycles

of

currency

appreciation/depreciation

in

individual

currency

pairings.

The

period

began

with

sovereign

bond

yields

rising

sharply

across

much

of

the

world

over

the

first

three

months.

The

yield

on

the

10-year

U.S.

Treasury

(UST)

note

would

reach

its

high

mark

for

the

entire

period

on

March

31

at

1.74%,

82

basis

points

(bps)

higher

than

where

it

finished

2020.

Vaccine

distributions,

ongoing

stimulus

measures

and

optimism

for

improving

economic

conditions

appeared

to

fuel

reflation

expectations

across

global

financial

markets.

However,

the

harsh

realities

of

the

worldwide

health

crisis

and

economic

hardship

continued

to

have

profound

consequences

for

lives

and

livelihoods

around

the

world

in

the

winter

and

early

spring

months

of

2021.

Vaccine

distributions

progressively

accelerated

in

many

countries

during

the

first

half

of

2021,

though

supply

setbacks

notably

affected

areas

of

Europe

in

March

and

April.

Governments

continued

to

struggle

with

balancing

the

needs

of

their

economies

with

the

health

of

their

citizens

during

much

of

Portfolio

Composition

12/31/21

%

of

Total

Net

Assets

Foreign

Government

and

Agency

Securities

80.4%

Corporate

Bonds

2.7%

Other

0.0%

**

Short-Term

Investments

&

Other

Net

Assets*

16.9%

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

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

16

.

Templeton

Sustainable

Emerging

Markets

Bond

Fund

4

franklintempleton.com

Annual

Report

the

first

quarter

of

2021

before

higher

vaccination

rates

and

lower

case

levels

enabled

many

regions

to

progressively

reopen

their

economies

in

the

spring.

Rising

yields

strained

valuations

across

many

areas

of

the

global

fixed

income

markets

during

2021’s

first

three

months.

USD-denominated

sovereign

credit

sectors

broadly

saw

negative

returns

in

January,

February

and

March

before

sharply

reversing

to

generate

offsetting

positive

returns

in

April,

May

and

June

as

UST

yields

pulled

back

from

their

late-March

peaks.

Sovereign

bond

yields

generally

resumed

their

rising

trends

in

May

and

June

amid

rising

inflation

in

many

areas

of

Europe

and

the

Americas.

In

currency

markets,

the

USD

broadly

strengthened

against

a

number

of

developed

market

and

emerging

market

currencies

in

the

first

quarter

of

2021,

reversing

the

broad-based

weakening

trend

from

the

second

half

of

2020.

Broad

USD

weakness

returned

in

April

and

May

before

the

strengthening

pattern

returned

in

June.

Business

and

consumer

confidence

surveys

notably

strengthened

in

multiple

regions

during

the

second

quarter

of

2021,

despite

some

growing

concerns

over

the

proliferation

of

the

Delta

variant

of

COVID-19

in

several

parts

of

the

world

in

June.

Economic

activity

continued

to

broadly

expand

in

many

countries

in

the

second

quarter,

largely

driven

by

strength

in

goods

sectors

and

manufacturing,

as

well

as

historically

high

savings

rates

in

many

countries

that

helped

fuel

demand.

On

the

whole,

the

second

quarter

would

represent

the

largest

quarterly

surge

in

GDP

for

most

countries

in

2021.

In

the

second

half

of

2021,

sovereign

bond

yields

would

largely

continue

to

rise

across

much

of

the

world

as

central

banks

continued

to

wade

deeper

into

monetary

tightening

cycles.

Developed

market

sovereign

bond

yields

initially

declined

in

July

and

early

August

as

the

Delta

variant

proliferated

across

multiple

regions.

The

10-year

UST

note’s

yield

dropped

to

1.17%

on

August

3

as

risk

aversion

resurfaced,

its

lowest

level

since

mid-February.

However,

sovereign

bond

yields

largely

trended

higher

from

that

point

through

the

end

of

the

year

as

investor

sentiments

appeared

to

refortify.

In

September,

the

U.S.

Federal

Reserve

(Fed)

announced

it

would

begin

tapering

its

asset

purchases

in

the

fourth

quarter

of

2021.

The

hawkish

shift

added

further

upward

pressure

on

UST

yields

and

drove

broad

strengthening

of

the

USD.

Sovereign

bond

yields

continued

to

trend

higher

in

many

regions

over

the

following

month,

with

the

10-

year

UST

note

reaching

1.70%

on

October

21,

its

highest

yield

since

early

April.

Sovereign

bond

yields

largely

maintained

their

levels

over

subsequent

weeks

until

the

Omicron

variant

of

COVID-19

emerged

in

the

final

days

of

November,

triggering

broad-based

risk

aversion

across

global

financial

markets

and

perceived

safe-haven

rallies

in

several

developed

market

assets.

Crude

oil

prices

dropped

around

20%

in

November

on

global

growth

concerns,

with

the

bulk

of

the

price

adjustments

occurring

in

the

wake

of

the

Omicron

news.

Sovereign

bond

yields

declined

in

several

perceived

safe-

haven

markets

in

late

November

and

early

December

on

the

heightened

risk

aversion

before

global

growth

concerns

eventually

dissipated

in

the

second

half

of

the

month,

even

as

COVID-19

cases

surged

to

record

levels.

Disease

severity

from

Omicron

appeared

milder

than

previous

variants,

leading

to

a

significant

decoupling

of

the

trend

lines

for

case

numbers

(rising

sharply)

and

mortality

rates

(moderating).

We

expected

COVID-19

variants

to

not

derail

global

growth

momentum,

though

the

risks

continued

to

bear

monitoring.

Commodity

and

energy

prices

ultimately

rebounded

in

December,

recovering

much

of

the

price

corrections

from

the

prior

month

as

reflation

sentiments

returned

to

global

financial

markets.

Manufacturing

and

business

surveys

largely

continued

to

remain

at

expansionary

levels

across

much

of

the

world

during

the

second

half

of

2021

but

moderated

from

their

mid-year

peaks.

Consumer

confidence

surveys

showed

similar

trends.

Labor

market

conditions

generally

continued

to

improve

in

many

countries,

though

labor

shortages

and

unemployment

remained

above

prepandemic

levels

in

several

regions.

Overall,

global

growth

showed

signs

of

moderating

from

the

historically

strong

rebound

in

the

first

half

of

2021

but

remained

largely

resilient,

in

our

view.

Inflation

figures

remained

historically

high

across

many

parts

of

the

world

during

the

second

half

of

the

period,

driven

by

a

combination

of

factors

that

included

resurgent

economic

activity,

supply

disruptions

in

certain

sectors,

and

the

effects

of

massive

fiscal

and

monetary

stimulus

measures.

Headline

inflation

(Consumer

Price

Index)

in

the

U.S.

remained

at

or

above

5.0%

year-over-year

from

May

through

the

end

of

2021,

coming

in

at

6.8%

in

November,

its

highest

level

since

1982.

A

growing

number

of

central

banks

pursued

monetary

tightening

measures

in

the

second

half

of

the

year,

with

persistent

inflationary

pressures

in

several

emerging

markets

motivating

aggressive

tightening

responses.

In

Latin

America,

Brazil’s

central

bank

hiked

its

policy

rate

by

725

bps

in

2021,

Chile

by

350

bps,

Peru

by

225

bps,

Mexico

by

150

bps

and

Colombia

by

125

bps.

In

eastern

Europe,

Russia

hiked

its

policy

rate

by

425

bps,

the

Czech

Republic

by

300

bps,

Hungary

by

180

bps

and

Poland

by

Templeton

Sustainable

Emerging

Markets

Bond

Fund

5

franklintempleton.com

Annual

Report

165

bps.

Most

countries

in

Asia

kept

policy

rates

unchanged

as

inflation

generally

remained

more

contained

and

within

central

bank

targets.

The

Fed

kept

the

federal

funds

target

rate

unchanged

(0.00%

to

0.25%)

at

each

of

its

policy

meetings

during

the

period

but

it

began

tapering

its

asset

purchases

in

November.

However,

the

Fed

quickly

shifted

in

a

hawkish

direction

at

its

December

meeting,

doubling

the

pace

of

its

asset

purchase

tapering

for

January.

The

accelerated

pace

put

the

asset

purchase

program

on

schedule

to

conclude

by

March

2022,

enabling

a

rate

hiking

cycle

to

start

in

March

or

May,

earlier

than

previously

indicated

at

the

November

meeting.

Additionally,

the

Fed’s

dot

plot

survey

in

December

showed

that

12

of

18

officials

expect

at

least

three

rate

hikes

in

2022,

a

substantial

change

from

the

September

survey

that

saw

nine

of

18

officials

project

no

hikes

until

2023.

We

expected

UST

term

premiums

to

ratchet

higher

in

upcoming

quarters,

with

a

bear-flattening

effect

driven

by

rising

yields

in

the

short-

to

intermediate-term

range

of

the

yield

curve.

The

yield

on

the

10-year

UST

note

finished

the

year

at

1.51%,

59

bps

higher

than

where

it

ended

2020.

In

emerging

markets,

10-year

sovereign

bond

yields

rose

sharply

across

much

of

Latin

America,

including

Brazil,

Mexico,

Colombia,

Chile

and

Peru.

In

eastern

Europe,

10-year

yields

trended

higher

in

Poland,

Hungary,

Russia

and

the

Czech

Republic

on

elevated

inflation

and

ongoing

monetary

tightening.

Yields

also

rose

in

much

of

Asia,

including

India,

Indonesia

and

Thailand,

but

declined

in

China.

USD-denominated

sovereign

credit

sectors

broadly

saw

moderately

negative

returns

for

the

period

(with

some

exceptions

in

individual

countries),

as

the

investment-grade

credit

tiers

came

under

pressure

from

the

rising

yield

environment

while

high-yield

credit

tiers

largely

endured

additional

spread

widening.

In

currency

markets,

the

USD

broadly

strengthened

against

most

developed

market

and

emerging

market

currencies

in

2021.

In

emerging

markets,

the

USD

depreciated

against

the

Chinese

yuan,

but

appreciated

against

most

currencies

in

Latin

America

and

Asia,

including

the

Brazilian

real,

Mexican

peso,

Colombian

peso,

Chilean

peso,

Peruvian

sol,

Indian

rupee,

Indonesian

rupiah

and

Thai

baht.

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.

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.

We

use

a

proprietary

rating

methodology

to

assess

each

country

that

issues

sovereign

bonds

that

are

existing

or

potential

investments

for

the

Fund.

Each

country

in

which

the

Fund

can

invest

will

be

scored

across

various

environmental,

social,

and

governance

subcategories

that

we

have

determined

to

have

a

significant

impact

on

macroeconomic

conditions.

We

then

use

internal

proprietary

research

as

a

forward-looking

overlay

on

those

baseline

current

scores,

to

assess

whether

we

expect

countries

to

improve

or

deteriorate

in

each

of

the

subcategories.

Manager’s

Discussion

The

successful

development

of

vaccines

against

COVID-19

in

the

final

months

of

2020

substantially

changed

our

outlook

and

positioning

for

2021.

In

the

weeks

before

the

12-month

reporting

period

began,

we

significantly

shifted

the

emphasis

of

the

Fund’s

strategic

positioning

from

a

safe-haven

stance

toward

an

increasing

allocation

to

risk

assets.

We

expected

a

rebound

in

global

economic

activity

and

improving

economic

conditions

in

the

spring

and

summer

months

of

2021

as

vaccines

were

progressively

distributed

and

people

increasingly

reengaged

with

the

world.

We

were

actively

constructive

in

a

number

of

regions

throughout

the

12-month

period,

particularly

in

areas

of

Asia

that

appeared

to

be

at

the

forefront

of

the

global

economic

recovery.

Overall,

the

Fund

was

focused

on

two

core

investment

themes

during

the

period:

(1)

value

in

select

currencies

against

the

USD,

specifically

in

countries

with

strong

trade

dynamics,

current

account

surpluses,

better

fiscal

management

and

stronger

growth

potential,

notably

in

Asia;

and

(2)

attractive

risk-adjusted

yields

in

a

select

set

of

resilient

emerging

markets.

At

the

beginning

of

the

period,

the

Fund

held

overweighted

positions

in

specific

currencies

against

the

USD.

We

held

notable

exposures

to

the

Chinese

yuan,

the

South

Korean

won,

the

Indian

rupee,

the

Indonesian

rupiah

and

the

Japanese

yen

against

the

USD.

In

March,

we

closed

our

exposure

to

the

Japanese

yen.

We

increased

our

currency

Geographic

Composition

12/31/21

%

of

Total

Net

Assets

Asia

Pacific

39.3%

Americas

34.0%

Middle

East

&

Africa

8.5%

Other

Europe

1.3%

Short-Term

Investments

&

Other

Net

Assets

16.9%

Templeton

Sustainable

Emerging

Markets

Bond

Fund

6

franklintempleton.com

Annual

Report

exposure

to

the

Indian

rupee

in

April.

In

the

Europe,

Middle

East

and

Africa

region,

we

held

exposures

to

the

Russian

ruble

and

the

Egyptian

pound.

We

added

a

new

position

in

the

Turkish

lira

through

local-currency

bonds

in

March,

and

a

new

position

in

the

Uzbek

som

in

July.

In

the

Americas,

we

held

exposures

to

the

Colombian

peso,

Chilean

peso

and

Brazilian

real.

In

February,

we

added

a

new

exposure

to

the

Peruvian

sol

through

local-currency

bonds.

In

May,

we

added

to

our

existing

exposure

in

the

Chilean

peso.

During

the

period,

we

used

currency

forwards

and

currency

options

to

actively

manage

currency

exposures.

We

also

continued

to

focus

on

compelling

risk-adjusted

yields

in

various

local-currency

bond

markets,

specifically

in

countries

with

resilient

economies

and

strong

trade

dynamics.

We

continued

to

largely

avoid

developed

market

duration

exposures

in

preference

for

higher

yields

available

in

select

emerging

markets,

notably

including

Indonesia,

India,

Mexico,

Colombia,

Brazil

and

Ghana,

among

others.

After

exiting

our

local-currency

position

in

Brazil

in

the

first

quarter

of

2021

due

to

acute

political

and

economic

risks,

we

reestablished

the

position

in

the

second

quarter

as

political

compromises

in

the

spring

and

better-than

expected

economic

figures

supported

an

improved

outlook.

We

also

held

various

USD-denominated

sovereign

credit

exposures

in

Asia,

Africa

and

Latin

America

during

the

period.

In

April,

we

added

to

our

existing

USD-denominated

position

in

Ecuador.

During

the

period,

the

Fund’s

negative

absolute

performance

was

primarily

due

to

currency

positions.

Interest-rate

strategies

and

overall

credit

exposures

contributed

to

absolute

results.

Among

currencies,

positions

in

the

Chilean

peso,

Argentine

peso,

Colombian

peso

and

Turkish

lira

detracted

from

absolute

performance,

as

did

the

Fund’s

position

in

the

Japanese

yen

during

the

beginning

of

the

period.

However,

its

position

in

the

Chinese

yuan

contributed

to

absolute

performance.

The

Fund

maintained

low

overall

portfolio

duration

while

holding

duration

exposures

in

select

emerging

markets.

Duration

exposures

in

Argentina,

Indonesia

and

Ghana

contributed

to

absolute

results,

while

duration

exposures

in

Chile

and

Colombia

detracted.

Among

credit

exposures,

positions

in

Latin

America

contributed

to

absolute

return.

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

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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,

2021

Templeton

Sustainable

Emerging

Markets

Bond

Fund

7

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

12/31/21

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

-5.54%

-9.06%

5-Year

-4.93%

-1.75%

Since

Inception

(4/1/13)

-1.43%

-0.60%

Advisor

1-Year

-5.28%

-5.28%

5-Year

-3.65%

-0.74%

Since

Inception

(4/1/13)

+0.65%

+0.07%

See

page

9

for

Performance

Summary

footnotes.

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Performance

Summary

8

franklintempleton.com

Annual

Report

See

page

9

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

(4/1/13–12/31/21)

Advisor

Class

(4/1/13–12/31/21)

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Performance

Summary

9

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.

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.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

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:

Morningstar.

The

JPM

EMBI

Global

Index

tracks

total

returns

for

U.S.

dollar-denominated

debt

instruments

issued

by

emerging

market

sovereign

and

quasi-sov-

ereign

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

(1/1/21–12/31/21)

Share

Class

Tax

Return

of

Capital

A

$0.5286

C

$0.5014

R

$0.5267

R6

$0.5511

Advisor

$0.5437

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

1.19%

2.09%

Advisor

0.94%

1.84%

Your

Fund’s

Expenses

Templeton

Sustainable

Emerging

Markets

Bond

Fund

10

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

e

xpense

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$950.90

$5.61

$1,019.46

$5.80

1.14%

C

$1,000

$948.80

$7.56

$1,017.44

$7.83

1.54%

R

$1,000

$950.90

$5.71

$1,019.35

$5.91

1.16%

R6

$1,000

$952.80

$3.81

$1,021.30

$3.94

0.77%

Advisor

$1,000

$952.40

$4.38

$1,020.72

$4.53

0.89%

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

11

al

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$6.70

$7.73

$8.13

$9.16

$8.84

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.48

0.48

0.62

0.68

0.70

Net

realized

and

unrealized

gains

(losses)

...........

(0.83)

(1.00)

(0.51)

(0.99)

0.20

Total

from

investment

operations

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

(0.35)

(0.52)

0.11

(0.31)

0.90

Less

distributions

from:

Net

investment

income

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

—

(0.01)

(0.51)

(0.52)

(0.57)

Net

realized

gains

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

—

—

—

(0.01)

(0.01)

Tax

return

of

capital

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

(0.53)

(0.50)

—

(0.19)

—

Total

distributions

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

(0.53)

(0.51)

(0.51)

(0.72)

(0.58)

Net

asset

value,

end

of

year

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

$5.82

$6.70

$7.73

$8.13

$9.16

Total

return

c

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

(5.54)%

(6.80)%

1.33%

(3.30)%

10.21%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

2.77%

2.10%

2.16%

2.15%

2.46%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.13%

1.07%

1.13%

1.14%

1.22%

Net

investment

income

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

7.58%

6.84%

7.75%

8.03%

7.51%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$14,821

$16,004

$21,984

$20,728

$19,042

Portfolio

turnover

rate

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

40.55%

56.59%

23.82%

18.82%

77.90%

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.

12

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$6.69

$7.72

$8.12

$9.15

$8.84

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.45

0.44

0.59

0.65

0.67

Net

realized

and

unrealized

gains

(losses)

...........

(0.83)

(0.99)

(0.52)

(1.00)

0.19

Total

from

investment

operations

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

(0.38)

(0.55)

0.07

(0.35)

0.86

Less

distributions

from:

Net

investment

income

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

—

(0.01)

(0.47)

(0.49)

(0.54)

Net

realized

gains

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

—

—

—

(0.01)

(0.01)

Tax

return

of

capital

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

(0.50)

(0.47)

—

(0.18)

—

Total

distributions

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

(0.50)

(0.48)

(0.47)

(0.68)

(0.55)

Net

asset

value,

end

of

year

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

$5.81

$6.69

$7.72

$8.12

$9.15

Total

return

c

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

(5.96)%

(7.22)%

0.89%

(3.69)%

9.75%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

3.13%

2.54%

2.56%

2.54%

2.89%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.54%

1.51%

1.53%

1.53%

1.65%

Net

investment

income

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

7.18%

6.33%

7.35%

7.64%

7.08%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,310

$1,821

$2,276

$2,799

$2,553

Portfolio

turnover

rate

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

40.55%

56.59%

23.82%

18.82%

77.90%

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

13

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$6.71

$7.73

$8.14

$9.17

$8.85

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.48

0.47

0.62

0.68

0.70

Net

realized

and

unrealized

gains

(losses)

...........

(0.83)

(0.98)

(0.52)

(1.00)

0.20

Total

from

investment

operations

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

(0.35)

(0.51)

0.10

(0.32)

0.90

Less

distributions

from:

Net

investment

income

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

—

(0.01)

(0.51)

(0.51)

(0.57)

Net

realized

gains

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

—

—

—

(0.01)

(0.01)

Tax

return

of

capital

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

(0.53)

(0.50)

—

(0.19)

—

Total

distributions

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

(0.53)

(0.51)

(0.51)

(0.71)

(0.58)

Net

asset

value,

end

of

year

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

$5.83

$6.71

$7.73

$8.14

$9.17

Total

return

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

(5.56)%

(6.81)%

1.32%

(3.40)%

10.13%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

2.81%

2.13%

2.18%

2.18%

2.50%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.16%

1.10%

1.15%

1.22%

1.26%

Net

investment

income

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

7.55%

6.67%

7.73%

7.95%

7.47%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$12

$12

$13

$12

$14

Portfolio

turnover

rate

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

40.55%

56.59%

23.82%

18.82%

77.90%

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.

14

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$6.71

$7.74

$8.14

$9.17

$8.85

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.51

0.52

0.66

0.74

0.74

Net

realized

and

unrealized

gains

(losses)

...........

(0.84)

(1.02)

(0.52)

(1.02)

0.19

Total

from

investment

operations

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

(0.33)

(0.50)

0.14

(0.28)

0.93

Less

distributions

from:

Net

investment

income

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

—

(0.01)

(0.54)

(0.54)

(0.60)

Net

realized

gains

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

—

—

—

(0.01)

(0.01)

Tax

return

of

capital

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

(0.55)

(0.52)

—

(0.20)

—

Total

distributions

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

(0.55)

(0.53)

(0.54)

(0.75)

(0.61)

Net

asset

value,

end

of

year

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

$5.83

$6.71

$7.74

$8.14

$9.17

Total

return

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

(5.19)%

(6.47)%

1.69%

(2.95)%

10.50%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

2.56%

2.04%

1.94%

1.91%

2.87%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.77%

0.75%

0.75%

0.78%

0.92%

Net

investment

income

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

8.00%

7.37%

8.13%

8.39%

7.81%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$663

$598

$1,057

$831

$281

Portfolio

turnover

rate

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

40.55%

56.59%

23.82%

18.82%

77.90%

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

15

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$6.73

$7.75

$8.16

$9.19

$8.86

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.50

0.51

0.63

0.76

0.74

Net

realized

and

unrealized

gains

(losses)

...........

(0.84)

(1.01)

(0.51)

(1.05)

0.19

Total

from

investment

operations

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

(0.34)

(0.50)

0.12

(0.29)

0.93

Less

distributions

from:

Net

investment

income

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

—

(0.01)

(0.53)

(0.53)

(0.59)

Net

realized

gains

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

—

—

—

(0.01)

(0.01)

Tax

return

of

capital

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

(0.54)

(0.51)

—

(0.20)

—

Total

distributions

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

(0.54)

(0.52)

(0.53)

(0.74)

(0.60)

Net

asset

value,

end

of

year

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

$5.85

$6.73

$7.75

$8.16

$9.19

Total

return

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

(5.28)%

(6.46)%

1.45%

(3.01)%

10.53%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

2.51%

1.91%

1.91%

1.89%

2.24%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.89%

0.86%

0.88%

0.88%

1.00%

Net

investment

income

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

7.83%

7.20%

8.00%

8.29%

7.73%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$3,063

$3,950

$14,504

$10,797

$1,585

Portfolio

turnover

rate

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

40.55%

56.59%

23.82%

18.82%

77.90%

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

Statement

of

Investments,

December

31,

2021

Templeton

Sustainable

Emerging

Markets

Bond

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

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

2.7%

Costa

Rica

2.7%

a,c

Reventazon

Finance

Trust,

Senior

Secured

Bond,

144A,

8%,

11/15/33

.

Diversified

Financial

Services

502,920

539,971

South

Africa

0.0%

a,d,e

K2016470219

South

Africa

Ltd.

,

Senior

Secured

Note,

144A,

PIK,

3%,

12/31/22

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

Multiline

Retail

182,668

—

Senior

Secured

Note,

144A,

PIK,

8%,

12/31/22

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

Multiline

Retail

51,234

EUR

—

a,d,e

K2016470260

South

Africa

Ltd.,

Senior

Secured

Note,

144A,

PIK,

25%,

12/31/22

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

Multiline

Retail

187,894

—

—

Total

Corporate

Bonds

(Cost

$803,955)

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

539,971

a

a

Industry

Principal

Amount

*

a

Value

Foreign

Government

and

Agency

Securities

80.4%

Argentina

4.7%

f

Argentina

BONCER

,

Index

Linked,

1.2%,

3/18/22

.......

88,081,360

ARS

431,156

Index

Linked,

1.3%,

9/20/22

.......

1,116,002

ARS

5,490

Index

Linked,

1.4%,

3/25/23

.......

51,194,013

ARS

249,669

Index

Linked,

1.5%,

3/25/24

.......

45,867,163

ARS

219,532

Argentina

Government

Bond,

16%,

10/17/23

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

11,171,500

ARS

34,212

940,059

Brazil

1.4%

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/25

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

590,000

BRL

104,402

10%,

1/01/27

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

270,000

BRL

47,400

10%,

1/01/29

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

280,000

BRL

48,694

10%,

1/01/31

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

430,000

BRL

74,078

274,574

Chile

8.2%

Chile

Bonos

Tesoreria

Pesos

,

2.5%,

3/01/25

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

335,000,000

CLP

359,260

e

144A,

Reg

S,

4%,

3/01/23

........

1,090,000,000

CLP

1,263,275

1,622,535

China

4.5%

China

Government

Bond,

2.64%,

8/13/22

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

5,670,000

CNY

894,074

Templeton

Income

Trust

Statement

of

Investments

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

17

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Colombia

8.5%

Colombia

Government

Bond,

Senior

Bond,

9.85%,

6/28/27

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

13,000,000

COP

$

3,642

Colombia

Titulos

de

Tesoreria

,

B,

7%,

5/04/22

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

178,900,000

COP

44,436

B,

10%,

7/24/24

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

3,202,000,000

COP

843,025

B,

7.5%,

8/26/26

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

1,563,300,000

COP

381,630

B,

6%,

4/28/28

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

428,400,000

COP

95,213

B,

7.75%,

9/18/30

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

1,267,800,000

COP

304,123

B,

7%,

6/30/32

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

107,000,000

COP

24,009

1,696,078

Ecuador

6.2%

e

Ecuador

Government

Bond

,

Senior

Bond,

144A,

1%,

7/31/35

....

1,199,500

793,169

Senior

Bond,

144A,

0.5%,

7/31/40

..

534,000

314,059

Senior

Note,

144A,

5%,

7/31/30

....

146,000

121,363

1,228,591

Egypt

2.1%

e

Egypt

Government

Bond,

Senior

Note,

144A,

5.25%,

10/06/25

...........

420,000

424,670

Ethiopia

0.7%

e

Ethiopia

Government

Bond,

Senior

Note,

144A,

6.625%,

12/11/24

.....

200,000

136,410

Ghana

4.6%

Ghana

Government

Bond

,

18.25%,

7/25/22

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

297,000

GHS

48,751

17.6%,

11/28/22

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

150,000

GHS

24,262

20.75%,

1/16/23

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

50,000

GHS

8,278

16.5%,

2/06/23

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

1,060,000

GHS

168,587

18.85%,

9/28/23

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

1,363,000

GHS

219,555

19.25%,

11/27/23

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

260,000

GHS

42,028

19.25%,

12/18/23

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

243,000

GHS

39,258

19.75%,

3/25/24

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

270,000

GHS

43,814

Senior

Note,

17.6%,

2/20/23

......

1,560,000

GHS

250,485

Senior

Note,

17.7%,

3/18/24

......

170,000

GHS

26,624

Senior

Note,

18.3%,

3/02/26

......

100,000

GHS

15,313

Senior

Note,

18.5%,

1/02/23

......

50,000

GHS

8,120

Senior

Note,

17.25%,

7/31/23

......

70,000

GHS

11,078

906,153

India

4.4%

India

Government

Bond

,

7.26%,

1/14/29

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

27,400,000

INR

385,217

Senior

Note,

5.77%,

8/03/30

......

37,000,000

INR

477,613

862,830

Indonesia

15.8%

Indonesia

Government

Bond

,

FR61,

7%,

5/15/22

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

16,436,000,000

IDR

1,169,980

FR63,

5.625%,

5/15/23

..........

308,000,000

IDR

22,182

FR70,

8.375%,

3/15/24

..........

174,000,000

IDR

13,297

FR81,

6.5%,

6/15/25

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

13,129,000,000

IDR

970,915

Templeton

Income

Trust

Statement

of

Investments

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Indonesia

(continued)

Indonesia

Government

Bond,

(continued)

FR86,

5.5%,

4/15/26

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

13,560,000,000

IDR

$

966,730

3,143,104

Peru

2.3%

Peru

Bonos

de

la

Tesoreria

,

5.2%,

9/12/23

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

1,800,000

PEN

461,702

Senegal

1.1%

e

Senegal

Government

Bond,

Senior

Note,

144A,

6.25%,

7/30/24

.......

200,000

214,531

South

Korea

4.6%

Korea

Monetary

Stabilization

Bond,

Senior

Note,

0.905%,

4/02/23

......

560,000,000

KRW

467,531

Korea

Treasury

Bond

,

0.875%,

12/10/23

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

446,000,000

KRW

369,635

1.875%,

6/10/26

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

96,500,000

KRW

80,683

917,849

Sri

Lanka

3.6%

e

Sri

Lanka

Government

Bond

,

Senior

Bond,

144A,

6.85%,

11/03/25

200,000

104,036

Senior

Bond,

144A,

6.2%,

5/11/27

..

800,000

410,288

Senior

Bond,

144A,

6.75%,

4/18/28

.

200,000

101,892

Senior

Bond,

144A,

7.85%,

3/14/29

.

200,000

102,228

718,444

Thailand

4.5%

Bank

of

Thailand

,

0.9%,

2/24/22

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

25,878,000

THB

779,672

0.56%,

11/23/22

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

1,560,000

THB

47,005

Senior

Note,

0.66%,

11/22/23

......

850,000

THB

25,615

Thailand

Government

Bond

,

2%,

12/17/22

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

1,080,000

THB

32,993

0.92%,

3/23/23

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

60,000

THB

1,815

0.51%,

5/24/23

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

100,000

THB

3,010

890,110

Turkey

1.3%

Turkey

Government

Bond

,

13.9%,

11/09/22

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

1,770,000

TRY

125,522

12.2%,

1/18/23

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

120,000

TRY

8,288

7.1%,

3/08/23

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

510,000

TRY

32,825

16.2%,

6/14/23

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

630,000

TRY

43,919

8.8%,

9/27/23

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

330,000

TRY

20,308

10.4%,

3/20/24

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

30,000

TRY

1,812

12.6%,

10/01/25

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

300,000

TRY

16,541

249,215

Uzbekistan

1.9%

e

Uzbekistan

Government

Bond,

Senior

Note,

144A,

14%,

7/19/24

........

4,100,000,000

UZS

385,605

Total

Foreign

Government

and

Agency

Securities

(Cost

$17,866,310)

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

15,966,534

Templeton

Income

Trust

Statement

of

Investments

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

19

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

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

12,498

$

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

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

—

Total

Long

Term

Investments

(Cost

$18,685,263)

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

16,506,505

Short

Term

Investments

14.7%

a

a

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

7.9%

Argentina

0.0%

†

f,g

Letras

de

la

Nacion

Argentina

con

Ajuste

por

CER

,

Index

Linked,

2/28/22

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

123,358

ARS

600

Index

Linked,

5/23/22

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

498,976

ARS

2,431

Index

Linked,

6/30/22

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

117,135

ARS

571

3,602

Brazil

3.3%

g

Brazil

Letras

do

Tesouro

Nacional

,

1/01/24

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

150,000

BRL

21,836

7/01/24

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

3,690,000

BRL

512,623

1/01/25

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

960,000

BRL

127,311

661,770

Egypt

4.5%

g

Egypt

Treasury

Bills

,

1/04/22

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

250,000

EGP

15,925

1/11/22

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

1,700,000

EGP

108,139

2/15/22

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

800,000

EGP

50,348

3/01/22

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

400,000

EGP

25,081

3/22/22

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

500,000

EGP

31,136

4/26/22

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

1,000,000

EGP

61,552

5/10/22

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

5,025,000

EGP

308,236

6/14/22

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

1,350,000

EGP

81,854

h

9/20/22

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

2,200,000

EGP

128,714

h

11/01/22

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

300,000

EGP

17,299

h

11/08/22

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

500,000

EGP

28,762

h

11/15/22

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

400,000

EGP

22,954

h

11/22/22

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

200,000

EGP

11,450

891,450

Thailand

0.1%

g

Thailand

Treasury

Bills

,

8/04/22

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

250,000

THB

7,507

9/01/22

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

250,000

THB

7,504

12/08/22

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

250,000

THB

7,493

22,504

Total

Foreign

Government

and

Agency

Securities

(Cost

$1,645,237)

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

1,579,326

Templeton

Income

Trust

Statement

of

Investments

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

Short

Term

Investments

(continued)

a

a

Industry

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

6.8%

United

States

6.8%

i,j

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

..........

1,351,150

$

1,351,150

Total

Money

Market

Funds

(Cost

$1,351,150)

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

1,351,150

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$2,996,387

)

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

2,930,476

a

a

a

Total

Investments

(Cost

$21,681,650)

97.8%

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

$19,436,981

Other

Assets,

less

Liabilities

2.2%

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

432,671

Net

Assets

100.0%

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

$19,869,652

a

a

a

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

12

regarding

fair

value

measurements.

b

Non-income

producing.

c

See

Note

9

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,

2021,

the

aggregate

value

of

these

securities

was

$4,371,526,

representing

22.0%

of

net

assets.

f

Redemption

price

at

maturity

is

adjusted

for

inflation.

See

Note

1(g).

g

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

h

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

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

Statement

of

Investments

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

21

At

December

31,

2021,

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

Brazilian

Real

......

MSCO

Buy

3,700,000

647,555

1/04/22

$

16,557

$

—

Brazilian

Real

......

MSCO

Sell

3,700,000

642,027

1/04/22

—

(22,085)

Chilean

Peso

......

GSCO

Buy

49,096,735

59,815

1/10/22

—

(2,238)

Chinese

Yuan

......

CITI

Buy

1,612,760

245,698

1/12/22

7,493

—

Chilean

Peso

......

GSCO

Buy

34,022,651

42,107

1/14/22

—

(2,231)

Chinese

Yuan

......

HSBK

Buy

4,746,240

729,233

1/18/22

15,595

—

Chilean

Peso

......

JPHQ

Buy

19,130,000

23,444

1/21/22

—

(1,044)

Indian

Rupee

......

JPHQ

Buy

10,911,100

141,354

1/27/22

4,757

—

Columbian

Peso

....

MSCO

Buy

4,126,000,000

1,042,933

2/09/22

—

(33,598)

Chilean

Peso

......

GSCO

Buy

158,650,000

195,341

2/10/22

—

(10,131)

Indian

Rupee

......

CITI

Buy

7,952,700

105,083

2/10/22

1,252

—

Chilean

Peso

......

GSCO

Buy

137,072,267

173,597

2/11/22

—

(13,604)

Chinese

Yuan

......

JPHQ

Buy

2,430,050

381,517

2/14/22

—

(812)

Australian

Dollar

....

MSCO

Sell

322,000

236,436

2/17/22

2,426

—

Chinese

Yuan

......

JPHQ

Buy

1,213,270

188,604

2/22/22

1,386

—

Brazilian

Real

......

MSCO

Buy

3,700,000

633,247

3/03/22

20,829

—

Russian

Ruble

.....

JPHQ

Buy

9,592,800

127,676

3/03/22

—

(1,351)

Russian

Ruble

.....

MSCO

Buy

25,819,800

343,623

3/03/22

—

(3,608)

Chinese

Yuan

......

BOFA

Buy

1,637,910

250,437

3/09/22

5,817

—

Chilean

Peso

......

GSCO

Buy

13,320,000

15,698

3/10/22

—

(219)

Russian

Ruble

.....

DBAB

Buy

38,000,300

506,651

3/11/22

—

(7,260)

Chinese

Yuan

......

HSBK

Buy

1,757,680

274,522

3/15/22

361

—

Chilean

Peso

......

GSCO

Buy

474,152,849

563,622

3/16/22

—

(13,151)

Indian

Rupee

......

HSBK

Buy

19,900,274

260,671

3/16/22

4,253

—

Indian

Rupee

......

SCNY

Buy

39,600,000

516,499

3/22/22

10,097

—

Australian

Dollar

....

CITI

Sell

741,205

536,299

3/28/22

—

(2,417)

Indian

Rupee

......

JPHQ

Buy

10,942,000

144,125

4/07/22

979

—

Indian

Rupee

......

CITI

Buy

10,631,000

140,343

4/08/22

619

—

Indian

Rupee

......

JPHQ

Buy

14,153,500

186,549

4/08/22

1,120

—

Indian

Rupee

......

CITI

Buy

12,814,700

168,084

4/12/22

1,750

—

Indian

Rupee

......

HSBK

Buy

12,826,900

167,957

4/12/22

2,038

—

Indian

Rupee

......

HSBK

Buy

19,972,664

259,227

4/18/22

5,276

—

Chilean

Peso

......

GSCO

Buy

131,212,121

165,425

5/11/22

—

(14,541)

Russian

Ruble

.....

MSCO

Buy

41,698,100

534,077

5/23/22

4,078

—

Chinese

Yuan

......

BOFA

Buy

1,963,760

304,010

6/08/22

1,406

—

Chinese

Yuan

......

CITI

Buy

2,531,870

391,973

6/09/22

1,773

—

Chinese

Yuan

......

JPHQ

Buy

971,650

150,491

6/10/22

606

—

Russian

Ruble

.....

DBAB

Buy

20,680,800

263,477

6/10/22

2,285

—

Columbian

Peso

....

GSCO

Buy

370,000,000

100,489

6/13/22

—

(11,327)

Indian

Rupee

......

CITI

Buy

13,448,283

174,178

6/15/22

2,646

—

Egyptian

Pound

....

HSBK

Buy

1,450,000

87,826

6/21/22

523

—

Indian

Rupee

......

JPHQ

Buy

56,300,000

724,158

6/21/22

15,549

—

Russian

Ruble

.....

JPHQ

Buy

8,629,300

108,008

8/24/22

992

—

Russian

Ruble

.....

DBAB

Buy

12,061,300

150,184

9/15/22

1,407

—

Total

Forward

Exchange

Contracts

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

$133,870

$(139,617)

Net

unrealized

appreciation

(depreciation)

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

$(5,747)

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

See

Abbreviations

on

page

41

.

See

Note 

10

regarding

other

derivative

information.

Templeton

Income

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$20,330,500

Cost

-

Non-controlled

affiliates

(Note

3

f

)

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

1,351,150

Value

-

Unaffiliated

issuers

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

$18,085,831

Value

-

Non-controlled

affiliates

(Note

3

f

)

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

1,351,150

Restricted

currency,

at

value

(cost

$18)

(Note

1

e

)

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

18

Foreign

currency,

at

value

(cost

$294,533)

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

271,868

Receivables:

Investment

securities

sold

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

70,237

Capital

shares

sold

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

681

Interest

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

284,235

Affiliates

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

73,896

Unrealized

appreciation

on

OTC

forward

exchange

contracts

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

133,870

Total

assets

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

20,271,786

Liabilities:

Payables:

Investment

securities

purchased

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

196,985

Capital

shares

redeemed

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

353

Distribution

fees

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

4,005

Transfer

agent

fees

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

1,567

Reports

to

shareholders

fees

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

44,998

Trustees'

fees

and

expenses

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

1,799

Unrealized

depreciation

on

OTC

forward

exchange

contracts

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

139,617

Deferred

tax

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

6,031

Accrued

expenses

and

other

liabilities

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

6,779

Total

liabilities

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

402,134

Net

assets,

at

value

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

$19,869,652

Net

assets

consist

of:

Paid-in

capital

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

$24,901,665

Total

distributable

earnings

(losses)

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

(5,032,013)

Net

assets,

at

value

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

$19,869,652

Templeton

Income

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

December

31,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Class

A:

Net

assets,

at

value

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

$14,821,470

Shares

outstanding

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

2,546,029

Net

asset

value

per

share

a

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

$5.82

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

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

$6.05

Class

C:

Net

assets,

at

value

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

$1,309,792

Shares

outstanding

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

225,275

Net

asset

value

and

maximum

offering

price

per

share

a

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

$5.81

Class

R:

Net

assets,

at

value

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

$11,839

Shares

outstanding

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

2,031

Net

asset

value

and

maximum

offering

price

per

share

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

$5.83

Class

R6:

Net

assets,

at

value

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

$663,283

Shares

outstanding

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

113,760

Net

asset

value

and

maximum

offering

price

per

share

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

$5.83

Advisor

Class:

Net

assets,

at

value

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

$3,063,268

Shares

outstanding

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

523,681

Net

asset

value

and

maximum

offering

price

per

share

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

$5.85

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Templeton

Income

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Note

3

f

)

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

$221

Interest:

(net

of

foreign

taxes

of

$28,520)

Unaffiliated

issuers:

Inflation

principal

adjustments

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

603,594

Paid

in

cash

a

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

1,345,596

Total

investment

income

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

1,949,411

Expenses:

Management

fees

(Note

3

a

)

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

190,095

Distribution

fees:

(Note

3c

)

    Class

A

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

39,171

    Class

C

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

10,649

    Class

R

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

33

Transfer

agent

fees:

(Note

3e

)

    Class

A

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

26,059

    Class

C

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

2,646

    Class

R

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

20

    Class

R6

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

3,504

    Advisor

Class

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

5,593

Custodian

fees

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

7,821

Reports

to

shareholders

fees

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

40,538

Registration

and

filing

fees

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

80,100

Professional

fees

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

174,460

Trustees'

fees

and

expenses

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

4,474

Other

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

28,778

Total

expenses

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

613,941

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

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

(366,348)

Net

expenses

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

247,593

Net

investment

income

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

1,701,818

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

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

(1,002,168)

Written

options

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

(101,303)

Foreign

currency

transactions

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

(21,769)

Forward

exchange

contracts

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

(640,165)

Swap

contracts

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

(6)

Net

realized

gain

(loss)

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

(1,765,411)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

(1,669,603)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

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

(32,469)

Written

options

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

83,349

Forward

exchange

contracts

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

417,835

Change

in

deferred

taxes

on

unrealized

appreciation

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

2,243

Net

change

in

unrealized

appreciation

(depreciation)

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

(1,198,645)

Net

realized

and

unrealized

gain

(loss)

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

(2,964,056)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

$(1,262,238)

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

financial

statements.

Annual

Report

25

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

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

$1,701,818

$1,909,367

Net

realized

gain

(loss)

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

(1,765,411)

(9,770,016)

Net

change

in

unrealized

appreciation

(depreciation)

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

(1,198,645)

5,628,744

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

(1,262,238)

(2,231,905)

Distributions

to

shareholders:

Class

A

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

—

(26,203)

Class

C

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

—

(2,760)

Class

R

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

—

(18)

Class

R6

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

—

(1,003)

Advisor

Class

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

—

(10,061)

Distributions

to

shareholders

from

tax

return

of

capital:

Class

A

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

(1,357,541)

(1,266,497)

Class

C

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

(127,173)

(133,396)

Class

R

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

(1,022)

(882)

Class

R6

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

(102,534)

(48,460)

Advisor

Class

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

(291,844)

(486,289)

Total

distributions

to

shareholders

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

(1,880,114)

(1,975,569)

Capital

share

transactions:

(Note

2

)

Class

A

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

1,096,130

(3,251,397)

Class

C

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

(287,395)

(154,051)

Class

R

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

1,073

968

Class

R6

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

225,841

(349,326)

Advisor

Class

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

(408,822)

(9,487,320)

Total

capital

share

transactions

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

626,827

(13,241,126)

Net

increase

(decrease)

in

net

assets

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

(2,515,525)

(17,448,600)

Net

assets:

Beginning

of

year

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

22,385,177

39,833,777

End

of

year

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

$19,869,652

$22,385,177

Templeton

Income

Trust

Notes

to

Financial

Statements

Templeton

Sustainable

Emerging

Markets

Bond

Fund

26

franklintempleton.com

Annual

Report

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

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(Fund)

is

included

in

this

report.

The

Fund

offers five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class. Effective

August

2,

2021,

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Prior

to

August

2,

2021,

Class

C

shares

converted

to

Class

A

shares

after

a

10-year

holding

period.

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.

Effective

December

15,

2021,

Templeton

Emerging

Markets

Bond

Fund

was

renamed

Templeton

Sustainable

Emerging

Markets

Bond

Fund.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

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

Fund

calculates

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

Board,

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

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

Fund's

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

Fund's

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

Fund's

net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

Templeton

Income

Trust

Notes

to

Financial

Statements

27

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

fair

value

of

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

Fund's

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

Fund's

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

Fund's

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

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

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 Fund

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

Fund

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

Fund

does

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

Statement 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

The

Fund

purchases

securiti

es

on

a

delayed

delivery

basis,

with

payment

and

delive

ry

scheduled

for

a

future

date.

These

transactions

are

sub

ject

to

market

fluctuations

and

are

subject

to

the

risk

th

at

the

value

at

delivery

may

be

more

or

less

than

the

trad

e

date

purchase

price.

Although

the

Fund

will

generally

purchase

these

securities

with

the

intention

of

holding

th

e

securities,

they

may

sell

the

securities

before

the

settlement

date.

d.

Derivative

Financial

Instruments

The

Fund 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

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

28

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce its

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 Fund

include

failure

of

the

Fund

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

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

terms

are

contract

specific

for

OTC

derivatives.

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,

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

Fund's

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.

The

Fund 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.

The

Fund

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

Statement

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

depreciation

and

appreciation

until

the

payments

are

made,

at

which

time

they

are

realized.

The

Fund

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.

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.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

29

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

See

Note

10 regarding

other

derivative

information.

e.

Restricted

Currency

At

December

31,

2021,

the

Fund

held

currencies

in

certain

markets

in

which

the

ability

to

repatriate

such

currency

is

limited.

As

a

result

of

such

limitations

on

repatriation,

the

Fund

may

incur

substantial

delays

in

gaining

access

to

these

assets

and

may

be

exposed

to

potential

adverse

movements

in

currency

value.

f.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The 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 Fund

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

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The

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,

2021,

the

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

Fund.

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

Statement

of

Operations.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

30

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

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

Fund,

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,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

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

683,172

$4,403,469

498,364

$3,493,684

Shares

issued

in

reinvestment

of

distributions

..........

146,438

913,031

120,598

838,933

Shares

redeemed

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

(671,241)

(4,220,370)

(1,077,053)

(7,584,014)

Net

increase

(decrease)

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

158,369

$1,096,130

(458,091)

$(3,251,397)

Class

C

Shares:

Shares

sold

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

45,798

$288,307

59,073

$421,140

Shares

issued

in

reinvestment

of

distributions

..........

19,642

122,692

19,355

134,492

Shares

redeemed

a

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

(112,212)

(698,394)

(101,273)

(709,683)

Net

increase

(decrease)

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

(46,772)

$(287,395)

(22,845)

$(154,051)

Class

R

Shares:

Shares

sold

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

97

$612

88

$610

Shares

issued

in

reinvestment

of

distributions

..........

79

496

57

393

Shares

redeemed

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

(6)

(35)

(5)

(35)

Net

increase

(decrease)

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

170

$1,073

140

$968

Class

R6

Shares:

Shares

sold

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

240,016

$1,553,190

50,785

$349,186

Shares

issued

in

reinvestment

of

distributions

..........

16,313

102,534

7,069

49,462

Shares

redeemed

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

(231,593)

(1,429,883)

(105,405)

(747,974)

Net

increase

(decrease)

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

24,736

$225,841

(47,551)

$(349,326)

Advisor

Class

Shares:

Shares

sold

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

171,112

$1,101,536

335,564

$2,375,582

Shares

issued

in

reinvestment

of

distributions

..........

45,445

284,873

64,721

453,263

Shares

redeemed

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

(279,547)

(1,795,231)

(1,684,325)

(12,316,165)

Net

increase

(decrease)

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

(62,990)

$(408,822)

(1,284,040)

$(9,487,320)

1.

Organization

and

Significant

Accounting

Policies

(continued)

h.

Accounting

Estimates

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

31

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

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

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

average

daily

net

assets of

the

Fund

as

follows:

For

the

year

ended

December

31,

2021,

the

gross

effective

management

fee

rate

was

0.850%

of

the

Fund’s

average

daily

net

assets.

Effective

December

15,

2021,

under

a

subadvisory

agreement,

Asset

Management,

an

affiliate

of

Advisers,

provides

subadvisory

services

to

the

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

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

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

Fund’s

Class A reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

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

Fund’s

Class C

and

R

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

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.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

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

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

2.

Shares

of

Beneficial

Interest

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

32

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

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

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

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.

The

fees

are

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,

2021,

the

Fund

paid

transfer

agent

fees

of

$37,822,

of

which $22,996

was

retained

by

Investor

Services.

f.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

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

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

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,

2021,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Class

A

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

0.25%

Class

C

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

0.65%

Class

R

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

0.50%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

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

$1,527

CDSC

retained

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

$1,149

    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

Sustainable 

Emerging

Markets

Bond

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

$

5,134,983

$

9,502,191

$

(13,286,024)

$

—

$

—

$

1,351,150

1,351,150

$

221

Total

Affiliated

Securities

...

$5,134,983

$9,502,191

$(13,286,024)

$—

$—

$1,351,150

$221

3.

Transactions

with

Affiliates

(continued)

c.

Distribution

Fees

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

33

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

g.

Waiver

and

Expense

Reimbursements

Advisers

and

Investor

Services

have

contractually

agreed

in

advance

to

waive

or

limit

their

respective

fees

and

to

assume

as

their

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating

expenses

(excluding

distribution

fees,

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

Fund

do

not

exceed

0.89%

based

on

the

average

net

assets

of

each

class

until

April

30,

2022.

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,

2022. 

h.

Other

Affiliated

Transactions

At

December

31,

2021,

Advisers

owned

23.1%

of

the

Fund's

outstanding

shares.

4.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2021,

the

capital

loss

carryforwards

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2021

and

2020,

was

as

follows:

For

tax

purposes,

the

Fund

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

December

31,

2021,

the

Fund

deferred

late-year

ordinary

losses

of

$119,684.

At

December

31,

2021,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

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

$719,562

Long

term

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

1,709,494

Total

capital

loss

carryforwards

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

$2,429,056

2021

2020

Distributions

paid

from:

Ordinary

income

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

$—

$40,045

Return

of

capital

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

1,880,114

1,935,524

$1,880,114

$1,975,569

Cost

of

investments

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

$21,877,633

Unrealized

appreciation

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

$712,968

Unrealized

depreciation

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

(3,159,367)

Net

unrealized

appreciation

(depreciation)

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

$(2,446,399)

3.

Transactions

with

Affiliates

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

34

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of foreign

currency

transactions,

payments-in-kind,

bond

discounts

and

premiums,

tax

straddles,

inflation

related

adjustments

on

foreign

securities

and

wash

sales.

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2021,

aggregated

$9,845,114

and

$7,418,018,

respectively.

6.

Credit

Risk

At

December

31,

2021,

the

Fund

had

47.7%

of

its

portfolio

invested

in

high

yield

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.

7.

Concentration

of

Risk

Investments

in

issuers

domiciled

or

with

significant

operations

in

developing

or

emerging

market

countries

may

be

subject

to

higher

risks

than

investments

in

developed

countries.

These

risks

include

fluctuating

currency

values,

underdeveloped

legal

or

business

systems,

and

changing

local

and

regional

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

Currencies

of

developing

or

emerging

market

countries

may

be

subject

to

significantly

greater

risks

than

currencies

of

developed

countries,

including

the

potential

inability

to

repatriate

those

currencies

into

U.S.

dollars.

 At

December

31,

2021,

the

Fund

had

4.8%

of

its

net

assets

denominated

in

Argentine

Pesos. Argentina

has

restricted

currency

repatriation

since

September

2019,

and

had

restructured

certain

issues

of

its

debt.

Political

and

economic

conditions

in

Argentina

could

continue

to

affect

the

value

of

the

Fund's

holdings.

8.

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 Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

9.

Restricted

Securities

The

Fund

invests

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 Fund

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

December

31,

2021,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

4.

Income

Taxes

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

35

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

10.

Other

Derivative

Information

At

December

3

1

2021

,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

For

the

year

ended

December

31,

2021,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

year

ended

December

31,

2021,

the

average

month

end

notional

amount

of

swap

contracts

and

options

represented

$170

and

$4,650,729,

respectively.

The

average

month

end

contract

value

of

forward

exchange

contracts

was

$18,029,661.

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

—

502,920

Reventazon

Finance

Trust,

Senior

Secured

Bond,

144A,

8%,

11/15/33

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

12/18/13

502,920

539,971

Total

Restricted

Securities

(Value

is

2.7%

of

Net

Assets)

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

$517,918

$539,971

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$0

as

of

December

31,

2021

.

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

Sustainable

 Emerging

Markets

Bond

Fund

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

$

133,870

Unrealized

depreciation

on

OTC

forward

exchange

contracts

$

139,617

Total

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

$133,870

$139,617

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

Sustainable Emerging

Markets

Bond

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Swap

contracts

$(6)

Swap

contracts

$—

Foreign

exchange

contracts

.....

Investments

(179,406)

a

Investments

134,558

a

Written

options

(101,303)

Written

options

83,349

Forward

exchange

contracts

(640,165)

Forward

exchange

contracts

417,835

Total

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

$(920,880)

$635,742

a

Purchased

option

contracts

are

included

in

net

realized

gain

(loss)

from

investments

and

net

change

in

unrealized

appreciation

(depreciation)

on

investments

in

the

Statement

of

Operations.

9.

Restricted

Securities

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

36

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

At

December

31,

2021,

OTC

derivative

assets

and

liabilities

are

as

follows:

At

December

31,

2021,

OTC

derivative

assets,

which

may

be

offset

against

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

Gross

Amounts

of

Assets

and

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Assets

a

Liabilities

a

Templeton

Sustainable 

Emerging

Markets

Bond

Fund

Derivatives

Forward

exchange

contracts

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

$

133,870

$

139,617

Total

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

$133,870

$139,617

a

Absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

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

Sustainable Emerging

Markets

Bond

Fund

Counterparty

BOFA

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

$7,223

$—

$—

$—

$7,223

CITI

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

15,533

(2,417)

—

—

13,116

DBAB

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

3,692

(3,692)

—

—

—

GSCO

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

—

—

—

—

—

HSBK

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

28,046

—

—

—

28,046

JPHQ

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

25,389

(3,207)

—

—

22,182

MSCO

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

43,890

(43,890)

—

—

—

SCNY

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

10,097

—

—

—

10,097

Total

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

$133,870

$(53,206)

$

—

$—

$80,664

$

1

10.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

37

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

At

December

31,

2021,

OTC

derivative

liabilities,

which

may

be

offset

against

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

See

Note

1(d)

regarding

derivative

financial

instruments. 

See

Abbreviations

on

page

41

.

11.

Credit

Facility

The

Fund,

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

4,

2022.

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

4,

2022,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

3,

2023,

for

a

total

of

$2.675

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

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

Statement

of

Operations.

During

the

year

ended

December

31,

2021,

the Fund

did

not

use

the

Global

Credit

Facility.

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

Net

Amount

(Not

less

than

zero)

Templeton

Sustainable Emerging

Markets

Bond

Fund

Counterparty

BOFA

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

$—

$—

$—

$—

$—

CITI

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

2,417

(2,417)

—

—

—

DBAB

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

7,260

(3,692)

—

—

3,568

GSCO

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

67,442

—

—

—

67,442

HSBK

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

—

—

—

—

—

JPHQ

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

3,207

(3,207)

—

—

—

MSCO

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

59,291

(43,890)

—

—

15,401

SCNY

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

—

—

—

—

—

Total

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

$139,617

$(53,206)

$—

$—

$86,411

10.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

38

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

12.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's 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

Fund's

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,

2021,

in

valuing

the

Fund's

assets

and

liabilities

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Templeton

Sustainable Emerging

Markets

Bond

Fund

Assets:

Investments

in

Securities:

Common

Stocks

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

$

—

$

—

$

—

a

$

—

Corporate

Bonds

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

—

—

539,971

a

539,971

Foreign

Government

and

Agency

Securities

....

—

15,966,534

—

15,966,534

Escrows

and

Litigation

Trusts

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

—

—

—

a

—

Short

Term

Investments

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

1,351,150

1,579,326

—

2,930,476

Total

Investments

in

Securities

...........

$1,351,150

$17,545,860

$539,971

$19,436,981

Other

Financial

Instruments:

Forward

exchange

contracts

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

$

—

$

133,870

$

—

$

133,870

Restricted

Currency

(ARS)

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

—

18

—

18

Total

Other

Financial

Instruments

.........

$—

$133,888

$—

$133,888

Receivables:

Interest

(ARS)

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

$—

$6,340

$—

$6,340

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

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

$

—

$

139,617

$

—

$

139,617

a

Includes

securities

determined

to

have

no

value

at

December

31,

2021.

Templeton

Income

Trust

Notes

to

Financial

Statements

39

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

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,

2021,

the

reconciliation

is

as

follows:

Balance

at

Beginning

of

Year

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

c

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

..

$

—

d

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

d

$

—

Corporate

Bonds

:

Costa

Rica

...

507,166

—

(22,920)

—

—

—

—

55,725

539,971

54,911

South

Africa

..

791

d

93

—

—

—

606

—

(1,490)

—

d

(1,490)

Foreign

Government

and

Agency

Securities

:

Argentina

....

1,671,576

—

—

—

(1,671,576)

—

—

—

—

—

Escrows

and

Litigation

Trusts

—

—

d

(271)

—

—

—

271

—

—

d

—

Short

Term

Investments

..

168,276

—

—

—

(168,276)

—

—

—

—

—

Total

Investments

in

Securities

.......

$2,347,809

$93

$(23,191)

$—

$(1,839,852)

$606

$271

$54,235

$539,971

$53,421

Other

Financial

Instruments:

Restricted

Currency

(ARS)

......

$641

$—

$—

$—

$(641)

$—

$—

$—

$—

$—

Receivables:

Interest

(ARS)

.

$9,213

$—

$—

$—

$(9,213)

$—

$—

$—

$—

$—

Liabilities:

Payables:

Investment

Securities

Purchased

(ARS)

$29,286

$—

$—

$—

$(29,286)

$—

$—

$—

$—

$—

Deferred

Tax

(ARS)

$86

$—

$—

$—

$(86)

$—

$—

$—

$—

$—

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

c

Transfers

out

of

level

3

were

as

a

result

of

changes

in

the

levels

of

observable

liquidity

and

the

improved

reliability

of

a

significant

input.

d

Includes

securities

determined

to

have

no

value.

12.

Fair

Value

Measurements

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

40

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

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,

2021,

are

as

follows:

13.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

14.

Subsequent

Events

The

Fund

has

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.

Description

Fair

Value

at

End

of

Year

Valuation

Technique

Unobservable

Inputs

Amount/Range

(Weighted

Average)

Impact

to

Fair

Value

if

Input

Increases

a

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Assets:

Investments

in

Securities:

Corporate

Bonds:

Costa

Rica

..........

$539,971

Discounted

cash

flow

Discount

rate

(

b

)

6.6%

Decrease

c

All

Other

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

—

d

Total

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

$539,971

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

impacts,

if

any,

to

fair

value

and/or

net

assets

have

been

indicated.

b

The

discount

rate

is

comprised

of

the

risk-free

rate,

the

10-year

Costa

Rican

CDS

curve,

and

an

incremental

credit

spread

that

combines

with

the

first

two

components

to

arrive

at

an

8%

yield

on

issue

date

for

an

8%

coupon

bond

issued

at

par.

c

Represents

a

significant

impact

to

fair

value

and

net

assets.

d

Includes

securities

determined

to

have

no

value

at

December

31,

2021.

12.

Fair

Value

Measurements

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

41

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

Abbreviations

Counterparty

BOFA

Bank

of

America

Corp.

CITI

Citibank

NA

DBAB

Deutsche

Bank

AG

GSCO

Goldman

Sachs

Group,

Inc.

HSBK

HSBC

Bank

plc

JPHQ

JPMorgan

Chase

Bank

NA

MSCO

Morgan

Stanley

SCNY

Standard

Chartered

Bank

Selected

Portfolio

CER

Reference

Stabilization

Coefficient

PIK

Payment-In-Kind

Cu

r

rency

ARS

Argentine

Peso

BRL

Brazilian

Real

CLP

Chilean

Peso

CNY

Chinese

Yuan

COP

Colombian

Peso

EGP

Egyptian

Pound

EUR

Euro

GHS

Ghanaian

Cedi

IDR

Indonesian

Rupiah

INR

Indian

Rupee

KRW

South

Korean

Won

PEN

Peruvian

Nuevo

Sol

THB

Thai

Baht

TRY

Turkish

Lira

USD

United

States

Dollar

UZS

Uzbekistani

Som

Templeton

Income

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

42

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Templeton

Income

Trust

and

Shareholders

of

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

statement

of

investments,

of

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(one

of

the

funds

constituting

Templeton

Income

Trust,

referred

to

hereafter

as

the

"Fund")

as

of

December

31,

2021,

the

related

statement

of

operations

for

the

year

ended

December

31,

2021,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2021

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2021,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2021

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

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

Fund

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,

2021

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,

2022

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)

43

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

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

Fund

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

intend

s

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,

2021

:

Amount

Reported

Foreign

Taxes

Paid

$40,429

Foreign

Source

Income

Earned

$1,962,825

Templeton

Income

Trust

Board

Members

and

Officers

44

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

120

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

Capital

Corporation

(specialty

finance

company)

(2010-present),

United

Natural

Foods,

Inc.

(distributor

of

natural,

organic

and

specialty

foods)

(2013-present),

formerly

,

Allied

Capital

Corporation

(financial

services)

(2003-

2010),

SLM

Corporation

(Sallie

Mae)

(1997-2014)

and

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).

Mary

C.

Choksi

(1950)

Trustee

Since

2016

121

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

45

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

121

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

121

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

(May

2019-January

1,

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

121

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

46

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).

Robert

E.

Wade

(1946)

Trustee

Since

2006

30

El

Oro

Ltd

(investments)

(2003-

2019).

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Attorney

at

law

engaged

in

private

practice

as

a

sole

practitioner

(1972-2008)

and

member

of

various

boards.

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)

Trustee

Since

2007

132

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)

Chairman

of

the

Board,

Trustee

and

Vice

President

Chairman

of

the

Board

and

Trustee

since

2013

and

Vice

President

since

1996

121

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

47

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;

Vice

President,

FASA,

LLC;

Assistant

Secretary,

Franklin

Distributors,

LLC;

and

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

July

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.

Craig

S.

Tyle

(1960)

Vice

President

Since

2005

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

General

Counsel

and

Executive

Vice

President,

Franklin

Resources,

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.

Interested

Board

Members

and

Officers

(continued)

Templeton

Income

Trust

48

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.

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

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.

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:

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

49

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

Statement

of

Investments

The

Trust,

on

behalf

of

the

Fund,

files

a

complete

statement

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.

072

A

02/22

©

2022

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

Sustainable

Emerging

Markets

Bond

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Templeton

Global

Bond

Fund

A

Series

of

Templeton

Income

Trust

December

31,

2021

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Annual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

The

12

months

ended

December

31,

2021,

saw

extraordinary

conditions

across

global

financial

markets

as

the

world

attempted

to

emerge

from

the

COVID-19

pandemic.

During

2021,

global

fixed

income

markets

endured

multiple

cycles

of

sharply

rising

and

falling

yields,

broad

U.S.

dollar

strengthening

and

reversals,

idiosyncratic

drivers

in

individual

local-currency

markets,

massive

economic

recoveries

and

setbacks,

global

supply

chain

disruptions,

rising

inflationary

pressures

in

the

Americas

and

Europe,

and

a

major

pivot

toward

global

monetary

tightening

in

2021’s

second

half

after

extraordinary,

highly

correlated

global

easing

in

2020

and

early

2021.

Overall,

sovereign

bond

yields

rose

in

most

countries

while

the

U.S.

dollar

strengthened,

although

with

intermittently

declining

yields

in

various

countries

and

shifting

cycles

of

currency

appreciation/depreciation

in

individual

currency

pairings.

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

-6.97%

and

-2.57%

in

U.S.

dollar

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

Global

Bond

Fund’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,

2021,

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

Templeton

Global

Bond

Fund

3

Performance

Summary

8

Your

Fund’s

Expenses

11

Financial

Highlights

and

Statement

of

Investments

12

Financial

Statements

26

Notes

to

Financial

Statements

30

Report

of

Independent

Registered

Public

Accounting

Firm

44

Tax

Information

45

Board

Members

and

Officers

46

Shareholder

Information

51

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

A

NNUAL

REPORT

Templeton

Global

Bond

Fund

This

annual

report

for

Templeton

Global

Bond

Fund

covers

the

fiscal

year

ended

December

3

1

,

202

1

.

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.

*Includes

U.S.

and

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

-5.06%

cumulative

total

return.

In

comparison,

global

government

bonds,

as

measured

by

the

Fund’s

benchmark,

the

FTSE

World

Government

Bond

Index

(WGBI),

had

a

cumulative

total

return

of

-6.97%

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

8

.

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

The

12-month

period

ended

December

31,

2021,

was

a

tale

of

two

halves.

The

first

half

was

characterized

by

exuberant

optimism

for

an

end

to

the

COVID-19

pandemic,

punctuated

by

a

surge

in

economic

activity

in

the

spring

as

lockdowns

were

eased

and

economies

reopened.

The

second

half

was

characterized

by

rising

inflation

and

incremental

shifts

towards

monetary

tightening,

with

several

emerging

markets

entering

rate

hiking

cycles

ahead

of

the

major

developed

markets.

On

the

whole,

sovereign

bond

yields

rose

in

most

countries

during

the

period

while

the

U.S.

dollar

(USD)

broadly

strengthened,

albeit

with

intermittent

episodes

of

declining

yields

in

various

countries

and

shifting

cycles

of

currency

appreciation/depreciation

in

individual

currency

pairings.

The

period

began

with

sovereign

bond

yields

rising

sharply

across

much

of

the

world

over

the

first

three

months.

The

yield

on

the

10-year

U.S.

Treasury

(UST)

note

would

reach

its

high

mark

for

the

entire

period

on

March

31

at

1.74%,

82

basis

points

(bps)

higher

than

where

it

finished

2020.

Vaccine

distributions,

ongoing

stimulus

measures

and

optimism

for

improving

economic

conditions

appeared

to

fuel

reflation

expectations

across

global

financial

markets.

However,

the

harsh

realities

of

the

worldwide

health

crisis

and

economic

hardship

continued

to

have

profound

consequences

for

lives

and

livelihoods

around

the

world

in

the

winter

and

early

spring

months

of

2021.

Vaccine

distributions

progressively

accelerated

in

many

countries

during

the

first

half

of

2021,

though

supply

setbacks

notably

affected

areas

of

Europe

in

March

and

April.

Governments

continued

to

struggle

with

balancing

the

needs

of

their

economies

with

the

health

of

their

citizens

during

much

of

the

first

quarter

of

2021

before

higher

vaccination

rates

and

lower

case

levels

enabled

many

regions

to

progressively

reopen

their

economies

in

the

spring.

Rising

yields

strained

valuations

across

many

areas

of

the

global

fixed

income

markets

during

2021’s

first

three

months.

USD-denominated

sovereign

credit

sectors

broadly

saw

negative

returns

in

January,

February

and

March

before

sharply

reversing

to

generate

offsetting

positive

returns

in

April,

May

and

June

as

UST

yields

pulled

back

from

their

late-March

peaks.

Sovereign

bond

yields

generally

resumed

Portfolio

Composition

12/31/21

%

of

Total

Net

Assets

Foreign

Government

and

Agency

Securities

63.5%

U.S.

Government

and

Agency

Securities

12.5%

Short-Term

Investments

&

Other

Net

Assets*

24.0%

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

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

17

.

Templeton

Global

Bond

Fund

4

franklintempleton.com

Annual

Report

their

rising

trends

in

May

and

June

amid

rising

inflation

in

many

areas

of

Europe

and

the

Americas.

In

currency

markets,

the

USD

broadly

strengthened

against

a

number

of

developed

market

and

emerging

market

currencies

in

the

first

quarter

of

2021,

reversing

the

broad-based

weakening

trend

from

the

second

half

of

2020.

Broad

USD

weakness

returned

in

April

and

May

before

the

strengthening

pattern

returned

in

June.

Business

and

consumer

confidence

surveys

notably

strengthened

in

multiple

regions

during

the

second

quarter

of

2021,

despite

some

growing

concerns

over

the

proliferation

of

the

Delta

variant

of

COVID-19

in

several

parts

of

the

world

in

June.

Economic

activity

continued

to

broadly

expand

in

many

countries

in

the

second

quarter,

largely

driven

by

strength

in

goods

sectors

and

manufacturing,

as

well

as

historically

high

savings

rates

in

many

countries

that

helped

fuel

demand.

On

the

whole,

the

second

quarter

would

represent

the

largest

quarterly

surge

in

GDP

for

most

countries

in

2021.

In

the

second

half

of

2021,

sovereign

bond

yields

would

largely

continue

to

rise

across

much

of

the

world

as

central

banks

continued

to

wade

deeper

into

monetary

tightening

cycles.

Developed

market

sovereign

bond

yields

initially

declined

in

July

and

early

August

as

the

Delta

variant

proliferated

across

multiple

regions.

The

10-year

UST

note’s

yield

dropped

to

1.17%

on

August

3

as

risk

aversion

resurfaced,

its

lowest

level

since

mid-February.

However,

sovereign

bond

yields

largely

trended

higher

from

that

point

through

the

end

of

the

year

as

investor

sentiments

appeared

to

refortify.

In

September,

the

U.S.

Federal

Reserve

(Fed)

announced

it

would

begin

tapering

its

asset

purchases

in

the

fourth

quarter

of

2021.

The

hawkish

shift

added

further

upward

pressure

on

UST

yields

and

drove

broad

strengthening

of

the

USD.

Sovereign

bond

yields

continued

to

trend

higher

in

many

regions

over

the

following

month,

with

the

10-

year

UST

note

reaching

1.70%

on

October

21,

its

highest

yield

since

early

April.

Sovereign

bond

yields

largely

maintained

their

levels

over

subsequent

weeks

until

the

Omicron

variant

of

COVID-19

emerged

in

the

final

days

of

November,

triggering

broad-based

risk

aversion

across

global

financial

markets

and

perceived

safe-haven

rallies

in

several

developed

market

assets.

Crude

oil

prices

dropped

around

20%

in

November

on

global

growth

concerns,

with

the

bulk

of

the

price

adjustments

occurring

in

the

wake

of

the

Omicron

news.

Sovereign

bond

yields

declined

in

several

developed

markets

in

late

November

and

early

December

on

the

heightened

risk

aversion

before

global

growth

concerns

eventually

dissipated

in

the

second

half

of

the

month,

even

as

COVID-19

cases

surged

to

record

levels.

Disease

severity

from

Omicron

appeared

milder

than

previous

variants,

leading

to

a

significant

decoupling

of

the

trend

lines

for

case

numbers

(rising

sharply)

and

mortality

rates

(moderating).

We

expected

COVID-19

variants

to

not

derail

global

growth

momentum,

though

the

risks

continued

to

bear

monitoring.

Commodity

and

energy

prices

ultimately

rebounded

in

December,

recovering

much

of

the

price

corrections

from

the

prior

month

as

reflation

sentiments

returned

to

global

financial

markets.

Manufacturing

and

business

surveys

largely

continued

to

remain

at

expansionary

levels

across

much

of

the

world

during

the

second

half

of

2021

but

moderated

from

their

mid-year

peaks.

Consumer

confidence

surveys

showed

similar

trends.

Labor

market

conditions

generally

continued

to

improve

in

many

countries,

though

labor

shortages

and

unemployment

remained

above

prepandemic

levels

in

several

regions.

Overall,

global

growth

showed

signs

of

moderating

from

the

historically

strong

rebound

in

the

first

half

of

2021

but

remained

largely

resilient,

in

our

view.

Inflation

figures

remained

historically

high

across

many

parts

of

the

world

during

the

second

half

of

the

period,

driven

by

a

combination

of

factors

that

included

resurgent

economic

activity,

supply

disruptions

in

certain

sectors,

and

the

effects

of

massive

fiscal

and

monetary

stimulus

measures.

Headline

inflation

(Consumer

Price

Index)

in

the

U.S.

remained

at

or

above

5.0%

year-over-year

from

May

through

the

end

of

2021,

coming

in

at

6.8%

in

November,

its

highest

level

since

1982.

A

growing

number

of

central

banks

pursued

monetary

tightening

measures

in

the

second

half

of

the

year,

with

persistent

inflationary

pressures

in

several

emerging

markets

motivating

aggressive

tightening

responses.

In

Latin

America,

Brazil’s

central

bank

hiked

its

policy

rate

by

725

bps

in

2021,

Chile

by

350

bps,

Peru

by

225

bps,

Mexico

by

150

bps

and

Colombia

by

125

bps.

In

eastern

Europe,

Russia

hiked

its

policy

rate

by

425

bps,

the

Czech

Republic

by

300

bps,

Hungary

by

180

bps

and

Poland

by

165

bps.

Most

countries

in

Asia

kept

policy

rates

unchanged

as

inflation

generally

remained

more

contained

and

within

central

bank

targets.

In

developed

markets,

most

central

banks

continued

to

keep

their

policy

rates

unchanged

at

extraordinarily

low

levels

during

the

year,

with

some

exceptions.

Norway

posted

two

25-bp

hikes

in

2021

to

bring

its

policy

rate

to

0.50%;

the

U.K.

hiked

its

policy

rate

by

15

bps

to

0.25%

in

December,

its

first

rate

adjustment

since

March

2020;

New

Zealand

posted

consecutive

25-bp

hikes

in

October

and

November,

bringing

Templeton

Global

Bond

Fund

5

franklintempleton.com

Annual

Report

its

policy

rate

to

0.75%;

and

South

Korea

hiked

its

policy

rate

25

bps

in

August

and

November

to

1.00%.

Other

developed

market

central

banks,

such

as

in

Canada,

Sweden

and

Australia,

remained

on

hold

with

policy

rates

in

2021,

but

were

at

various

stages

of

tapering

their

asset

purchase

programs.

The

Fed

kept

the

federal

funds

target

rate

unchanged

(0.00%

to

0.25%)

at

each

of

its

policy

meetings

during

the

period

but

it

began

tapering

its

asset

purchases

in

November.

However,

the

Fed

quickly

shifted

in

a

hawkish

direction

at

its

December

meeting,

doubling

the

pace

of

its

asset

purchase

tapering

for

January.

The

accelerated

pace

put

the

asset

purchase

program

on

schedule

to

conclude

by

March

2022,

enabling

a

rate

hiking

cycle

to

start

in

March

or

May,

earlier

than

previously

indicated

at

the

November

meeting.

Additionally,

the

Fed’s

dot

plot

survey

in

December

showed

that

12

of

18

officials

expect

at

least

three

rate

hikes

in

2022,

a

substantial

change

from

the

September

survey

that

saw

nine

of

18

officials

project

no

hikes

until

2023.

We

expected

UST

term

premiums

to

ratchet

higher

in

upcoming

quarters,

with

a

bear-flattening

effect

driven

by

rising

yields

in

the

short-

to

intermediate-term

range

of

the

yield

curve.

The

European

Central

Bank

(ECB)

kept

monetary

policy

largely

unchanged

during

the

period,

leaving

the

main

refinancing

operations

rate

at

0.0%

and

the

main

deposit

facility

rate

at

-0.5%.

ECB

President

Christine

Lagarde

reaffirmed

at

the

October

and

December

meetings

that

key

rates

will

likely

remain

unchanged

through

2022.

The

ongoing

accommodative

policy

stance

from

the

ECB

appeared

likely

to

diverge

substantially

from

the

tightening

trajectory

of

the

Fed

in

2022.

We

expected

the

euro

to

weaken

against

the

USD

given

negative

rates

and

widening

rate

differentials

with

the

U.S.,

as

well

as

greater

headwinds

to

growth

in

Europe.

The

Bank

of

Japan

(BOJ)

also

kept

monetary

policy

largely

unchanged

during

the

period,

leaving

the

overnight

interest

rate

at

-0.1%

and

the

yield

target

on

the

10-

year

Japanese

government

bond

at

0.0%.

In

December,

the

BOJ

announced

plans

to

scale

down

its

emergency

pandemic

purchasing

measures

by

tapering

its

corporate

debt

purchases

to

precrisis

levels

by

April.

We

expected

the

Japanese

yen

to

face

headwinds

from

widening

rate

differentials

with

the

U.S.

Overall,

most

developed

markets

saw

10-year

sovereign

bond

yields

rise

during

the

period,

including

Norway,

Sweden,

the

U.K.,

South

Korea,

Canada

and

core

Europe.

The

yield

on

the

10-year

UST

note

finished

the

year

at

1.51%,

59

bps

higher

than

where

it

ended

2020.

In

emerging

markets,

10-year

sovereign

bond

yields

rose

sharply

across

much

of

Latin

America,

including

Brazil,

Mexico,

Colombia,

Chile

and

Peru.

In

eastern

Europe,

10-year

yields

trended

higher

in

Poland,

Hungary,

Russia

and

the

Czech

Republic

on

elevated

inflation

and

ongoing

monetary

tightening.

Yields

also

rose

in

much

of

Asia,

including

India,

Indonesia,

Thailand

and

Singapore,

but

declined

in

China.

USD-denominated

sovereign

credit

sectors

broadly

saw

moderately

negative

returns

for

the

period

(with

some

exceptions

in

individual

countries),

as

the

investment-

grade

credit

tiers

came

under

pressure

from

the

rising

yield

environment

while

high-yield

credit

tiers

largely

endured

additional

spread

widening.

In

currency

markets,

the

USD

broadly

strengthened

against

most

developed

market

and

emerging

market

currencies

in

2021,

appreciating

against

the

euro,

the

British

pound,

the

Japanese

yen,

the

South

Korean

won,

the

Australian

dollar

and

the

New

Zealand

dollar.

In

specific

pairings,

the

Norwegian

krone

and

the

Canadian

dollar

appreciated

against

the

euro,

while

the

Swedish

krona

depreciated.

In

emerging

markets,

the

USD

depreciated

against

the

Chinese

yuan,

but

appreciated

against

most

currencies

in

Latin

America

and

Asia,

including

the

Brazilian

real,

Mexican

peso,

Colombian

peso,

Chilean

peso,

Indian

rupee,

Indonesian

rupiah,

Singapore

dollar

and

Thai

baht.

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

Geographic

Composition

12/31/21

%

of

Total

Net

Assets

Asia

Pacific

34.2%

Americas

27.4%

Other

Europe

8.7%

Middle

East

&

Africa

4.3%

Supranational

1.4%

Short-Term

Investments

&

Other

Net

Assets

24.0%

Templeton

Global

Bond

Fund

6

franklintempleton.com

Annual

Report

instruments,

principally

currency

and

cross

currency

forwards,

but

it

may

also

use

currency

and

currency

index

futures

contracts

and

currency

options.

Manager’s

Discussion

The

successful

development

of

vaccines

against

COVID-19

in

final

months

of

2020

substantially

changed

our

outlook

and

positioning

for

2021.

In

the

weeks

before

the

12-month

reporting

period

began,

we

significantly

shifted

the

emphasis

of

the

Fund’s

strategic

positioning

from

a

safe-haven

stance

toward

an

increasing

allocation

to

risk

assets.

We

expected

a

rebound

in

global

economic

activity

and

improving

economic

conditions

in

the

spring

and

summer

months

of

2021

as

vaccines

were

progressively

distributed

and

people

increasingly

reengaged

with

the

world.

We

were

actively

constructive

in

a

number

of

regions

throughout

the

12-month

period,

particularly

in

areas

of

Asia

that

appeared

to

be

at

the

forefront

of

the

global

economic

recovery.

Overall,

the

Fund

was

focused

on

three

core

themes

during

the

period:

(1)

value

in

select

currencies

against

the

USD

and

the

euro,

specifically

in

countries

with

strong

trade

dynamics,

current

account

surpluses,

better

fiscal

management

and

stronger

growth

potential,

notably

in

Asia;

(2)

avoiding

interest-rate

risks

in

low-yielding

developed

markets;

and

(3)

pursuing

sovereign

bonds

with

relatively

higher

yields

in

a

select

set

of

resilient

emerging

markets.

At

the

beginning

of

the

period,

the

Fund

held

overweighted

positions

in

specific

currencies

against

the

USD

and

the

euro.

We

held

notable

exposures

to

the

Chinese

yuan,

the

South

Korean

won,

the

Indian

rupee,

the

Indonesian

rupiah

and

the

Japanese

yen

against

the

USD.

We

added

exposure

to

the

Singapore

dollar

in

April,

the

New

Zealand

dollar

in

June

and

the

Thai

baht

in

December.

We

held

an

overweighted

position

in

the

Japanese

yen

through

the

first

quarter

of

2021

before

reducing

it

to

around

a

neutral

weight

in

the

second

quarter.

In

the

fourth

quarter

of

2021,

we

reduced

our

Japanese

yen

position

to

a

significant

underweighting.

In

EMEA,

we

held

exposures

in

the

Norwegian

krone

and

Swedish

krona

against

the

euro

throughout

2021.

In

the

Americas,

we

held

long

exposure

to

the

Canadian

dollar

against

the

euro,

and

long

exposures

to

the

Colombian

peso

and

Brazilian

real

against

the

USD.

In

May,

we

added

exposure

to

the

Chilean

peso

against

the

USD.

During

the

period,

we

used

currency

forwards

and

currency

options

to

actively

manage

currency

exposures.

We

also

continued

to

focus

on

compelling

risk-adjusted

yields

in

various

local-currency

bond

markets,

specifically

in

countries

with

resilient

economies

and

strong

trade

dynamics.

We

continued

to

largely

avoid

developed

market

duration

exposures

in

preference

for

higher

yields

available

in

select

emerging

markets,

notably

including

Indonesia,

India,

Mexico,

Colombia,

Brazil

and

Ghana,

among

others.

After

exiting

our

local-currency

position

in

Brazil

in

the

first

quarter

of

2021

due

to

acute

political

and

economic

risks,

we

reestablished

the

position

in

the

second

quarter

as

political

compromises

in

the

spring

and

better-than

expected

economic

figures

supported

an

improved

outlook.

In

July,

we

added

to

our

local-currency

position

in

Brazil

and

reduced

our

position

in

Mexico.

We

also

saw

pockets

of

value

in

certain

USD-denominated

sovereign

credits

during

the

reporting

period,

but

we

continued

to

largely

prefer

specific

valuations

in

the

local-currency

markets

over

the

more

fully

valued

credit

markets.

During

the

period,

the

Fund’s

negative

absolute

performance

was

primarily

due

to

currency

positions.

Interest-rate

strategies

contributed

to

absolute

results,

while

sovereign

credit

exposures

had

a

largely

neutral

effect.

Among

currencies,

positions

in

the

Japanese

yen,

South

Korean

won,

Argentine

peso,

Colombian

peso

and

Chilean

peso

detracted

from

absolute

performance.

However,

the

Fund’s

net-negative

exposure

to

the

euro

contributed

to

absolute

results,

as

did

its

position

in

the

Norwegian

krone

against

the

euro.

Its

position

in

the

Chinese

yuan

against

the

USD

also

contributed

to

absolute

performance.

The

Fund

maintained

a

defensive

approach

regarding

interest

rates

in

developed

markets,

while

holding

duration

exposures

in

select

emerging

markets.

Duration

exposures

in

Argentina,

Indonesia

and

Ghana

contributed

to

absolute

results.

On

a

relative

basis,

the

Fund’s

performance

fared

better

than

that

of

its

benchmark

index

primarily

due

to

interest-rate

strategies.

Currency

positions

detracted

from

relative

results,

while

sovereign

credit

exposures

had

a

largely

neutral

effect.

Overweighted

duration

exposures

in

Argentina,

Indonesia

and

Ghana

contributed

to

relative

performance,

as

did

the

Fund’s

lack

of

duration

exposure

in

the

euro

area.

Among

currencies,

overweighted

positions

in

the

South

Korean

won,

Argentine

peso,

Colombian

peso

and

Chilean

peso

detracted

from

relative

results,

as

did

the

Fund’s

overweighted

position

in

the

Japanese

yen

for

part

of

the

period.

However,

its

underweighted

exposure

to

the

euro

contributed

to

relative

performance,

as

did

its

overweighted

position

in

the

Norwegian

krone

against

the

euro.

Its

overweighted

position

in

the

Chinese

yuan

also

contributed

to

relative

results.

Thank

you

for

your

continued

participation

in

Templeton

Global

Bond

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Templeton

Global

Bond

Fund

7

franklintempleton.com

Annual

Report

Michael

Hasenstab,

Ph.D.

Lead

Portfolio

Manager

Calvin

Ho

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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,

2021

Templeton

Global

Bond

Fund

8

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

12/31/21

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

-5.06%

-8.60%

5-Year

-5.33%

-1.85%

10-Year

+15.77%

+1.09%

Advisor

1-Year

-4.74%

-4.74%

5-Year

-4.15%

-0.84%

10-Year

+18.79%

+1.74%

See

page

10

for

Performance

Summary

footnotes.

Templeton

Global

Bond

Fund

Performance

Summary

9

franklintempleton.com

Annual

Report

See

page

10

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

(1/1/12–12/31/21)

Advisor

Class

(1/1/12–12/31/21)

Templeton

Global

Bond

Fund

Performance

Summary

10

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.

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.

1.

The

Fund

has

a

fee

waiver

associated

with

any

investment

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

fee

waiver;

without

this

waiver,

the

results

would

have

been

lower.

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:

Morningstar.

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

(1/1/21–12/31/21)

Share

Class

Tax

Return

of

Capital

A

$0.4753

C

$0.4317

R

$0.4518

R6

$0.5124

Advisor

$0.4985

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.92%

0.94%

Advisor

0.67%

0.69%

Your

Fund’s

Expenses

Templeton

Global

Bond

Fund

11

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$975.70

$4.75

$1,020.39

$4.86

0.95%

C

$1,000

$973.30

$6.65

$1,018.47

$6.80

1.34%

R

$1,000

$974.40

$6.00

$1,019.12

$6.14

1.21%

R6

$1,000

$977.60

$2.94

$1,022.23

$3.00

0.59%

Advisor

$1,000

$976.80

$3.48

$1,021.68

$3.56

0.70%

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Bond

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$9.80

$10.69

$11.30

$11.89

$12.00

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.42

0.41

0.59

0.59

0.56

Net

realized

and

unrealized

gains

(losses)

...........

(0.90)

(0.85)

(0.54)

(0.44)

(0.27)

Total

from

investment

operations

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

(0.48)

(0.44)

0.05

0.15

0.29

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(0.01)

(0.66)

(0.74)

(0.40)

Tax

return

of

capital

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

(0.48)

(0.44)

—

—

—

Total

distributions

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

(0.48)

(0.45)

(0.66)

(0.74)

(0.40)

Net

asset

value,

end

of

year

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

$8.84

$9.80

$10.69

$11.30

$11.89

Total

return

c

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

(5.06)%

(4.14)%

0.35%

1.27%

2.35%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.97%

0.93%

0.92%

0.94%

0.97%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.96%

0.91%

0.85%

0.86%

0.90%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.96%

0.91%

0.85%

0.86%

d

0.89%

Net

investment

income

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

4.51%

4.03%

5.27%

4.99%

4.60%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$3,478,172

$4,749,790

$6,514,630

$8,375,227

$9,656,645

Portfolio

turnover

rate

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

28.44%

60.07%

32.63%

19.86%

42.12%

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

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

13

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$9.83

$10.72

$11.33

$11.92

$12.03

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.38

0.37

0.55

0.54

0.51

Net

realized

and

unrealized

gains

(losses)

...........

(0.90)

(0.85)

(0.55)

(0.44)

(0.27)

Total

from

investment

operations

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

(0.52)

(0.48)

—

0.10

0.24

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(0.01)

(0.61)

(0.69)

(0.35)

Tax

return

of

capital

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

(0.43)

(0.40)

—

—

—

Total

distributions

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

(0.43)

(0.41)

(0.61)

(0.69)

(0.35)

Net

asset

value,

end

of

year

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

$8.88

$9.83

$10.72

$11.33

$11.92

Total

return

c

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

(5.38)%

(4.52)%

0.06%

0.86%

1.94%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.36%

1.33%

1.32%

1.34%

1.37%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.36%

d

1.31%

1.25%

1.26%

1.30%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.36%

1.31%

1.25%

1.26%

e

1.29%

Net

investment

income

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

4.07%

3.65%

4.87%

4.59%

4.20%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$224,611

$682,582

$1,392,223

$2,218,852

$3,232,023

Portfolio

turnover

rate

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

28.44%

60.07%

32.63%

19.86%

42.12%

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

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%.

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.

14

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$9.80

$10.69

$11.30

$11.89

$12.00

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.40

0.38

0.56

0.56

0.53

Net

realized

and

unrealized

gains

(losses)

...........

(0.91)

(0.84)

(0.54)

(0.44)

(0.27)

Total

from

investment

operations

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

(0.51)

(0.46)

0.02

0.12

0.26

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(0.01)

(0.63)

(0.71)

(0.37)

Tax

return

of

capital

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

(0.45)

(0.42)

—

—

—

Total

distributions

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

(0.45)

(0.43)

(0.63)

(0.71)

(0.37)

Net

asset

value,

end

of

year

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

$8.84

$9.80

$10.69

$11.30

$11.89

Total

return

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

(5.30)%

(4.38)%

0.10%

1.02%

2.10%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.22%

1.18%

1.17%

1.19%

1.22%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.21%

1.16%

1.10%

1.11%

1.15%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.21%

1.16%

1.10%

1.11%

c

1.14%

Net

investment

income

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

4.26%

3.79%

5.02%

4.74%

4.35%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$137,543

$170,554

$208,853

$239,671

$274,295

Portfolio

turnover

rate

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

28.44%

60.07%

32.63%

19.86%

42.12%

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

15

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$9.75

$10.64

$11.25

$11.85

$11.96

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.45

0.45

0.62

0.63

0.61

Net

realized

and

unrealized

gains

(losses)

...........

(0.89)

(0.85)

(0.53)

(0.45)

(0.27)

Total

from

investment

operations

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

(0.44)

(0.40)

0.09

0.18

0.34

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(0.01)

(0.70)

(0.78)

(0.45)

Tax

return

of

capital

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

(0.51)

(0.48)

—

—

—

Total

distributions

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

(0.51)

(0.49)

(0.70)

(0.78)

(0.45)

Net

asset

value,

end

of

year

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

$8.80

$9.75

$10.64

$11.25

$11.85

Total

return

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

(4.59)%

(3.79)%

0.73%

1.57%

2.79%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.63%

0.58%

0.57%

0.59%

0.55%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.58%

0.54%

0.48%

0.49%

0.48%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.58%

0.54%

0.48%

0.49%

c

0.47%

Net

investment

income

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

4.85%

4.42%

5.64%

5.36%

5.02%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$944,502

$2,273,175

$4,407,299

$4,084,816

$3,870,342

Portfolio

turnover

rate

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

28.44%

60.07%

32.63%

19.86%

42.12%

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.

16

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$9.75

$10.64

$11.25

$11.85

$11.96

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.44

0.43

0.61

0.61

0.59

Net

realized

and

unrealized

gains

(losses)

...........

(0.89)

(0.84)

(0.54)

(0.44)

(0.27)

Total

from

investment

operations

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

(0.45)

(0.41)

0.07

0.17

0.32

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(0.01)

(0.68)

(0.77)

(0.43)

Tax

return

of

capital

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

(0.50)

(0.47)

—

—

—

Total

distributions

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

(0.50)

(0.48)

(0.68)

(0.77)

(0.43)

Net

asset

value,

end

of

year

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

$8.80

$9.75

$10.64

$11.25

$11.85

Total

return

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

(4.74)%

(3.92)%

0.60%

1.44%

2.62%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.72%

0.69%

0.67%

0.69%

0.72%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.71%

0.66%

0.60%

0.61%

0.65%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.71%

0.66%

0.60%

0.61%

c

0.64%

Net

investment

income

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

4.74%

4.31%

5.52%

5.24%

4.85%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$3,641,639

$7,050,610

$14,244,707

$18,506,219

$20,808,794

Portfolio

turnover

rate

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

28.44%

60.07%

32.63%

19.86%

42.12%

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

Statement

of

Investments,

December

31,

2021

Templeton

Global

Bond

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

17

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

63.5%

Argentina

3.5%

a

Argentina

BONCER

,

Index

Linked,

1.2%,

3/18/22

.......

17,593,155,357

ARS

$

86,118,053

Index

Linked,

1.4%,

3/25/23

.......

17,499,210,074

ARS

85,342,331

Index

Linked,

1.5%,

3/25/24

.......

14,243,386,395

ARS

68,172,339

Argentina

Government

Bond

,

16%,

10/17/23

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

5,986,154,700

ARS

18,332,005

15.5%,

10/17/26

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

18,801,412,000

ARS

35,893,140

293,857,868

Brazil

2.8%

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/25

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

230,020,000

BRL

40,702,573

10%,

1/01/27

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

850,180,000

BRL

149,253,130

10%,

1/01/29

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

99,190,000

BRL

17,250,001

10%,

1/01/31

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

158,250,000

BRL

27,262,525

234,468,229

Colombia

4.2%

Colombia

Government

Bond

,

Senior

Bond,

4.375%,

3/21/23

.....

6,831,000,000

COP

1,670,322

Senior

Bond,

9.85%,

6/28/27

......

10,884,000,000

COP

3,049,348

Colombia

Titulos

de

Tesoreria

,

B,

7%,

5/04/22

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

137,335,700,000

COP

34,112,351

B,

10%,

7/24/24

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

518,579,000,000

COP

136,531,902

B,

6.25%,

11/26/25

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

15,492,000,000

COP

3,662,254

B,

7.5%,

8/26/26

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

309,760,200,000

COP

75,618,010

B,

5.75%,

11/03/27

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

10,656,000,000

COP

2,366,144

B,

6%,

4/28/28

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

236,008,100,000

COP

52,453,283

B,

7.75%,

9/18/30

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

175,388,800,000

COP

42,072,730

351,536,344

Ghana

4.3%

Ghana

Government

Bond

,

18.75%,

1/24/22

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

243,080,000

GHS

39,782,443

17.6%,

11/28/22

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

3,220,000

GHS

520,832

19.75%,

3/25/24

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

306,980,000

GHS

49,815,230

19%,

11/02/26

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

890,765,000

GHS

137,118,965

19.75%,

3/15/32

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

840,925,000

GHS

129,452,801

Senior

Note,

17.6%,

2/20/23

......

14,885,000

GHS

2,390,048

Senior

Note,

18.3%,

3/02/26

......

6,300,000

GHS

964,708

360,045,027

India

4.5%

India

Government

Bond

,

8.2%,

9/24/25

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

320,200,000

INR

4,665,074

7.59%,

1/11/26

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

7,001,000,000

INR

100,034,426

7.27%,

4/08/26

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

1,448,000,000

INR

20,476,041

8.33%,

7/09/26

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

8,401,000,000

INR

123,304,849

7.26%,

1/14/29

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

6,911,000,000

INR

97,161,872

Senior

Note,

5.22%,

6/15/25

......

2,124,000,000

INR

28,216,014

Senior

Note,

5.15%,

11/09/25

......

622,300,000

INR

8,212,562

382,070,838

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Indonesia

12.6%

Indonesia

Government

Bond

,

FR39,

11.75%,

8/15/23

..........

641,965,000,000

IDR

$

50,688,596

FR40,

11%,

9/15/25

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

532,795,000,000

IDR

45,078,848

FR44,

10%,

9/15/24

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

248,790,000,000

IDR

19,924,112

FR46,

9.5%,

7/15/23

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

6,667,220,000,000

IDR

507,765,932

FR59,

7%,

5/15/27

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

502,090,000,000

IDR

37,833,885

FR63,

5.625%,

5/15/23

..........

911,268,000,000

IDR

65,628,559

FR70,

8.375%,

3/15/24

..........

2,703,357,000,000

IDR

206,591,196

FR81,

6.5%,

6/15/25

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

162,429,000,000

IDR

12,011,940

FR86,

5.5%,

4/15/26

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

1,712,391,000,000

IDR

122,081,073

1,067,604,141

Mexico

4.4%

Mexican

Bonos

Desarr

Fixed

Rate

,

M,

Senior

Bond,

8%,

12/07/23

.....

7,264,572,000

MXN

358,939,559

M,

Senior

Note,

6.75%,

3/09/23

....

197,235,300

MXN

9,627,373

368,566,932

Norway

8.7%

b

Norway

Government

Bond

,

144A,

Reg

S,

2%,

5/24/23

........

2,535,983,000

NOK

291,247,400

144A,

Reg

S,

3%,

3/14/24

........

2,921,308,000

NOK

343,012,861

144A,

Reg

S,

1.75%,

3/13/25

......

890,910,000

NOK

101,805,317

736,065,578

South

Korea

17.1%

Korea

Monetary

Stabilization

Bond

,

Senior

Note,

0.87%,

2/02/23

......

235,050,000,000

KRW

196,479,131

Senior

Note,

0.905%,

4/02/23

......

449,400,000,000

KRW

375,193,451

Korea

Treasury

Bond

,

2.25%,

9/10/23

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

13,848,000,000

KRW

11,770,379

0.875%,

12/10/23

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

247,523,000,000

KRW

205,141,811

1.875%,

3/10/24

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

239,662,000,000

KRW

202,266,953

1.375%,

9/10/24

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

385,853,010,000

KRW

320,922,616

3%,

9/10/24

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

146,030,000,000

KRW

126,658,961

1,438,433,302

Supranational

1.4%

c

Inter-American

Development

Bank,

Senior

Bond,

7.5%,

12/05/24

......

2,473,000,000

MXN

119,495,204

Total

Foreign

Government

and

Agency

Securities

(Cost

$7,172,807,194)

...........

5,352,143,463

U.S.

Government

and

Agency

Securities

12.5%

United

States

12.5%

U.S.

Treasury

Notes

,

2.875%,

5/31/25

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

37,950,000

40,243,307

2.625%,

12/31/25

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

418,885,000

442,970,888

1.625%,

2/15/26

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

226,420,000

230,346,972

2.125%,

5/31/26

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

103,431,000

107,447,031

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

19

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

U.S.

Government

and

Agency

Securities

(continued)

United

States

(continued)

U.S.

Treasury

Notes,

(continued)

1.625%,

10/31/26

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

226,430,000

$

230,330,610

1,051,338,808

Total

U.S.

Government

and

Agency

Securities

(Cost

$1,060,574,192)

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

1,051,338,808

Total

Long

Term

Investments

(Cost

$8,233,381,386)

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

6,403,482,271

Number

of

Contracts

Notional

Amount

#

a

a

aa

Options

Purchased

0.4%

Calls

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

March

Strike

Price

21.03

MXN,

Expires

3/04/22

..

1

79,642,000

1,065,972

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

21.41

MXN,

Expires

2/03/22

..

1

143,953,000

560,384

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

June

Strike

Price

22.02

MXN,

Expires

6/09/22

..

1

157,306,000

2,717,517

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

22.32

MXN,

Expires

8/29/22

..

1

52,923,000

1,309,093

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

May

Strike

Price

22.34

MXN,

Expires

5/31/22

.......

1

139,644,000

1,823,274

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

May

Strike

Price

22.69

MXN,

Expires

5/24/22

.......

1

378,138,000

3,708,801

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

December

Strike

Price

23.44

MXN,

Expires

12/22/22

.

1

256,994,100

6,731,285

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

26.30

MXN,

Expires

10/19/23

.

1

104,398,000

2,975,228

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

26.30

MXN,

Expires

10/19/23

.

1

10,767,000

306,848

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

29.19

MXN,

Expires

8/29/24

..

1

102,286,100

3,135,514

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

29.71

MXN,

Expires

8/09/24

..

1

102,284,100

2,784,695

27,118,611

Puts

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

June

Strike

Price

18.70

MXN,

Expires

6/09/22

..

1

128,213,500

141,676

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

aa

a

a

Options

Purchased

(continued)

Puts

-

Over-the-Counter

(continued)

Currency

Options

(continued)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

June

Strike

Price

19.04

MXN,

Expires

6/09/22

..

1

128,213,500

$

250,679

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

February

Strike

Price

19.37

MXN,

Expires

2/24/22

..

1

26,463,000

17,765

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

19.41

MXN,

Expires

8/11/22

..

1

30,993,000

143,998

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

19.85

MXN,

Expires

10/19/23

.

1

5,383,000

53,619

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

19.85

MXN,

Expires

10/19/23

.

1

52,200,000

519,955

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

20.64

MXN,

Expires

2/08/22

..

1

42,415,000

615,268

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

21.27

MXN,

Expires

2/28/22

..

1

23,273,000

841,371

2,584,331

Total

Options

Purchased

(Cost

$63,137,977)

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

29,702,942

Short

Term

Investments

22.8%

a

a

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

16.8%

Argentina

0.5%

a,d

Letras

de

la

Nacion

Argentina

con

Ajuste

por

CER

,

Index

Linked,

4/18/22

....

8,766,446,646

ARS

42,884,275

Brazil

7.6%

d

Brazil

Letras

do

Tesouro

Nacional

,

1/01/24

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

398,720,000

BRL

58,044,009

7/01/24

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

1,740,010,000

BRL

241,725,986

1/01/25

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

2,549,780,000

BRL

338,139,972

637,909,967

Japan

1.3%

d

Japan

Treasury

Bills

,

3/25/22

.......

12,701,000,000

JPY

110,375,465

Singapore

4.8%

d

Singapore

Treasury

Bills

,

1/14/22

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

34,850,000

SGD

25,835,802

2/11/22

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

36,540,000

SGD

27,077,505

2/18/22

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

472,990,000

SGD

350,467,925

403,381,232

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

21

Short

Term

Investments

(continued)

a

a

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Thailand

2.6%

d

Thailand

Treasury

Bills

,

3/24/22

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

4,228,340,000

THB

$

127,190,238

5/11/22

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

123,080,000

THB

3,699,952

6/22/22

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

2,910,590,000

THB

87,446,088

218,336,278

Total

Foreign

Government

and

Agency

Securities

(Cost

$1,495,372,187)

...........

1,412,887,217

Industry

Shares

Money

Market

Funds

6.0%

United

States

6.0%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

..........

509,242,008

509,242,008

Total

Money

Market

Funds

(Cost

$509,242,008)

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

509,242,008

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$2,004,614,195

)

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

1,922,129,225

a

a

a

Total

Investments

(Cost

$10,301,133,558)

99.2%

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

$8,355,314,438

Options

Written

(0.2)%

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

(17,802,594)

Other

Assets,

less

Liabilities

1.0%

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

88,954,593

Net

Assets

10

0.0

%

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

$8,426,466,437

a

a

a

a

Number

of

Contracts

Notional

Amount

#

a

a

a

a

a

g

Options

Written

(0.2)%

a

Calls

-

Over-the-Counter

a

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

March

Strike

Price

20.56

MXN,

Expires

3/04/22

..

1

29,866,000

(676,365)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

20.64

MXN,

Expires

2/08/22

..

1

42,415,000

(607,597)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

20.86

MXN,

Expires

2/03/22

..

1

47,984,000

(447,471)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

February

Strike

Price

21.71

MXN,

Expires

2/24/22

..

1

30,431,000

(156,837)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

22.06

MXN,

Expires

8/11/22

..

1

30,993,000

(798,051)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

March

Strike

Price

22.55

MXN,

Expires

3/04/22

..

1

29,866,000

(79,901)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

22.73

MXN,

Expires

2/03/22

..

1

95,969,000

(60,005)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

December

Strike

Price

22.75

MXN,

Expires

12/22/22

.

1

4,273,000

(146,506)

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

a

a

g

Options

Written

(continued)

a

Calls

-

Over-the-Counter

(continued)

a

Currency

Options

(continued)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

December

Strike

Price

22.75

MXN,

Expires

12/22/22

.

1

72,826,000

$

(2,496,944)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

23.05

MXN,

Expires

2/24/22

..

1

175,565,000

(213,399)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

23.79

MXN,

Expires

2/28/22

..

1

46,548,000

(33,576)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

May

Strike

Price

23.80

MXN,

Expires

5/31/22

.......

1

69,821,000

(382,855)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

December

Strike

Price

24.95

MXN,

Expires

12/22/22

.

1

77,099,000

(1,179,523)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

June

Strike

Price

25.41

MXN,

Expires

6/09/22

..

1

170,942,100

(459,497)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

May

Strike

Price

25.65

MXN,

Expires

5/24/22

.......

1

148,555,000

(298,588)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

34.95

MXN,

Expires

10/19/23

.

1

29,773,000

(180,087)

(8,217,202)

Puts

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

June

Strike

Price

19.84

MXN,

Expires

6/09/22

..

1

157,306,000

(1,068,410)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

December

Strike

Price

19.93

MXN,

Expires

12/22/22

.

1

4,273,000

(43,716)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

December

Strike

Price

19.93

MXN,

Expires

12/22/22

.

1

72,826,000

(745,061)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

20.50

MXN,

Expires

8/11/22

..

1

30,993,000

(512,228)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

February

Strike

Price

20.72

MXN,

Expires

2/28/22

..

1

23,273,000

(422,136)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

21.35

MXN,

Expires

8/29/22

..

1

52,923,000

(1,850,232)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

22.32

MXN,

Expires

10/19/23

.

1

104,398,000

(4,481,421)

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

a

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

a

a

g

Options

Written

(continued)

a

Puts

-

Over-the-Counter

(continued)

a

Currency

Options

(continued)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

October

Strike

Price

22.32

MXN,

Expires

10/19/23

.

1

10,767,000

$

(462,188)

(9,585,392)

Total

Options

Written

(Premiums

received

$33,379,937)

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

$

(17,802,594)

#

Notional

amount

is

the

number

of

units

specified

in

the

contract,

and

can

include

currency

units,

bushels,

shares,

pounds,

barrels

or

other

units.

Currency

units

are

stated

in

U.S.

dollars

unless

otherwise

indicated.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Redemption

price

at

maturity

is

adjusted

for

inflation.

See

Note

1(g).

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,

2021,

the

aggregate

value

of

these

securities

was

$736,065,578,

representing

8.7%

of

net

assets.

c

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

d

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

e

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

f

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

g

See

Note

1(c)

regarding

written

options.

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

At

December

31,

2021,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(c). 

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

Chilean

Peso

......

JPHQ

Buy

17,871,325,453

21,839,310

1/07/22

$

—

$

(872,420)

Chilean

Peso

......

GSCO

Buy

13,677,470,202

16,663,382

1/10/22

—

(623,552)

Chinese

Yuan

......

CITI

Buy

856,161,690

130,432,920

1/12/22

3,977,647

—

Chilean

Peso

......

JPHQ

Buy

29,488,000,000

37,138,539

1/13/22

—

(2,572,027)

Mexican

Peso

......

MSCO

Buy

1,241,560,000

59,233,320

1/13/22

1,172,358

—

Mexican

Peso

......

MSCO

Sell

1,409,269,100

66,978,717

1/13/22

—

(1,586,520)

Chilean

Peso

......

GSCO

Buy

9,478,100,567

11,730,322

1/14/22

—

(621,439)

Chinese

Yuan

......

HSBK

Buy

927,022,870

142,431,770

1/18/22

3,046,007

—

Euro

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

DBAB

Sell

93,026,264

946,198,037

SEK

1/18/22

—

(1,241,136)

Mexican

Peso

......

CITI

Buy

49,910,470

2,319,594

1/18/22

106,589

—

Mexican

Peso

......

CITI

Sell

1,581,979,300

76,376,155

1/18/22

—

(524,976)

South

Korean

Won

..

JPHQ

Buy

48,338,500,000

42,084,712

1/19/22

—

(1,447,067)

Chilean

Peso

......

JPHQ

Buy

33,537,277,800

41,099,605

1/21/22

—

(1,830,706)

Euro

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

JPHQ

Sell

18,988,072

193,202,300

NOK

1/21/22

308,250

—

South

Korean

Won

..

CITI

Buy

47,947,800,000

41,748,193

1/21/22

—

(1,441,930)

Singapore

Dollar

....

MSCO

Buy

26,250,000

19,323,067

1/24/22

137,523

—

South

Korean

Won

..

JPHQ

Buy

47,357,300,000

41,130,189

1/24/22

—

(1,324,674)

Singapore

Dollar

....

CITI

Buy

26,320,000

19,526,237

1/26/22

—

(14,012)

Indian

Rupee

......

JPHQ

Buy

4,614,943,200

59,786,801

1/27/22

2,012,125

—

Euro

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

HSBK

Sell

139,196,796

206,346,723

CAD

2/03/22

4,732,215

—

South

Korean

Won

..

BNDP

Buy

115,172,700,000

99,980,642

2/03/22

—

(3,209,058)

South

Korean

Won

..

CITI

Buy

116,554,900,000

100,791,162

2/03/22

—

(2,858,213)

Chilean

Peso

......

JPHQ

Buy

17,871,274,547

21,774,056

2/07/22

—

(900,640)

Australian

Dollar

....

CITI

Sell

69,000,000

50,355,855

2/10/22

211,430

—

Chilean

Peso

......

GSCO

Buy

9,397,650,000

11,571,038

2/10/22

—

(600,137)

Indian

Rupee

......

CITI

Buy

3,363,647,800

44,445,663

2/10/22

529,708

—

Chilean

Peso

......

GSCO

Buy

19,040,583,935

24,114,215

2/11/22

—

(1,889,740)

Chinese

Yuan

......

JPHQ

Buy

1,290,035,552

202,535,160

2/14/22

—

(431,068)

Australian

Dollar

....

HSBK

Sell

68,959,000

50,666,936

2/17/22

551,904

—

Australian

Dollar

....

JPHQ

Sell

62,696,000

46,076,858

2/17/22

513,378

—

Australian

Dollar

....

MSCO

Sell

133,184,000

97,793,282

2/17/22

1,003,590

—

Euro

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

HSBK

Sell

227,266,283

29,520,185,704

JPY

2/17/22

—

(2,204,697)

Japanese

Yen

......

HSBK

Sell

30,157,758,536

227,266,283

EUR

2/17/22

—

(3,336,481)

Euro

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

CITI

Buy

139,300,000

157,502,777

2/22/22

1,119,751

—

Euro

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

CITI

Sell

225,955,000

256,551,567

2/22/22

—

(746,016)

Euro

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

CITI

Sell

264,788,375

34,030,866,753

JPY

2/24/22

—

(5,750,644)

South

Korean

Won

..

CITI

Buy

135,200,000,000

113,749,784

3/07/22

19,754

(250,210)

Chinese

Yuan

......

BOFA

Buy

991,455,720

151,594,098

3/09/22

3,521,376

—

Chilean

Peso

......

GSCO

Buy

23,374,940,000

27,547,561

3/10/22

—

(384,478)

Chinese

Yuan

......

HSBK

Buy

933,091,780

145,734,109

3/15/22

191,880

—

Chilean

Peso

......

GSCO

Buy

71,940,120,140

85,805,003

3/16/22

—

(2,285,688)

Euro

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

DBAB

Sell

224,683,128

2,298,453,604

SEK

3/16/22

—

(1,700,162)

Indian

Rupee

......

HSBK

Buy

2,566,417,190

33,617,149

3/16/22

548,462

—

South

Korean

Won

..

DBAB

Buy

172,100,000,000

144,370,716

3/16/22

111,364

—

Australian

Dollar

....

CITI

Sell

87,210,200

62,380,584

3/21/22

—

(1,003,147)

New

Zealand

Dollar

.

CITI

Buy

66,290,000

44,755,694

3/21/22

543,930

—

New

Zealand

Dollar

.

JPHQ

Buy

251,880,000

169,773,819

3/21/22

2,349,716

—

Euro

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

CITI

Sell

136,716,060

1,389,500,000

NOK

3/31/22

1,605,671

—

Euro

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

JPHQ

Sell

7,855,590

80,334,375

NOK

4/01/22

147,921

—

Indian

Rupee

......

JPHQ

Buy

4,628,008,500

60,959,016

4/07/22

413,967

—

Indian

Rupee

......

CITI

Buy

4,496,477,800

59,359,443

4/08/22

261,937

—

Indian

Rupee

......

JPHQ

Buy

2,823,969,900

37,221,166

4/08/22

223,471

—

Indian

Rupee

......

CITI

Buy

4,358,906,500

57,173,485

4/12/22

595,268

—

Templeton

Income

Trust

Statement

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

25

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)

Indian

Rupee

......

HSBK

Buy

2,559,257,100

33,511,288

4/12/22

$

406,643

$

—

Mexican

Peso

......

CITI

Sell

518,530,500

24,786,353

4/13/22

—

(30,417)

Euro

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

DBAB

Sell

13,567,264

137,513,899

SEK

4/14/22

—

(250,021)

Euro

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

DBAB

Sell

113,154,252

1,135,435,030

SEK

4/19/22

—

(3,364,264)

Singapore

Dollar

....

MSCO

Buy

33,100,000

24,566,742

4/21/22

—

(34,742)

Euro

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

HSBK

Sell

256,577,245

34,081,027,116

JPY

4/25/22

3,833,811

—

Euro

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

HSBK

Sell

227,266,000

265,878,493

4/27/22

6,677,158

—

Euro

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

HSBK

Sell

138,917,781

206,348,471

CAD

5/03/22

4,647,951

—

Chilean

Peso

......

GSCO

Buy

18,226,556,423

22,979,092

5/11/22

—

(2,019,883)

Euro

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

DBAB

Sell

65,790,310

675,857,278

SEK

5/18/22

—

(253,813)

Euro

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

HSBK

Sell

225,999,999

257,714,579

5/18/22

—

(194,462)

Mexican

Peso

......

CITI

Sell

518,530,500

23,424,231

5/31/22

—

(1,153,869)

Australian

Dollar

....

CITI

Sell

208,047,000

155,537,478

6/07/22

4,284,960

—

Japanese

Yen

......

CITI

Buy

17,560,181,400

155,537,091

6/07/22

—

(2,683,105)

Japanese

Yen

......

CITI

Sell

17,560,181,400

154,043,435

6/07/22

1,189,449

—

Chinese

Yuan

......

BOFA

Buy

1,188,701,030

184,023,121

6/08/22

850,835

—

Chinese

Yuan

......

CITI

Buy

841,154,240

130,223,746

6/09/22

589,155

—

Chinese

Yuan

......

JPHQ

Buy

588,157,946

91,095,181

6/10/22

366,831

—

Euro

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

DBAB

Sell

25,714,286

260,010,000

SEK

6/15/22

—

(571,798)

New

Zealand

Dollar

.

BOFA

Buy

56,380,000

37,797,152

6/17/22

639,573

—

Euro

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

DBAB

Sell

16,012,892

157,994,402

NOK

7/19/22

—

(444,270)

Euro

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

DBAB

Sell

112,944,895

1,135,435,030

SEK

7/19/22

—

(3,312,908)

Euro

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

JPHQ

Sell

167,269,438

1,649,025,750

NOK

7/19/22

—

(4,795,884)

Japanese

Yen

......

CITI

Buy

22,495,124,025

198,709,211

7/20/22

—

(2,733,356)

Japanese

Yen

......

CITI

Sell

22,495,124,025

198,007,653

7/20/22

2,031,796

—

Euro

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

CITI

Sell

114,670,000

134,306,091

7/26/22

3,176,767

—

Euro

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

HSBK

Sell

295,677,817

427,266,272

CAD

8/03/22

—

(735,309)

Total

Forward

Exchange

Contracts

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

$58,652,121

$(64,228,939)

Net

unrealized

appreciation

(depreciation)

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

$(5,576,818)

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

See

Note 

9

 regarding

other

derivative

information.

See

Abbreviations

on

page

43

.

Templeton

Income

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

Templeton

Global

Bond

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$9,791,891,550

Cost

-

Non-controlled

affiliates

(Note

3

f

)

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

509,242,008

Value

-

Unaffiliated

issuers

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

$7,846,072,430

Value

-

Non-controlled

affiliates

(Note

3

f

)

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

509,242,008

Cash

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

315,480

Restricted

cash

for

OTC

derivative

contracts

(Note

1

d

)

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

20,600,000

Restricted

currency,

at

value

(cost

$17,358)

(Note

1e)

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

17,199

Foreign

currency,

at

value

(cost

$732,715)

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

739,598

Receivables:

Investment

securities

sold

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

6,653

Capital

shares

sold

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

12,440,815

Dividends

and

interest

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

106,727,968

Deposits

with

brokers

for:

OTC

derivative

contracts

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

27,320,332

Unrealized

appreciation

on

OTC

forward

exchange

contracts

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

58,652,121

Total

assets

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

8,582,134,604

Liabilities:

Payables:

Capital

shares

redeemed

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

31,747,568

Management

fees

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

3,618,463

Distribution

fees

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

937,250

Transfer

agent

fees

........................................................................

2,940,821

Deposits

from

brokers

for:

OTC

derivative

contracts

..................................................................

20,600,000

Options

written,

at

value

(premiums

received

$33,379,937)

............................................

17,802,594

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

64,228,939

Deferred

tax

...............................................................................

9,683,250

Accrued

expenses

and

other

liabilities

...........................................................

4,109,282

Total

liabilities

.........................................................................

155,668,167

Net

assets,

at

value

.................................................................

$8,426,466,437

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$12,566,440,291

Total

distributable

earnings

(losses)

.............................................................

(4,139,973,854

)

Net

assets,

at

value

.................................................................

$8,426,466,437

Templeton

Income

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

December

31,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

27

Templeton

Global

Bond

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$3,478,172,055

Shares

outstanding

........................................................................

393,275,444

Net

asset

value

per

share

a

..................................................................

$8.84

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

................................

$9.18

Class

C:

Net

assets,

at

value

.......................................................................

$224,610,656

Shares

outstanding

........................................................................

25,286,005

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$8.88

Class

R:

Net

assets,

at

value

.......................................................................

$137,543,326

Shares

outstanding

........................................................................

15,550,745

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.84

Class

R6:

Net

assets,

at

value

.......................................................................

$944,501,652

Shares

outstanding

........................................................................

107,367,411

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.80

Advisor

Class:

Net

assets,

at

value

.......................................................................

$3,641,638,748

Shares

outstanding

........................................................................

413,780,477

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.80

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Templeton

Income

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

Templeton

Global

Bond

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Note

3

f

)

.............................................................

$54,059

Interest:

(net

of

foreign

taxes

of

$21,463,105)

Unaffiliated

issuers:

Inflation

principal

adjustments

..............................................................

161,005,131

Paid

in

cash

a

...........................................................................

473,875,316

Total

investment

income

...................................................................

634,934,506

Expenses:

Management

fees

(Note

3

a

)

...................................................................

56,657,904

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

10,269,467

    Class

C

................................................................................

2,851,987

    Class

R

................................................................................

769,486

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

6,616,357

    Class

C

................................................................................

695,194

    Class

R

................................................................................

248,090

    Class

R6

...............................................................................

1,082,347

    Advisor

Class

............................................................................

8,749,769

Custodian

fees

............................................................................

3,583,148

Reports

to

shareholders

fees

..................................................................

2,257,673

Registration

and

filing

fees

....................................................................

410,217

Professional

fees

...........................................................................

435,813

Trustees'

fees

and

expenses

..................................................................

953,150

Other

....................................................................................

463,519

Total

expenses

.........................................................................

96,044,121

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(1,230,904)

Net

expenses

.........................................................................

94,813,217

Net

investment

income

................................................................

540,121,289

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$3,138,369)

Unaffiliated

issuers

......................................................................

(1,653,610,900)

Written

options

...........................................................................

40,627,078

Foreign

currency

transactions

................................................................

(928,642)

Forward

exchange

contracts

.................................................................

(392,109,790)

Net

realized

gain

(loss)

..................................................................

(2,006,022,254)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

436,027,130

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(7,568,674)

Written

options

...........................................................................

30,894,125

Forward

exchange

contracts

.................................................................

387,516,229

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

8,902,393

Net

change

in

unrealized

appreciation

(depreciation)

............................................

855,771,203

Net

realized

and

unrealized

gain

(loss)

............................................................

(1,150,251,051)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(610,129,762)

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

29

Templeton

Global

Bond

Fund

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$540,121,289

$886,702,807

Net

realized

gain

(loss)

.................................................

(2,006,022,254)

(2,805,697,849)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

855,771,203

889,421,207

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(610,129,762)

(1,029,573,835)

Distributions

to

shareholders:

Class

A

.............................................................

—

(6,612,491)

Class

C

.............................................................

—

(1,078,750)

Class

R

.............................................................

—

(206,391)

Class

R6

............................................................

—

(4,369,772)

Advisor

Class

........................................................

—

(13,136,851)

Distributions

to

shareholders

from

tax

return

of

capital:

Class

A

.............................................................

(209,944,924)

(242,434,431)

Class

C

.............................................................

(19,709,087)

(39,550,308)

Class

R

.............................................................

(7,458,286)

(7,566,931)

Class

R6

............................................................

(81,909,746)

(160,209,371)

Advisor

Class

........................................................

(292,507,439)

(481,637,650)

Total

distributions

to

shareholders

..........................................

(611,529,482)

(956,802,946)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(843,885,623)

(1,254,552,693)

Class

C

.............................................................

(412,473,388)

(611,685,910)

Class

R

.............................................................

(17,094,511)

(21,561,017)

Class

R6

............................................................

(1,171,294,552)

(1,802,048,802)

Advisor

Class

........................................................

(2,833,837,735)

(6,164,776,063)

Total

capital

share

transactions

............................................

(5,278,585,809)

(9,854,624,485)

Net

increase

(decrease)

in

net

assets

...................................

(6,500,245,053)

(11,841,001,266)

Net

assets:

Beginning

of

year

.......................................................

14,926,711,490

26,767,712,756

End

of

year

...........................................................

$8,426,466,437

$14,926,711,490

Templeton

Income

Trust

Notes

to

Financial

Statements

Templeton

Global

Bond

Fund

30

franklintempleton.com

Annual

Report

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

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Templeton

Global

Bond

Fund

(Fund)

is

included

in

this

report.

The

Fund

offers five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class. Effective

August

2,

2021,

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Prior

to

August

2,

2021,

Class

C

shares

converted

to

Class

A

shares

after

a

10-year

holding

period.

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 Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

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

Fund

calculates

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 Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Debt

securities

generally

trade

in

the over-the-counter

(OTC)

market

rather

than

on

a

securities

exchange.

The

Fund's

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

trade

in

the

OTC

market.

The

Fund's

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

Fund's

net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

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.

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

Fund

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.

Templeton

Income

Trust

Notes

to

Financial

Statements

31

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

(continued)

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

Fund

does

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

Statement 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.

Derivative

Financial

Instruments

The

Fund 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

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce its

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 Fund

include

failure

of

the

Fund

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

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

terms

are

contract

specific

for

OTC

derivatives.

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,

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

Fund's

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.

1.

Organization

and

Significant

Accounting

Policies

(continued)

b.

Foreign

Currency

Translation 

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

32

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

(continued)

The

Fund 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.

The

Fund

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.

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.

See

Note

9

regarding

other

derivative

information.

d.

Restricted

Cash

At

December

31,

2021, the

Fund

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

is

reflected

in

the

Statement

of

Assets

and

Liabilities.

e.

Restricted

Currency

At

December

31,

2021,

the

Fund

held

currencies

in

certain

markets

in

which

the

ability

to

repatriate

such

currency

is

limited.

As

a

result

of

such

limitations

on

repatriation,

the

Fund

may

incur

substantial

delays

in

gaining

access

to

these

assets

and

may

be

exposed

to

potential

adverse

movements

in

currency

value.

f.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The 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 Fund

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

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The

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,

2021,

the

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.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

33

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

(continued)

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

Statement

of

Operations.

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

Fund,

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,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

61,352,126

$571,486,366

80,792,449

$816,587,860

Shares

issued

in

reinvestment

of

distributions

..........

21,080,149

195,552,208

23,054,024

232,611,154

Shares

redeemed

...............................

(173,852,402)

(1,610,924,197)

(228,757,398)

(2,303,751,707)

Net

increase

(decrease)

..........................

(91,420,127)

$(843,885,623)

(124,910,925)

$(1,254,552,693)

Class

C

Shares:

Shares

sold

...................................

1,917,322

$17,969,247

4,477,787

$45,842,838

Shares

issued

in

reinvestment

of

distributions

..........

2,051,987

19,259,827

3,663,000

37,176,208

Shares

redeemed

a

..............................

(48,119,953)

(449,702,462)

(68,613,100)

(694,704,956)

Net

increase

(decrease)

..........................

(44,150,644)

$(412,473,388)

(60,472,313)

$(611,685,910)

Class

R

Shares:

Shares

sold

...................................

3,459,188

$32,312,942

4,274,406

$43,070,893

Shares

issued

in

reinvestment

of

distributions

..........

798,274

7,402,232

758,709

7,649,988

Shares

redeemed

...............................

(6,110,531)

(56,809,685)

(7,172,655)

(72,281,898)

Net

increase

(decrease)

..........................

(1,853,069)

$(17,094,511)

(2,139,540)

$(21,561,017)

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

34

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

(continued)

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

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

year

ended

December

31,

2021,

the

gross

effective

investment

management

fee

rate

was

0.487%

of

the

Fund’s

average

daily

net

assets. 

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Shares

Amount

Shares

Amount

Class

R6

Shares:

Shares

sold

...................................

38,421,013

$362,388,556

75,175,247

$760,067,332

Shares

issued

in

reinvestment

of

distributions

..........

7,914,365

73,490,988

14,541,119

146,434,916

Shares

redeemed

...............................

(172,067,560)

(1,607,174,096)

(270,886,633)

(2,708,551,050)

Net

increase

(decrease)

..........................

(125,732,182)

$(1,171,294,552)

(181,170,267)

$(1,802,048,802)

Advisor

Class

Shares:

Shares

sold

...................................

138,423,255

$1,290,069,401

254,268,866

$2,575,004,566

Shares

issued

in

reinvestment

of

distributions

..........

28,836,253

266,893,652

44,737,624

450,779,593

Shares

redeemed

...............................

(476,325,785)

(4,390,800,788)

(915,126,570)

(9,190,560,222)

Net

increase

(decrease)

..........................

(309,066,277)

$(2,833,837,735)

(616,120,080)

$(6,164,776,063)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

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

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

2.

Shares

of

Beneficial

Interest

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

35

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

(continued)

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

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

Fund’s

Class A reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

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

Fund’s

Class C

and

R

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

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.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

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

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

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.

The

fees

are

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,

2021,

the

Fund

paid

transfer

agent

fees

of

$17,391,757,

of

which $6,554,550

was

retained

by

Investor

Services.

f.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

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

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

Class

A

....................................................................................

0.25%

Class

C

....................................................................................

0.65%

Class

R

....................................................................................

0.50%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$44,237

CDSC

retained

..............................................................................

$55,303

3.

Transactions

with

Affiliates

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

36

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

(continued)

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

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,

2021,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

g.

Waiver

and

Expense

Reimbursements

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,

2022.

4.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

 At

December

31,

2021,

the

capital

loss

carryforwards

were

as

follows:

For

tax

purposes,

the

Fund

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

December

31,

2021,

the

Fund

deferred

late-year

ordinary

losses

of

$77,284,473.

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2021

and

2020,

was

as

follows:

    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,

0.01%

.

$

1,730,879,789

$

6,031,848,358

$

(7,253,486,139)

$

—

$

—

$

509,242,008

509,242,008

$

54,059

Total

Affiliated

Securities

...

$1,730,879,789

$6,031,848,358

$(7,253,486,139)

$—

$—

$509,242,008

$54,059

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$26,605,105

Long

term

................................................................................

2,149,582,805

Total

capital

loss

carryforwards

...............................................................

$2,176,187,910

2021

2020

Distributions

paid

from:

Ordinary

income

..........................................................

$—

$25,404,255

Return

of

capital

...........................................................

611,529,482

931,398,691

$611,529,482

$956,802,946

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

37

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

(continued)

At

December

31,

2021,

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

foreign

currency

transactions,

foreign

capital

gains

tax,

bond

discounts

and

premiums,

tax

straddles

and

inflation

related

adjustments

on

foreign

securities.

In

accordance

with

U.S.

GAAP

permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

At

the

year

ended

December

31,

2021,

such

reclassifications

were

as

follows:

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2021,

aggregated

$2,711,471,123

and

$6,822,741,918,

respectively.

6.

Credit

Risk

At

December

31,

2021,

the

Fund

had

18.9%

of

its

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.

7.

Concentration

of

Risk

Investments

in

issuers

domiciled

or

with

significant

operations

in

developing

or

emerging

market

countries

may

be

subject

to

higher

risks

than

investments

in

developed

countries.

These

risks

include

fluctuating

currency

values,

underdeveloped

legal

or

business

systems,

and

changing

local

and

regional

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

Currencies

of

developing

or

emerging

market

countries

may

be

subject

to

significantly

greater

risks

than

currencies

of

developed

countries,

including

the

potential

inability

to

repatriate

those

currencies

into

U.S.

dollars.

At

December

31,

2021,

the

Fund

had

4.1%

of

its

net

assets

denominated

in

Argentine

Pesos. Argentina

has

restricted

currency

repatriation

since

September

2019,

and

had

restructured

certain

issues

of

its

debt.

Political

and

economic

conditions

in

Argentina

could

continue

to

affect

the

value

of

the

Fund's

holdings.

8.

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 Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

Cost

of

investments

..........................................................................

$10,207,833,587

Unrealized

appreciation

........................................................................

$356,974,791

Unrealized

depreciation

........................................................................

(2,232,873,352)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(1,875,898,561)

Paid-in

Capital

..............................................................................

Total

distributable

earnings

(loss)

................................................................

$(1,846,822,930)

$1,846,822,930

4.

Income

Taxes

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

38

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

(continued)

9.

Other

Derivative

Information

At

December

31,

2021,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

For

the

year

ended

December

31,

2021,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

year

ended

December

31,

2021,

the

average

month

end

notional

amount

of

options

represented

$13,511,064,628.

The

average

month

end

contract

value

of

forward

exchange

contracts

was

$12,825,211,071.

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

..

Investments

in

securities,

at

value

$

29,702,942

a

Options

written,

at

value

$

17,802,594

Unrealized

appreciation

on

OTC

forward

exchange

contracts

58,652,121

Unrealized

depreciation

on

OTC

forward

exchange

contracts

64,228,939

Total

....................

$88,355,063

$82,031,533

a

Purchased

option

contracts

are

included

in

investments

in

securities,

at

value

in

the

Statement

of

Assets

and

Liabilities.

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

$(312,866,753)

a

Investments

$147,280,306

a

Written

options

40,627,078

Written

options

30,894,125

Forward

exchange

contracts

(392,109,790)

Forward

exchange

contracts

387,516,229

Total

.......................

$(664,349,465)

$565,690,660

a

Purchased

option

contracts

are

included

in

net

realized

gain

(loss)

from

investments

and

net

change

in

unrealized

appreciation

(depreciation)

on

investments

in

the

Statement

of

Operations.

Templeton

Income

Trust

Notes

to

Financial

Statements

39

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

(continued)

At

December

31,

2021,

OTC

derivative

assets

and

liabilities

are

as

follows:

At

December

31,

2021,

OTC

derivative

assets,

which

may

be

offset

against

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

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

.............................

$

58,652,121

$

64,228,939

Options

purchased

.....................................

29,702,942

—

Options

written

........................................

—

17,802,594

Total

.............................................

$88,355,063

$82,031,533

a

Absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

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

b

Net

Amount

(Not

less

than

zero)

Templeton

Global

Bond

Fund

Counterparty

BNDP

...................

$—

$—

$—

$—

$—

BOFA

....................

5,011,784

—

—

(4,050,000)

961,784

CITI

.....................

31,648,560

(26,779,218)

—

(4,869,342)

—

DBAB

...................

111,364

(111,364)

—

—

—

GSCO

...................

—

—

—

—

—

HSBK

...................

24,636,031

(6,470,949)

(14,668,316)

—

3,496,766

JPHQ

...................

6,335,659

(6,335,659)

—

—

—

MSCO

...................

20,611,665

(11,834,533)

—

(8,750,000)

27,132

Total

...................

$88,355,063

$(51,531,723)

$

(14,668,316)

$(17,669,342)

$4,485,682

$

1

9.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

40

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

(continued)

At

December

31,

2021,

OTC

derivative

liabilities,

which

may

be

offset

against

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

See

Note

1(c)

regarding

derivative

financial

instruments. 

See

Abbreviations

on

page

43

.

10.

Credit

Facility

The

Fund,

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

4,

2022.

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

4,

2022,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

3,

2023,

for

a

total

of

$2.675

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

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

Statement

of

Operations.

During

the

year

ended

December

31,

2021,

the Fund

did

not

use

the

Global

Credit

Facility.

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

...................

$3,209,058

$—

$—

$(3,010,000)

$199,058

BOFA

....................

—

—

—

—

—

CITI

.....................

26,779,218

(26,779,218)

—

—

—

DBAB

...................

11,138,372

(111,364)

—

(8,240,332)

2,786,676

GSCO

...................

8,424,917

—

—

(8,424,917)

—

HSBK

...................

6,470,949

(6,470,949)

—

—

—

JPHQ

...................

14,174,486

(6,335,659)

—

(7,480,000)

358,827

MSCO

...................

11,834,533

(11,834,533)

—

—

—

Total

...................

$82,031,533

$(51,531,723)

$—

$(27,155,249)

$3,344,561

a

At

December

31,

2021,

the

Fund

received

U.K

Treasury

Inflation-Linked

Gilt

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

the

effect

of

over

collateralization.

Actual

collateral

received

and/or

pledged

may

be

more

than

the

amounts

disclosed

herein.

9.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

41

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

(continued)

11.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's 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

Fund's

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,

2021,

in

valuing

the

Fund's

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

....

$

—

$

5,352,143,463

$

—

$

5,352,143,463

U.S.

Government

and

Agency

Securities

.......

—

1,051,338,808

—

1,051,338,808

Options

purchased

.......................

—

29,702,942

—

29,702,942

Short

Term

Investments

...................

509,242,008

1,412,887,217

—

1,922,129,225

Total

Investments

in

Securities

...........

$509,242,008

$7,846,072,430

$—

$8,355,314,438

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

58,652,121

$

—

$

58,652,121

Restricted

Currency

(ARS)

.................

—

17,199

—

17,199

Total

Other

Financial

Instruments

.........

$—

$58,669,320

$—

$58,669,320

Receivables:

Interest

(ARS)

...........................

$—

$5,035,111

$—

$5,035,111

Liabilities:

Other

Financial

Instruments:

Options

written

..........................

$

—

$

17,802,594

$

—

$

17,802,594

Forward

exchange

contracts

................

—

64,228,939

—

64,228,939

Total

Other

Financial

Instruments

.........

$—

$82,031,533

$—

$82,031,533

Payables:

Deferred

Tax

(ARS)

.......................

$—

$21,295

$—

$21,295

Templeton

Income

Trust

Notes

to

Financial

Statements

42

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

(continued)

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,

2021,

the

reconciliation

is

as

follows:

12.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

13.

Subsequent

Events

The

Fund

has

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.

Balance

at

Beginning

of

Year

Purchases

Sales

Transfer

Into

Level

3

Transfer

Out

of

Level

3

a

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

Global

Bond

Fund

Assets:

Investments

in

Securities:

Foreign

Government

and

Agency

Securities

:

Argentina

....

$

506,006,278

$

—

$

—

$

—

$

(506,006,278)

$

—

$

—

$

—

$

—

$

—

Short

Term

Investments

..

32,820,953

—

—

—

(32,820,953)

—

—

—

—

—

Total

Investments

in

Securities

.......

$538,827,231

$—

$—

$—

$(538,827,231)

$—

$—

$—

$—

$—

Other

Financial

Instruments:

Restricted

Currency

(ARS)

......

$106,650

$—

$—

$—

$(106,650)

$—

$—

$—

$—

$—

Receivables:

Interest

(ARS)

.

$11,892,277

$—

$—

$—

$(11,892,277)

$—

$—

$—

$—

$—

Liabilities:

Payables:

Investment

Securities

Purchased

(ARS)

$4,882,607

$—

$—

$—

$(4,882,607)

$—

$—

$—

$—

$—

Deferred

Tax

(ARS)

$30,205

$—

$—

$—

$(30,205)

$—

$—

$—

$—

$—

a

Transfers

out

of

level

3

were

as

a

result

of

changes

in

the

levels

of

observable

liquidity

and

the

improved

reliability

of

a

significant

input.

11.

Fair

Value

Measurements

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

43

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

(continued)

Abbreviations

Counterparty

BNDP

BNP

Paribas

SA

BOFA

Bank

of

America

Corp.

CITI

Citibank

NA

DBAB

Deutsche

Bank

AG

GSCO

Goldman

Sachs

Group,

Inc.

HSBK

HSBC

Bank

plc

JPHQ

JPMorgan

Chase

Bank

NA

MSCO

Morgan

Stanley

Selected

Portfolio

CER

Reference

Stabilization

Coefficient

Currency

ARS

Argentine

Peso

BRL

Brazilian

Real

CAD

Canadian

Dollar

COP

Colombian

Peso

EUR

Euro

GHS

Ghanaian

Cedi

IDR

Indonesian

Rupiah

INR

Indian

Rupee

JPY

Japanese

Yen

KRW

South

Korean

Won

MXN

Mexican

Peso

NOK

Norwegian

Krone

SEK

Swedish

Krona

SGD

Singapore

Dollar

THB

Thai

Baht

USD

United

States

Dollar

Templeton

Income

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

44

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Templeton

Income

Trust

and

Shareholders

of

Templeton

Global

Bond

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

statement

of

investments,

of

Templeton

Global

Bond

Fund

(one

of

the

funds

constituting

Templeton

Income

Trust,

referred

to

hereafter

as

the

"Fund")

as

of

December

31,

2021,

the

related

statement

of

operations

for

the

year

ended

December

31,

2021,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2021,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

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

Fund

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,

2021

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,

2022

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)

45

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

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

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amount,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amount,

for

the

fiscal

year

ended

December

31,

2021:

Note

(1)

-

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

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,

2021:

Pursuant

to:

Amount

Reported

Interest

Earned

from

Federal

Obligations

Note

(1)

$41,796,633

Amount

Reported

Foreign

Taxes

Paid

$30,039,077

Foreign

Source

Income

Earned

$569,912,987

Templeton

Income

Trust

Board

Members

and

Officers

46

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

120

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

Capital

Corporation

(specialty

finance

company)

(2010-present),

United

Natural

Foods,

Inc.

(distributor

of

natural,

organic

and

specialty

foods)

(2013-present),

formerly

,

Allied

Capital

Corporation

(financial

services)

(2003-

2010),

SLM

Corporation

(Sallie

Mae)

(1997-2014)

and

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).

Mary

C.

Choksi

(1950)

Trustee

Since

2016

121

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

47

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

121

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

121

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

(May

2019-January

1,

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

121

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

48

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).

Robert

E.

Wade

(1946)

Trustee

Since

2006

30

El

Oro

Ltd

(investments)

(2003-

2019).

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Attorney

at

law

engaged

in

private

practice

as

a

sole

practitioner

(1972-2008)

and

member

of

various

boards.

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)

Trustee

Since

2007

132

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)

Chairman

of

the

Board,

Trustee

and

Vice

President

Chairman

of

the

Board

and

Trustee

since

2013

and

Vice

President

since

1996

121

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

49

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;

Vice

President,

FASA,

LLC;

Assistant

Secretary,

Franklin

Distributors,

LLC;

and

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

July

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.

Craig

S.

Tyle

(1960)

Vice

President

Since

2005

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

General

Counsel

and

Executive

Vice

President,

Franklin

Resources,

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.

Interested

Board

Members

and

Officers

(continued)

Templeton

Income

Trust

50

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.

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

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.

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:

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

51

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

Statement

of

Investments

The

Trust,

on

behalf

of

the

Fund,

files

a

complete

statement

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.

406

A

02/22

©

2022

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

Global

Bond

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Templeton

International

Bond

Fund

A

Series

of

Templeton

Income

Trust

December

31,

2021

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Annual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

The

12

months

ended

December

31,

2021,

saw

extraordinary

conditions

across

global

financial

markets

as

the

world

attempted

to

emerge

from

the

COVID-19

pandemic.

During

2021,

global

fixed

income

markets

endured

multiple

cycles

of

sharply

rising

and

falling

yields,

broad

U.S.

dollar

strengthening

and

reversals,

idiosyncratic

drivers

in

individual

local-currency

markets,

massive

economic

recoveries

and

setbacks,

global

supply

chain

disruptions,

rising

inflationary

pressures

in

the

Americas

and

Europe,

and

a

major

pivot

toward

global

monetary

tightening

in

2021’s

second

half

after

extraordinary,

highly

correlated

global

easing

in

2020

and

early

2021.

Overall,

sovereign

bond

yields

rose

in

most

countries

while

the

U.S.

dollar

strengthened,

although

with

intermittently

declining

yields

in

various

countries

and

shifting

cycles

of

currency

appreciation/depreciation

in

individual

currency

pairings.

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

-6.97%

and

-2.57%

in

U.S.

dollar

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

International

Bond

Fund’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,

2021,

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

Templeton

International

Bond

Fund

3

Performance

Summary

8

Your

Fund’s

Expenses

11

Financial

Highlights

and

Statement

of

Investments

12

Financial

Statements

22

Notes

to

Financial

Statements

26

Report

of

Independent

Registered

Public

Accounting

Firm

40

Tax

Information

41

Board

Members

and

Officers

42

Shareholder

Information

47

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Templeton

International

Bond

Fund

This

annual

report

for

Templeton

International

Bond

Fund

covers

the

fiscal

year

ended

December

31,

2021.

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

less

liabilities.

Performance

Overview

For

the

12

months

under

review,

the

Fund’s

Class

A

shares

posted

a

-6.65%

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

-9.68%

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

8

.

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

The

12-month

period

ended

December

31,

2021,

was

a

tale

of

two

halves.

The

first

half

was

characterized

by

exuberant

optimism

for

an

end

to

the

COVID-19

pandemic,

punctuated

by

a

surge

in

economic

activity

in

the

spring

as

lockdowns

were

eased

and

economies

reopened.

The

second

half

was

characterized

by

rising

inflation

and

incremental

shifts

towards

monetary

tightening,

with

several

emerging

markets

entering

rate

hiking

cycles

ahead

of

the

major

developed

markets.

On

the

whole,

sovereign

bond

yields

rose

in

most

countries

during

the

period

while

the

U.S.

dollar

(USD)

broadly

strengthened,

albeit

with

intermittent

episodes

of

declining

yields

in

various

countries

and

shifting

cycles

of

currency

appreciation/depreciation

in

individual

currency

pairings.

The

period

began

with

sovereign

bond

yields

rising

sharply

across

much

of

the

world

over

the

first

three

months.

The

yield

on

the

10-year

U.S.

Treasury

(UST)

note

would

reach

its

high

mark

for

the

entire

period

on

March

31

at

1.74%,

82

basis

points

(bps)

higher

than

where

it

finished

2020.

Vaccine

distributions,

ongoing

stimulus

measures

and

optimism

for

improving

economic

conditions

appeared

to

fuel

reflation

expectations

across

global

financial

markets.

However,

the

harsh

realities

of

the

worldwide

health

crisis

and

economic

hardship

continued

to

have

profound

consequences

for

lives

and

livelihoods

around

the

world

in

the

winter

and

early

spring

months

of

2021.

Vaccine

distributions

progressively

accelerated

in

many

countries

during

the

first

half

of

2021,

though

supply

setbacks

notably

affected

areas

of

Europe

in

March

and

April.

Governments

continued

to

struggle

with

balancing

the

needs

of

their

economies

with

the

health

of

their

citizens

during

much

of

the

first

quarter

of

2021

before

higher

vaccination

rates

and

lower

case

levels

enabled

many

regions

to

progressively

reopen

their

economies

in

the

spring.

Rising

yields

strained

valuations

across

many

areas

of

the

global

fixed

income

markets

during

2021’s

first

three

months.

USD-denominated

sovereign

credit

sectors

broadly

saw

negative

returns

in

January,

February

and

March

before

sharply

reversing

to

generate

offsetting

positive

returns

in

April,

May

and

June

as

UST

yields

pulled

back

from

their

Portfolio

Composition

12/31/21

%

of

Total

Net

Assets

Foreign

Government

and

Agency

Securities

65.1%

Short-Term

Investments

&

Other

Net

Assets*

34.9%

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

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

17

.

Templeton

International

Bond

Fund

4

franklintempleton.com

Annual

Report

late-March

peaks.

Sovereign

bond

yields

generally

resumed

their

rising

trends

in

May

and

June

amid

rising

inflation

in

many

areas

of

Europe

and

the

Americas.

In

currency

markets,

the

USD

broadly

strengthened

against

a

number

of

developed

market

and

emerging

market

currencies

in

the

first

quarter

of

2021,

reversing

the

broad-based

weakening

trend

from

the

second

half

of

2020.

Broad

USD

weakness

returned

in

April

and

May

before

the

strengthening

pattern

returned

in

June.

Business

and

consumer

confidence

surveys

notably

strengthened

in

multiple

regions

during

the

second

quarter

of

2021,

despite

some

growing

concerns

over

the

proliferation

of

the

Delta

variant

of

COVID-19

in

several

parts

of

the

world

in

June.

Economic

activity

continued

to

broadly

expand

in

many

countries

in

the

second

quarter,

largely

driven

by

strength

in

goods

sectors

and

manufacturing,

as

well

as

historically

high

savings

rates

in

many

countries

that

helped

fuel

demand.

On

the

whole,

the

second

quarter

would

represent

the

largest

quarterly

surge

in

GDP

for

most

countries

in

2021.

In

the

second

half

of

2021,

sovereign

bond

yields

would

largely

continue

to

rise

across

much

of

the

world

as

central

banks

continued

to

wade

deeper

into

monetary

tightening

cycles.

Developed

market

sovereign

bond

yields

initially

declined

in

July

and

early

August

as

the

Delta

variant

proliferated

across

multiple

regions.

The

10-year

UST

note’s

yield

dropped

to

1.17%

on

August

3

as

risk

aversion

resurfaced,

its

lowest

level

since

mid-February.

However,

sovereign

bond

yields

largely

trended

higher

from

that

point

through

the

end

of

the

year

as

investor

sentiments

appeared

to

refortify.

In

September,

the

U.S.

Federal

Reserve

(Fed)

announced

it

would

begin

tapering

its

asset

purchases

in

the

fourth

quarter

of

2021.

The

hawkish

shift

added

further

upward

pressure

on

UST

yields

and

drove

broad

strengthening

of

the

USD.

Sovereign

bond

yields

continued

to

trend

higher

in

many

regions

over

the

following

month,

with

the

10-

year

UST

note

reaching

1.70%

on

October

21,

its

highest

yield

since

early

April.

Sovereign

bond

yields

largely

maintained

their

levels

over

subsequent

weeks

until

the

Omicron

variant

of

COVID-19

emerged

in

the

final

days

of

November,

triggering

broad-based

risk

aversion

across

global

financial

markets

and

perceived

safe-haven

rallies

in

several

developed

market

assets.

Crude

oil

prices

dropped

around

20%

in

November

on

global

growth

concerns,

with

the

bulk

of

the

price

adjustments

occurring

in

the

wake

of

the

Omicron

news.

Sovereign

bond

yields

declined

in

several

developed

markets

in

late

November

and

early

December

on

the

heightened

risk

aversion

before

global

growth

concerns

eventually

dissipated

in

the

second

half

of

the

month,

even

as

COVID-19

cases

surged

to

record

levels.

Disease

severity

from

Omicron

appeared

milder

than

previous

variants,

leading

to

a

significant

decoupling

of

the

trend

lines

for

case

numbers

(rising

sharply)

and

mortality

rates

(moderating).

We

expected

COVID-19

variants

to

not

derail

global

growth

momentum,

though

the

risks

continued

to

bear

monitoring.

Commodity

and

energy

prices

ultimately

rebounded

in

December,

recovering

much

of

the

price

corrections

from

the

prior

month

as

reflation

sentiments

returned

to

global

financial

markets.

Manufacturing

and

business

surveys

largely

continued

to

remain

at

expansionary

levels

across

much

of

the

world

during

the

second

half

of

2021

but

moderated

from

their

mid-year

peaks.

Consumer

confidence

surveys

showed

similar

trends.

Labor

market

conditions

generally

continued

to

improve

in

many

countries,

though

labor

shortages

and

unemployment

remained

above

prepandemic

levels

in

several

regions.

Overall,

global

growth

showed

signs

of

moderating

from

the

historically

strong

rebound

in

the

first

half

of

2021

but

remained

largely

resilient,

in

our

view.

Inflation

figures

remained

historically

high

across

many

parts

of

the

world

during

the

second

half

of

the

period,

driven

by

a

combination

of

factors

that

included

resurgent

economic

activity,

supply

disruptions

in

certain

sectors,

and

the

effects

of

massive

fiscal

and

monetary

stimulus

measures.

Headline

inflation

(Consumer

Price

Index)

in

the

U.S.

remained

at

or

above

5.0%

year-over-year

from

May

through

the

end

of

2021,

coming

in

at

6.8%

in

November,

its

highest

level

since

1982.

A

growing

number

of

central

banks

pursued

monetary

tightening

measures

in

the

second

half

of

the

year,

with

persistent

inflationary

pressures

in

several

emerging

markets

motivating

aggressive

tightening

responses.

In

Latin

America,

Brazil’s

central

bank

hiked

its

policy

rate

by

725

bps

in

2021,

Chile

by

350

bps,

Peru

by

225

bps,

Mexico

by

150

bps

and

Colombia

by

125

bps.

In

eastern

Europe,

Russia

hiked

its

policy

rate

by

425

bps,

the

Czech

Republic

by

300

bps,

Hungary

by

180

bps

and

Poland

by

165

bps.

Most

countries

in

Asia

kept

policy

rates

unchanged

as

inflation

generally

remained

more

contained

and

within

central

bank

targets.

In

developed

markets,

most

central

banks

continued

to

keep

their

policy

rates

unchanged

at

extraordinarily

low

levels

during

the

year,

with

some

exceptions.

Norway

posted

two

25-bp

hikes

in

2021

to

bring

its

policy

rate

to

0.50%;

the

U.K.

Templeton

International

Bond

Fund

5

franklintempleton.com

Annual

Report

hiked

its

policy

rate

by

15

bps

to

0.25%

in

December,

its

first

rate

adjustment

since

March

2020;

New

Zealand

posted

consecutive

25-bp

hikes

in

October

and

November,

bringing

its

policy

rate

to

0.75%;

and

South

Korea

hiked

its

policy

rate

25

bps

in

August

and

November

to

1.00%.

Other

developed

market

central

banks,

such

as

in

Canada,

Sweden

and

Australia,

remained

on

hold

with

policy

rates

in

2021,

but

were

at

various

stages

of

tapering

their

asset

purchase

programs

The

Fed

kept

the

federal

funds

target

rate

unchanged

(0.00%

to

0.25%)

at

each

of

its

policy

meetings

during

the

period

but

it

began

tapering

its

asset

purchases

in

November.

However,

the

Fed

quickly

shifted

in

a

hawkish

direction

at

its

December

meeting,

doubling

the

pace

of

its

asset

purchase

tapering

for

January.

The

accelerated

pace

put

the

asset

purchase

program

on

schedule

to

conclude

by

March

2022,

enabling

a

rate

hiking

cycle

to

start

in

March

or

May,

earlier

than

previously

indicated

at

the

November

meeting.

Additionally,

the

Fed’s

dot

plot

survey

in

December

showed

that

12

of

18

officials

expect

at

least

three

rate

hikes

in

2022,

a

substantial

change

from

the

September

survey

that

saw

nine

of

18

officials

project

no

hikes

until

2023.

We

expected

UST

term

premiums

to

ratchet

higher

in

upcoming

quarters,

with

a

bear-flattening

effect

driven

by

rising

yields

in

the

short-

to

intermediate-term

range

of

the

yield

curve.

The

European

Central

Bank

(ECB)

kept

monetary

policy

largely

unchanged

during

the

period,

leaving

the

main

refinancing

operations

rate

at

0.0%

and

the

main

deposit

facility

rate

at

-0.5%.

ECB

President

Christine

Lagarde

reaffirmed

at

the

October

and

December

meetings

that

key

rates

will

likely

remain

unchanged

through

2022.

The

ongoing

accommodative

policy

stance

from

the

ECB

appeared

likely

to

diverge

substantially

from

the

tightening

trajectory

of

the

Fed

in

2022.

We

expected

the

euro

to

weaken

against

the

USD

given

negative

rates

and

widening

rate

differentials

with

the

U.S.,

as

well

as

greater

headwinds

to

growth

in

Europe.

The

Bank

of

Japan

(BOJ)

also

kept

monetary

policy

largely

unchanged

during

the

period,

leaving

the

overnight

interest

rate

at

-0.1%

and

the

yield

target

on

the

10-

year

Japanese

government

bond

at

0.0%.

In

December,

the

BOJ

announced

plans

to

scale

down

its

emergency

pandemic

purchasing

measures

by

tapering

its

corporate

debt

purchases

to

precrisis

levels

by

April.

We

expected

the

Japanese

yen

to

face

headwinds

from

widening

rate

differentials

with

the

U.S.

Overall,

most

developed

markets

saw

10-year

sovereign

bond

yields

rise

during

the

period,

including

Norway,

Sweden,

the

U.K.,

South

Korea,

Canada

and

core

Europe.

The

yield

on

the

10-year

UST

note

finished

the

year

at

1.51%,

59

bps

higher

than

where

it

ended

2020.

In

emerging

markets,

10-year

sovereign

bond

yields

rose

sharply

across

much

of

Latin

America,

including

Brazil,

Mexico,

Colombia,

Chile

and

Peru.

In

eastern

Europe,

10-year

yields

trended

higher

in

Poland,

Hungary,

Russia

and

the

Czech

Republic

on

elevated

inflation

and

ongoing

monetary

tightening.

Yields

also

rose

in

much

of

Asia,

including

India,

Indonesia,

Thailand

and

Singapore,

but

declined

in

China.

USD-denominated

sovereign

credit

sectors

broadly

saw

moderately

negative

returns

for

the

period

(with

some

exceptions

in

individual

countries),

as

the

investment-

grade

credit

tiers

came

under

pressure

from

the

rising

yield

environment

while

high-yield

credit

tiers

largely

endured

additional

spread

widening.

In

currency

markets,

the

USD

broadly

strengthened

against

most

developed

market

and

emerging

market

currencies

in

2021,

appreciating

against

the

euro,

the

British

pound,

the

Japanese

yen,

the

South

Korean

won,

the

Australian

dollar

and

the

New

Zealand

dollar.

In

specific

pairings,

the

Norwegian

krone

and

the

Canadian

dollar

appreciated

against

the

euro,

while

the

Swedish

krona

depreciated.

In

emerging

markets,

the

USD

depreciated

against

the

Chinese

yuan,

but

appreciated

against

most

currencies

in

Latin

America

and

Asia,

including

the

Brazilian

real,

Mexican

peso,

Colombian

peso,

Chilean

peso,

Indian

rupee,

Indonesian

rupiah,

Singapore

dollar

and

Thai

baht.

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).

Templeton

International

Bond

Fund

6

franklintempleton.com

Annual

Report

Manager’s

Discussion

The

successful

development

of

vaccines

against

COVID-19

in

final

months

of

2020

substantially

changed

our

outlook

and

positioning

for

2021.

In

the

weeks

before

the

12-month

reporting

period

began,

we

significantly

shifted

the

emphasis

of

the

Fund’s

strategic

positioning

from

a

safe-haven

stance

toward

an

increasing

allocation

to

risk

assets.

We

expected

a

rebound

in

global

economic

activity

and

improving

economic

conditions

in

the

spring

and

summer

months

of

2021

as

vaccines

were

progressively

distributed

and

people

increasingly

reengaged

with

the

world.

We

were

actively

constructive

in

a

number

of

regions

throughout

the

12-month

period,

particularly

in

areas

of

Asia

that

appeared

to

be

at

the

forefront

of

the

global

economic

recovery.

Overall,

the

Fund

was

focused

on

three

core

themes

during

the

period:

(1)

value

in

select

currencies

against

the

USD

and

the

euro,

specifically

in

countries

with

strong

trade

dynamics,

current

account

surpluses,

better

fiscal

management

and

stronger

growth

potential,

notably

in

Asia;

(2)

avoiding

interest-rate

risks

in

low-yielding

developed

markets;

and

(3)

pursuing

sovereign

bonds

with

relatively

higher

yields

in

a

select

set

of

resilient

emerging

markets.

At

the

beginning

of

the

period,

the

Fund

held

overweighted

positions

in

specific

currencies

against

the

USD

and

the

euro.

We

held

notable

exposures

to

the

Chinese

yuan,

the

South

Korean

won,

the

Indian

rupee,

the

Indonesian

rupiah

and

the

Japanese

yen

against

the

USD.

We

added

exposure

to

the

Singapore

dollar

in

April,

the

New

Zealand

dollar

in

June

and

the

Thai

baht

in

December.

We

held

an

overweighted

position

in

the

Japanese

yen

through

February,

then

reduced

it

to

a

neutral

weight

in

March

and

an

underweighting

in

April.

We

further

reduced

the

underweighted

position

in

May

and

November.

In

the

Europe,

Middle

East

and

Africa

region,

we

held

exposures

in

the

Norwegian

krone

and

Swedish

krona

against

the

euro

throughout

2021.

In

the

Americas,

we

held

long

exposure

to

the

Canadian

dollar

against

the

euro,

and

long

exposures

to

the

Colombian

peso

and

Brazilian

real

against

the

USD.

In

May,

we

added

exposure

to

the

Chilean

peso

against

the

USD.

During

the

period,

we

used

currency

forwards

and

currency

options

to

actively

manage

currency

exposures.

We

also

continued

to

focus

on

compelling

risk-adjusted

yields

in

various

local-currency

bond

markets,

specifically

in

countries

with

resilient

economies

and

strong

trade

dynamics.

We

continued

to

largely

avoid

developed

market

duration

exposures

in

preference

for

higher

yields

available

in

select

emerging

markets,

notably

including

Indonesia,

India,

Mexico,

Colombia,

Brazil

and

Ghana,

among

others.

After

exiting

our

local-currency

position

in

Brazil

in

the

first

quarter

of

2021

due

to

acute

political

and

economic

risks,

we

reestablished

the

position

in

the

second

quarter

as

political

compromises

in

the

spring

and

better-than

expected

economic

figures

supported

an

improved

outlook.

In

July,

we

added

to

our

local-currency

position

in

Brazil

and

reduced

our

position

in

Mexico.

We

also

saw

pockets

of

value

in

certain

USD-denominated

sovereign

credits

during

the

reporting

period,

but

we

continued

to

largely

prefer

specific

valuations

in

the

local-currency

markets

over

the

more

fully

valued

credit

markets.

During

the

period,

the

Fund’s

negative

absolute

performance

was

primarily

due

to

currency

positions.

Interest-rate

strategies

contributed

to

absolute

results,

while

sovereign

credit

exposures

had

a

largely

neutral

effect.

Among

currencies,

positions

in

the

Japanese

yen,

South

Korean

won,

Argentine

peso,

Colombian

peso

and

Chilean

peso

detracted

from

absolute

performance.

However,

the

Fund’s

net-negative

exposure

to

the

euro

contributed

to

absolute

results,

as

did

its

positions

in

the

Norwegian

krone

and

Canadian

dollar

against

the

euro.

Its

position

in

the

Chinese

yuan

against

the

USD

also

contributed

to

absolute

performance.

The

Fund

maintained

a

defensive

approach

regarding

interest

rates

in

developed

markets,

while

holding

duration

exposures

in

select

emerging

markets.

Duration

exposures

in

Argentina,

Indonesia

and

Ghana

contributed

to

absolute

results.

On

a

relative

basis,

the

Fund’s

performance

fared

better

than

that

of

its

benchmark

index

primarily

due

to

interest-rate

strategies.

Currency

positions

detracted

from

relative

results,

while

sovereign

credit

exposures

had

a

largely

neutral

effect.

Overweighted

duration

exposures

in

Argentina,

Indonesia

and

Ghana

contributed

to

relative

performance,

as

did

the

Fund’s

lack

of

duration

exposure

in

the

euro

area.

Among

currencies,

overweighted

positions

in

the

South

Korean

won,

Argentine

peso,

Colombian

peso

and

Chilean

peso

detracted

from

relative

results.

However,

the

Fund’s

underweighted

exposure

to

the

euro

contributed

to

relative

performance,

as

did

its

overweighted

positions

in

the

Norwegian

krone

and

Geographic

Composition

12/31/21

%

of

Total

Net

Assets

Asia

39.5%

Latin

America

&

Caribbean

16.4%

Middle East & Africa

4.8%

Australia

&

New

Zealand

4.4%

Short-Term

Investments

&

Other

Net

Assets

34.9%

Templeton

International

Bond

Fund

7

franklintempleton.com

Annual

Report

Canadian

dollar

against

the

euro.

Its

overweighted

position

in

the

Chinese

yuan

against

the

USD

also

contributed

to

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

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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,

2021

Templeton

International

Bond

Fund

8

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

12/31/21

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

-6.65%

-10.14%

5-Year

-6.61%

-2.10%

10-Year

+3.11%

-0.07%

Advisor

1-Year

-6.52%

-6.52%

5-Year

-5.52%

-1.13%

10-Year

+5.74%

+0.56%

See

page

10

for

Performance

Summary

footnotes.

Templeton

International

Bond

Fund

Performance

Summary

9

franklintempleton.com

Annual

Report

See

page

10

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

(1/1/12–12/31/21)

Advisor

Class

(1/1/12–12/31/21)

Templeton

International

Bond

Fund

Performance

Summary

10

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.

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.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

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:

Morningstar.

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

(1/1/21–12/31/21)

Share

Class

Tax

Return

of

Capital

A

$0.2499

C

$0.2107

R

$0.2272

R6

$0.2833

Advisor

$0.2715

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

1.03%

1.25%

Advisor

0.78%

1.00%

Your

Fund’s

Expenses

Templeton

International

Bond

Fund

11

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$963.60

$5.01

$1,020.10

$5.15

1.01%

C

$1,000

$961.30

$6.94

$1,018.13

$7.14

1.40%

R

$1,000

$962.50

$6.32

$1,018.76

$6.50

1.28%

R6

$1,000

$964.40

$3.02

$1,022.13

$3.11

0.61%

Advisor

$1,000

$963.70

$3.63

$1,021.51

$3.74

0.73%

Templeton

Income

Trust

Financial

Highlights

Templeton

International

Bond

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$9.01

$9.77

$10.14

$10.57

$10.61

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.23

0.20

0.42

0.40

0.42

Net

realized

and

unrealized

gains

(losses)

...........

(0.82)

(0.75)

(0.23)

(0.22)

(0.18)

Total

from

investment

operations

....................

(0.59)

(0.55)

0.19

0.18

0.24

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(—)

c

(0.56)

(0.59)

(0.28)

Net

realized

gains

.............................

—

—

—

(0.01)

—

Tax

return

of

capital

............................

(0.25)

(0.21)

—

(0.01)

—

Total

distributions

...............................

(0.25)

(0.21)

(0.56)

(0.61)

(0.28)

Net

asset

value,

end

of

year

.......................

$8.17

$9.01

$9.77

$10.14

$10.57

Total

return

d

...................................

(6.65)%

(5.66)%

1.86%

1.82%

2.25%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.37%

1.21%

1.20%

1.26%

1.44%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.99%

1.00%

1.00%

0.99%

0.99%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.99%

e

0.99%

0.98%

0.98%

0.99%

e

Net

investment

income

...........................

2.69%

2.12%

4.18%

3.93%

3.87%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$17,129

$22,455

$39,532

$38,856

$71,262

Portfolio

turnover

rate

............................

60.68%

86.26%

24.26%

43.13%

88.62%

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

13

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$9.02

$9.78

$10.16

$10.58

$10.62

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.19

0.16

0.39

0.36

0.38

Net

realized

and

unrealized

gains

(losses)

...........

(0.81)

(0.75)

(0.25)

(0.21)

(0.18)

Total

from

investment

operations

....................

(0.62)

(0.59)

0.14

0.15

0.20

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(—)

c

(0.52)

(0.55)

(0.24)

Net

realized

gains

.............................

—

—

—

(0.01)

—

Tax

return

of

capital

............................

(0.21)

(0.17)

—

(0.01)

—

Total

distributions

...............................

(0.21)

(0.17)

(0.52)

(0.57)

(0.24)

Net

asset

value,

end

of

year

.......................

$8.19

$9.02

$9.78

$10.16

$10.58

Total

return

d

...................................

(6.96)%

(6.03)%

1.35%

1.52%

1.84%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.71%

1.61%

1.60%

1.66%

1.84%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.39%

1.40%

1.40%

1.39%

1.39%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.39%

e

1.39%

1.38%

1.38%

1.39%

e

Net

investment

income

...........................

2.22%

1.70%

3.78%

3.53%

3.47%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,365

$3,541

$6,694

$8,654

$9,733

Portfolio

turnover

rate

............................

60.68%

86.26%

24.26%

43.13%

88.62%

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.

14

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$9.01

$9.76

$10.14

$10.56

$10.61

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.21

0.17

0.41

0.39

0.40

Net

realized

and

unrealized

gains

(losses)

...........

(0.82)

(0.73)

(0.25)

(0.22)

(0.19)

Total

from

investment

operations

....................

(0.61)

(0.56)

0.16

0.17

0.21

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(—)

c

(0.54)

(0.57)

(0.26)

Net

realized

gains

.............................

—

—

—

(0.01)

—

Tax

return

of

capital

............................

(0.23)

(0.19)

—

(0.01)

—

Total

distributions

...............................

(0.23)

(0.19)

(0.54)

(0.59)

(0.26)

Net

asset

value,

end

of

year

.......................

$8.17

$9.01

$9.76

$10.14

$10.56

Total

return

....................................

(6.90)%

(5.83)%

1.52%

1.67%

1.92%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.63%

1.46%

1.45%

1.51%

1.69%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.24%

1.25%

1.25%

1.24%

1.24%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

1.24%

d

1.24%

1.23%

1.23%

1.24%

d

Net

investment

income

...........................

2.41%

1.82%

3.93%

3.68%

3.62%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$107

$138

$254

$300

$286

Portfolio

turnover

rate

............................

60.68%

86.26%

24.26%

43.13%

88.62%

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

15

a

Year

Ended

December

31,

Year

Ended

December

31,

2017

a

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$9.01

$9.77

$10.15

$10.57

$10.78

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.22

0.19

0.45

0.45

0.18

Net

realized

and

unrealized

gains

(losses)

...........

(0.78)

(0.70)

(0.23)

(0.22)

(0.24)

Total

from

investment

operations

....................

(0.56)

(0.51)

0.22

0.23

(0.06)

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(—)

d

(0.60)

(0.63)

(0.15)

Net

realized

gains

.............................

—

—

—

(0.01)

—

Tax

return

of

capital

............................

(0.28)

(0.25)

—

(0.01)

—

Total

distributions

...............................

(0.28)

(0.25)

(0.60)

(0.65)

(0.15)

Net

asset

value,

end

of

year

.......................

$8.17

$9.01

$9.77

$10.15

$10.57

Total

return

e

...................................

(6.29)%

(5.29)%

2.14%

2.28%

(0.61)%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.94%

0.80%

1.24%

1.09%

0.99%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.60%

0.61%

0.62%

0.66%

0.68%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.60%

g

0.60%

0.60%

0.65%

0.68%

g

Net

investment

income

...........................

2.55%

2.14%

4.56%

4.26%

4.39%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$8,242

$47,663

$3,878

$904

$414

Portfolio

turnover

rate

............................

60.68%

86.26%

24.26%

43.13%

88.62%

a

For

the

period

August

1,

2017

(effective

date)

to

December

31,

2017.

b

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.

c

Based

on

average

daily

shares

outstanding.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

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.

16

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$9.02

$9.78

$10.15

$10.58

$10.62

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.25

0.21

0.45

0.44

0.45

Net

realized

and

unrealized

gains

(losses)

...........

(0.83)

(0.73)

(0.23)

(0.23)

(0.18)

Total

from

investment

operations

....................

(0.58)

(0.52)

0.22

0.21

0.27

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

(—)

c

(0.59)

(0.62)

(0.31)

Net

realized

gains

.............................

—

—

—

(0.01)

—

Tax

return

of

capital

............................

(0.27)

(0.24)

—

(0.01)

—

Total

distributions

...............................

(0.27)

(0.24)

(0.59)

(0.64)

(0.31)

Net

asset

value,

end

of

year

.......................

$8.17

$9.02

$9.78

$10.15

$10.58

Total

return

....................................

(6.52)%

(5.41)%

2.12%

2.07%

2.51%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.99%

0.96%

0.95%

1.01%

1.19%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.74%

0.75%

0.75%

0.74%

0.74%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.74%

d

0.74%

0.73%

0.73%

0.74%

d

Net

investment

income

...........................

2.88%

2.30%

4.43%

4.18%

4.12%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$24,744

$284,611

$393,873

$346,303

$276,074

Portfolio

turnover

rate

............................

60.68%

86.26%

24.26%

43.13%

88.62%

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

Statement

of

Investments,

December

31,

2021

Templeton

International

Bond

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

17

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

65.1%

Argentina

2.6%

a

Argentina

BONCER

,

Index

Linked,

1.4%,

3/25/23

.......

136,313,234

ARS

$

664,789

Index

Linked,

1.5%,

3/25/24

.......

140,620,907

ARS

673,046

1,337,835

Australia

4.4%

b

Australia

Government

Bond,

Reg

S,

5.75%,

7/15/22

................

3,055,000

AUD

2,286,146

Brazil

9.2%

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/27

..................

21,060,000

BRL

3,697,183

10%,

1/01/29

..................

2,370,000

BRL

412,163

10%,

1/01/31

..................

3,780,000

BRL

651,200

4,760,546

Colombia

4.6%

Colombia

Titulos

de

Tesoreria

,

B,

7.5%,

8/26/26

......................

9,664,000,000

COP

2,359,155

Ghana

4.8%

Ghana

Government

Bond

,

18.25%,

7/25/22

................

50,000

GHS

8,207

17.6%,

11/28/22

................

130,000

GHS

21,028

20.75%,

1/16/23

................

50,000

GHS

8,278

19%,

9/18/23

..................

50,000

GHS

8,075

19.25%,

11/27/23

...............

280,000

GHS

45,261

21.7%,

3/17/25

................

5,880,000

GHS

985,817

19.25%,

6/23/25

................

3,560,000

GHS

564,820

Senior

Note,

18.3%,

3/02/26

......

5,530,000

GHS

846,799

Senior

Note

,

18.5%,

1/02/23

......

50,000

GHS

8,120

2,496,405

India

3.9%

India

Government

Bond

,

8.2%,

9/24/25

.................

104,400,000

INR

1,521,029

7.27%,

4/08/26

................

33,000,000

INR

466,650

1,987,679

Indonesia

13.0%

Indonesia

Government

Bond

,

FR81,

6.5%,

6/15/25

............

57,090,000,000

IDR

4,221,916

FR86,

5.5%,

4/15/26

............

34,800,000,000

IDR

2,480,988

6,702,904

Singapore

1.7%

Singapore

Government

Bond,

2.375%,

6/01/25

......................

1,157,000

SGD

893,435

South

Korea

20.9%

Korea

Treasury

Bond,

1.875%,

6/10/26

12,881,220,000

KRW

10,769,867

Total

Foreign

Government

and

Agency

Securities

(Cost

$35,316,871)

..............

33,593,972

Templeton

Income

Trust

Statement

of

Investments

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

Short

Term

Investments

30.2%

a

a

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

2.7%

Thailand

2.7%

c

Thailand

Treasury

Bills

,

3/24/22

......................

26,950,000

THB

$

810,668

5/11/22

......................

790,000

THB

23,749

6/22/22

......................

18,550,000

THB

557,318

1,391,735

Total

Foreign

Government

and

Agency

Securities

(Cost

$1,373,371)

...............

1,391,735

Industry

Shares

Money

Market

Funds

27.5%

United

States

27.5%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

..........

14,191,046

14,191,046

Total

Money

Market

Funds

(Cost

$14,191,046)

..................................

14,191,046

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$15,564,417

)

................................

15,582,781

a

a

a

Total

Investments

(Cost

$50,881,288)

95.3%

....................................

$49,176,753

Other

Assets,

less

Liabilities

4.7%

.............................................

2,410,487

Net

Assets

10

0.0

%

...........................................................

$51,587,240

a

a

a

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Redemption

price

at

maturity

is

adjusted

for

inflation.

See

Note

1(g).

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,

2021,

the

value

of

this

security

was

$2,286,146,

representing

4.4%

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

Statement

of

Investments

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

19

At

December

31,

2021,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(c). 

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

Chilean

Peso

......

JPHQ

Buy

446,000,635

545,026

1/07/22

$

—

$

(21,772)

Chilean

Peso

......

JPHQ

Sell

446,000,635

534,959

1/07/22

11,705

—

Chilean

Peso

......

GSCO

Buy

338,307,069

412,162

1/10/22

—

(15,423)

Chilean

Peso

......

GSCO

Sell

338,307,069

406,243

1/10/22

9,504

—

Chinese

Yuan

......

CITI

Buy

19,192,940

2,923,970

1/12/22

89,169

—

Chinese

Yuan

......

CITI

Sell

17,769,800

2,772,416

1/12/22

—

(17,301)

Chilean

Peso

......

JPHQ

Buy

735,900,000

926,826

1/13/22

—

(64,187)

Chilean

Peso

......

JPHQ

Sell

735,900,000

882,057

1/13/22

19,418

—

Chilean

Peso

......

GSCO

Buy

234,437,244

290,145

1/14/22

—

(15,371)

Chilean

Peso

......

GSCO

Sell

234,437,244

281,292

1/14/22

6,518

—

Chinese

Yuan

......

HSBK

Buy

20,781,470

3,192,954

1/18/22

68,284

—

Euro

.............

DBAB

Sell

1,200,562

12,211,274

SEK

1/18/22

—

(16,018)

Mexican

Peso

......

CITI

Buy

7,844,000

372,548

1/18/22

8,754

—

Mexican

Peso

......

CITI

Sell

7,844,000

378,699

1/18/22

—

(2,603)

Swedish

Krona

.....

DBAB

Sell

12,211,274

1,209,210

EUR

1/18/22

25,859

—

Chilean

Peso

......

JPHQ

Buy

851,760,000

1,043,824

1/21/22

—

(46,495)

Chilean

Peso

......

JPHQ

Sell

851,760,000

1,020,096

1/21/22

22,768

—

South

Korean

Won

..

CITI

Buy

1,940,300,000

1,689,421

1/21/22

—

(58,350)

Indian

Rupee

......

JPHQ

Buy

45,118,800

584,516

1/27/22

19,672

—

Indian

Rupee

......

JPHQ

Sell

45,118,800

602,387

1/27/22

—

(1,801)

Canadian

Dollar

....

CITI

Sell

80,000

55,862

EUR

2/03/22

323

—

Canadian

Dollar

....

DBAB

Sell

8,286,000

5,785,513

EUR

2/03/22

33,043

—

Canadian

Dollar

....

HSBK

Sell

444,832

310,542

EUR

2/03/22

1,715

—

Euro

.............

CITI

Sell

53,787

80,000

CAD

2/03/22

2,038

—

Euro

.............

DBAB

Sell

5,588,077

8,286,000

CAD

2/03/22

191,699

—

Euro

.............

HSBK

Sell

300,074

444,832

CAD

2/03/22

10,201

—

Chilean

Peso

......

JPHQ

Buy

445,999,365

543,398

2/07/22

—

(22,477)

Chilean

Peso

......

JPHQ

Sell

263,000,000

314,319

2/07/22

7,138

—

Australian

Dollar

....

CITI

Buy

8,607,000

6,212,972

2/10/22

42,000

—

Australian

Dollar

....

CITI

Sell

8,607,000

6,281,346

2/10/22

26,374

—

Chilean

Peso

......

GSCO

Buy

260,850,000

321,177

2/10/22

—

(16,658)

Indian

Rupee

......

CITI

Buy

32,885,300

434,531

2/10/22

5,179

—

Indian

Rupee

......

CITI

Sell

32,885,300

438,354

2/10/22

—

(1,356)

Chilean

Peso

......

GSCO

Buy

459,371,617

581,778

2/11/22

—

(45,592)

Australian

Dollar

....

HSBK

Buy

8,612,726

6,215,785

2/17/22

43,399

—

Australian

Dollar

....

HSBK

Sell

8,612,726

6,328,115

2/17/22

68,931

—

Australian

Dollar

....

JPHQ

Buy

8,596,000

6,204,083

2/17/22

42,945

—

Australian

Dollar

....

JPHQ

Sell

8,596,000

6,317,415

2/17/22

70,387

—

Australian

Dollar

....

MSCO

Buy

1,070,000

772,483

2/17/22

5,125

—

Australian

Dollar

....

MSCO

Sell

1,225,000

899,483

2/17/22

9,231

—

Euro

.............

HSBK

Sell

8,960,904

1,163,954,255

JPY

2/17/22

—

(86,929)

Japanese

Yen

......

HSBK

Sell

1,159,047,252

8,960,904

EUR

2/17/22

147,927

(18,351)

Chinese

Yuan

......

JPHQ

Buy

14,438,800

2,244,524

2/22/22

16,495

—

Euro

.............

CITI

Buy

3,500,000

3,970,839

2/22/22

14,652

—

Euro

.............

CITI

Sell

3,500,000

4,059,314

2/22/22

76,332

(2,509)

Euro

.............

CITI

Sell

2,449,810

314,851,973

JPY

2/24/22

—

(53,205)

Japanese

Yen

......

CITI

Sell

315,803,577

2,449,809

EUR

2/24/22

44,934

—

Canadian

Dollar

....

MSCO

Sell

1,386,400

967,602

EUR

2/25/22

5,569

—

Euro

.............

MSCO

Sell

925,980

1,386,400

CAD

2/25/22

41,830

—

Chinese

Yuan

......

BOFA

Buy

3,535,710

540,612

3/09/22

12,558

—

Euro

.............

DBAB

Sell

1,111,066

11,382,500

NOK

3/15/22

24,195

—

Euro

.............

DBAB

Sell

1,199,720

12,211,231

SEK

3/16/22

—

(15,894)

Templeton

Income

Trust

Statement

of

Investments

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

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)

Swedish

Krona

.....

DBAB

Sell

12,211,231

1,208,133

EUR

3/16/22

$

25,479

$

—

New

Zealand

Dollar

.

CITI

Buy

1,670,000

1,127,500

3/21/22

13,703

—

Indian

Rupee

......

SCNY

Buy

180,900,000

2,359,463

3/22/22

46,127

—

Indian

Rupee

......

SCNY

Sell

180,900,000

2,400,159

3/22/22

—

(5,431)

Singapore

Dollar

....

CITI

Buy

3,100,000

2,294,342

3/22/22

3,280

—

Euro

.............

CITI

Sell

1,389,251

181,393,105

JPY

3/31/22

—

(6,103)

Japanese

Yen

......

CITI

Sell

179,158,593

1,389,251

EUR

3/31/22

25,531

—

Euro

.............

JPHQ

Sell

4,307,285

560,782,663

JPY

4/01/22

—

(33,023)

Euro

.............

JPHQ

Sell

14,564,889

148,950,000

NOK

4/01/22

274,672

—

Japanese

Yen

......

JPHQ

Sell

555,516,102

4,307,285

EUR

4/01/22

78,816

—

Norwegian

Krone

...

JPHQ

Sell

136,310,000

13,502,210

EUR

4/01/22

—

(53,845)

Indian

Rupee

......

JPHQ

Buy

45,246,500

595,976

4/07/22

4,047

—

Indian

Rupee

......

JPHQ

Sell

45,246,500

597,977

4/07/22

—

(2,047)

Indian

Rupee

......

CITI

Buy

43,960,600

580,338

4/08/22

2,561

—

Indian

Rupee

......

CITI

Sell

20,000,000

264,201

4/08/22

—

(991)

Indian

Rupee

......

JPHQ

Buy

58,526,500

771,405

4/08/22

4,631

—

Indian

Rupee

......

CITI

Buy

52,990,400

695,047

4/12/22

7,237

—

Indian

Rupee

......

HSBK

Buy

53,040,300

694,517

4/12/22

8,428

—

Mexican

Peso

......

CITI

Buy

59,865,000

2,803,824

4/13/22

61,304

—

Mexican

Peso

......

CITI

Sell

59,865,000

2,861,616

4/13/22

—

(3,512)

Euro

.............

DBAB

Sell

1,927,639

19,538,000

SEK

4/14/22

—

(35,523)

Swedish

Krona

.....

DBAB

Sell

19,538,000

1,931,882

EUR

4/14/22

40,360

—

Euro

.............

DBAB

Sell

1,460,326

14,653,500

SEK

4/19/22

—

(43,418)

Swedish

Krona

.....

DBAB

Sell

9,600,000

949,336

EUR

4/19/22

20,038

—

Euro

.............

HSBK

Sell

3,273,700

434,843,996

JPY

4/25/22

48,916

—

Japanese

Yen

......

HSBK

Sell

422,299,405

3,273,700

EUR

4/25/22

60,201

—

Euro

.............

HSBK

Buy

1,250,000

1,420,147

4/27/22

5,503

—

Euro

.............

HSBK

Sell

1,250,000

1,462,375

4/27/22

36,725

—

Canadian

Dollar

....

HSBK

Sell

444,836

309,788

EUR

5/03/22

1,748

—

Euro

.............

HSBK

Sell

299,472

444,836

CAD

5/03/22

10,020

—

Chilean

Peso

......

GSCO

Buy

439,732,455

554,392

5/11/22

—

(48,732)

Euro

.............

DBAB

Sell

735,401

7,405,998

SEK

5/18/22

—

(19,301)

Euro

.............

HSBK

Buy

180,000

203,868

5/18/22

1,547

—

Euro

.............

HSBK

Sell

760,000

866,651

5/18/22

—

(654)

Canadian

Dollar

....

GSCO

Sell

1,100,600

765,948

EUR

5/24/22

4,373

—

Euro

.............

GSCO

Sell

763,431

1,100,600

CAD

5/24/22

—

(1,500)

Japanese

Yen

......

CITI

Buy

520,000,000

4,574,646

5/24/22

—

(49,319)

Japanese

Yen

......

CITI

Sell

306,700,000

2,707,020

5/24/22

37,948

—

Australian

Dollar

....

CITI

Sell

6,754,000

5,048,874

6/07/22

138,640

—

Japanese

Yen

......

CITI

Buy

569,985,000

5,048,684

6/07/22

—

(87,205)

Japanese

Yen

......

CITI

Sell

569,985,000

5,000,088

6/07/22

38,608

—

Euro

.............

DBAB

Sell

1,070,751

10,826,900

SEK

6/15/22

—

(23,810)

Euro

.............

DBAB

Sell

265,293

2,701,400

NOK

6/16/22

2,602

—

Euro

.............

DBAB

Sell

1,532,338

15,689,000

NOK

6/20/22

24,391

—

Euro

.............

CITI

Sell

1,377,485

14,183,000

NOK

6/21/22

30,842

—

Euro

.............

DBAB

Sell

1,457,625

14,653,500

SEK

7/19/22

—

(42,755)

Japanese

Yen

......

CITI

Buy

545,052,000

4,814,671

7/20/22

—

(66,217)

Japanese

Yen

......

CITI

Sell

265,000,000

2,326,523

7/20/22

17,862

—

Euro

.............

CITI

Sell

3,275,000

3,835,811

7/26/22

90,729

—

Canadian

Dollar

....

BOFA

Sell

1,640,000

1,137,958

EUR

8/02/22

6,242

—

Canadian

Dollar

....

HSBK

Sell

1,871,500

1,298,656

EUR

8/02/22

7,199

—

Euro

.............

BOFA

Sell

3,417,075

4,951,000

CAD

8/02/22

2,097

—

Euro

.............

HSBK

Sell

1,293,620

1,871,500

CAD

8/02/22

—

(1,439)

Euro

.............

HSBK

Sell

307,834

444,832

CAD

8/03/22

—

(766)

Total

Forward

Exchange

Contracts

...................................................

$2,408,278

$(1,047,883)

Net

unrealized

appreciation

(depreciation)

............................................

$1,360,395

Templeton

Income

Trust

Statement

of

Investments

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

21

See

Note 

10

 regarding

other

derivative

information.

See

Abbreviations

on

page

39

.

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

Templeton

Income

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

Templeton

International

Bond

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$36,690,242

Cost

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

14,191,046

Value

-

Unaffiliated

issuers

..................................................................

$34,985,707

Value

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

14,191,046

Restricted

cash

for

OTC

derivative

contracts

(Note

1

d

)

...............................................

560,000

Restricted

currency,

at

value

(cost

$960)

(Note

1e)

..................................................

951

Foreign

currency,

at

value

(cost

$623,575)

........................................................

629,951

Receivables:

Capital

shares

sold

........................................................................

96,350

Interest

.................................................................................

641,139

Affiliates

................................................................................

40,614

Deposits

with

brokers

for:

OTC

derivative

contracts

..................................................................

300,000

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

2,408,278

Total

assets

..........................................................................

53,854,036

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

320,268

Distribution

fees

..........................................................................

4,635

Transfer

agent

fees

........................................................................

191,199

Deposits

from

brokers

for:

OTC

derivative

contracts

..................................................................

560,000

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

1,047,883

Deferred

tax

...............................................................................

8,437

Accrued

expenses

and

other

liabilities

...........................................................

134,374

Total

liabilities

.........................................................................

2,266,796

Net

assets,

at

value

.................................................................

$51,587,240

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$101,777,156

Total

distributable

earnings

(losses)

.............................................................

(50,189,916)

Net

assets,

at

value

.................................................................

$51,587,240

Templeton

Income

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

December

31,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

Templeton

International

Bond

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$17,129,030

Shares

outstanding

........................................................................

2,096,089

Net

asset

value

per

share

a

..................................................................

$8.17

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

................................

$8.49

Class

C:

Net

assets,

at

value

.......................................................................

$1,364,540

Shares

outstanding

........................................................................

166,606

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$8.19

Class

R:

Net

assets,

at

value

.......................................................................

$107,296

Shares

outstanding

........................................................................

13,132

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.17

Class

R6:

Net

assets,

at

value

.......................................................................

$8,242,275

Shares

outstanding

........................................................................

1,008,562

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.17

Advisor

Class:

Net

assets,

at

value

.......................................................................

$24,744,099

Shares

outstanding

........................................................................

3,028,123

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.17

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Templeton

Income

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

Templeton

International

Bond

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Note

3

f

)

.............................................................

$5,007

Interest:

(net

of

foreign

taxes

of

$234,634)

Unaffiliated

issuers:

Inflation

principal

adjustments

..............................................................

1,828,428

Paid

in

cash

a

...........................................................................

8,602,582

Total

investment

income

...................................................................

10,436,017

Expenses:

Management

fees

(Note

3

a

)

...................................................................

1,986,679

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

49,567

    Class

C

................................................................................

16,245

    Class

R

................................................................................

560

Transfer

agent

fees:

(Note

3e

)

Class

A

................................................................................

34,682

    Class

C

................................................................................

4,302

    Class

R

................................................................................

196

    Class

R6

...............................................................................

13,414

    Advisor

Class

............................................................................

440,835

Custodian

fee

s

(Note

4

)

......................................................................

73,117

Reports

to

shareholders

fees

..................................................................

55,192

Registration

and

filing

fees

....................................................................

78,048

Professional

fees

...........................................................................

113,647

Trustees'

fees

and

expenses

..................................................................

23,994

Other

....................................................................................

60,436

Total

expenses

.........................................................................

2,950,914

Expense

reductions

(Note

4

)

...............................................................

(3,903)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(757,563)

Net

expenses

.........................................................................

2,189,448

Net

investment

income

................................................................

8,246,569

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$68,118)

Unaffiliated

issuers

......................................................................

(38,640,124)

Written

options

...........................................................................

434,042

Foreign

currency

transactions

................................................................

(347,098)

Forward

exchange

contracts

.................................................................

(12,101,030)

Net

realized

gain

(loss)

..................................................................

(50,654,210)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

10,601,631

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(74,009)

Written

options

...........................................................................

(8,479)

Forward

exchange

contracts

.................................................................

13,165,098

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

70,502

Net

change

in

unrealized

appreciation

(depreciation)

............................................

23,754,743

Net

realized

and

unrealized

gain

(loss)

............................................................

(26,899,467)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(18,652,898)

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

financial

statements.

Annual

Report

25

Templeton

International

Bond

Fund

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$8,246,569

$8,936,077

Net

realized

gain

(loss)

.................................................

(50,654,210)

(40,317,273)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

23,754,743

8,387,387

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(18,652,898)

(22,993,809)

Distributions

to

shareholders:

Class

A

.............................................................

—

(7,709)

Class

C

.............................................................

—

(1,269)

Class

R

.............................................................

—

(55)

Class

R6

............................................................

—

(6,250)

Advisor

Class

........................................................

—

(115,519)

Distributions

to

shareholders

from

tax

return

of

capital:

Class

A

.............................................................

(578,991)

(584,021)

Class

C

.............................................................

(61,065)

(96,112)

Class

R

.............................................................

(2,897)

(4,195)

Class

R6

............................................................

(540,507)

(473,513)

Advisor

Class

........................................................

(8,663,500)

(8,751,774)

Total

distributions

to

shareholders

..........................................

(9,846,960)

(10,040,417)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(3,379,488)

(14,984,775)

Class

C

.............................................................

(1,935,439)

(2,707,500)

Class

R

.............................................................

(19,647)

(96,363)

Class

R6

............................................................

(37,414,170)

44,431,591

Advisor

Class

........................................................

(235,572,264)

(79,432,266)

Total

capital

share

transactions

............................................

(278,321,008)

(52,789,313)

Net

increase

(decrease)

in

net

assets

...................................

(306,820,866)

(85,823,539)

Net

assets:

Beginning

of

year

.......................................................

358,408,106

444,231,645

End

of

year

...........................................................

$51,587,240

$358,408,106

Templeton

Income

Trust

Notes

to

Financial

Statements

Templeton

International

Bond

Fund

26

franklintempleton.com

Annual

Report

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,

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Templeton

International

Bond

Fund

(Fund)

is

included

in

this

report.

The

Fund

offers five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class. Effective

August

2,

2021,

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Prior

to

August

2,

2021,

Class

C

shares

converted

to

Class

A

shares

after

a

10-year

holding

period.

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 Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

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

Fund

calculates

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 Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Debt

securities

generally

trade

in

the over-the-counter

(OTC)

market

rather

than

on

a

securities

exchange.

The

Fund's

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

trade

in

the

OTC

market.

The

Fund's

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

Fund's

net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

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.

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

Fund

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.

Templeton

Income

Trust

Notes

to

Financial

Statements

27

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

(continued)

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

Fund

does

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

Statement 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.

Derivative

Financial

Instruments

The

Fund 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

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce its

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 Fund

include

failure

of

the

Fund

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

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

terms

are

contract

specific

for

OTC

derivatives.

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,

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

Fund's

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.

1.

Organization

and

Significant

Accounting

Policies

(continued)

b.

Foreign

Currency

Translation 

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

28

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

(continued)

The

Fund 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.

The

Fund

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.

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.

See

Note

10

regarding

other

derivative

information.

d.

Restricted

Cash

At

December

31,

2021, the

Fund

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

is

reflected

in

the

Statement

of

Assets

and

Liabilities.

e.

Restricted

Currency

At

December

31,

2021,

the

Fund

held

currencies

in

certain

markets

in

which

the

ability

to

repatriate

such

currency

is

limited.

As

a

result

of

such

limitations

on

repatriation,

the

Fund

may

incur

substantial

delays

in

gaining

access

to

these

assets

and

may

be

exposed

to

potential

adverse

movements

in

currency

value.

f.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The 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 Fund

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

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The

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,

2021,

the

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.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

29

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

(continued)

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

Statement

of

Operations.

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

Fund,

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,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

563,671

$4,822,417

623,127

$5,709,090

Shares

issued

in

reinvestment

of

distributions

..........

64,142

551,459

60,786

568,481

Shares

redeemed

...............................

(1,023,797)

(8,753,364)

(2,237,883)

(21,262,346)

Net

increase

(decrease)

..........................

(395,984)

$(3,379,488)

(1,553,970)

$(14,984,775)

Class

C

Shares:

Shares

sold

...................................

21,151

$179,863

51,910

$486,685

Shares

issued

in

reinvestment

of

distributions

..........

6,686

57,886

9,259

86,820

Shares

redeemed

a

..............................

(253,705)

(2,173,188)

(353,148)

(3,281,005)

Net

increase

(decrease)

..........................

(225,868)

$(1,935,439)

(291,979)

$(2,707,500)

Class

R

Shares:

Shares

sold

...................................

2,803

$24,024

7,870

$73,492

Shares

issued

in

reinvestment

of

distributions

..........

337

2,897

455

4,250

Shares

redeemed

...............................

(5,359)

(46,568)

(18,954)

(174,105)

Net

increase

(decrease)

..........................

(2,219)

$(19,647)

(10,629)

$(96,363)

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

30

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

(continued)

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

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

year

ended

December

31,

2021,

the

gross

effective

investment

management

fee

rate

was

0.700%

of

the

Fund’s

average

daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Shares

Amount

Shares

Amount

Class

R6

Shares:

Shares

sold

...................................

1,393,741

$11,826,154

5,280,144

$48,122,104

Shares

issued

in

reinvestment

of

distributions

..........

61,097

533,936

51,999

471,073

Shares

redeemed

...............................

(5,734,293)

(49,774,260)

(440,933)

(4,161,586)

Net

increase

(decrease)

..........................

(4,279,455)

$(37,414,170)

4,891,210

$44,431,591

Advisor

Class

Shares:

Shares

sold

...................................

5,047,083

$43,716,266

10,498,840

$97,278,176

Shares

issued

in

reinvestment

of

distributions

..........

996,551

8,574,865

867,079

8,090,374

Shares

redeemed

...............................

(34,571,498)

(287,863,395)

(20,086,196)

(184,800,816)

Net

increase

(decrease)

..........................

(28,527,864)

$(235,572,264)

(8,720,277)

$(79,432,266)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

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

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

2.

Shares

of

Beneficial

Interest

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

31

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

(continued)

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

Fund’s

Class A reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

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

Fund’s

Class C

and

R

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

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.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

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

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

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.

The

fees

are

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,

2021,

the

Fund

paid

transfer

agent

fees

of

$493,429,

of

which $122,027

was

retained

by

Investor

Services.

f.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

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

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

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,

2021,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

0.65%

Class

R

....................................................................................

0.50%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$484

CDSC

retained

..............................................................................

$637

3.

Transactions

with

Affiliates

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

32

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

(continued)

g.

Waiver

and

Expense

Reimbursements

Advisers

and

Investor

Services

have

contractually

agreed

in

advance

to

waive

or

limit

their

respective

fees

and

to

assume

as

their

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating expenses

(excluding

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

Fund

do not

exceed

0.74%

based

on

the

average

net

assets

of

each

class

until

April

30,

2022.

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,

2022.

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

year

ended

December

31,

2021,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2021,

the

capital

loss

carryforwards

were

as

follows:

    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

International

Bond

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

$

110,460,274

$

142,381,597

$

(238,650,825)

$

—

$

—

$

14,191,046

14,191,046

$

5,007

Total

Affiliated

Securities

...

$110,460,274

$142,381,597

$(238,650,825)

$—

$—

$14,191,046

$5,007

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$4,246,977

Long

term

................................................................................

17,873,543

Total

capital

loss

carryforwards

...............................................................

$22,120,520

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

33

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

(continued)

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2021

and

2020,

was

as

follows:

For

tax

purposes,

the

Fund

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

December

31,

2021,

the

Fund

deferred

late-year

ordinary

losses

of

$26,980,468.

At

December

31,

2021,

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 foreign

currency

transactions,

foreign

capital

gains

tax,

bond

discounts

and

premiums

and

inflation

related

adjustments

on

foreign

securities.

In

accordance

with

U.S.

GAAP

permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

At

the

year

ended

December

31,

2021,

such

reclassifications

were

as

follows:

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2021,

aggregated

$115,150,807

and

$278,928,819,

respectively.

7.

Credit

Risk

At

December

31,

2021,

the

Fund

had

22.3%

of

its

portfolio

invested

in

high

yield

or

other

securities

rated

below

investment

grade

and

unrated

securities,

if

any.

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.

8.

Concentration

of

Risk

Investments

in

issuers

domiciled

or

with

significant

operations

in

developing

or

emerging

market

countries

may

be

subject

to

higher

risks

than

investments

in

developed

countries.

These

risks

include

fluctuating

currency

values,

underdeveloped

legal

or

business

systems,

and

changing

local

and

regional

economic,

political

and

social

conditions,

which

may

result

in

greater

2021

2020

Distributions

paid

from:

Ordinary

income

..........................................................

$—

$130,802

Return

of

capital

...........................................................

9,846,960

9,909,615

$9,846,960

$10,040,417

Cost

of

investments

..........................................................................

$51,607,171

Unrealized

appreciation

........................................................................

$3,615,638

Unrealized

depreciation

........................................................................

(4,685,661)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(1,070,023)

Paid-in

Capital

..............................................................................

Total

distributable

earnings

(loss)

................................................................

$(17,107,952)

$17,107,952

5.

Income

Taxes

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

34

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

(continued)

market

volatility.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

Currencies

of

developing

or

emerging

market

countries

may

be

subject

to

significantly

greater

risks

than

currencies

of

developed

countries,

including

the

potential

inability

to

repatriate

those

currencies

into

U.S.

dollars.

At

December

31,

2021,

the

Fund

had

2.6%

of

its

net

assets

denominated

in

Argentine

Pesos. Argentina

has

restricted

currency

repatriation

since

September

2019,

and

had

restructured

certain

issues

of

its

debt.

Political

and

economic

conditions

in

Argentina

could

continue

to

affect

the

value

of

the

Fund's

holdings.

9.

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 Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

10.

Other

Derivative

Information

At

December

31,

2021,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

For

the

year

ended

December

31,

2021,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

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

International

Bond

Fund

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

$

2,408,278

Unrealized

depreciation

on

OTC

forward

exchange

contracts

$

1,047,883

Total

....................

$2,408,278

$1,047,883

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

International

Bond

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Investments

$(3,560,282)

a

Investments

$1,634,373

a

Written

options

434,042

Written

options

(8,479)

Forward

exchange

contracts

(12,101,030)

Forward

exchange

contracts

13,165,098

Total

.......................

$(15,227,270)

$14,790,992

a

Purchased

option

contracts

are

included

in

net

realized

gain

(loss)

from

investments

and

net

change

in

unrealized

appreciation

(depreciation)

on

investments

in

the

Statement

of

Operations.

8.

Concentration

of

Risk

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

35

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

(continued)

For

the

year

ended

December

31,

2021,

the

average

month

end

notional

amount

of

options

represented

$182,266,819.

The

average

month

end

contract

value

of

forward

exchange

contracts

was

$368,119,865.

At

December

31,

2021,

the

Fund's

OTC

derivative

assets

and

liabilities

are

as

follows:

At

December

31,

2021,

OTC

derivative

assets,

which

may

be

offset

against

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

Gross

Amounts

of

Assets

and

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Assets

a

Liabilities

a

Templeton

International

Bond

Fund

Derivatives

Forward

exchange

contracts

.............................

$

2,408,278

$

1,047,883

Total

.............................................

$2,408,278

$1,047,883

a

Absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

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,b

Cash

Collateral

Received

b

Net

Amount

(Not

less

than

zero)

Templeton

International

Bond

Fund

Counterparty

BOFA

....................

$20,897

$—

$—

$—

$20,897

CITI

.....................

778,000

(348,671)

—

(429,329)

—

DBAB

...................

387,666

(196,719)

(190,947)

—

—

GSCO

...................

20,395

(20,395)

—

—

—

HSBK

...................

520,744

(108,139)

(262,729)

—

149,876

JPHQ

...................

572,694

(245,647)

(312,548)

—

14,499

MSCO

...................

61,755

—

—

(50,000)

11,755

SCNY

...................

46,127

(5,431)

—

—

40,696

Total

...................

$2,408,278

$(925,002)

$

(766,224)

$(479,329)

$237,723

$

1

10.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

36

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

(continued)

At

December

31,

2021,

OTC

derivative

liabilities,

which

may

be

offset

against

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

See

Note

1(c)

regarding

derivative

financial

instruments. 

See

Abbreviations

on

page

39

.

11.

Credit

Facility

The

Fund,

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

4,

2022.

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

4,

2022,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

3,

2023,

for

a

total

of

$2.675

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

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

Statement

of

Operations.

During

the

year

ended

December

31,

2021,

the Fund

did

not

use

the

Global

Credit

Facility.

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

BOFA

....................

$—

$—

$—

$—

$—

CITI

.....................

348,671

(348,671)

—

—

—

DBAB

...................

196,719

(196,719)

—

—

—

GSCO

...................

143,276

(20,395)

—

(122,881)

—

HSBK

...................

108,139

(108,139)

—

—

—

JPHQ

...................

245,647

(245,647)

—

—

—

MSCO

...................

—

—

—

—

—

SCNY

...................

5,431

(5,431)

—

—

—

Total

...................

$1,047,883

$(925,002)

$—

$(122,881)

$—

a

At

December

31,

2021

the

Fund

received

U.S.

Treasury

Bills,

Bonds

and

Notes

and

U.K

Treasury

Inflation-Linked

Gilt

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

the

effect

of

overcollateralization.

Actual

collateral

received

and/or

pledged

may

be

more

than

the

amounts

disclosed

herein.

10.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

37

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

(continued)

12.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's 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

Fund's

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,

2021,

in

valuing

the

Fund's

assets

and

liabilities

carried

at

fair

value,

is

as

follows:

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,

2021,

the

reconciliation

is

as

follows:

Level

1

Level

2

Level

3

Total

Templeton

International

Bond

Fund

Assets:

Investments

in

Securities:

Foreign

Government

and

Agency

Securities

....

$

—

$

33,593,972

$

—

$

33,593,972

Short

Term

Investments

...................

14,191,046

1,391,735

—

15,582,781

Total

Investments

in

Securities

...........

$14,191,046

$34,985,707

$—

$49,176,753

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

2,408,278

$

—

$

2,408,278

Restricted

Currency

(ARS)

.................

—

951

—

951

Total

Other

Financial

Instruments

.........

$—

$2,409,229

$—

$2,409,229

Receivables:

Interest

(ARS)

...........................

$—

$5,253

$—

$5,253

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

1,047,883

$

—

$

1,047,883

Templeton

Income

Trust

Notes

to

Financial

Statements

38

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

(continued)

13.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

14.

Subsequent

Events

The

Fund

has

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.

Balance

at

Beginning

of

Year

Purchases

Sales

Transfer

Into

Level

3

Transfer

Out

of

Level

3

a

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

International

Bond

Fund

Assets:

Investments

in

Securities:

Foreign

Government

and

Agency

Securities

:

Argentina

....

$

5,206,443

$

—

$

—

$

—

$

(5,206,443)

$

—

$

—

$

—

$

—

$

—

Short

Term

Investments

..

385,343

—

—

—

(385,343)

—

—

—

—

—

Total

Investments

in

Securities

.......

$5,591,786

$—

$—

$—

$(5,591,786)

$—

$—

$—

$—

$—

Other

Financial

Instruments:

Restricted

Currency

(ARS)

......

$408

$—

$—

$—

$(408)

$—

$—

$—

$—

$—

Receivables:

Interest

(ARS)

.

$113,485

$—

$—

$—

$(113,485)

$—

$—

$—

$—

$—

Liabilities:

Payables:

Investment

Securities

Purchased

(ARS)

$59,932

$—

$—

$—

$(59,932)

$—

$—

$—

$—

$—

Deferred

Tax

(ARS)

$116

$—

$—

$—

$(116)

$—

$—

$—

$—

$—

a

Transfers

out

of

level

3

were

a

result

of

changes

in

the

levels

of

observable

liquidity

and

the

improved

reliability

of

a

significant

input.

12.

Fair

Value

Measurements

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

39

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

(continued)

Abbreviations

Counterparty

BOFA

Bank

of

America

Corp.

CITI

Citibank

NA

DBAB

Deutsche

Bank

AG

GSCO

Goldman

Sachs

Group,

Inc.

HSBK

HSBC

Bank

plc

JPHQ

JPMorgan

Chase

Bank

NA

MSCO

Morgan

Stanley

SCNY

Standard

Chartered

Bank

Selected

Portfolio

CER

Reference

Stabilization

Coefficient

Cu

r

rency

ARS

Argentine

Peso

AUD

Australian

Dollar

BRL

Brazilian

Real

CAD

Canadian

Dollar

COP

Colombian

Peso

EUR

Euro

GHS

Ghanaian

Cedi

IDR

Indonesian

Rupiah

INR

Indian

Rupee

JPY

Japanese

Yen

KRW

South

Korean

Won

NOK

Norwegian

Krone

SEK

Swedish

Krona

SGD

Singapore

Dollar

THB

Thai

Baht

Templeton

Income

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

40

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Templeton

Income

Trust

and

Shareholders

of

Templeton

International

Bond

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

statement

of

investments,

of

Templeton

International

Bond

Fund

(one

of

the

funds

constituting

Templeton

Income

Trust,

referred

to

hereafter

as

the

"Fund")

as

of

December

31,

2021,

the

related

statement

of

operations

for

the

year

ended

December

31,

2021,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2021,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

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

Fund

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,

2021

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,

2022

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)

41

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

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

Fund

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,

2021:

Amount

Reported

Foreign

Taxes

Paid

$410,283

Foreign

Source

Income

Earned

$10,137,789

Templeton

Income

Trust

Board

Members

and

Officers

42

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

120

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

Capital

Corporation

(specialty

finance

company)

(2010-present),

United

Natural

Foods,

Inc.

(distributor

of

natural,

organic

and

specialty

foods)

(2013-present),

formerly

,

Allied

Capital

Corporation

(financial

services)

(2003-

2010),

SLM

Corporation

(Sallie

Mae)

(1997-2014)

and

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).

Mary

C.

Choksi

(1950)

Trustee

Since

2016

121

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

43

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

121

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

121

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

(May

2019-January

1,

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

121

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

44

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).

Robert

E.

Wade

(1946)

Trustee

Since

2006

30

El

Oro

Ltd

(investments)

(2003-

2019).

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Attorney

at

law

engaged

in

private

practice

as

a

sole

practitioner

(1972-2008)

and

member

of

various

boards.

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)

Trustee

Since

2007

132

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)

Chairman

of

the

Board,

Trustee

and

Vice

President

Chairman

of

the

Board

and

Trustee

since

2013

and

Vice

President

since

1996

121

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

45

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;

Vice

President,

FASA,

LLC;

Assistant

Secretary,

Franklin

Distributors,

LLC;

and

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

July

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.

Craig

S.

Tyle

(1960)

Vice

President

Since

2005

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

General

Counsel

and

Executive

Vice

President,

Franklin

Resources,

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.

Interested

Board

Members

and

Officers

(continued)

Templeton

Income

Trust

46

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.

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

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.

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:

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

47

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

Statement

of

Investments

The

Trust,

on

behalf

of

the

Fund,

files

a

complete

statement

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

as

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.

447

A

02/22

©

2022

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

International

Bond

Fund

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 $352,867 for the fiscal year ended December 31, 2021 and $412,141 for the fiscal year ended December 31, 2020.

(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.

There were no 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.

(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 $14,503 for the fiscal year ended December 31, 2021 and $0 for the fiscal year ended December 31, 2020.  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 $90,743 for the fiscal year ended December 31, 2021 and $49,800 for the fiscal year ended December 31, 2020.  The services for which these fees were paid included issuance of an Auditors' Certificate for South Korean regulatory shareholder disclosures, 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, assets under management certification, 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 $105,246 for the fiscal year ended December 31, 2021 and $49,800 for the fiscal year ended December 31, 2020.

(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.

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

(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 28, 2022

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 28, 2022

By S\Christopher Kings________________________

     Christopher Kings

     Chief Financial Officer, Chief Accounting Officer and Treasurer

Date February 28, 2022