UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-04706

Templeton Income Trust

(Exact name of registrant as specified in charter)

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

(Address of principal executive offices)(Zip code)

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

(Name and address of agent for service)

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

Date of fiscal year end: 12/31

Date of reporting period: 12/31/23

Item 1. Reports to Stockholders.

a.)

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

b.)

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

Not Applicable

.

Annual

Report

and

Shareholder

Letter

Templeton

Income

Trust

December

31,

2023

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

.

The

Securities

and

Exchange

Commission

has

adopted

new

regulations

that

will

result

in

changes

to

the

design

and

delivery

of

annual

and

semiannual

shareholder

reports

beginning

in

July

2024.

If

you

have

previously

elected

to

receive

shareholder

reports

electronically,

you

will

continue

to

do

so

and

need

not

take

any

action.

Otherwise,

paper

copies

of

the

Fund’s

shareholder

reports

will

be

mailed

to

you

beginning

in

July

2024.

If

you

would

like

to

receive

shareholder

reports

and

other

communications

from

the

Fund

electronically

instead

of

by

mail,

you

may

make

that

request

at

any

time

by

contacting

your

financial

intermediary

(such

as

a

broker-dealer

or

bank)

or,

if

you

are

a

direct

investor,

enrolling

at

franklintempleton.com.

You

may

access

franklintempleton.com

by

scanning

the

code

below.

Templeton

Income

Trust

1

franklintempleton.com

Annual

Report

SHAREHOLDER

LETTER

Dear

Shareholder,

We

are

pleased

to

provide

the

annual

report

of

Templeton

Income

Trust

for

the

12-month

reporting

period

ended

December

31,

2023.

Please

read

on

for

a

detailed

look

at

prevailing

economic

and

market

conditions

during

the

Funds’

reporting

period

and

to

learn

how

those

conditions

have

affected

Fund

performance.

As

always,

we

remain

committed

to

providing

you

with

excellent

service

and

a

full

spectrum

of

investment

choices.

We

also

remain

committed

to

supplementing

the

support

you

receive

from

your

financial

advisor.

One

way

we

accomplish

this

is

through

our

website,

www.franklintempleton.com

.

Here

you

can

gain

immediate

access

to

market

and

investment

information,

including:

•

Fund

prices

and

performance.

•

Market

insights

and

commentaries

from

our

portfolio

managers,

and

•

A

host

of

educational

resources.

We

look

forward

to

helping

you

meet

your

financial

goals.

Sincerely,

Michael

Hasenstab,

Ph.D.

Executive

Vice

President,

Chief

Investment

Officer

of

Templeton

Global

Macro

franklintempleton.com

Annual

Report

2

Contents

Funds’

Overview

3

Templeton

Global

Bond

Fund

4

Templeton

Global

Total

Return

Fund

10

Templeton

International

Bond

Fund

16

Templeton

Sustainable

Emerging

Markets

Bond

Fund

22

Financial

Highlights

and

Schedules

of

Investments

28

Financial

Statements

73

Notes

to

Financial

Statements

79

Report

of

Independent

Registered

Public

Accounting

Firm

105

Tax

Information

106

Board

Members

and

Officers

107

Shareholder

Information

112

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

Funds’

Overview

Q.

What

were

the

overall

market

conditions

during

the

Fund’s

reporting

period?

A.

Inflation

rates

in

most

countries

peaked,

and

in

many

cases

fell

sharply

from

the

multi-year

(and

in

some

cases,

multi-decade)

highs

that

had

been

reached

during

2022.

Core

inflation

measures,

which

usually

exclude

volatile

food

and

energy

prices,

were

stickier

due

to

services

prices,

but

by

year-end

most

of

these

had

shown

sharp

deceleration,

too.

In

response

to

inflation

developments,

the

monetary

policy

pivot

away

from

tightening

became

increasingly

clear

over

the

course

of

the

year

and

it

was

seemingly

confirmed

by

the

U.S.

Federal

Reserve

(Fed)

by

signaling

a

pause

at

its

December

2023

policy

meeting.

The

year

had

been

characterized

by

continued

deceleration

in

the

pace

of

interest-rate

hikes

and

some

pausing

amongst

developed

market

central

banks,

with

certain

emerging

markets

(particularly

those

who

had

been

early

and/or

aggressive

movers

during

the

upcycle)

embarking

on

rate

cuts.

In

bond

markets,

the

U.S.

10-year

yield

was

unchanged

over

the

course

of

the

year,

but

most

other

sovereign

bond

yields

fell.

Japanese

bond

yields,

however,

rose,

as

the

Bank

of

Japan

loosened

its

yield

curve

control

policy

over

the

course

of

the

year.

Concerns

about

global

growth

remained.

Growth

rates

remained

positive,

but

major

economies

have

been

slowing

more

recently.

The

U.S.

dollar

(USD)

largely

moved

sideways

over

the

year,

softening

somewhat

on

a

year-end-to-year-end

basis.

Currency

performances

were

mixed,

but

in

general

European

and

Latin

American

currencies

appreciated

against

the

USD,

while

those

in

Asia

depreciated.

Policy

tightening

during

the

course

of

2023

exposed

some

structural

risks

associated

with

prior

large

fiscal

spending

and

excessive

monetary

accommodation,

manifesting

in

the

form

of

banking

problems

in

the

U.S.

and

Europe,

and

debt

restructurings

in

some

frontier

markets.

However,

these

did

not

lead

to

wider

market

disruptions.

Q.

How

did

we

respond

to

these

changing

market

conditions?

A.

We

continued

to

aim

for

a

high

overall

portfolio

yield

by

holding

higher-yielding

local-currency

positions

in

specific

emerging

markets.

We

have

emphasized

select

local-

currency

sovereign

bonds

in

countries

that

we

view

as

having

resilient

fundamentals.

As

the

year

progressed,

we

identified

the

countries

we

considered

most

likely

to

benefit

from

the

trends

described

above,

such

as

those

countries

in

Latin

America

who

had

previously

been

aggressive

responders

to

rising

inflation

and

stayed

ahead

of

the

curve,

thus

placing

themselves

in

a

relatively

strong

policy

position

for

when

the

rate

cycle

turned.

In

sovereign

bonds,

we

extended

duration

in

select

countries

where

we

saw

opportunity

from

inflation

and

interest-rate

cycles

rolling

over,

or

where

we

saw

improving

fundamentals

in

a

range

of

factors

from

fiscal

progress

to

reshoring.

In

foreign

exchange

exposure,

we

considered

countries

whose

currencies

were

likely

to

benefit

from

changing

growth

and

interest

rate

differentials

against

the

U.S.

dollar

and

which

also

had

solid

fundamental

support,

with

overweighted

currency

exposures

focused

on

countries

that

generally

have

strong

trade

dynamics,

current

account

surpluses,

better

fiscal

management

and

stronger

growth

potential,

notably

in

Asia.

Along

with

extending

duration

where

deemed

appropriate,

we

also

took

profit

in

some

positions

as

cycles

turned.

Near

the

end

of

the

year

when

it

became

clearer

that

the

Fed

had

reached

a

peak

in

rates,

we

identified

specific

opportunities

in

the

emerging

market

sovereign

credit

space.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

December

31,

2023.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

4

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

Fund

Overview

Q.

What

is

the

Fund's

investment

strategy?

A.

The

Fund

seeks

current

income

with

capital

appreciation

and

growth

of

income.

We

invest

selectively

in

bonds

around

the

world

based

upon

our

assessment

of

changing

market,

political

and

economic

conditions.

While

seeking

opportunities,

we

monitor

various

factors

including

changes

in

interest

rates,

currency

exchange

rates

and

credit

risks.

For

purposes

of

pursuing

its

investment

goals,

the

Fund

regularly

enters

into

various

currency-related

transactions

involving

derivative

instruments,

principally

currency

and

cross

currency

forwards,

but

it

may

also

use

currency

and

currency

index

futures

contracts

and

currency

options.

Performance

Overview

For

the

12

months

under

review,

the

Fund’s

Class

A

shares

posted

a

+2.43%

cumulative

total

return.

In

comparison,

global

government

bonds,

as

measured

by

the

Fund’s

benchmark,

the

FTSE

World

Government

Bond

Index

(WGBI),

which

measures

the

performance

of

fixed-rate,

local

currency,

investment-grade

sovereign

bonds

and

is

stated

in

U.S.

dollar

terms,

had

a

cumulative

total

return

of

+5.19%

in

U.S.

dollar

terms

for

the

same

period.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

6

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Q.

What

were

the

leading

contributors

to

performance?

A.

Interest-rate

strategies

contributed

to

absolute

performance

in

2023.

Duration

exposures

in

Colombia,

Brazil

and

Indonesia

contributed

to

absolute

performance.

Among

currencies,

positions

in

the

Colombian

peso

and

Brazilian

real

contributed

to

absolute

results.

Among

currencies,

overweighted

positions

in

the

Colombian

peso

and

Brazilian

real

contributed

to

relative

results.

In

interest-rate

strategies,

overweighted

duration

exposures

in

Colombia,

Brazil

and

Indonesia

contributed

to

relative

performance.

Q.

What

were

the

leading

detractors

from

performance?

A.

Currency

positions

detracted

from

absolute

results

in

2023.

Positions

in

the

Japanese

yen

and

South

Korean

won

detracted

from

absolute

performance.

Currency

positions

detracted

from

relative

performance

in

2023.

Overweighted

positions

in

the

Japanese

yen

and

South

Korean

won

detracted

from

relative

performance,

as

did

the

Fund’s

underweighted

exposure

to

the

euro.

In

interest-rate

strategies,

underweighted

duration

exposures

in

the

euro

area

and

the

U.S.

detracted

from

relative

results.

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

The

duration

of

the

Fund

increased

significantly

over

the

course

of

the

year,

although

it

remained

somewhat

underweight

the

index

by

year-end.

Over

the

course

of

the

year,

we

closed

out

our

positions

in

the

Chinese

yuan

and

the

Canadian

dollar.

We

added

new

local

currency

positions

in

Australia

and

Malaysia.

We

also

added

a

hard

currency

position

in

Panama.

We

closed

out

our

prior

net

negative

exposure

to

the

euro,

once

that

Portfolio

Composition

12/31/23

%

of

Total

Net

Assets

Foreign

Government

and

Agency

Securities

74.2%

U.S.

Government

and

Agency

Securities

10.3%

Options

Purchased

0.1%

Short-Term

Investments

&

Other

Net

Assets

*

15.4%

*

Includes

foreign

government

and

agency

securities,

money

market

funds

and

other

net

assets

(including

derivatives).

Geographic

Composition

12/31/23

%

of

Total

Net

Assets

Asia

Pacific

46.9%

Americas

31.2%

Other

Europe

2.8%

EMU

2.5%

Middle

East

&

Africa

1.2%

Short-Term

Investments

&

Other

Net

Assets

15.4%

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.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

33

.

Templeton

Global

Bond

Fund

5

franklintempleton.com

Annual

Report

currency

had

depreciated

significantly,

and

opened

a

new

euro

position

in

German

bonds.

We

reduced

our

positions

in

the

Norwegian

krone,

South

Korean

won,

Brazilian

real

and

Chilean

peso

(this

last-mentioned

after

a

closed

position

and

tactical

re-entry

during

the

period)

but

increased

the

Fund’s

positions

in

the

Colombian

peso

and

Mexican

peso.

We

switched

part

of

our

Japanese

bond

holdings

into

foreign

exchange

forwards.

We

extended

duration

in

a

number

of

countries,

including

in

select

Asian

and

Latin

American

countries

as

well

as

in

the

U.S.

Our

Ghanaian

bonds

were

exchanged

for

new

securities

as

part

of

Ghana’s

debt

restructuring

exercise.

Thank

you

for

your

continued

participation

in

Templeton

Global

Bond

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Michael

Hasenstab,

Ph.D.

Lead

Portfolio

Manager

Calvin

Ho,

Ph.D.

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2023,

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,

2023

Templeton

Global

Bond

Fund

6

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/23

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

+2.43%

-1.44%

5-Year

-12.22%

-3.31%

10-Year

-6.00%

-0.99%

Advisor

1-Year

+2.71%

+2.71%

5-Year

-11.06%

-2.32%

10-Year

-3.54%

-0.36%

See

page

8

for

Performance

Summary

footnotes.

Templeton

Global

Bond

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

See

page

8

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/13–12/31/23)

Advisor

Class

(12/31/13–12/31/23)

Templeton

Global

Bond

Fund

Performance

Summary

8

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Derivative

instruments

can

be

illiquid,

may

disproportionately

increase

losses,

and

have

a

potentially

large

impact

on

performance.

Liquidity

risk

exists

when

securities

or

other

investments

become

more

difficult

to

sell,

or

are

unable

to

be

sold,

at

the

price

at

which

they

have

been

valued.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

prin-

cipal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

Low-rated,

high-yield

bonds

are

subject

to

greater

price

volatility,

illiquidity

and

possibility

of

default.

Changes

in

the

credit

rating

of

a

bond,

or

in

the

credit

rating

or

financial

strength

of

a

bond’s

issuer,

insurer

or

guarantor,

may

affect

the

bond’s

value.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Source:

FactSet.

The

FTSE

WGBI

measures

the

performance

of

fixed-rate,

local

currency,

investment-grade

sovereign

bonds

and

is

stated

in

U.S.

dollar

terms.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

Distributions

(1/1/23–12/31/23)

Share

Class

Tax

Return

of

Capital

A

$0.2999

C

$0.2672

R

$0.2806

R6

$0.3299

Advisor

$0.3192

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.96%

0.99%

Advisor

0.72%

0.75%

Your

Fund’s

Expenses

Templeton

Global

Bond

Fund

9

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/23

Ending

Account

Value

12/31/23

Expenses

Paid

During

Period

7/1/23–12/31/23

1,2

Ending

Account

Value

12/31/23

Expenses

Paid

During

Period

7/1/23–12/31/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,037.00

$4.67

$1,020.62

$4.63

0.91%

C

$1,000

$1,034.60

$6.72

$1,018.60

$6.67

1.31%

R

$1,000

$1,035.70

$5.95

$1,019.36

$5.90

1.16%

R6

$1,000

$1,037.90

$2.77

$1,022.48

$2.75

0.54%

Advisor

$1,000

$1,038.50

$3.40

$1,021.87

$3.37

0.66%

10

franklintempleton.com

Annual

Report

Templeton

Global

Total

Return

Fund

Fund

Overview

Q.

What

is

the

Fund's

investment

strategy?

A.

The

Fund

seeks

total

investment

return

consisting

of

a

combination

of

interest

income,

capital

appreciation

and

currency

gains.

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.

Performance

Overview

For

the

12

months

under

review,

the

Fund’s

Class

A

shares

posted

a

+5.88%

cumulative

total

return.

In

comparison,

the

global

fixed

income

market,

as

measured

by

the

Fund’s

benchmark,

the

Bloomberg

Multiverse

Index,

posted

a

+6.05%

cumulative

total

return

for

the

same

period.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

12

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Q.

What

were

the

leading

contributors

to

performance?

A.

Interest-rate

strategies

contributed

to

the

Fund’s

absolute

performance

in

2023.

Duration

exposures

in

Colombia,

Brazil,

Hungary

and

Indonesia

contributed

to

absolute

results.

Overall

credit

exposures

also

contributed

to

absoluter

performance,

due

to

exposure

to

sub-investment

grade

sovereign

credits.

Among

currencies,

positions

in

the

Colombian

peso

and

Brazilian

real

contributed

to

absolute

returns.

Interest-rate

strategies

contributed

to

the

Fund’s

relative

performance

in

2023.

Overweighted

duration

exposures

in

Colombia,

Brazil,

Hungary,

and

Indonesia

contributed

to

relative

performance.

Among

credit

exposures,

overweighted

exposure

to

sub-

investment

grade

sovereign

credits

contributed.

Among

currencies,

overweighted

positions

in

the

Colombian

peso,

Brazilian

real

and

Chilean

peso

contributed

to

relative

results.

Q.

What

were

the

leading

detractors

from

performance?

A.

In

interest-rate

strategies,

duration

exposure

in

Ghana

detracted

from

absolute

performance.

Among

currencies,

positions

in

the

Japanese

yen

and

South

Korean

won

detracted

from

absolute

results.

Overall

credit

exposures

detracted

from

relative

return.

Underweighted

exposure

to

investment-grade

corporate

bonds

detracted

from

relative

performance.

Among

currencies,

overweighted

positions

in

the

Japanese

yen

and

South

Korean

won

detracted

from

relative

performance,

as

did

the

Fund’s

underweighted

exposure

to

the

euro.

In

interest-rate

strategies,

overweighted

duration

exposure

in

Ghana

and

underweighted

duration

exposures

in

the

euro

area

and

the

U.S.

detracted

from

relative

results.

Portfolio

Composition

12/31/23

%

of

Total

Net

Assets

Foreign

Government

and

Agency

Securities

82.6%

U.S.

Government

and

Agency

Securities

7.3%

Other

*,†

0.0%

Options

Purchased

0.1%

Short-Term

Investments

&

Other

Net

Assets

‡

10.0%

*

Includes

financial

instruments

determined

to

have

no

value.

†

Categories

within

the

Other

category

are

listed

in

full

in

the

Fund’s

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

‡

Includes

foreign

government

and

agency

securities,

money

market

funds

and

other

net

assets

(including

derivatives).

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.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

45

.

Templeton

Global

Total

Return

Fund

11

franklintempleton.com

Annual

Report

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

The

duration

of

the

Fund

increased

significantly

over

the

course

of

the

year,

although

it

remained

somewhat

underweight

the

index

by

year-end.

Over

the

course

of

the

year,

we

closed

out

our

positions

in

the

Chinese

yuan,

the

Canadian

dollar

and

the

Chilean

peso.

We

added

a

new

local

currency

position

in

Australia.

We

also

added

a

hard

currency

position

in

Panama

but

reduced

our

hard

currency

position

in

Ecuador.

We

closed

out

our

prior

net

negative

exposure

to

the

euro,

once

that

currency

had

depreciated

significantly,

and

opened

a

new

euro

position

in

German

bonds.

We

reduced

our

positions

in

the

South

Korean

won

and

Brazilian

real,

but

increased

the

Fund’s

positions

in

the

Malaysian

ringgit,

Hungarian

forint

and

Mexican

peso.

We

switched

our

Japanese

bond

holdings

into

foreign

exchange

forwards.

We

extended

duration

in

a

number

of

countries,

including

in

select

Asian

and

Latin

American

countries

as

well

as

in

the

U.S.

Our

Ghanaian

bonds

were

exchanged

for

new

securities

as

part

of

Ghana’s

debt

restructuring

exercise.

Thank

you

for

your

continued

participation

in

Templeton

Global

Total

Return

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Michael

Hasenstab,

Ph.D.

Lead

Portfolio

Manager

Calvin

Ho,

Ph.D.

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2023,

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.

Geographic

Composition

12/31/23

%

of

Total

Net

Assets

Asia

Pacific

34.2%

Americas

34.1%

Other

Europe

9.4%

Middle

East

&

Africa

6.2%

Supranational

3.2%

EMU

2.9%

Short-Term

Investments

&

Other

Net

Assets

10.0%

Performance

Summary

as

of

December

31,

2023

Templeton

Global

Total

Return

Fund

12

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/23

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

+5.88%

+1.90%

5-Year

-16.04%

-4.17%

10-Year

-9.13%

-1.33%

Advisor

1-Year

+6.13%

+6.13%

5-Year

-14.94%

-3.18%

10-Year

-6.72%

-0.69%

See

page

14

for

Performance

Summary

footnotes.

Templeton

Global

Total

Return

Fund

Performance

Summary

13

franklintempleton.com

Annual

Report

See

page

14

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/13–12/31/23)

Advisor

Class

(12/31/13–12/31/23)

Templeton

Global

Total

Return

Fund

Performance

Summary

14

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

Derivative

instruments

can

be

illiquid,

may

dispropor-

tionately

increase

losses,

and

have

a

potentially

large

impact

on

performance.

Liquidity

risk

exists

when

securities

or

other

investments

become

more

difficult

to

sell,

or

are

unable

to

be

sold,

at

the

price

at

which

they

have

been

valued.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

Changes

in

the

credit

rating

of

a

bond,

or

in

the

credit

rating

or

financial

strength

of

a

bond’s

issuer,

insurer

or

guarantor,

may

affect

the

bond’s

value.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Source:

FactSet.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high

yield

securities

in

all

eligible

currencies.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

Distributions

(1/1/23–12/31/23)

Share

Class

Tax

Return

of

Capital

A

$0.4096

C

$0.3805

R

$0.3916

R6

$0.4380

Advisor

$0.4270

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

1.16%

1.18%

Advisor

0.91%

0.94%

Your

Fund’s

Expenses

Templeton

Global

Total

Return

Fund

15

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/23

Ending

Account

Value

12/31/23

Expenses

Paid

During

Period

7/1/23–12/31/23

1,2

Ending

Account

Value

12/31/23

Expenses

Paid

During

Period

7/1/23–12/31/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,052.40

$5.93

$1,019.43

$5.84

1.15%

C

$1,000

$1,051.80

$8.01

$1,017.40

$7.87

1.55%

R

$1,000

$1,051.00

$7.21

$1,018.18

$7.09

1.39%

R6

$1,000

$1,054.40

$4.04

$1,021.27

$3.98

0.78%

Advisor

$1,000

$1,053.60

$4.65

$1,020.68

$4.57

0.90%

16

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

Fund

Overview

Q.

What

is

the

Fund's

investment

strategy?

A.

The

Fund

seeks

current

income

with

capital

appreciation

and

growth

of

income.

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).

Performance

Overview

For

the

12

months

under

review,

the

Fund’s

Class

A

shares

posted

a

+2.80%

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

+5.83%

in

U.S.

dollar

terms

for

the

same

period.

1

You

can

find

more

of

the

Fund’s

performance

data

in

the

Performance

Summary

beginning

on

page

18

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Q.

What

were

the

leading

contributors

to

performance?

A.

Interest-rate

strategies

contributed

to

absolute

performance

in

2023.

Duration

exposures

in

Brazil,

Colombia,

Mexico,

and

Indonesia

contributed

to

absolute

returns.

Among

currencies,

positions

in

the

Colombian

peso

and

Brazilian

real

contributed

to

absolute

results.

In

interest-rate

strategies,

overweighted

duration

exposures

in

Brazil,

Colombia,

Mexico

and

Indonesia

contributed

to

relative

returns.

Among

currencies,

overweighted

positions

in

the

Colombian

peso

and

Brazilian

real

contributed

to

relative

results.

Q.

What

were

the

leading

detractors

from

performance?

A.

Currency

positions

detracted

from

absolute

performance

in

2023.

Positions

in

the

Japanese

yen

and

South

Korean

won

detracted

from

absolute

results.

In

interest-rate

strategies,

duration

exposure

to

Ghana

detracted

from

absolute

returns.

Currency

positions

detracted

from

relative

performance

in

2023.

Overweighted

positions

in

the

Japanese

yen

and

South

Korean

won

detracted

from

relative

results,

as

did

an

underweighted

position

in

the

euro.

In

interest-rate

strategies,

underweighted

duration

exposure

in

the

euro

area

and

overweighted

duration

exposure

to

Ghana

detracted

from

relative

returns.

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

The

duration

of

the

Fund

increased

significantly

over

the

course

of

the

year,

although

it

remained

underweight

the

index

by

year-end.

Over

the

course

of

the

year,

we

closed

out

our

positions

in

the

Chinese

yuan

and

the

Canadian

dollar.

We

added

a

new

local

currency

position

in

Malaysia.

We

also

added

a

Portfolio

Composition

12/31/23

%

of

Total

Net

Assets

Foreign

Government

and

Agency

Securities

73.7%

Options

Purchased

0.3%

Short-Term

Investments

&

Other

Net

Assets

*

26.0%

*

Includes

foreign

government

and

agency

securities,

money

market

funds

and

other

net

assets

(including

derivatives).

Geographic

Composition

12/31/23

%

of

Total

Net

Assets

Asia

33.5%

Latin

America

&

Caribbean

27.1%

Australia

&

New

Zealand

9.5%

Europe

2.8%

Middle East & Africa

1.1%

Short-Term

Investments

&

Other

Net

Assets

26.0%

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.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

58

.

Templeton

International

Bond

Fund

17

franklintempleton.com

Annual

Report

hard

currency

position

in

Panama.

We

closed

out

our

prior

net

negative

exposure

to

the

euro,

once

that

currency

had

depreciated

significantly,

and

opened

a

new

euro

position

in

German

bonds.

We

reduced

our

positions

in

the

Norwegian

krone,

South

Korean

won,

Brazilian

real

and

Chilean

peso

(this

last-mentioned

after

a

closed

position

and

tactical

re-

entry

during

the

period),

but

increased

the

Fund’s

positions

in

the

Australian

dollar,

Colombian

peso

and

Mexican

peso.

We

switched

part

of

our

Japanese

bond

holdings

into

foreign

exchange

forwards.

We

extended

duration

in

a

number

of

countries,

including

in

select

Asian

and

Latin

American

countries.

Our

Ghanaian

bonds

were

exchanged

for

new

securities

as

part

of

Ghana’s

debt

restructuring

exercise.

Thank

you

for

your

continued

participation

in

Templeton

International

Bond

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Michael

Hasenstab,

Ph.D.

Lead

Portfolio

Manager

Calvin

Ho,

Ph.D.

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2023,

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,

2023

Templeton

International

Bond

Fund

18

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/23

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

+2.80%

-1.11%

5-Year

-13.23%

-3.55%

10-Year

-11.53%

-1.59%

Advisor

1-Year

+3.05%

+3.05%

5-Year

-12.24%

-2.58%

10-Year

-9.35%

-0.98%

See

page

20

for

Performance

Summary

footnotes.

Templeton

International

Bond

Fund

Performance

Summary

19

franklintempleton.com

Annual

Report

See

page

20

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/13–12/31/23)

Advisor

Class

(12/31/13–12/31/23)

Templeton

International

Bond

Fund

Performance

Summary

20

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Derivative

instruments

can

be

illiquid,

may

disproportionately

increase

losses,

and

have

a

potentially

large

impact

on

performance.

Liquidity

risk

exists

when

securities

or

other

investments

become

more

difficult

to

sell,

or

are

unable

to

be

sold,

at

the

price

at

which

they

have

been

valued.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

Changes

in

the

credit

rating

of

a

bond,

or

in

the

credit

rating

or

financial

strength

of

a

bond’s

issuer,

insurer

or

guarantor,

may

affect

the

bond’s

value.

Low-rated,

high-yield

bonds

are

subject

to

greater

price

volatility,

illiquidity

and

possibility

of

default.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Source:

FactSet.

The

FTSE

Non-USD

WGBI

is

a

market

capitalization-weighted

index

consisting

of

investment-grade

world

government

bond

markets;

it

includes

all

WGBI

countries

except

the

U.S.

and

is

stated

in

U.S.

dollar

terms.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

Distributions

(1/1/23–12/31/23)

Share

Class

Tax

Return

of

Capital

A

$0.2943

C

$0.2648

R

$0.2768

R6

$0.3252

Advisor

$0.3118

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

1.09%

1.79%

Advisor

0.84%

1.56%

Your

Fund’s

Expenses

Templeton

International

Bond

Fund

21

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/23

Ending

Account

Value

12/31/23

Expenses

Paid

During

Period

7/1/23–12/31/23

1,2

Ending

Account

Value

12/31/23

Expenses

Paid

During

Period

7/1/23–12/31/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,035.50

$5.45

$1,019.85

$5.41

1.06%

C

$1,000

$1,033.20

$7.55

$1,017.78

$7.49

1.47%

R

$1,000

$1,032.70

$7.16

$1,018.16

$7.11

1.40%

R6

$1,000

$1,038.10

$3.08

$1,022.18

$3.06

0.60%

Advisor

$1,000

$1,035.30

$4.31

$1,020.97

$4.28

0.84%

22

franklintempleton.com

Annual

Report

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Fund

Overview

Q.

What

is

the

Fund's

investment

strategy?

A.

The

Fund

seeks

current

income

with

capital

appreciation

as

a

secondary

goal.

We

invest

selectively

in

bonds

from

emerging

markets

around

the

world

to

seek

to

generate

income

for

the

Fund,

pursuing

opportunities

while

monitoring

changes

in

interest

rates,

currency

exchange

rates

and

credit

risks.

At

least

80%

of

the

Fund’s

net

assets

are

invested

in

or

exposed

to

government

bonds

of

emerging

market

countries

based

on

such

countries’

scores

related

to

environmental,

social

and

governance

considerations.

We

manage

the

Fund’s

exposure

to

derivative

instruments

and

regularly

use

currency

and

contracts

and

may

also

use

currency

and

currency

index

futures

contracts

and

currency

options.

We

may

also

use

other

derivative

instruments,

such

as

interest

rate/bond

futures

contracts

and

swap

agreements.

Performance

Overview

For

the

12

months

under

review,

the

Fund’s

Class

A

shares

posted

a

+12.13%

cumulative

total

return.

In

comparison,

U.S.

dollar-denominated

emerging

market

bonds,

as

measured

by

the

Fund’s

benchmark,

the

J.P.

Morgan

(JPM)

Government

Bond

Index-Emerging

Markets

(GBI-EM)

Global

Diversified

Index,

posted

a

+12.70%

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

in

the

Performance

Summary

beginning

on

page

24

.

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

.

Q.

What

were

the

leading

contributors

to

performance?

A.

Currency

positions

contributed

to

the

absolute

performance

of

the

Fund

in

2023.

Positions

in

the

Colombian

peso,

Brazilian

real,

Mexican

peso

and

Chilean

peso

contributed

to

absolute

results.

Interest-rate

strategies

contributed

to

absolute

performance.

Duration

exposures

in

Colombia,

Brazil,

Indonesia,

and

Hungary

contributed

to

absolute

results.

Overall

credit

exposures

contributed

to

absolute

performance,

due

to

select

exposures

to

sub-

investment-grade

sovereign

credits

in

Africa.

Currency

positions

contributed

to

relative

results

in

2023.

Overweighted

positions

in

the

Colombian

peso

and

Chilean

peso

contributed

to

relative

performance,

as

did

a

lack

of

exposure

to

the

Egyptian

pound

and

South

African

rand.

Overall

credit

exposures

contributed

to

relative

results

in

2023.

Select

overweighted

exposures

to

sub-investment-

grade

sovereign

credits

in

Africa

and

eastern

Europe

contributed

to

relative

return.

In

interest-rate

strategies,

overweighted

duration

exposure

in

Colombia

contributed

to

relative

results.

Q.

What

were

the

leading

detractors

from

performance?

A.

Among

currencies,

the

Fund’s

position

in

the

Ghanaian

cedi

detracted

from

absolute

return.

In

interest-rate

strategies,

duration

exposure

in

Ghana

detracted

from

absolute

results.

Portfolio

Composition

12/31/23

%

of

Total

Net

Assets

Foreign

Government

and

Agency

Securities

91.2%

Corporate

Bonds

2.7%

Other

*,†

0.0%

Short-Term

Investments

&

Other

Net

Assets

‡

6.1%

*

Includes

financial

instruments

determined

to

have

no

value.

†

Categories

within

the

Other

category

are

listed

in

full

in

the

Fund’s

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

‡

Includes

money

market

funds

and

other

net

assets

(including

derivatives).

Geographic

Composition

12/31/23

%

of

Total

Net

Assets

Americas

36.4%

Asia

Pacific

27.2%

Supranational

11.8%

Other

Europe

9.2%

Middle

East

&

Africa

6.2%

Europe

3.1%

Short-Term

Investments

&

Other

Net

Assets

6.1%

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.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

68

.

Templeton

Sustainable

Emerging

Markets

Bond

Fund

23

franklintempleton.com

Annual

Report

Interest-rate

strategies

detracted

from

relative

return

in

2023.

Overweighted

duration

exposure

in

Ghana

detracted

from

relative

performance,

as

did

a

lack

of

duration

exposures

in

Poland

and

South

Africa

and

underweighted

duration

exposure

in

Mexico.

Among

currencies,

a

lack

of

exposure

to

the

Polish

zloty

detracted

from

relative

results,

as

did

the

Fund’s

underweighted

position

in

the

Mexican

peso

and

its

overweighted

position

in

the

Ghanaian

cedi.

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

The

duration

of

the

Fund

increased

significantly

over

the

course

of

the

year

and

moved

from

underweight

to

overweight

duration

versus

the

index

during

this

time.

Over

the

course

of

the

year,

we

closed

out

our

positions

in

the

Chinese

yuan,

Japanese

yen

and

the

Peruvian

sol.

We

added

new

local

currency

positions

in

Hungary,

Serbia

and

Mexico.

We

also

added

new

hard

currency

positions

in

Romania

(EUR)

and

Panama

(USD).

We

reduced

our

local

currency

positions

in

the

Chilean

peso,

Indian

rupee

and

Ghanaian

cedi,

and

reduced

our

hard

currency

positions

in

Ecuador

and

Oman.

We

increased

our

local

currency

positions

in

the

Malaysian

ringgit,

Singapore

dollar

and

Thai

baht

(we

also

switched

the

latter

from

bonds

into

foreign

exchange

forwards).

We

switched

part

of

our

holdings

in

certain

countries,

including

India,

Singapore,

Colombia,

and

Mexico,

into

local-currency

green

bonds.

We

extended

duration

in

a

number

of

countries,

including

select

Asian,

eastern

European

and

Latin

American

countries

as

well

as

the

U.S.

Our

Ghanaian

bonds

were

exchanged

for

new

securities

as

part

of

Ghana’s

debt

restructuring

exercise.

Thank

you

for

your

continued

participation

in

Templeton

Sustainable

Emerging

Markets

Bond

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Michael

Hasenstab,

Ph.D.

Lead

Portfolio

Manager

Calvin

Ho,

Ph.D.

Vivian

Guo

Jaap

Willems

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2023,

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,

2023

Templeton

Sustainable

Emerging

Markets

Bond

Fund

24

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

12/31/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A:

3.75%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+12.13%

+7.96%

5-Year

-10.48%

-2.94%

10-Year

-0.87%

-0.47%

Advisor

1-Year

+12.35%

+12.35%

5-Year

-9.40%

-1.96%

10-Year

+1.41%

+0.14%

See

page

26

for

Performance

Summary

footnotes.

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Performance

Summary

25

franklintempleton.com

Annual

Report

See

page

26

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/13–12/31/23)

Advisor

Class

(12/31/13–12/31/23)

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Performance

Summary

26

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.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

Derivative

instruments

can

be

illiquid,

may

disproportionately

increase

losses,

and

have

a

potentially

large

impact

on

performance.

The

managers’

environmental,

social

and

governance

(ESG)

strategies

may

limit

the

types

and

number

of

investments

available

and,

as

a

result,

may

forgo

favorable

market

opportunities

or

underperform

strategies

that

are

not

subject

to

such

criteria.

There

is

no

guarantee

that

the

strategy's

ESG

directives

will

be

successful

or

will

result

in

better

performance.

Liquidity

risk

exists

when

securities

or

other

investments

become

more

difficult

to

sell,

or

are

unable

to

be

sold,

at

the

price

at

which

they

have

been

valued.

Changes

in

the

credit

rating

of

a

bond,

or

in

the

credit

rating

or

financial

strength

of

a

bond’s

issuer,

insurer

or

guarantor,

may

affect

the

bond’s

value.

Low-rated,

high-yield

bonds

are

subject

to

greater

price

volatility,

illiquidity

and

possibility

of

default.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Source:

FactSet.

The

JPM

Government

Bond

Index-Emerging

Markets

(GBI-EM)

Global

Diversified

Index

tracks

local

currency

bonds

issued

by

emerging

markets.

The

index

was

created

to

capture

a

diverse

set

of

countries

that

most

investors

can

access

and

replicate

through

bonds

or

derivatives.

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.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

Distributions

(1/1/23–12/31/23)

Share

Class

Net

Investment

Income

Tax

Return

of

Capital

Total

A

$0.0222

$0.2839

$0.3061

C

$0.0258

$0.2602

$0.2860

R

$0.0484

$0.2459

$0.2943

R6

$0.0424

$0.2791

$0.3215

Advisor

$0.1496

$0.1693

$0.3189

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

1.17%

3.00%

Advisor

0.92%

2.73%

Your

Fund’s

Expenses

Templeton

Sustainable

Emerging

Markets

Bond

Fund

27

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

7/1/23

Ending

Account

Value

12/31/23

Expenses

Paid

During

Period

7/1/23–12/31/23

1,2

Ending

Account

Value

12/31/23

Expenses

Paid

During

Period

7/1/23–12/31/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,054.60

$5.90

$1,019.46

$5.80

1.14%

C

$1,000

$1,054.60

$7.97

$1,017.45

$7.83

1.54%

R

$1,000

$1,053.30

$7.09

$1,018.30

$6.97

1.37%

R6

$1,000

$1,056.20

$4.45

$1,020.88

$4.37

0.86%

Advisor

$1,000

$1,055.70

$4.63

$1,020.70

$4.55

0.89%

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Bond

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.89

$8.84

$9.80

$10.69

$11.30

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.29

0.34

0.42

0.41

0.59

Net

realized

and

unrealized

gains

(losses)

...........

(0.11)

(0.88)

(0.90)

(0.85)

(0.54)

Total

from

investment

operations

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

0.18

(0.54)

(0.48)

(0.44)

0.05

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(0.01)

(0.66)

Tax

return

of

capital

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

(0.30)

(0.41)

(0.48)

(0.44)

—

Total

distributions

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

(0.30)

(0.41)

(0.48)

(0.45)

(0.66)

Net

asset

value,

end

of

year

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

$7.77

$7.89

$8.84

$9.80

$10.69

Total

return

c

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

2.43%

(6.17)%

(5.06)%

(4.14)%

0.35%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.97%

0.96%

0.97%

0.93%

0.92%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.95%

0.94%

0.96%

0.91%

0.85%

Net

investment

income

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

3.72%

4.14%

4.51%

4.03%

5.27%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2,104,823

$2,492,812

$3,478,172

$4,749,790

$6,514,630

Portfolio

turnover

rate

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

104.28%

16.01%

28.44%

60.07%

32.63%

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

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

Global

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

29

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.93

$8.88

$9.83

$10.72

$11.33

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.25

0.31

0.38

0.37

0.55

Net

realized

and

unrealized

gains

(losses)

...........

(0.10)

(0.89)

(0.90)

(0.85)

(0.55)

Total

from

investment

operations

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

0.15

(0.58)

(0.52)

(0.48)

—

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(0.01)

(0.61)

Tax

return

of

capital

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

(0.27)

(0.37)

(0.43)

(0.40)

—

Total

distributions

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

(0.27)

(0.37)

(0.43)

(0.41)

(0.61)

Net

asset

value,

end

of

year

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

$7.81

$7.93

$8.88

$9.83

$10.72

Total

return

c

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

1.99%

(6.53)%

(5.38)%

(4.52)%

0.06%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.37%

1.37%

1.36%

1.33%

1.32%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.35%

1.35%

1.36%

d

1.31%

1.25%

Net

investment

income

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

3.27%

3.78%

4.07%

3.65%

4.87%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$79,606

$126,600

$224,611

$682,582

$1,392,223

Portfolio

turnover

rate

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

104.28%

16.01%

28.44%

60.07%

32.63%

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

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.

30

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.89

$8.84

$9.80

$10.69

$11.30

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.27

0.32

0.40

0.38

0.56

Net

realized

and

unrealized

gains

(losses)

...........

(0.11)

(0.88)

(0.91)

(0.84)

(0.54)

Total

from

investment

operations

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

0.16

(0.56)

(0.51)

(0.46)

0.02

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(0.01)

(0.63)

Tax

return

of

capital

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

(0.28)

(0.39)

(0.45)

(0.42)

—

Total

distributions

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

(0.28)

(0.39)

(0.45)

(0.43)

(0.63)

Net

asset

value,

end

of

year

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

$7.77

$7.89

$8.84

$9.80

$10.69

Total

return

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

2.18%

(6.40)%

(5.30)%

(4.38)%

0.10%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.22%

1.21%

1.22%

1.18%

1.17%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.20%

1.19%

1.21%

1.16%

1.10%

Net

investment

income

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

3.48%

3.87%

4.26%

3.79%

5.02%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$100,333

$111,601

$137,543

$170,554

$208,853

Portfolio

turnover

rate

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

104.28%

16.01%

28.44%

60.07%

32.63%

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

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

31

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.85

$8.80

$9.75

$10.64

$11.25

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.31

0.37

0.45

0.45

0.62

Net

realized

and

unrealized

gains

(losses)

...........

(0.11)

(0.88)

(0.89)

(0.85)

(0.53)

Total

from

investment

operations

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

0.20

(0.51)

(0.44)

(0.40)

0.09

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(0.01)

(0.70)

Tax

return

of

capital

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

(0.33)

(0.44)

(0.51)

(0.48)

—

Total

distributions

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

(0.33)

(0.44)

(0.51)

(0.49)

(0.70)

Net

asset

value,

end

of

year

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

$7.72

$7.85

$8.80

$9.75

$10.64

Total

return

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

2.72%

(5.79)%

(4.59)%

(3.79)%

0.73%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.60%

0.58%

0.63%

0.58%

0.57%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.56%

0.52%

0.58%

0.54%

0.48%

Net

investment

income

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

4.09%

4.56%

4.85%

4.42%

5.64%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$551,986

$688,345

$944,502

$2,273,175

$4,407,299

Portfolio

turnover

rate

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

104.28%

16.01%

28.44%

60.07%

32.63%

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

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.85

$8.80

$9.75

$10.64

$11.25

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.30

0.36

0.44

0.43

0.61

Net

realized

and

unrealized

gains

(losses)

...........

(0.10)

(0.88)

(0.89)

(0.84)

(0.54)

Total

from

investment

operations

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

0.20

(0.52)

(0.45)

(0.41)

0.07

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(0.01)

(0.68)

Tax

return

of

capital

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

(0.32)

(0.43)

(0.50)

(0.47)

—

Total

distributions

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

(0.32)

(0.43)

(0.50)

(0.48)

(0.68)

Net

asset

value,

end

of

year

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

$7.73

$7.85

$8.80

$9.75

$10.64

Total

return

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

2.71%

(5.95)%

(4.74)%

(3.92)%

0.60%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.72%

0.72%

0.72%

0.69%

0.67%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.70%

0.69%

0.71%

0.66%

0.60%

Net

investment

income

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

3.96%

4.41%

4.74%

4.31%

5.52%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,743,989

$2,284,522

$3,641,639

$7,050,610

$14,244,707

Portfolio

turnover

rate

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

104.28%

16.01%

28.44%

60.07%

32.63%

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

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

Templeton

Income

Trust

Schedule

of

Investments,

December

31,

2023

Templeton

Global

Bond

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

33

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

74.2%

Australia

12.8%

New

South

Wales

Treasury

Corp.

,

Senior

Bond,

2%,

3/08/33

........

265,064,000

AUD

$

146,797,919

a

Senior

Bond,

Reg

S,

1.75%,

3/20/34

94,524,000

AUD

49,481,854

Queensland

Treasury

Corp.

,

Senior

Bond,

2%,

8/22/33

........

124,850,000

AUD

68,745,539

a

Senior

Bond,

144A,

Reg

S,

1.75%,

7/20/34

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

241,968,000

AUD

126,344,947

Treasury

Corp.

of

Victoria

,

a

Senior

Bond,

Reg

S,

2.25%,

9/15/33

217,346,000

AUD

120,356,635

Senior

Bond,

2.25%,

11/20/34

.....

141,082,000

AUD

75,591,097

587,317,991

Brazil

7.4%

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/27

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

353,884,000

BRL

73,421,312

10%,

1/01/31

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

480,994,000

BRL

98,241,198

10%,

1/01/33

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

203,346,000

BRL

41,300,761

F,

10%,

1/01/29

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

605,916,000

BRL

124,913,418

337,876,689

Colombia

6.6%

Colombia

Government

Bond,

Senior

Bond,

9.85%,

6/28/27

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

10,884,000,000

COP

2,668,523

Colombia

Titulos

de

Tesoreria

,

B,

6%,

4/28/28

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

71,707,800,000

COP

16,334,991

B,

7.75%,

9/18/30

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

295,978,800,000

COP

69,661,569

B,

7%,

3/26/31

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

110,158,200,000

COP

24,538,146

B,

7%,

6/30/32

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

107,691,000,000

COP

23,305,067

B,

13.25%,

2/09/33

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

248,870,000,000

COP

76,274,492

B,

7.25%,

10/18/34

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

148,699,000,000

COP

31,613,511

B,

6.25%,

7/09/36

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

41,872,000,000

COP

7,906,901

B,

9.25%,

5/28/42

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

206,416,000,000

COP

48,365,069

300,668,269

Germany

2.5%

a

Bundesobligation

,

Reg

S,

10/18/24

...

33,025,000

EUR

35,553,626

a

Bundesschatzanweisungen

,

Reg

S,

0.4%,

9/13/24

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

71,665,000

EUR

77,563,611

113,117,237

Ghana

1.2%

b

Ghana

Government

Bond

,

PIK,

8.35%,

2/16/27

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

114,003,901

GHS

5,184,193

PIK,

8.5%,

2/15/28

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

180,826,999

GHS

7,079,497

PIK,

8.65%,

2/13/29

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

180,960,287

GHS

6,249,010

PIK,

8.8%,

2/12/30

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

181,093,575

GHS

5,656,017

PIK,

8.95%,

2/11/31

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

161,090,545

GHS

4,633,927

PIK,

9.1%,

2/10/32

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

161,209,023

GHS

4,366,977

PIK,

9.25%,

2/08/33

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

161,327,501

GHS

4,175,707

PIK,

9.4%,

2/07/34

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

161,445,979

GHS

4,046,928

PIK,

9.55%,

2/06/35

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

161,564,457

GHS

3,964,499

PIK,

9.7%,

2/05/36

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

161,682,935

GHS

3,916,616

PIK,

9.85%,

2/03/37

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

161,801,413

GHS

3,894,503

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Ghana

(continued)

b

Ghana

Government

Bond,

(continued)

PIK,

10%,

2/02/38

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

161,919,891

GHS

$

3,891,899

57,059,773

India

5.5%

India

Government

Bond

,

7.26%,

1/14/29

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

6,911,000,000

INR

83,464,291

Senior

Bond,

7.26%,

8/22/32

......

12,972,780,000

INR

156,261,065

Senior

Note,

7.1%,

4/18/29

.......

917,600,000

INR

11,009,877

250,735,233

Indonesia

8.6%

Indonesia

Government

Bond

,

FR68,

8.375%,

3/15/34

..........

342,118,000,000

IDR

24,851,716

FR73,

8.75%,

5/15/31

...........

80,267,000,000

IDR

5,835,297

FR82,

7%,

9/15/30

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

291,868,000,000

IDR

19,376,987

FR87,

6.5%,

2/15/31

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

56,763,000,000

IDR

3,671,881

FR91,

6.375%,

4/15/32

..........

159,351,000,000

IDR

10,245,057

FR95,

6.375%,

8/15/28

..........

306,801,000,000

IDR

19,890,955

FR96,

7%,

2/15/33

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

4,600,954,000,000

IDR

309,862,912

393,734,805

Malaysia

7.6%

Malaysia

Government

Bond

,

4.181%,

7/15/24

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

43,630,000

MYR

9,531,277

4.059%,

9/30/24

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

126,740,000

MYR

27,702,850

3.882%,

3/14/25

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

188,040,000

MYR

41,188,956

3.955%,

9/15/25

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

28,830,000

MYR

6,325,382

3.9%,

11/30/26

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

226,950,000

MYR

49,934,344

3.892%,

3/15/27

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

19,290,000

MYR

4,236,126

3.502%,

5/31/27

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

30,640,000

MYR

6,650,115

3.899%,

11/16/27

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

691,620,000

MYR

152,047,377

4.498%,

4/15/30

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

97,744,000

MYR

22,190,539

3.582%,

7/15/32

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

134,410,000

MYR

28,719,936

348,526,902

Mexico

4.7%

Mexican

Bonos

,

M,

10%,

11/20/36

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

121,740,000

MXN

7,728,685

M,

Senior

Bond,

7.75%,

11/23/34

...

378,250,000

MXN

20,364,087

Mexican

Bonos

Desarr

Fixed

Rate

,

M,

7.5%,

5/26/33

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

2,389,180,000

MXN

127,537,370

M,

Senior

Bond,

8.5%,

5/31/29

.....

384,700,000

MXN

22,183,713

M,

Senior

Bond,

8.5%,

11/18/38

....

223,180,000

MXN

12,546,737

M,

Senior

Bond,

7.75%,

11/13/42

...

480,400,000

MXN

24,907,639

215,268,231

Norway

2.8%

a

Norway

Government

Bond

,

Senior

Bond,

144A,

Reg

S,

3%,

3/14/24

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

420,538,000

NOK

41,250,671

Senior

Bond,

144A,

Reg

S,

1.75%,

3/13/25

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

890,910,000

NOK

85,568,979

126,819,650

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

35

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Panama

2.1%

Panama

Government

Bond

,

Senior

Bond,

2.252%,

9/29/32

.....

9,120,000

$

6,672,174

Senior

Bond,

6.4%,

2/14/35

.......

91,380,000

89,421,507

96,093,681

Singapore

4.6%

Singapore

Government

Bond

,

2.875%,

9/01/30

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

3,030,000

SGD

2,315,580

2.625%,

8/01/32

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

171,120,000

SGD

128,827,886

3.375%,

9/01/33

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

100,950,000

SGD

80,928,295

212,071,761

South

Korea

4.5%

Korea

Treasury

Bonds

,

3.25%,

3/10/28

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

47,714,000,000

KRW

36,955,027

3.5%,

9/10/28

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

218,715,010,000

KRW

171,387,038

208,342,065

Thailand

3.3%

Thailand

Government

Bond

,

0.75%,

9/17/24

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

3,509,100,000

THB

100,851,569

1%,

6/17/27

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

918,690,000

THB

25,461,375

Senior

Note,

1.78%,

11/28/24

......

127,020,000

THB

3,672,628

Senior

Note,

2.04%,

5/29/25

......

692,070,000

THB

20,024,409

150,009,981

Total

Foreign

Government

and

Agency

Securities

(Cost

$3,424,124,025)

...........

3,397,642,268

U.S.

Government

and

Agency

Securities

10.3%

United

States

10.3%

U.S.

Treasury

Bonds

,

3.375%,

8/15/42

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

103,690,000

92,500,795

3.125%,

2/15/43

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

60,250,000

51,525,517

3.625%,

8/15/43

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

208,570,000

191,827,369

3.75%,

11/15/43

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

53,070,000

49,618,377

U.S.

Treasury

Notes,

3.5%,

2/15/33

...

89,400,000

86,731,969

472,204,027

Total

U.S.

Government

and

Agency

Securities

(Cost

$482,078,171)

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

472,204,027

Total

Long

Term

Investments

(Cost

$3,906,202,196)

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

3,869,846,295

Number

of

Contracts

Notional

Amount

#

a

a

aa

Options

Purchased

0.1%

Calls

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

18.55

MXN,

Expires

3/13/24

..

1

441,600,000

2,040,706

2,040,706

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

aa

a

a

Options

Purchased

(continued)

Puts

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

February

Strike

Price

16.04

MXN,

Expires

2/01/24

..

1

110,404,000

$

20,308

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

17.39

MXN,

Expires

3/13/24

..

1

110,400,000

3,147,215

3,167,523

Total

Options

Purchased

(Cost

$7,026,973)

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

5,208,229

Short

Term

Investments

12.9%

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

5.0%

Germany

2.0%

a,c

Germany

Treasury

Bills

,

Reg

S,

3/20/24

85,231,000

EUR

93,356,931

Japan

3.0%

c

Japan

Treasury

Bills

,

2/13/24

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

9,900,700,000

JPY

70,244,732

2/20/24

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

9,663,100,000

JPY

68,561,345

138,806,077

Total

Foreign

Government

and

Agency

Securities

(Cost

$226,401,477)

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

232,163,008

Shares

Money

Market

Funds

7.9%

United

States

7.9%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.034%

.........

361,448,074

361,448,074

Total

Money

Market

Funds

(Cost

$361,448,074)

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

361,448,074

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$587,849,551

)

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

593,611,082

a

a

a

Total

Investments

(Cost

$4,501,078,720)

97.5%

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

$4,468,665,606

Options

Written

(0.1)%

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

(5,263,311)

Other

Assets,

less

Liabilities

2.6%

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

117,334,805

Net

Assets

100.0%

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

$4,580,737,100

a

a

a

a

Number

of

Contracts

Notional

Amount

#

f

Options

Written

(0.1)%

a

Calls

-

Over-the-Counter

a

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

18.32

MXN,

Expires

3/13/24

..

1

110,400,000

(646,747)

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

37

a

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

a

a

f

Options

Written

(continued)

a

Calls

-

Over-the-Counter

(continued)

a

Currency

Options

(continued)

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

19.18

MXN,

Expires

3/13/24

..

1

110,400,000

$

(275,576)

(922,323)

Puts

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

17.14

MXN,

Expires

3/13/24

..

1

220,804,000

(4,340,988)

(4,340,988)

Total

Options

Written

(Premiums

received

$4,497,738)

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

$

(5,263,311)

#

Notional

amount

is

the

number

of

contracts

multiplied

by

contract

size,

and

may

be

multiplied

by

the

underlying

price.

May

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

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,

2023,

the

aggregate

value

of

these

securities

was

$629,477,254,

representing

13.7%

of

net

assets.

b

Income

may

be

received

in

additional

securities

and/or

cash.

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.

f

See

Note

1(c)

regarding

written

options.

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

At

December

31,

2023,

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

......

HSBK

Buy

20,032,700,000

22,957,220

1/04/24

$

—

$

(218,703)

Chilean

Peso

......

HSBK

Sell

20,032,700,000

23,052,589

1/04/24

314,072

—

Indian

Rupee

......

HSBK

Buy

2,366,957,100

28,366,495

1/08/24

69,841

—

South

Korean

Won

..

JPHQ

Buy

16,182,300,000

12,146,138

1/16/24

360,822

—

Chilean

Peso

......

HSBK

Buy

20,032,700,000

23,031,916

1/18/24

—

(290,995)

Chilean

Peso

......

JPHQ

Buy

18,410,300,000

21,096,037

1/31/24

—

(194,804)

Chilean

Peso

......

HSBK

Buy

16,280,400,000

18,622,133

2/05/24

—

(141,551)

Chilean

Peso

......

JPHQ

Buy

24,185,600,000

27,616,068

2/05/24

—

(161,953)

Indian

Rupee

......

CITI

Buy

2,857,906,500

34,181,396

3/20/24

39,528

—

Indian

Rupee

......

JPHQ

Buy

2,823,969,900

33,654,748

3/20/24

159,815

—

New

Zealand

Dollar

.

BOFA

Buy

56,380,000

33,430,521

3/20/24

2,225,596

—

New

Zealand

Dollar

.

BOFA

Sell

14,500,000

8,925,040

3/20/24

—

(245,121)

New

Zealand

Dollar

.

CITI

Buy

66,290,000

39,322,439

3/20/24

2,601,009

—

New

Zealand

Dollar

.

CITI

Sell

66,290,000

40,121,371

3/20/24

—

(1,802,078)

New

Zealand

Dollar

.

JPHQ

Buy

181,180,000

107,229,571

3/20/24

7,353,176

—

South

Korean

Won

..

DBAB

Buy

66,506,000,000

50,810,604

3/20/24

777,701

—

South

Korean

Won

..

HSBK

Buy

268,263,000,000

205,228,188

3/20/24

2,861,811

—

Japanese

Yen

......

BOFA

Buy

15,477,619,440

108,493,057

3/21/24

2,666,881

—

Japanese

Yen

......

BOFA

Sell

5,470,700,000

38,959,550

3/21/24

—

(330,903)

Norwegian

Krone

...

MSCO

Buy

994,800,000

90,670,458

4/10/24

7,463,806

—

Norwegian

Krone

...

MSCO

Sell

351,920,000

32,793,790

4/10/24

—

(1,922,143)

Indian

Rupee

......

JPHQ

Buy

1,590,808,500

18,985,208

4/15/24

37,348

—

Japanese

Yen

......

BNDP

Buy

41,246,625,520

288,930,739

4/15/24

8,448,315

—

Japanese

Yen

......

BOFA

Buy

27,371,868,200

191,729,427

4/15/24

5,615,693

—

Japanese

Yen

......

DBAB

Buy

34,368,107,310

240,613,878

4/15/24

7,172,580

—

Japanese

Yen

......

GSCO

Buy

5,039,000,000

35,252,603

4/15/24

1,077,474

—

Japanese

Yen

......

MSCO

Buy

23,666,100,000

167,587,951

6/20/24

4,702,512

—

Mexican

Peso

......

MSCO

Buy

540,623,000

23,797,497

9/03/24

6,768,460

—

Mexican

Peso

......

MSCO

Sell

540,623,000

22,984,206

9/03/24

—

(7,581,751)

Total

Forward

Exchange

Contracts

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

$60,716,440

$(12,890,002)

Net

unrealized

appreciation

(depreciation)

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

$47,826,438

*

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

Schedule

of

Investments

Templeton

Global

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

39

At

December

31,

2023,

the

Fund

had

the

following

interest

rate

swap

contracts

outstanding.

See

Note

1(c). 

Interest

Rate

Swap

Contracts

Description

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

*

Value

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

aa

aa

aa

aa

Centrally

Cleared

Swap

Contracts

Receive

Fixed

3.285%

.

Annual

Pay

Floating

1-day

SOFR

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

Annual

5/03/33

264,960,000

$

(7,768,377)

$

—

$

(7,768,377)

Receive

Fixed

3.847%

.

Annual

Pay

Floating

1-day

SOFR

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

Annual

8/31/33

172,660,000

4,227,049

—

4,227,049

Total

Interest

Rate

Swap

Contracts

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

$(3,541,328)

$

—

$(3,541,328)

*

In

U.S.

dollars

unless

otherwise

indicated.

See

Note 

10

 regarding

other

derivative

information.

See

Abbreviations

on

page

104

.

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.

40

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.16

$8.77

$9.98

$11.02

$11.62

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.40

0.46

0.63

0.43

0.60

Net

realized

and

unrealized

gains

(losses)

...........

—

c

(1.55)

(1.14)

(1.01)

(0.46)

Total

from

investment

operations

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

0.40

(1.09)

(0.51)

(0.58)

0.14

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(0.02)

(0.74)

Tax

return

of

capital

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

(0.41)

(0.52)

(0.70)

(0.44)

—

Total

distributions

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

(0.41)

(0.52)

(0.70)

(0.46)

(0.74)

Net

asset

value,

end

of

year

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

$7.15

$7.16

$8.77

$9.98

$11.02

Total

return

d

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

5.88%

(12.53)%

(5.39)%

(5.32)%

1.21%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.16%

1.16%

1.17%

1.08%

1.04%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.14%

1.14%

1.16%

1.06%

0.96%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.07%

1.14%

e

1.16%

e

1.04%

0.93%

Net

investment

income

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

5.65%

5.99%

6.67%

4.19%

5.27%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$163,440

$200,854

$299,056

$482,575

$769,018

Portfolio

turnover

rate

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

76.60%

35.05%

23.94%

60.89%

27.57%

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

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

Global

Total

Return

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

41

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.15

$8.76

$9.96

$11.01

$11.61

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.37

0.44

0.59

0.39

0.56

Net

realized

and

unrealized

gains

(losses)

...........

0.01

(1.56)

(1.14)

(1.02)

(0.46)

Total

from

investment

operations

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

0.38

(1.12)

(0.55)

(0.63)

0.10

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(0.01)

(0.70)

Tax

return

of

capital

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

(0.38)

(0.49)

(0.65)

(0.41)

—

Total

distributions

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

(0.38)

(0.49)

(0.65)

(0.42)

(0.70)

Net

asset

value,

end

of

year

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

$7.15

$7.15

$8.76

$9.96

$11.01

Total

return

c

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

5.60%

(12.92)%

(5.72)%

(5.80)%

0.81%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.57%

1.57%

1.56%

1.48%

1.44%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.54%

1.54%

1.56%

d

1.46%

1.36%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.47%

1.54%

e

1.56%

e

1.44%

1.33%

Net

investment

income

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

5.23%

5.63%

6.21%

3.79%

4.87%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$13,725

$19,873

$40,591

$113,438

$237,215

Portfolio

turnover

rate

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

76.60%

35.05%

23.94%

60.89%

27.57%

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

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.17

$8.78

$9.98

$11.03

$11.63

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.38

0.44

0.61

0.40

0.58

Net

realized

and

unrealized

gains

(losses)

...........

—

c

(1.55)

(1.14)

(1.02)

(0.47)

Total

from

investment

operations

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

0.38

(1.11)

(0.53)

(0.62)

0.11

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(0.02)

(0.71)

Tax

return

of

capital

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

(0.39)

(0.50)

(0.67)

(0.41)

—

Total

distributions

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

(0.39)

(0.50)

(0.67)

(0.43)

(0.71)

Net

asset

value,

end

of

year

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

$7.16

$7.17

$8.78

$9.98

$11.03

Total

return

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

5.61%

(12.74)%

(5.54)%

(5.65)%

0.95%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.41%

1.41%

1.42%

1.32%

1.29%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.39%

1.38%

1.41%

1.30%

1.21%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.32%

1.38%

d

1.41%

d

1.28%

1.18%

Net

investment

income

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

5.41%

5.72%

6.44%

3.89%

5.02%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2,789

$3,322

$4,823

$7,741

$7,377

Portfolio

turnover

rate

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

76.60%

35.05%

23.94%

60.89%

27.57%

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

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

Global

Total

Return

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

43

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.16

$8.78

$9.98

$11.03

$11.63

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.43

0.51

0.66

0.47

0.65

Net

realized

and

unrealized

gains

(losses)

...........

—

c

(1.58)

(1.13)

(1.02)

(0.47)

Total

from

investment

operations

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

0.43

(1.07)

(0.47)

(0.55)

0.18

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(0.02)

(0.78)

Tax

return

of

capital

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

(0.44)

(0.55)

(0.73)

(0.48)

—

Total

distributions

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

(0.44)

(0.55)

(0.73)

(0.50)

(0.78)

Net

asset

value,

end

of

year

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

$7.15

$7.16

$8.78

$9.98

$11.03

Total

return

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

6.31%

(12.27)%

(4.91)%

(5.05)%

1.57%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.79%

0.85%

0.79%

0.71%

0.69%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.74%

0.80%

0.77%

0.69%

0.60%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.67%

0.80%

d

0.77%

d

0.67%

0.57%

Net

investment

income

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

6.05%

6.47%

7.01%

4.57%

5.63%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$31,027

$47,859

$170,830

$294,519

$876,665

Portfolio

turnover

rate

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

76.60%

35.05%

23.94%

60.89%

27.57%

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

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.

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.

44

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.18

$8.79

$10.00

$11.04

$11.64

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.41

0.49

0.65

0.46

0.63

Net

realized

and

unrealized

gains

(losses)

...........

0.01

(1.56)

(1.14)

(1.02)

(0.46)

Total

from

investment

operations

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

0.42

(1.07)

(0.49)

(0.56)

0.17

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(0.02)

(0.77)

Tax

return

of

capital

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

(0.43)

(0.54)

(0.72)

(0.46)

—

Total

distributions

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

(0.43)

(0.54)

(0.72)

(0.48)

(0.77)

Net

asset

value,

end

of

year

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

$7.17

$7.18

$8.79

$10.00

$11.04

Total

return

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

6.13%

(12.28)%

(5.14)%

(5.07)%

1.46%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.92%

0.92%

0.92%

0.83%

0.79%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.90%

0.89%

0.91%

0.81%

0.71%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.81%

0.89%

c

0.91%

c

0.78%

0.68%

Net

investment

income

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

5.84%

6.31%

6.84%

4.48%

5.52%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$120,166

$203,568

$424,413

$1,104,754

$2,684,044

Portfolio

turnover

rate

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

76.60%

35.05%

23.94%

60.89%

27.57%

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

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Schedule

of

Investments,

December

31,

2023

Templeton

Global

Total

Return

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

45

a

a

Industry

Shares

a

Value

a

Common

Stocks

0.0%

South

Africa

0.0%

a,b,c

K2016470219

South

Africa

Ltd.,

A

....

Broadline

Retail

434,200,485

$

—

a,b,c

K2016470219

South

Africa

Ltd.,

B

....

Broadline

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

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

Broadline

Retail

37,627,701

—

Senior

Secured

Note,

144A,

PIK,

8%,

12/31/22

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

Broadline

Retail

14,528,882

EUR

—

a,d,e

K2016470260

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

25

%

,

12/31/22

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

Broadline

Retail

19,186,470

—

—

Total

Corporate

Bonds

(Cost

$46,940,535)

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

—

a

a

Industry

Principal

Amount

*

a

Value

Foreign

Government

and

Agency

Securities

82.6%

Australia

4.7%

e

New

South

Wales

Treasury

Corp.,

Senior

Bond,

Reg

S,

1.75%,

3/20/34

992,000

AUD

519,297

Queensland

Treasury

Corp.

,

Senior

Bond,

2%,

8/22/33

........

630,000

AUD

346,894

e

Senior

Bond,

144A,

Reg

S,

1.75%,

7/20/34

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

8,782,000

AUD

4,585,570

Treasury

Corp.

of

Victoria

,

e

Senior

Bond,

Reg

S,

2.25%,

9/15/33

15,269,000

AUD

8,455,299

Senior

Bond,

2.25%,

11/20/34

.....

2,963,000

AUD

1,587,562

15,494,622

Brazil

9.1%

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/27

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

46,340,000

BRL

9,614,291

10%,

1/01/31

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

31,491,000

BRL

6,431,917

10%,

1/01/33

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

17,206,000

BRL

3,494,639

F,

10%,

1/01/29

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

51,267,000

BRL

10,569,016

30,109,863

Colombia

3.2%

Colombia

Titulos

de

Tesoreria

,

B,

7.25%,

10/18/34

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

7,548,000,000

COP

1,604,710

B,

6.25%,

7/09/36

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

5,108,000,000

COP

964,570

B,

9.25%,

5/28/42

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

34,365,000,000

COP

8,052,019

10,621,299

Dominican

Republic

2.2%

e

Dominican

Republic

Government

Bond

,

Senior

Bond,

144A,

5.3%,

1/21/41

..

2,370,000

2,055,975

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

46

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Dominican

Republic

(continued)

e

Dominican

Republic

Government

Bond,

(continued)

Senior

Bond,

144A,

6.4%,

6/05/49

..

580,000

$

548,100

Senior

Bond,

144A,

5.875%,

1/30/60

5,340,000

4,632,450

7,236,525

Ecuador

4.1%

e

Ecuador

Government

Bond

,

Senior

Bond,

144A,

3.5%,

7/31/35

..

29,086,000

10,481,971

Senior

Note,

144A,

6%,

7/31/30

....

6,667,000

3,114,251

13,596,222

Egypt

4.0%

e

Egypt

Government

Bond

,

Senior

Bond,

144A,

7.3%,

9/30/33

..

6,080,000

4,031,520

Senior

Bond,

144A,

8.5%,

1/31/47

..

950,000

593,693

Senior

Bond,

144A,

7.903%,

2/21/48

1,080,000

654,297

Senior

Bond,

144A,

8.7%,

3/01/49

..

820,000

515,829

Senior

Bond,

144A,

8.875%,

5/29/50

3,120,000

1,997,075

Senior

Bond,

144A,

8.75%,

9/30/51

.

6,580,000

4,178,300

Senior

Bond,

144A,

7.5%,

2/16/61

..

2,370,000

1,391,688

13,362,402

Germany

2.9%

e

Bundesobligation,

Reg

S,

10/18/24

...

2,800,000

EUR

3,014,388

e

Bundesschatzanweisungen,

Reg

S,

0.4%,

9/13/24

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

6,076,000

EUR

6,576,104

9,590,492

Ghana

2.2%

d

Ghana

Government

Bond

,

PIK,

8.35%,

2/16/27

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

15,658,171

GHS

712,037

PIK,

8.5%,

2/15/28

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

24,836,158

GHS

972,352

PIK,

8.65%,

2/13/29

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

24,595,234

GHS

849,335

PIK,

8.8%,

2/12/30

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

24,613,349

GHS

768,738

PIK,

8.95%,

2/11/31

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

22,298,477

GHS

641,437

PIK,

9.1%,

2/10/32

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

22,314,877

GHS

604,486

PIK,

9.25%,

2/08/33

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

22,331,277

GHS

578,010

PIK,

9.4%,

2/07/34

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

18,705,077

GHS

468,876

PIK,

9.55%,

2/06/35

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

18,718,804

GHS

459,325

PIK,

9.7%,

2/05/36

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

18,732,530

GHS

453,778

PIK,

9.85%,

2/03/37

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

18,746,257

GHS

451,216

PIK,

10%,

2/02/38

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

18,759,984

GHS

450,914

7,410,504

Hungary

5.1%

Hungary

Government

Bond

,

1%,

11/26/25

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

1,004,400,000

HUF

2,633,915

3%,

10/27/27

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

273,100,000

HUF

717,757

4.75%,

11/24/32

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

5,126,900,000

HUF

13,662,644

17,014,316

India

4.4%

India

Government

Bond,

Senior

Bond,

7.26%,

8/22/32

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

1,219,000,000

INR

14,683,224

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

47

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Indonesia

8.9%

Indonesia

Government

Bond

,

FR59,

7%,

5/15/27

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

41,308,000,000

IDR

$

2,728,791

FR68,

8.375%,

3/15/34

..........

62,990,000,000

IDR

4,575,642

FR87,

6.5%,

2/15/31

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

10,451,000,000

IDR

676,053

FR91,

6.375%,

4/15/32

..........

29,340,000,000

IDR

1,886,339

FR95,

6.375%,

8/15/28

..........

82,071,000,000

IDR

5,320,943

FR96,

7%,

2/15/33

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

212,681,000,000

IDR

14,323,541

29,511,309

Malaysia

9.5%

Malaysia

Government

Bond

,

3.478%,

6/14/24

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

10,080,000

MYR

2,196,449

4.181%,

7/15/24

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

14,730,000

MYR

3,217,871

4.059%,

9/30/24

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

19,180,000

MYR

4,192,368

3.882%,

3/14/25

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

14,090,000

MYR

3,086,324

3.955%,

9/15/25

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

5,335,000

MYR

1,170,514

3.502%,

5/31/27

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

1,320,000

MYR

286,493

3.899%,

11/16/27

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

77,940,000

MYR

17,134,514

31,284,533

Mexico

5.7%

Mexican

Bonos

,

M,

10%,

11/20/36

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

9,610,000

MXN

610,092

M,

Senior

Bond,

7.75%,

11/23/34

...

29,910,000

MXN

1,610,284

Mexican

Bonos

Desarr

Fixed

Rate

,

M,

7.5%,

5/26/33

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

217,650,000

MXN

11,618,425

M,

Senior

Bond,

8.5%,

5/31/29

.....

35,600,000

MXN

2,052,873

M,

Senior

Bond,

8.5%,

11/18/38

....

17,630,000

MXN

991,124

M,

Senior

Bond,

7.75%,

11/13/42

...

37,940,000

MXN

1,967,102

18,849,900

Mongolia

1.5%

e

Mongolia

Government

Bond

,

Senior

Bond,

144A,

4.45%,

7/07/31

.

4,370,000

3,672,433

Senior

Note,

144A,

5.125%,

4/07/26

.

200,000

194,482

Senior

Note,

144A,

3.5%,

7/07/27

..

1,380,000

1,234,881

5,101,796

Norway

4.3%

e

Norway

Government

Bond,

Senior

Bond,

144A,

Reg

S,

3%,

3/14/24

...

145,917,000

NOK

14,313,033

Panama

2.4%

Panama

Government

Bond

,

Senior

Bond,

6.4%,

2/14/35

.......

1,110,000

1,086,210

Senior

Bond,

6.7%,

1/26/36

.......

4,850,000

4,818,431

Senior

Bond,

6.875%,

1/31/36

.....

2,150,000

2,150,571

8,055,212

Sri

Lanka

0.7%

e,f

Sri

Lanka

Government

Bond

,

Senior

Bond,

144A,

6.2%,

5/11/27

..

3,160,000

1,604,656

Senior

Bond,

144A,

6.75%,

4/18/28

.

460,000

232,557

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

48

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Sri

Lanka

(continued)

e,f

Sri

Lanka

Government

Bond,

(continued)

Senior

Bond,

144A,

7.85%,

3/14/29

.

659,000

$

332,847

2,170,060

Supranational

3.2%

g

Asian

Development

Bank

,

Senior

Note,

11.75%,

7/24/24

......

24,954,000,000

COP

6,401,947

Senior

Note,

11.2%,

1/31/25

.......

16,141,000,000

COP

4,120,119

10,522,066

Thailand

4.5%

Thailand

Government

Bond

,

0.75%,

9/17/24

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

212,560,000

THB

6,108,976

1%,

6/17/27

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

311,600,000

THB

8,635,954

14,744,930

Total

Foreign

Government

and

Agency

Securities

(Cost

$291,747,260)

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

273,672,308

U.S.

Government

and

Agency

Securities

7.3%

United

States

7.3%

U.S.

Treasury

Bonds

,

3.375%,

8/15/42

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

17,510,000

15,620,493

3.75%,

11/15/43

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

8,960,000

8,377,250

23,997,743

Total

U.S.

Government

and

Agency

Securities

(Cost

$24,338,714)

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

23,997,743

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

$364,671,868)

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

297,670,051

Number

of

Contracts

Notional

Amount

#

a

a

aa

Options

Purchased

0.1%

Calls

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

18.55

MXN,

Expires

3/13/24

..

1

38,684,000

178,765

178,765

Puts

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

February

Strike

Price

16.04

MXN,

Expires

2/01/24

..

1

9,671,000

1,779

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

49

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

BZWS,

March

Strike

Price

17.39

MXN,

Expires

3/13/24

..

1

9,671,000

$

275,695

277,474

Total

Options

Purchased

(Cost

$615,559)

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

456,239

Short

Term

Investments

6.9%

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

2.0%

Germany

2.0%

e,h

Germany

Treasury

Bills

,

Reg

S,

3/20/24

6,189,000

EUR

6,779,060

Total

Foreign

Government

and

Agency

Securities

(Cost

$6,501,168)

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

6,779,060

Shares

Money

Market

Funds

4.9%

United

States

4.9%

i,j

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.034%

.........

16,359,736

16,359,736

Total

Money

Market

Funds

(Cost

$16,359,736)

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

16,359,736

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$22,860,904

)

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

23,138,796

a

a

a

Total

Investments

(Cost

$388,148,331)

96.9%

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

$321,265,086

Options

Written

(0.1)%

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

(461,038)

Other

Assets,

less

Liabilities

3.2%

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

10,342,479

Net

Assets

100.0%

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

$331,146,527

a

a

a

a

Number

of

Contracts

Notional

Amount

#

k

Options

Written

(0.1)%

a

Calls

-

Over-the-Counter

a

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

18.32

MXN,

Expires

3/13/24

..

1

9,671,000

(56,655)

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

19.18

MXN,

Expires

3/13/24

..

1

9,671,000

(24,140)

(80,795)

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

franklintempleton.com

Annual

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The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

50

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

a

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

17.14

MXN,

Expires

3/13/24

..

1

19,341,000

$

(380,243)

(380,243)

Total

Options

Written

(Premiums

received

$393,986)

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

$

(461,038)

#

Notional

amount

is

the

number

of

contracts

multiplied

by

contract

size,

and

may

be

multiplied

by

the

underlying

price.

May

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

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,

2023,

the

aggregate

value

of

these

securities

was

$85,709,756,

representing

25.9%

of

net

assets.

f

See

Note

7

regarding

defaulted

securities.

g

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

h

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

i

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

j

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

k

See

Note

1(c)

regarding

written

options.

Templeton

Income

Trust

Schedule

of

Investments

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Global

Total

Return

Fund

(continued)

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The

accompanying

notes

are

an

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part

of

these

financial

statements.

Annual

Report

51

At

December

31,

2023,

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

Indian

Rupee

......

HSBK

Buy

797,617,100

9,558,940

1/08/24

$

23,535

$

—

Indian

Rupee

......

HSBK

Sell

362,810,000

4,346,960

1/08/24

—

(11,795)

Indian

Rupee

......

HSBK

Buy

102,214,374

1,226,062

2/12/24

69

—

Indian

Rupee

......

CITI

Buy

1,070,227,980

12,800,239

3/20/24

14,802

—

South

Korean

Won

..

DBAB

Buy

43,703,800,000

33,389,717

3/20/24

511,059

—

Australian

Dollar

....

MSCO

Buy

7,500,000

4,786,275

3/25/24

338,357

—

Japanese

Yen

......

MSCO

Buy

2,579,000,000

17,846,516

4/05/24

720,043

—

Japanese

Yen

......

MSCO

Sell

228,700,000

1,631,240

4/05/24

—

(15,201)

Japanese

Yen

......

BNDP

Buy

706,082,800

4,946,078

4/15/24

144,623

—

Japanese

Yen

......

BOFA

Buy

828,382,560

5,802,502

4/15/24

169,953

—

Japanese

Yen

......

DBAB

Buy

2,664,554,060

18,654,757

4/15/24

556,089

—

Norwegian

Krone

...

MSCO

Buy

10,876,000

976,854

4/29/24

96,357

—

Norwegian

Krone

...

MSCO

Sell

1,620,000

151,038

4/29/24

—

(8,819)

Australian

Dollar

....

DBAB

Buy

5,563,000

3,658,969

5/22/24

146,828

—

Australian

Dollar

....

JPHQ

Buy

30,576,000

20,204,729

5/22/24

713,127

—

Australian

Dollar

....

MSCO

Buy

5,930,000

3,936,690

6/11/24

121,822

—

Japanese

Yen

......

MSCO

Buy

2,924,000,000

20,705,869

6/20/24

581,006

—

Mexican

Peso

......

MSCO

Buy

67,743,000

2,981,957

9/03/24

848,124

—

Mexican

Peso

......

MSCO

Sell

67,743,000

2,880,046

9/03/24

—

(950,035)

Total

Forward

Exchange

Contracts

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

$4,985,794

$(985,850)

Net

unrealized

appreciation

(depreciation)

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

$3,999,944

*

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

Schedule

of

Investments

Templeton

Global

Total

Return

Fund

(continued)

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The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

52

At

December

31,

2023,

the

Fund

had

the

following

interest

rate

swap

contracts

outstanding.

See

Note

1

(

c

). 

Interest

Rate

Swap

Contracts

Description

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

*

Value

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

aa

aa

aa

aa

Centrally

Cleared

Swap

Contracts

Receive

Fixed

3.285%

.

Annual

Pay

Floating

1-day

SOFR

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

Annual

5/03/33

4,920,000

$

(144,250)

$

—

$

(144,250)

Total

Interest

Rate

Swap

Contracts

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

$(144,250)

$

—

$(144,250)

*

In

U.S.

dollars

unless

otherwise

indicated.

See

Note 

10

 regarding

other

derivative

information.

See

Abbreviations

on

page

104

.

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Highlights

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Fund

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integral

part

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financial

statements.

Annual

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53

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.33

$8.17

$9.01

$9.77

$10.14

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.28

0.28

0.23

0.20

0.42

Net

realized

and

unrealized

gains

(losses)

...........

(0.10)

(0.76)

(0.82)

(0.75)

(0.23)

Total

from

investment

operations

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

0.18

(0.48)

(0.59)

(0.55)

0.19

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(—)

c

(0.56)

Tax

return

of

capital

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

(0.29)

(0.36)

(0.25)

(0.21)

—

Total

distributions

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

(0.29)

(0.36)

(0.25)

(0.21)

(0.56)

Net

asset

value,

end

of

year

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

$7.22

$7.33

$8.17

$9.01

$9.77

Total

return

d

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

2.80%

(5.90)%

(6.65)%

(5.66)%

1.86%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.65%

1.73%

1.37%

1.21%

1.20%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.84%

1.04%

0.99%

1.00%

1.00%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.81%

1.04%

e

0.99%

e

0.99%

0.98%

Net

investment

income

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

3.91%

3.64%

2.69%

2.12%

4.18%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$11,678

$13,703

$17,129

$22,455

$39,532

Portfolio

turnover

rate

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

90.98%

9.13%

60.68%

86.26%

24.26%

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

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

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(continued)

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financial

statements.

54

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.35

$8.19

$9.02

$9.78

$10.16

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.25

0.25

0.19

0.16

0.39

Net

realized

and

unrealized

gains

(losses)

...........

(0.10)

(0.76)

(0.81)

(0.75)

(0.25)

Total

from

investment

operations

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

0.15

(0.51)

(0.62)

(0.59)

0.14

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(—)

c

(0.52)

Tax

return

of

capital

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

(0.26)

(0.33)

(0.21)

(0.17)

—

Total

distributions

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

(0.26)

(0.33)

(0.21)

(0.17)

(0.52)

Net

asset

value,

end

of

year

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

$7.24

$7.35

$8.19

$9.02

$9.78

Total

return

d

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

2.37%

(6.30)%

(6.96)%

(6.03)%

1.35%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

2.05%

2.16%

1.71%

1.61%

1.60%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.24%

1.43%

1.39%

1.40%

1.40%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.21%

1.43%

e

1.39%

e

1.39%

1.38%

Net

investment

income

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

3.49%

3.28%

2.22%

1.70%

3.78%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$662

$842

$1,365

$3,541

$6,694

Portfolio

turnover

rate

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

90.98%

9.13%

60.68%

86.26%

24.26%

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

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

55

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.33

$8.17

$9.01

$9.76

$10.14

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.25

0.25

0.21

0.17

0.41

Net

realized

and

unrealized

gains

(losses)

...........

(0.08)

(0.75)

(0.82)

(0.73)

(0.25)

Total

from

investment

operations

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

0.17

(0.50)

(0.61)

(0.56)

0.16

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(—)

c

(0.54)

Tax

return

of

capital

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

(0.28)

(0.34)

(0.23)

(0.19)

—

Total

distributions

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

(0.28)

(0.34)

(0.23)

(0.19)

(0.54)

Net

asset

value,

end

of

year

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

$7.22

$7.33

$8.17

$9.01

$9.76

Total

return

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

2.41%

(6.12)%

(6.90)%

(5.83)%

1.52%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.87%

1.94%

1.63%

1.46%

1.45%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.09%

1.29%

1.24%

1.25%

1.25%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.06%

1.29%

d

1.24%

d

1.24%

1.23%

Net

investment

income

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

3.53%

3.35%

2.41%

1.82%

3.93%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$52

$117

$107

$138

$254

Portfolio

turnover

rate

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

90.98%

9.13%

60.68%

86.26%

24.26%

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

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Financial

Highlights

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

56

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.32

$8.17

$9.01

$9.77

$10.15

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.29

0.31

0.22

0.19

0.45

Net

realized

and

unrealized

gains

(losses)

...........

(0.08)

(0.77)

(0.78)

(0.70)

(0.23)

Total

from

investment

operations

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

0.21

(0.46)

(0.56)

(0.51)

0.22

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(—)

c

(0.60)

Tax

return

of

capital

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

(0.33)

(0.39)

(0.28)

(0.25)

—

Total

distributions

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

(0.33)

(0.39)

(0.28)

(0.25)

(0.60)

Net

asset

value,

end

of

year

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

$7.20

$7.32

$8.17

$9.01

$9.77

Total

return

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

2.97%

(5.44)%

(6.29)%

(5.29)%

2.14%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.49%

1.43%

0.94%

0.80%

1.24%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.63%

0.64%

0.60%

0.61%

0.62%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.60%

0.64%

d

0.60%

d

0.60%

0.60%

Net

investment

income

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

4.11%

4.06%

2.55%

2.14%

4.56%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$4,782

$5,809

$8,242

$47,663

$3,878

Portfolio

turnover

rate

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

90.98%

9.13%

60.68%

86.26%

24.26%

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

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

57

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$7.33

$8.17

$9.02

$9.78

$10.15

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.29

0.30

0.25

0.21

0.45

Net

realized

and

unrealized

gains

(losses)

...........

(0.08)

(0.76)

(0.83)

(0.73)

(0.23)

Total

from

investment

operations

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

0.21

(0.46)

(0.58)

(0.52)

0.22

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

—

(—)

c

(0.59)

Tax

return

of

capital

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

(0.31)

(0.38)

(0.27)

(0.24)

—

Total

distributions

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

(0.31)

(0.38)

(0.27)

(0.24)

(0.59)

Net

asset

value,

end

of

year

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

$7.23

$7.33

$8.17

$9.02

$9.78

Total

return

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

3.05%

(5.68)%

(6.52)%

(5.41)%

2.12%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

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

1.40%

1.50%

0.99%

0.96%

0.95%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.59%

0.78%

0.74%

0.75%

0.75%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

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

0.56%

0.78%

d

0.74%

d

0.74%

0.73%

Net

investment

income

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

4.10%

3.95%

2.88%

2.30%

4.43%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$11,873

$16,520

$24,744

$284,611

$393,873

Portfolio

turnover

rate

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

90.98%

9.13%

60.68%

86.26%

24.26%

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

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Income

Trust

Schedule

of

Investments,

December

31,

2023

Templeton

International

Bond

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

58

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

73.7%

Australia

9.5%

New

South

Wales

Treasury

Corp.

,

Senior

Bond,

2%,

3/08/33

........

1,785,000

AUD

$

988,570

a

Senior

Bond,

Reg

S,

1.75%,

3/20/34

231,000

AUD

120,925

Queensland

Treasury

Corp.

,

Senior

Bond,

2%,

8/22/33

........

410,000

AUD

225,756

a

Senior

Bond,

144A,

Reg

S,

1.75%,

7/20/34

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

841,000

AUD

439,133

Treasury

Corp.

of

Victoria

,

a

Senior

Bond,

Reg

S,

2.25%,

9/15/33

1,294,000

AUD

716,560

Senior

Bond,

2.25%,

11/20/34

.....

527,000

AUD

282,364

2,773,308

Brazil

7.2%

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/27

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

7,200,000

BRL

1,493,804

10%,

1/01/31

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

940,000

BRL

191,992

F,

10%,

1/01/29

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

2,040,000

BRL

420,559

2,106,355

Colombia

6.6%

Colombia

Titulos

de

Tesoreria

,

B,

7.5%,

8/26/26

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

3,408,000,000

COP

841,504

B,

6%,

4/28/28

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

81,000,000

COP

18,452

B,

7.75%,

9/18/30

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

399,000,000

COP

93,909

B,

7%,

3/26/31

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

142,000,000

COP

31,631

B,

7%,

6/30/32

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

670,000,000

COP

144,993

B,

13.25%,

2/09/33

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

357,000,000

COP

109,415

B,

7.25%,

10/18/34

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

608,000,000

COP

129,261

B,

6.25%,

7/09/36

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

290,000,000

COP

54,762

B,

9.25%,

5/28/42

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

2,152,000,000

COP

504,232

1,928,159

Germany

2.8%

a

Bundesobligation,

Reg

S,

10/18/24

...

213,000

EUR

229,309

a

Bundesrepublik

Deutschland,

Reg

S,

6.25%,

1/04/24

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

69,000

EUR

76,192

a

Bundesschatzanweisungen,

Reg

S,

0.4%,

9/13/24

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

463,000

EUR

501,108

806,609

Ghana

1.1%

b

Ghana

Government

Bond

,

PIK,

8.35%,

2/16/27

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

635,351

GHS

28,892

PIK,

8.5%,

2/15/28

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

1,007,764

GHS

39,455

PIK,

8.65%,

2/13/29

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

1,004,979

GHS

34,704

PIK,

8.8%,

2/12/30

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

1,005,719

GHS

31,411

PIK,

8.95%,

2/11/31

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

900,129

GHS

25,893

PIK,

9.1%,

2/10/32

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

900,791

GHS

24,401

PIK,

9.25%,

2/08/33

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

901,453

GHS

23,333

PIK,

9.4%,

2/07/34

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

852,519

GHS

21,370

PIK,

9.55%,

2/06/35

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

853,145

GHS

20,935

PIK,

9.7%,

2/05/36

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

853,770

GHS

20,682

PIK,

9.85%,

2/03/37

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

854,396

GHS

20,565

Templeton

Income

Trust

Schedule

of

Investments

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

59

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Ghana

(continued)

b

Ghana

Government

Bond,

(continued)

PIK,

10%,

2/02/38

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

855,022

GHS

$

20,551

312,192

India

4.4%

India

Government

Bond

,

Senior

Bond,

7.26%,

8/22/32

......

18,000,000

INR

216,816

Senior

Note,

7.1%,

4/18/29

.......

87,300,000

INR

1,047,474

1,264,290

Indonesia

8.8%

Indonesia

Government

Bond

,

FR68,

8.375%,

3/15/34

..........

6,948,000,000

IDR

504,708

FR96,

7%,

2/15/33

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

30,357,000,000

IDR

2,044,469

2,549,177

Malaysia

8.0%

Malaysia

Government

Bond

,

4.181%,

7/15/24

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

430,000

MYR

93,937

4.059%,

9/30/24

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

770,000

MYR

168,307

3.882%,

3/14/25

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

1,180,000

MYR

258,471

3.955%,

9/15/25

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

150,000

MYR

32,910

3.9%,

11/30/26

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

1,480,000

MYR

325,635

3.892%,

3/15/27

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

130,000

MYR

28,548

3.502%,

5/31/27

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

200,000

MYR

43,408

3.899%,

11/16/27

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

4,520,000

MYR

993,688

3.733%,

6/15/28

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

340,000

MYR

74,242

4.498%,

4/15/30

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

510,000

MYR

115,784

3.582%,

7/15/32

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

870,000

MYR

185,896

2,320,826

Mexico

11.0%

Mexican

Bonos

,

M,

10%,

11/20/36

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

1,000,000

MXN

63,485

M,

Senior

Bond,

7.75%,

11/23/34

...

3,060,000

MXN

164,743

Mexican

Bonos

Desarr

Fixed

Rate

,

M,

7.75%,

5/29/31

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

30,290,000

MXN

1,664,866

M,

7.5%,

5/26/33

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

15,970,000

MXN

852,498

M,

Senior

Bond,

8.5%,

5/31/29

.....

2,500,000

MXN

144,163

M,

Senior

Bond,

8.5%,

11/18/38

....

1,830,000

MXN

102,879

M,

Senior

Bond,

7.75%,

11/13/42

...

3,940,000

MXN

204,280

3,196,914

Panama

2.0%

Panama

Government

Bond,

Senior

Bond,

6.4%,

2/14/35

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

580,000

567,569

Singapore

4.4%

Singapore

Government

Bond

,

2.625%,

8/01/32

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

432,000

SGD

325,232

3.375%,

9/01/33

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

1,200,000

SGD

962,000

1,287,232

South

Korea

4.4%

Korea

Treasury

Bonds,

1.875%,

6/10/26

1,716,520,000

KRW

1,286,607

Templeton

Income

Trust

Schedule

of

Investments

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

60

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Thailand

3.5%

Thailand

Government

Bond

,

0.75%,

9/17/24

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

19,770,000

THB

$

568,190

1%,

6/17/27

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

14,770,000

THB

409,349

Senior

Note,

1.78%,

11/28/24

......

220,000

THB

6,361

Senior

Note,

2.04%,

5/29/25

......

1,230,000

THB

35,589

1,019,489

Total

Foreign

Government

and

Agency

Securities

(Cost

$21,751,391)

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

21,418,727

Number

of

Contracts

Notional

Amount

#

a

a

aa

Options

Purchased

0.3%

Calls

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

18.55

MXN,

Expires

3/13/24

..

1

6,564,000

30,333

30,333

Puts

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

February

Strike

Price

16.04

MXN,

Expires

2/01/24

..

1

791,000

146

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

February

Strike

Price

16.04

MXN,

Expires

2/01/24

..

1

850,000

156

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

17.39

MXN,

Expires

3/13/24

..

1

1,641,000

46,781

47,083

Total

Options

Purchased

(Cost

$105,725)

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

77,416

Short

Term

Investments

24.6%

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

8.0%

Germany

1.6%

a,c

Germany

Treasury

Bills

,

Reg

S,

3/20/24

437,000

EUR

478,664

Japan

6.4%

c

Japan

Treasury

Bills

,

2/20/24

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

83,700,000

JPY

593,866

6/20/24

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

11,000,000

JPY

78,090

7/22/24

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

166,200,000

JPY

1,179,923

1,851,879

Total

Foreign

Government

and

Agency

Securities

(Cost

$2,257,474)

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

2,330,543

Templeton

Income

Trust

Schedule

of

Investments

Templeton

International

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

61

Short

Term

Investments

(continued)

a

a

Industry

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

16.6%

United

States

16.6%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.034%

.........

4,817,812

$

4,817,812

Total

Money

Market

Funds

(Cost

$4,817,812)

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

4,817,812

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$7,075,286

)

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

7,148,355

a

a

a

Total

Investments

(Cost

$28,932,402)

98.6%

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

$28,644,498

Options

Written

(0.3)%

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

(78,233)

Other

Assets,

less

Liabilities

1.7%

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

480,897

Net

Assets

100.0%

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

$29,047,162

a

a

a

a

Number

of

Contracts

Notional

Amount

#

f

Options

Written

(0.3)%

a

Calls

-

Over-the-Counter

a

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

18.32

MXN,

Expires

3/13/24

..

1

1,641,000

(9,613)

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

19.18

MXN,

Expires

3/13/24

..

1

1,641,000

(4,096)

(13,709)

Puts

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

BZWS,

March

Strike

Price

17.14

MXN,

Expires

3/13/24

..

1

3,282,000

(64,524)

(64,524)

Total

Options

Written

(Premiums

received

$66,854)

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

$

(78,233)

#

Notional

amount

is

the

number

of

contracts

multiplied

by

contract

size,

and

may

be

multiplied

by

the

underlying

price.

May

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

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,

2023,

the

aggregate

value

of

these

securities

was

$2,561,891,

representing

8.8%

of

net

assets.

b

Income

may

be

received

in

additional

securities

and/or

cash.

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.

f

See

Note

1(c)

regarding

written

options.

Templeton

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Schedule

of

Investments

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(continued)

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Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

62

At

December

31,

2023,

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

......

HSBK

Buy

126,000,000

144,394

1/04/24

$

—

$

(1,376)

Chilean

Peso

......

HSBK

Sell

126,000,000

144,994

1/04/24

1,975

—

Chilean

Peso

......

HSBK

Buy

126,000,000

144,864

1/18/24

—

(1,830)

Chilean

Peso

......

JPHQ

Buy

115,700,000

132,579

1/31/24

—

(1,224)

Chilean

Peso

......

HSBK

Buy

102,300,000

117,015

2/05/24

—

(889)

Chilean

Peso

......

JPHQ

Buy

152,000,000

173,560

2/05/24

—

(1,018)

Indian

Rupee

......

CITI

Buy

52,990,400

633,781

3/20/24

733

—

Indian

Rupee

......

JPHQ

Buy

40,526,500

482,976

3/20/24

2,294

—

Indian

Rupee

......

JPHQ

Sell

12,500,000

149,307

3/20/24

—

(369)

New

Zealand

Dollar

.

CITI

Buy

1,670,000

990,624

3/20/24

65,526

—

New

Zealand

Dollar

.

CITI

Sell

280,000

172,376

3/20/24

—

(4,703)

Singapore

Dollar

....

CITI

Buy

1,850,000

1,373,422

3/20/24

33,379

—

Singapore

Dollar

....

CITI

Sell

1,810,000

1,335,072

3/20/24

—

(41,312)

South

Korean

Won

..

HSBK

Buy

2,112,900,000

1,600,888

3/20/24

38,075

—

Japanese

Yen

......

BOFA

Buy

95,569,950

669,914

3/21/24

16,467

—

Japanese

Yen

......

BOFA

Sell

34,300,000

244,267

3/21/24

—

(2,075)

Japanese

Yen

......

BNDP

Buy

47,525,120

332,911

4/15/24

9,734

—

Japanese

Yen

......

BOFA

Buy

49,313,600

345,423

4/15/24

10,117

—

Japanese

Yen

......

DBAB

Buy

219,993,550

1,540,192

4/15/24

45,912

—

Japanese

Yen

......

GSCO

Buy

369,900,000

2,587,803

4/15/24

79,095

—

Australian

Dollar

....

CITI

Buy

245,000

159,799

5/07/24

7,761

—

Australian

Dollar

....

DBAB

Buy

245,000

159,647

5/07/24

7,913

—

Australian

Dollar

....

DBAB

Buy

521,000

342,679

5/22/24

13,751

—

Australian

Dollar

....

JPHQ

Buy

489,000

321,390

5/22/24

13,148

—

Norwegian

Krone

...

CITI

Buy

12,373,000

1,138,568

6/11/24

83,196

—

Norwegian

Krone

...

DBAB

Buy

1,192,000

109,978

6/11/24

7,725

—

Total

Forward

Exchange

Contracts

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

$436,801

$(54,796)

Net

unrealized

appreciation

(depreciation)

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

$382,005

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

See

Note 

10

 regarding

other

derivative

information.

See

A

bbreviations

on

page

104

.

Templeton

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Financial

Highlights

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accompanying

notes

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an

integral

part

of

these

financial

statements.

Annual

Report

63

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$4.91

$5.82

$6.70

$7.73

$8.13

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.31

0.26

0.48

0.48

0.62

Net

realized

and

unrealized

gains

(losses)

...........

0.27

(0.86)

(0.83)

(1.00)

(0.51)

Total

from

investment

operations

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

0.58

(0.60)

(0.35)

(0.52)

0.11

Less

distributions

from:

Net

investment

income

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

(0.02)

—

—

(0.01)

(0.51)

Tax

return

of

capital

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

(0.29)

(0.31)

(0.53)

(0.50)

—

Total

distributions

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

(0.31)

(0.31)

(0.53)

(0.51)

(0.51)

Net

asset

value,

end

of

year

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

$5.18

$4.91

$5.82

$6.70

$7.73

Total

return

c

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

12.13%

(10.51)%

(5.54)%

(6.80)%

1.33%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

2.66%

2.91%

2.77%

2.10%

2.16%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.12%

1.08%

1.13%

1.07%

1.13%

Net

investment

income

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

6.13%

4.90%

7.58%

6.84%

7.75%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$9,849

$10,984

$14,821

$16,004

$21,984

Portfolio

turnover

rate

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

86.75%

58.11%

40.55%

56.59%

23.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

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

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Trust

Financial

Highlights

Templeton

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(continued)

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The

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part

of

these

financial

statements.

64

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$4.91

$5.81

$6.69

$7.72

$8.12

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.29

0.24

0.45

0.44

0.59

Net

realized

and

unrealized

gains

(losses)

...........

0.27

(0.86)

(0.83)

(0.99)

(0.52)

Total

from

investment

operations

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

0.56

(0.62)

(0.38)

(0.55)

0.07

Less

distributions

from:

Net

investment

income

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

(0.03)

—

—

(0.01)

(0.47)

Tax

return

of

capital

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

(0.26)

(0.28)

(0.50)

(0.47)

—

Total

distributions

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

(0.29)

(0.28)

(0.50)

(0.48)

(0.47)

Net

asset

value,

end

of

year

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

$5.18

$4.91

$5.81

$6.69

$7.72

Total

return

c

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

11.70%

(10.79)%

(5.96)%

(7.22)%

0.89%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

3.08%

3.34%

3.13%

2.54%

2.56%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.54%

1.54%

1.54%

1.51%

1.53%

Net

investment

income

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

5.72%

4.52%

7.18%

6.33%

7.35%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$689

$734

$1,310

$1,821

$2,276

Portfolio

turnover

rate

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

86.75%

58.11%

40.55%

56.59%

23.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

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

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Financial

Highlights

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part

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these

financial

statements.

Annual

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65

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$4.92

$5.83

$6.71

$7.73

$8.14

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.30

0.24

0.48

0.47

0.62

Net

realized

and

unrealized

gains

(losses)

...........

0.26

(0.86)

(0.83)

(0.98)

(0.52)

Total

from

investment

operations

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

0.56

(0.62)

(0.35)

(0.51)

0.10

Less

distributions

from:

Net

investment

income

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

(0.05)

—

—

(0.01)

(0.51)

Tax

return

of

capital

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

(0.24)

(0.29)

(0.53)

(0.50)

—

Total

distributions

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

(0.29)

(0.29)

(0.53)

(0.51)

(0.51)

Net

asset

value,

end

of

year

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

$5.19

$4.92

$5.83

$6.71

$7.73

Total

return

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

11.86%

(10.76)%

(5.56)%

(6.81)%

1.32%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

2.88%

3.21%

2.81%

2.13%

2.18%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.39%

1.39%

1.16%

1.10%

1.15%

Net

investment

income

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

5.92%

4.59%

7.55%

6.67%

7.73%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$13

$10

$12

$12

$13

Portfolio

turnover

rate

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

86.75%

58.11%

40.55%

56.59%

23.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

Templeton

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statements.

66

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$4.91

$5.83

$6.71

$7.74

$8.14

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.32

0.26

0.51

0.52

0.66

Net

realized

and

unrealized

gains

(losses)

...........

0.27

(0.86)

(0.84)

(1.02)

(0.52)

Total

from

investment

operations

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

0.59

(0.60)

(0.33)

(0.50)

0.14

Less

distributions

from:

Net

investment

income

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

(0.04)

—

—

(0.01)

(0.54)

Tax

return

of

capital

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

(0.28)

(0.32)

(0.55)

(0.52)

—

Total

distributions

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

(0.32)

(0.32)

(0.55)

(0.53)

(0.54)

Net

asset

value,

end

of

year

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

$5.18

$4.91

$5.83

$6.71

$7.74

Total

return

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

12.47%

(10.41)%

(5.19)%

(6.47)%

1.69%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

2.47%

2.86%

2.56%

2.04%

1.94%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.86%

0.86%

0.77%

0.75%

0.75%

Net

investment

income

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

6.44%

5.09%

8.00%

7.37%

8.13%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$654

$599

$663

$598

$1,057

Portfolio

turnover

rate

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

86.75%

58.11%

40.55%

56.59%

23.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

Templeton

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Financial

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accompanying

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an

integral

part

of

these

financial

statements.

Annual

Report

67

a

Year

Ended

December

31,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$4.94

$5.85

$6.73

$7.75

$8.16

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.32

0.27

0.50

0.51

0.63

Net

realized

and

unrealized

gains

(losses)

...........

0.27

(0.86)

(0.84)

(1.01)

(0.51)

Total

from

investment

operations

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

0.59

(0.59)

(0.34)

(0.50)

0.12

Less

distributions

from:

Net

investment

income

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

(0.15)

—

—

(0.01)

(0.53)

Tax

return

of

capital

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

(0.17)

(0.32)

(0.54)

(0.51)

—

Total

distributions

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

(0.32)

(0.32)

(0.54)

(0.52)

(0.53)

Net

asset

value,

end

of

year

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

$5.21

$4.94

$5.85

$6.73

$7.75

Total

return

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

12.35%

(10.28)%

(5.28)%

(6.46)%

1.45%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

2.42%

2.70%

2.51%

1.91%

1.91%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.89%

0.88%

0.89%

0.86%

0.88%

Net

investment

income

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

6.42%

5.14%

7.83%

7.20%

8.00%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$5,206

$1,676

$3,063

$3,950

$14,504

Portfolio

turnover

rate

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

86.75%

58.11%

40.55%

56.59%

23.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

Templeton

Income

Trust

Schedule

of

Investments,

December

31,

2023

Templeton

Sustainable

Emerging

Markets

Bond

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

68

a

a

Industry

Shares

a

Value

a

Common

Stocks

0.0%

South

Africa

0.0%

a,b,c

K2016470219

South

Africa

Ltd.,

A

....

Broadline

Retail

2,171,539

$

—

a,b,c

K2016470219

South

Africa

Ltd.,

B

....

Broadline

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

.

Financial

Services

450,660

450,124

South

Africa

0.0%

a,d,e

K2016470219

South

Africa

Ltd.

,

Senior

Secured

Note,

144A,

PIK,

3%,

12/31/22

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

Broadline

Retail

188,190

—

Senior

Secured

Note,

144A,

PIK,

8%,

12/31/22

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

Broadline

Retail

55,416

EUR

—

a,d,e

K2016470260

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

25

%

,

12/31/22

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

Broadline

Retail

237,804

—

—

Total

Corporate

Bonds

(Cost

$751,695)

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

450,124

a

a

Industry

Principal

Amount

*

a

Value

Foreign

Government

and

Agency

Securities

91.2%

Brazil

9.4%

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/27

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

630,000

BRL

130,708

10%,

1/01/31

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

3,136,000

BRL

640,516

10%,

1/01/33

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

2,442,000

BRL

495,984

F,

10%,

1/01/29

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

1,362,000

BRL

280,785

1,547,993

Colombia

9.5%

Colombia

Government

Bond,

Senior

Bond,

9.85%,

6/28/27

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

13,000,000

COP

3,188

Colombia

Titulos

de

Tesoreria

,

B,

7.75%,

9/18/30

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

123,500,000

COP

29,067

B,

7%,

3/26/31

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

5,464,400,000

COP

1,217,215

B,

7%,

6/30/32

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

107,000,000

COP

23,156

B,

13.25%,

2/09/33

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

260,000,000

COP

79,686

B,

7.25%,

10/18/34

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

257,000,000

COP

54,638

B,

6.25%,

7/09/36

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

64,000,000

COP

12,085

B,

9.25%,

5/28/42

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

580,000,000

COP

135,899

1,554,934

Czech

Republic

3.1%

Czech

Republic

Government

Bond,

1.75%,

6/23/32

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

13,100,000

CZK

504,995

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

69

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Dominican

Republic

2.3%

e

Dominican

Republic

Government

Bond,

Senior

Bond,

144A,

5.875%,

1/30/60

441,000

$

382,567

Ecuador

4.0%

e

Ecuador

Government

Bond

,

Senior

Bond,

144A,

3.5%,

7/31/35

..

1,199,500

432,274

Senior

Note,

144A,

6%,

7/31/30

....

491,000

229,353

661,627

Egypt

2.2%

e

Egypt

Government

Bond,

Senior

Note,

144A,

5.25%,

10/06/25

...........

390,000

355,649

Ghana

1.1%

d

Ghana

Government

Bond

,

PIK,

8.35%,

2/16/27

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

794,130

GHS

36,112

PIK,

8.5%,

2/15/28

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

794,716

GHS

31,114

PIK,

8.65%,

2/13/29

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

745,842

GHS

25,756

PIK,

8.8%,

2/12/30

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

746,392

GHS

23,312

PIK,

8.95%,

2/11/31

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

740,996

GHS

21,315

PIK,

9.1%,

2/10/32

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

741,541

GHS

20,087

PIK,

9.25%,

2/08/33

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

742,086

GHS

19,208

PIK,

9.4%,

2/07/34

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

47,664

GHS

1,195

PIK,

9.55%,

2/06/35

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

47,699

GHS

1,170

PIK,

9.7%,

2/05/36

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

47,733

GHS

1,156

PIK,

9.85%,

2/03/37

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

47,768

GHS

1,150

PIK,

10%,

2/02/38

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

47,803

GHS

1,149

182,724

Hungary

1.2%

Hungary

Government

Bond,

1%,

11/26/25

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

75,000,000

HUF

196,678

India

3.9%

India

Government

Bond,

Senior

Bond,

7.29%,

1/27/33

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

52,370,000

INR

633,614

Indonesia

9.8%

Indonesia

Government

Bond

,

FR68,

8.375%,

3/15/34

..........

4,776,000,000

IDR

346,932

FR87,

6.5%,

2/15/31

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

792,000,000

IDR

51,233

FR91,

6.375%,

4/15/32

..........

7,387,000,000

IDR

474,928

FR95,

6.375%,

8/15/28

..........

4,200,000,000

IDR

272,300

FR96,

7%,

2/15/33

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

6,920,000,000

IDR

466,045

1,611,438

Malaysia

5.3%

Malaysia

Government

Bond

,

4.059%,

9/30/24

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

1,330,000

MYR

290,712

3.899%,

11/16/27

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

1,940,000

MYR

426,494

4.498%,

4/15/30

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

630,000

MYR

143,027

860,233

Mexico

2.4%

Mexican

Bonos

Desarr

Fixed

Rate

,

M,

7.5%,

5/26/33

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

7,370,000

MXN

393,420

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Oman

1.8%

e

Oman

Government

Bond,

Senior

Bond,

144A,

7%,

1/25/51

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

275,000

$

297,561

Panama

2.0%

Panama

Government

Bond,

Senior

Bond,

6.875%,

1/31/36

...........

330,000

330,088

Romania

5.1%

e

Romania

Government

Bond

,

144A,

1.75%,

7/13/30

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

50,000

EUR

44,743

144A,

2.75%,

4/14/41

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

510,000

EUR

379,552

144A,

2.875%,

4/13/42

...........

560,000

EUR

419,467

843,762

Serbia

2.9%

Serbia

Treasury

Bonds,

4.5%,

8/20/32

.

57,400,000

RSD

480,315

Seychelles

1.1%

e

Seychelles

International

Bond,

Senior

Bond,

Reg

S,

8%,

1/01/26

........

175,000

173,591

Singapore

4.2%

Singapore

Government

Bond

,

2.625%,

8/01/32

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

148,000

SGD

111,422

e

Senior

Bond,

Reg

S,

3%,

8/01/72

...

709,000

SGD

576,753

688,175

South

Korea

4.0%

Korea

Treasury

Bonds

,

1.875%,

6/10/26

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

96,500,000

KRW

72,331

3.25%,

3/10/28

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

589,700,000

KRW

456,729

3.5%,

9/10/28

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

160,000,000

KRW

125,378

654,438

Supranational

11.8%

f

European

Bank

for

Reconstruction

&

Development

,

Senior

Note,

0.84%,

6/26/24

......

250,000,000

HUF

695,064

Senior

Note,

4.95%,

1/22/26

......

57,400,000

INR

661,155

f

International

Bank

for

Reconstruction

&

Development,

Senior

Bond,

7.07%,

6/26/29

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

10,800,000

MXN

582,912

1,939,131

Uruguay

4.1%

g

Uruguay

Government

Bond,

Index

Linked,

Senior

Bond,

3.875%,

7/02/40

24,973,715

UYU

675,748

Total

Foreign

Government

and

Agency

Securities

(Cost

$15,052,249)

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

14,968,681

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

71

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

$15,818,942)

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

15,418,805

Short

Term

Investments

3.6%

a

a

Industry

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

3.6%

United

States

3.6%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.034%

.........

598,325

598,325

Total

Money

Market

Funds

(Cost

$598,325)

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

598,325

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$598,325

)

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

598,325

a

a

a

Total

Investments

(Cost

$16,417,267)

97.5%

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

$16,017,130

Other

Assets,

less

Liabilities

2.5%

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

394,978

Net

Assets

100.0%

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

$16,412,108

a

a

a

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

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,

2023,

the

aggregate

value

of

these

securities

was

$3,291,510,

representing

20.1%

of

net

assets.

f

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

g

Principal

amount

of

security

is

adjusted

for

inflation.

See

Note1(f).

h

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

i

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Templeton

Income

Trust

Schedule

of

Investments

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

72

At

December

31,

2023,

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

......

HSBK

Buy

84,800,000

97,180

1/04/24

$

—

$

(926)

Chilean

Peso

......

HSBK

Sell

84,800,000

97,584

1/04/24

1,330

—

Indian

Rupee

......

HSBK

Buy

5,080,900

60,891

1/08/24

150

—

Chilean

Peso

......

HSBK

Buy

84,800,000

97,496

1/18/24

—

(1,232)

Chilean

Peso

......

JPHQ

Buy

235,400,000

269,741

1/31/24

—

(2,491)

Uruguayan

Peso

....

CITI

Buy

2,800,000

69,273

2/01/24

1,021

—

Brazilian

Real

......

MSCO

Buy

1,570,000

320,088

2/02/24

769

—

Chilean

Peso

......

HSBK

Buy

68,900,000

78,810

2/05/24

—

(599)

Chilean

Peso

......

JPHQ

Buy

102,400,000

116,924

2/05/24

—

(686)

Mexican

Peso

......

HSBK

Buy

6,360,000

341,219

2/06/24

31,084

—

Mexican

Peso

......

HSBK

Sell

6,360,000

360,980

2/06/24

—

(11,323)

Thai

Baht

.........

HSBK

Buy

44,310,000

1,280,472

2/07/24

19,576

(8,321)

Columbian

Peso

....

GSCO

Buy

370,000,000

91,341

2/08/24

3,581

—

Columbian

Peso

....

MSCO

Buy

2,121,000,000

523,084

2/08/24

21,050

—

Malaysian

Ringgit

...

GSCO

Buy

1,220,000

270,061

2/15/24

—

(3,138)

Indian

Rupee

......

CITI

Buy

12,814,700

153,268

3/20/24

177

—

Indian

Rupee

......

JPHQ

Buy

12,453,500

148,415

3/20/24

705

—

Singapore

Dollar

....

CITI

Buy

600,000

445,434

3/20/24

10,826

—

Indian

Rupee

......

JPHQ

Buy

971,100

11,589

4/15/24

23

—

Total

Forward

Exchange

Contracts

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

$90,292

$(28,716)

Net

unrealized

appreciation

(depreciation)

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

$61,576

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

See

Note 

10

 regarding

other

derivative

information.

See

Abbreviations

on

page

104

.

Templeton

Income

Trust

Financial

Statements

Statements

of

Assets

and

Liabilities

December

31,

2023

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

73

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$4,139,630,646

$371,788,595

$24,114,590

$15,818,942

Cost

-

Non-controlled

affiliates

(Note

3

f

)

.....

361,448,074

16,359,736

4,817,812

598,325

Value

-

Unaffiliated

issuers

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

$4,107,217,532

$304,905,350

$23,826,686

$15,418,805

Value

-

Non-controlled

affiliates

(Note

3

f

)

.....

361,448,074

16,359,736

4,817,812

598,325

Cash

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

1,705,777

11,306

—

—

Restricted

cash

for

OTC

derivative

contracts

(Note

1

d

)

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

8,690,000

—

—

—

Foreign

currency,

at

value

(cost

$6,306,

$39,768,

$1,538

and

$22,567,

respectively)

...........

6,535

40,505

1,561

22,570

Receivables:

Capital

shares

sold

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

1,992,586

208,182

14,390

60,924

Interest

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

74,793,696

6,877,215

378,604

410,300

Foreign

tax

refund

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

—

52,770

—

—

Deposits

with

brokers

for:

OTC

derivative

contracts

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

193

—

—

—

Centrally

cleared

swap

contracts

.........

19,627,718

216,031

—

—

Unrealized

appreciation

on

OTC

forward

exchange

contracts

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

60,716,440

4,985,794

436,801

90,292

Total

assets

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

4,636,198,551

333,656,889

29,475,854

16,601,216

Liabilities:

Payables:

Capital

shares

redeemed

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

21,274,929

376,367

74,199

44,229

Management

fees

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

1,838,781

182,510

47,170

11,591

Distribution

fees

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

526,057

42,894

2,809

2,451

Transfer

agent

fees

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

2,114,122

180,247

12,920

4,455

Registration

and

filing

fees

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

99,731

21,420

45,132

3,126

Professional

fees

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

207,253

81,321

63,712

71,938

Trustees'

fees

and

expenses

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

2,053

647

39

2

Variation

margin

on

centrally

cleared

swap

contracts

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

590,071

6,403

—

—

Deposits

from

brokers

for:

OTC

derivative

contracts

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

8,690,000

—

—

—

Options

written,

at

value

(premiums

received

$4,497,738,

$393,986,

$66,854

and

$–,

respectively)

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

5,263,311

461,038

78,233

—

Unrealized

depreciation

on

OTC

forward

exchange

contracts

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

12,890,002

985,850

54,796

28,716

Deferred

tax

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

609,950

—

1,679

1,403

Accrued

expenses

and

other

liabilities

........

1,355,191

171,665

48,003

21,197

Total

liabilities

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

55,461,451

2,510,362

428,692

189,108

Net

assets,

at

value

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

$4,580,737,100

$331,146,527

$29,047,162

$16,412,108

Net

assets

consist

of:

Paid-in

capital

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

$7,258,547,062

$1,006,024,912

$53,814,652

$20,923,449

Total

distributable

earnings

(losses)

..........

(2,677,809,962)

(674,878,385)

(24,767,490)

(4,511,341)

Net

assets,

at

value

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

$4,580,737,100

$331,146,527

$29,047,162

$16,412,108

Templeton

Income

Trust

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2023

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

74

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Class

A:

Net

assets,

at

value

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

$2,104,822,800

$163,439,888

$11,678,434

$9,849,489

Shares

outstanding

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

270,903,143

22,846,175

1,617,134

1,900,469

Net

asset

value

per

share

a

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

$7.77

$7.15

$7.22

$5.18

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

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

$8.07

$7.43

$7.50

$5.38

Class

C:

Net

assets,

at

value

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

$79,605,864

$13,724,625

$661,927

$688,792

Shares

outstanding

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

10,191,375

1,920,562

91,388

133,065

Net

asset

value

and

maximum

offering

price

per

share

a

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

$7.81

$7.15

$7.24

$5.18

Class

R:

Net

assets,

at

value

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

$100,332,594

$2,788,623

$52,186

$13,005

Shares

outstanding

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

12,912,997

389,487

7,230

2,507

Net

asset

value

and

maximum

offering

price

per

share

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

$7.77

$7.16

$7.22

$5.19

Class

R6:

Net

assets,

at

value

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

$551,986,495

$31,027,300

$4,782,094

$654,328

Shares

outstanding

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

71,481,851

4,336,703

664,139

126,198

Net

asset

value

and

maximum

offering

price

per

share

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

$7.72

$7.15

$7.20

$5.18

Advisor

Class:

Net

assets,

at

value

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

$1,743,989,347

$120,166,091

$11,872,521

$5,206,494

Shares

outstanding

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

225,690,509

16,757,413

1,642,615

998,685

Net

asset

value

and

maximum

offering

price

per

share

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

$7.73

$7.17

$7.23

$5.21

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Templeton

Income

Trust

Financial

Statements

Statements

of

Operations

for

the

year

ended

December

31,

2023

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

75

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Note

3f)

..........

$13,537,953

$1,132,893

$348,513

$51,579

Interest:

(net

of

foreign

taxes

of

$7,007,813,

$411,910,

$26,531

and

$12,497,

respectively)

Unaffiliated

issuers

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

226,749,437

25,817,300

1,183,792

995,721

Total

investment

income

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

240,287,390

26,950,193

1,532,305

1,047,300

Expenses:

Management

fees

(Note

3

a

)

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

25,810,124

2,718,008

228,772

122,528

Distribution

fees:

(Note

3c

)

    Class

A

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

5,646,241

452,732

31,499

23,650

    Class

C

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

650,032

105,207

4,698

4,585

    Class

R

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

519,292

14,421

307

60

Transfer

agent

fees:

(Note

3e

)

    Class

A

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

3,810,064

324,792

(1,209)

15,477

    Class

C

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

170,507

29,139

(70)

1,055

    Class

R

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

174,797

5,167

(6)

18

    Class

R6

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

290,757

22,179

4,434

1,367

    Advisor

Class

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

3,477,990

287,153

(1,372)

4,048

Custodian

fees

(Note

4

)

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

982,576

(26,806)

13,567

6,188

Reports

to

shareholders

fees

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

461,508

29,037

11,504

5,504

Registration

and

filing

fees

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

219,331

75,804

91,826

75,145

Professional

fees

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

248,634

118,988

106,146

98,604

Trustees'

fees

and

expenses

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

705,386

38,054

6,187

3,540

Other

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

(50,002)

6,863

2,972

17,551

Total

expenses

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

43,117,237

4,200,738

499,255

379,320

Expense

reductions

(Note

4

)

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

—

(313,477)

(10,541)

—

Expenses

waived/paid

by

affiliates

(Note

3f

and

3g)

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

(1,131,848)

(96,393)

(267,081)

(222,902)

Net

expenses

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

41,985,389

3,790,868

221,633

156,418

Net

investment

income

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

198,302,001

23,159,325

1,310,672

890,882

Templeton

Income

Trust

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

December

31,

2023

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

76

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$797,384,

$2,714,

$–

and

$–,

respectively)

Unaffiliated

issuers

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

(789,223,268)

(72,777,476)

(3,331,566)

(1,610,769)

Written

options

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

834,672

73,101

21,059

—

Foreign

currency

transactions

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

(170,514)

363,279

38,482

17,147

Forward

exchange

contracts

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

(100,848,261)

(12,528,709)

(670,840)

398,432

Swap

contracts

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

(10,273)

3,564,458

—

23,747

Net

realized

gain

(loss)

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

(889,417,644)

(81,305,347)

(3,942,865)

(1,171,443)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

804,636,540

77,403,749

3,406,241

2,017,519

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

........

2,030,836

99,403

17,142

(13,502)

Written

options

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

(765,573)

(67,052)

(11,379)

—

Forward

exchange

contracts

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

(27,269,315)

2,879,641

(105,962)

(19,454)

Swap

contracts

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

(3,541,328)

(4,402,325)

—

(35,688)

Change

in

deferred

taxes

on

unrealized

appreciation

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

286,956

(23,632)

(3,165)

(1,403)

Net

change

in

unrealized

appreciation

(depreciation)

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

775,378,116

75,889,784

3,302,877

1,947,472

Net

realized

and

unrealized

gain

(loss)

.........

(114,039,528)

(5,415,563)

(639,988)

776,029

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

$84,262,473

$17,743,762

$670,684

$1,666,911

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

77

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Year

Ended

December

31,

2023

Year

Ended

December

31,

2022

Year

Ended

December

31,

2023

Year

Ended

December

31,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

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

$198,302,001

$293,122,594

$23,159,325

$42,049,612

Net

realized

gain

(loss)

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

(889,417,644)

(1,967,602,397)

(81,305,347)

(294,906,606)

Net

change

in

unrealized

appreciation

(depreciation)

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

775,378,116

1,183,141,234

75,889,784

141,523,451

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

84,262,473

(491,338,569)

17,743,762

(111,333,543)

Distributions

to

shareholders

from

tax

return

of

capital:

Class

A

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

(87,631,543)

(147,267,709)

(10,472,012)

(16,262,470)

Class

C

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

(3,364,075)

(7,671,642)

(861,024)

(1,806,903)

Class

R

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

(3,786,612)

(5,631,820)

(158,874)

(245,918)

Class

R6

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

(27,194,776)

(42,914,162)

(2,742,516)

(6,897,572)

Advisor

Class

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

(84,914,085)

(147,389,545)

(9,353,531)

(21,714,210)

Total

distributions

to

shareholders

.....

(206,891,091)

(350,874,878)

(23,587,957)

(46,927,073)

Capital

share

transactions:

(Note

2

)

Class

A

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

(342,146,530)

(623,315,941)

(35,981,845)

(46,269,330)

Class

C

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

(44,528,498)

(76,635,190)

(6,040,379)

(14,249,190)

Class

R

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

(9,215,517)

(12,137,917)

(533,137)

(709,770)

Class

R6

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

(119,805,664)

(160,249,495)

(15,407,824)

(97,843,454)

Advisor

Class

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

(484,817,735)

(1,008,034,785)

(80,522,967)

(146,903,363)

Total

capital

share

transactions

.......

(1,000,513,944)

(1,880,373,328)

(138,486,152)

(305,975,107)

Net

increase

(decrease)

in

net

assets

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

(1,123,142,562)

(2,722,586,775)

(144,330,347)

(464,235,723)

Net

assets:

Beginning

of

year

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

5,703,879,662

8,426,466,437

475,476,874

939,712,597

End

of

year

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

$4,580,737,100

$5,703,879,662

$331,146,527

$475,476,874

Templeton

Income

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

consolidated

financial

statements.

78

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Year

Ended

December

31,

2023

Year

Ended

December

31,

2022

Year

Ended

December

31,

2023

Year

Ended

December

31,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

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

$1,310,672

$1,669,888

$890,882

$810,679

Net

realized

gain

(loss)

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

(3,942,865)

(1,797,781)

(1,171,443)

(2,853,848)

Net

change

in

unrealized

appreciation

(depreciation)

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

3,302,877

(2,854,203)

1,947,472

9,762

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

670,684

(2,982,096)

1,666,911

(2,033,407)

Distributions

to

shareholders:

Class

A

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

—

—

(84,418)

—

Class

C

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

—

—

(5,417)

—

Class

R

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

—

—

(96)

—

Class

R6

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

—

—

(5,510)

—

Advisor

Class

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

—

—

(26,458)

—

Distributions

to

shareholders

from

tax

return

of

capital:

Class

A

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

(515,901)

(703,947)

(539,635)

(736,000)

Class

C

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

(26,251)

(45,520)

(34,628)

(48,465)

Class

R

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

(2,309)

(4,981)

(617)

(602)

Class

R6

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

(237,283)

(351,614)

(35,221)

(41,315)

Advisor

Class

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

(597,995)

(1,014,639)

(169,124)

(135,661)

Total

distributions

to

shareholders

.....

(1,379,739)

(2,120,701)

(901,124)

(962,043)

Capital

share

transactions:

(Note

2

)

Class

A

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

(1,767,961)

(1,741,270)

(1,648,339)

(1,556,222)

Class

C

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

(167,563)

(393,821)

(82,387)

(411,760)

Class

R

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

(62,315)

21,898

1,881

518

Class

R6

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

(907,143)

(1,636,131)

21,504

59,884

Advisor

Class

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

(4,329,017)

(5,744,903)

3,349,417

(962,377)

Total

capital

share

transactions

.......

(7,233,999)

(9,494,227)

1,642,076

(2,869,957)

Net

increase

(decrease)

in

net

assets

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

(7,943,054)

(14,597,024)

2,407,863

(5,865,407)

Net

assets:

Beginning

of

year

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

36,990,216

51,587,240

14,004,245

19,869,652

End

of

year

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

$29,047,162

$36,990,216

$16,412,108

$14,004,245

Templeton

Income

Trust

79

franklintempleton.com

Annual

Report

Notes

to

Financial

Statements

1.

Organization

and

Significant

Accounting

Policies

Templeton

Income

Trust

(Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-

end

management

investment

company,

consisting

of four

separate

funds

(Funds).

The

Funds

follow

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

apply

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

following

summarizes

the Funds'

significant

accounting

policies

. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Funds’

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Funds'

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the

OTC

market rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Certain

derivative

financial

instruments

are

centrally

cleared

or

trade

in

the

OTC

market.

The

Funds' pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Funds' net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Funds

have

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

Templeton

Income

Trust

Notes

to

Financial

Statements

80

franklintempleton.com

Annual

Report

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Funds'

business

day.

Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Funds.

As

a

result,

differences

may

arise

between

the

value

of

the

Funds'

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Funds'

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Funds'

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Funds'

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Funds

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Funds

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Funds

do

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statements

of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Derivative

Financial

Instruments

Certain

or

all

Funds

invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statements

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statements

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

Certain

or

all

Funds

attempt

to

reduce

their

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

81

franklintempleton.com

Annual

Report

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Funds

include

failure

of

the

Funds

to

maintain

certain

net

asset

levels

and/

or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statements

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Funds

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

At

December

31,2023,

Templeton

Sustainable

Emerging

Markets

Bond

Fund

had

OTC

derivatives

in

a

net

liability

position

for

such

contracts

of

$2,449.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

or

initial

margin

requirements

are

set

by

the

broker

or

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

is

held

at

the

exchange

and

can

be

in

the

form

of

cash

and/or

securities.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund

for

OTC

derivatives,

if

any,

is

held

in

segregated

accounts

with

the

Fund's

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Funds'

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

Certain

or

all

Funds

entered

into

OTC

forward

exchange

contracts

primarily

to

manage

and/or

gain

exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date.

Certain

or

all

Funds entered

into

interest

rate

swap

contracts

primarily

to

manage

interest

rate

risk.

An

interest

rate

swap

is

an

agreement

between

the

Fund

and

a

counterparty

to

exchange

cash

flows

based

on

the

difference

between

two

interest

rates,

applied

to

a

notional

amount.

These

agreements

may

be

privately

negotiated

in

the

over-the-

counter

market

(OTC

interest

rate

swaps)

or

may

be

executed

on

a

registered

exchange

(centrally

cleared

interest

rate

swaps).

For

centrally

cleared

interest

rate

swaps,

required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the Statements

of

Assets

and

Liabilities.

Over

the

term

of

the

contract,

contractually

required

payments

to

be

paid

and

to

be

received

are

accrued

daily

and

recorded

as

unrealized

appreciation or

depreciation

until

the

payments

are

made,

at

which

time

they

are

realized.

At

December

31,

2023,

Templeton

International

Bond

Fund

and

Templeton

Sustainable

Emerging

Markets

Bond

Fund

had

no

interest

rate

swap

contracts. 

Certain

or

all

Funds

purchased

or

wrote

OTC

option

contracts

primarily

to

manage

and/or

gain

exposure

to

foreign

exchange

rate

risk.

An

option

is

a

contract

entitling

the

holder

to

purchase

or

sell

a

specific

amount

of

shares

or

units

of

an

asset

or

notional

amount

of

a

swap

(swaption),

at

a

specified

price.

When

an

option

is

purchased

or

written,

an

amount

equal

to

the

premium

paid

or

received

is

recorded

as

an

asset

or

liability,

respectively.

Upon

exercise

of

an

option,

the

acquisition

cost

or

sales

proceeds

of

the

underlying

investment

is

adjusted

by

any

premium

received

or

paid.

Upon

expiration

of

an

option,

any

premium

received

or

paid

is

recorded

as

a

realized

gain

or

loss.

Upon

closing

an

option

other

than

through

expiration

or

exercise,

the

difference

between

the

premium

received

or

paid

and

the

cost

to

close

the

position

is

recorded

as

a

realized

gain

or

loss. At

December

31,

2023,

Templeton

Sustainable

Emerging

Markets

Bond

Fund

had

no

option

contracts.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

82

franklintempleton.com

Annual

Report

See

Note

10 regarding

other

derivative

information.

d.

Restricted

Cash

At

December

31,

2023,

certain

or

all

Funds

held

restricted

cash

in

connection

with

investments

in

certain

derivative

securities.

Restricted

cash

is

held

in

a

segregated

account

with

the

Fund’s

custodian and/or

counterparty

broker

and

is

reflected

in

the

Statements

of

Assets

and

Liabilities.

e.

Income

and

Deferred

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Funds

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

the

Funds

invest.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Funds

invest.

When

a

capital

gain

tax

is

determined

to

apply,

certain

or

all

Funds

record

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

December

31,

2023, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

f.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Funds.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

Inflation-indexed

bonds

are

adjusted

for

inflation

through

periodic

increases

or

decreases

in

the

security's

interest

accruals,

face

amount,

or

principal

redemption

value,

by

amounts

corresponding

to

the

rate

of

inflation

as

measured

by

an

index.

Any

increase

or

decrease

in

the

face

amount

or

principal

redemption

value

will

be

included

as

interest

income

in

the

Statements

of

Operations.

g.

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)

c.

Derivative

Financial

Instruments

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

83

franklintempleton.com

Annual

Report

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.

h.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

December

31,

2023,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2023

Shares

sold

a

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

16,788,608

$128,835,612

2,457,829

$17,433,776

Shares

issued

in

reinvestment

of

distributions

..........

10,806,568

82,256,355

1,347,070

9,412,928

Shares

redeemed

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

(72,481,044)

(553,238,497)

(9,001,382)

(62,828,549)

Net

increase

(decrease)

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

(44,885,868)

$(342,146,530)

(5,196,483)

$(35,981,845)

Year

ended

December

31,

2022

Shares

sold

a

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

21,914,143

$180,832,868

3,961,719

$30,610,842

Shares

issued

in

reinvestment

of

distributions

..........

16,970,881

138,439,645

1,928,306

14,641,467

Shares

redeemed

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

(116,371,457)

(942,588,454)

(11,931,163)

(91,521,639)

Net

increase

(decrease)

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

(77,486,433)

$(623,315,941)

(6,041,138)

$(46,269,330)

Class

C

Class

C

Shares:

Year

ended

December

31,

2023

Shares

sold

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

936,834

$7,218,868

251,950

$1,760,687

Shares

issued

in

reinvestment

of

distributions

..........

429,508

3,293,373

116,909

816,400

Shares

redeemed

a

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

(7,135,146)

(55,040,739)

(1,225,966)

(8,617,466)

Net

increase

(decrease)

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

(5,768,804)

$(44,528,498)

(857,107)

$(6,040,379)

Year

ended

December

31,

2022

Shares

sold

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

1,122,006

$9,231,363

455,140

$3,357,318

Shares

issued

in

reinvestment

of

distributions

..........

910,902

7,501,548

229,588

1,756,003

Shares

redeemed

a

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

(11,358,734)

(93,368,101)

(2,539,227)

(19,362,511)

Net

increase

(decrease)

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

(9,325,826)

$(76,635,190)

(1,854,499)

$(14,249,190)

Class

R

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Accounting

Estimates

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

84

franklintempleton.com

Annual

Report

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Shares

Amount

Shares

Amount

Class

R

Shares:

Year

ended

December

31,

2023

Shares

sold

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

2,035,880

$15,629,787

51,392

$353,086

Shares

issued

in

reinvestment

of

distributions

..........

496,236

3,773,313

22,068

154,250

Shares

redeemed

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

(3,756,340)

(28,618,617)

(147,481)

(1,040,473)

Net

increase

(decrease)

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

(1,224,224)

$(9,215,517)

(74,021)

$(533,137)

Year

ended

December

31,

2022

Shares

sold

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

1,938,103

$15,936,832

57,905

$437,474

Shares

issued

in

reinvestment

of

distributions

..........

687,678

5,603,555

31,532

239,283

Shares

redeemed

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

(4,039,305)

(33,678,304)

(175,234)

(1,386,527)

Net

increase

(decrease)

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

(1,413,524)

$(12,137,917)

(85,797)

$(709,770)

Class

R6

Class

R6

Shares:

Year

ended

December

31,

2023

Shares

sold

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

17,089,816

$129,888,898

1,010,419

$7,082,815

Shares

issued

in

reinvestment

of

distributions

..........

3,102,075

23,522,497

388,246

2,713,078

Shares

redeemed

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

(36,417,767)

(273,217,059)

(3,743,053)

(25,203,717)

Net

increase

(decrease)

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

(16,225,876)

$(119,805,664)

(2,344,388)

$(15,407,824)

Year

ended

December

31,

2022

Shares

sold

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

15,219,413

$127,172,494

873,525

$6,670,920

Shares

issued

in

reinvestment

of

distributions

..........

4,630,007

37,571,274

520,226

3,961,261

Shares

redeemed

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

(39,509,104)

(324,993,263)

(14,173,238)

(108,475,635)

Net

increase

(decrease)

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

(19,659,684)

$(160,249,495)

(12,779,487)

$(97,843,454)

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2023

Shares

sold

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

44,191,798

$342,231,062

4,798,084

$33,992,597

Shares

issued

in

reinvestment

of

distributions

..........

10,322,392

78,205,060

1,183,926

8,306,842

Shares

redeemed

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

(119,736,254)

(905,253,857)

(17,587,265)

(122,822,406)

Net

increase

(decrease)

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

(65,222,064)

$(484,817,735)

(11,605,255)

$(80,522,967)

Year

ended

December

31,

2022

Shares

sold

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

76,607,293

$629,457,620

12,795,213

$99,705,549

Shares

issued

in

reinvestment

of

distributions

..........

16,534,845

134,402,064

2,492,328

19,149,905

Shares

redeemed

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

(216,010,042)

(1,771,894,469)

(35,201,940)

(265,758,817)

Net

increase

(decrease)

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

(122,867,904)

$(1,008,034,785)

(19,914,399)

$(146,903,363)

2.

Shares

of

Beneficial

Interest

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

85

franklintempleton.com

Annual

Report

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2023

Shares

sold

a

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

176,012

$1,263,479

178,907

$891,602

Shares

issued

in

reinvestment

of

distributions

..........

69,972

497,296

74,334

369,708

Shares

redeemed

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

(498,742)

(3,528,736)

(589,689)

(2,909,649)

Net

increase

(decrease)

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

(252,758)

$(1,767,961)

(336,448)

$(1,648,339)

Year

ended

December

31,

2022

Shares

sold

a

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

259,283

$1,896,749

162,956

$880,102

Shares

issued

in

reinvestment

of

distributions

..........

89,343

671,735

92,915

480,302

Shares

redeemed

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

(574,823)

(4,309,754)

(564,983)

(2,916,626)

Net

increase

(decrease)

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

(226,197)

$(1,741,270)

(309,112)

$(1,556,222)

Class

C

Class

C

Shares:

Year

ended

December

31,

2023

Shares

sold

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

9,598

$69,031

22,729

$113,919

Shares

issued

in

reinvestment

of

distributions

..........

3,672

26,187

7,868

39,097

Shares

redeemed

a

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

(36,434)

(262,781)

(47,156)

(235,403)

Net

increase

(decrease)

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

(23,164)

$(167,563)

(16,559)

$(82,387)

Year

ended

December

31,

2022

Shares

sold

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

17,080

$129,477

10,790

$58,274

Shares

issued

in

reinvestment

of

distributions

..........

5,714

43,171

8,681

44,852

Shares

redeemed

a

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

(74,848)

(566,469)

(95,122)

(514,886)

Net

increase

(decrease)

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

(52,054)

$(393,821)

(75,651)

$(411,760)

Class

R

Class

R

Shares:

Year

ended

December

31,

2023

Shares

sold

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

2,637

$18,822

1,372

$6,800

Shares

issued

in

reinvestment

of

distributions

..........

323

2,302

84

419

Shares

redeemed

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

(11,759)

(83,439)

(1,080)

(5,338)

Net

increase

(decrease)

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

(8,799)

$(62,315)

376

$1,881

Year

ended

December

31,

2022

Shares

sold

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

3,071

$22,995

49

$253

Shares

issued

in

reinvestment

of

distributions

..........

666

4,981

61

312

Shares

redeemed

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

(840)

(6,078)

(10)

(47)

Net

increase

(decrease)

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

2,897

$21,898

100

$518

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

86

franklintempleton.com

Annual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Trust

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2023

Shares

sold

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

91,297

$658,561

35,434

$178,308

Shares

issued

in

reinvestment

of

distributions

..........

33,109

234,914

8,174

40,731

Shares

redeemed

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

(253,592)

(1,800,618)

(39,363)

(197,535)

Net

increase

(decrease)

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

(129,186)

$(907,143)

4,245

$21,504

Year

ended

December

31,

2022

Shares

sold

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

86,993

$661,357

67,514

$380,036

Shares

issued

in

reinvestment

of

distributions

..........

45,859

344,932

8,015

41,315

Shares

redeemed

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

(348,089)

(2,642,420)

(67,336)

(361,467)

Net

increase

(decrease)

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

(215,237)

$(1,636,131)

8,193

$59,884

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2023

Shares

sold

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

417,561

$3,030,354

908,772

$4,609,292

Shares

issued

in

reinvestment

of

distributions

..........

79,887

568,764

38,205

192,024

Shares

redeemed

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

(1,109,022)

(7,928,135)

(287,953)

(1,451,899)

Net

increase

(decrease)

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

(611,574)

$(4,329,017)

659,024

$3,349,417

Year

ended

December

31,

2022

Shares

sold

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

1,425,417

$11,004,379

48,153

$265,788

Shares

issued

in

reinvestment

of

distributions

..........

127,093

958,925

25,237

131,733

Shares

redeemed

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

(2,326,444)

(17,708,207)

(257,410)

(1,359,898)

Net

increase

(decrease)

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

(773,934)

$(5,744,903)

(184,020)

$(962,377)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Templeton

Asset

Management

Ltd

(Asset

Management)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

87

franklintempleton.com

Annual

Report

a.

Management

Fees

Templeton

Global

Bond

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Templeton

Global

Total

Return

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Templeton

International

Bond

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Templeton

Sustainable

Emerging

Markets

Bond

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Annualized

Fee

Rate

Net

Assets

0.650%

Up

to

and

including

$200

million

0.585%

Over

$200

million,

up

to

and

including

$700

million

0.550%

Over

$700

million,

up

to

and

including

$1.2

billion

0.525%

Over

$1.2

billion,

up

to

and

including

$1.3

billion

0.475%

Over

$1.3

billion,

up

to

and

including

$35

billion

0.470%

Over

$35

billion,

up

to

and

including

$50

billion

0.465%

Over

$50

billion,

up

to

and

including

$65

billion

0.460%

Over

$65

billion,

up

to

and

including

$80

billion

0.455%

In

excess

of

$80

billion

Annualized

Fee

Rate

Net

Assets

0.700%

Up

to

and

including

$200

million

0.650%

Over

$200

million,

up

to

and

including

$1.3

billion

0.600%

Over

$1.3

billion,

up

to

and

including

$2.5

billion

0.585%

Over

$2.5

billion,

up

to

and

including

$5

billion

0.575%

Over

$5

billion,

up

to

and

including

$10

billion

0.565%

In

excess

of

$10

billion

Annualized

Fee

Rate

Net

Assets

0.700%

Up

to

and

including

$200

million

0.650%

Over

$200

million,

up

to

and

including

$1.3

billion

0.600%

In

excess

of

$1.3

billion

Annualized

Fee

Rate

Net

Assets

0.850%

Up

to

and

including

$500

million

0.800%

Over

$500

million,

up

to

and

including

$1

billion

0.750%

Over

$1

billion

3.

Transactions

with

Affiliates

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

88

franklintempleton.com

Annual

Report

For

the

year

ended

December

31,

2023,

each

Fund's

gross

effective

investment

management

fee

rate

based

on

average

daily

net

assets

was

as

follows:

Under

a

subadvisory

agreement,

Asset

Management,

an

affiliate

of

Advisers,

provides

subadvisory

services

to

Templeton

Sustainable

Emerging

Markets

Bond

Fund.

The

subadvisory

fee

is

paid

by

Advisers,

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds.

The

fee

is

paid

by

Advisers

based

on

each

of

the

Funds’

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Funds.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class

A

reimbursement

distribution

plan,

the

Funds reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class

C

and

R

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

For

Templeton

International

Bond

Fund

the

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Gross

effective

investment

management

fee

rate

........

0.501%

0.675%

0.700%

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Gross

effective

investment

management

fee

rate

........

0.850%

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Class

A

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

0.25%

0.25%

0.35%

0.25%

Class

C

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

0.65%

0.65%

0.65%

0.65%

Class

R

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

0.50%

0.50%

0.50%

0.50%

3.

Transactions

with

Affiliates

(continued)

a.

Management

Fees

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

89

franklintempleton.com

Annual

Report

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

year:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees,

calculated

monthly

and

paid

monthly, to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2023,

the

fees

are

based

on

a

fixed

margin

earned

by

Investor

Services

and

are

allocated

to

the

Funds based

upon

relative

assets

and

relative

transactions.

Prior

to

October

1,

2023,

the

fees

were

based

on

an

annualized

asset

based

fee

of

0.016%

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

paid

to

third

parties

are

accrued

and

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

allocated specifically

to

that

class

based

upon

its

relative

assets

and

relative

transactions.

For

the

year ended

December

31,

2023,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services: 

f.

Investments

in

Affiliated

Management

Investment

Companies

Certain

or

all

Funds

invest

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Funds

do

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

year

ended

December

31,

2023,

investments

in

affiliated

management

investment

companies

were

as

follows:

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

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

$14,797

$1,247

$238

$288

CDSC

retained

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

$14,845

$348

$1

$932

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Transfer

agent

fees

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

$2,614,933

$262,749

$31,062

$11,685

3.

Transactions

with

Affiliates

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

90

franklintempleton.com

Annual

Report

g.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

Templeton

International

Bond

Fund

so

that

the

operating

expenses

(excluding

interest

expense,

distribution

fees

and

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

do

not

exceed

0.74%

and

for

Class

R6

do

not

exceed

0.60%

based

on

the

average

net

assets

of

each

class

until

April

30,

2024.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

Templeton

Sustainable

Emerging

Markets

Bond

Fund

so

that

the

operating

expenses

(excluding

interest

expense,

distribution

fees

and

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

    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,

5.034%

$428,932,984

$2,862,307,482

$(2,929,792,392)

$—

$—

$361,448,074

361,448,074

$13,537,953

Total

Affiliated

Securities

...

$428,932,984

$2,862,307,482

$(2,929,792,392)

$—

$—

$361,448,074

$13,537,953

Templeton

Global

Total

Return

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.034%

$36,021,294

$277,549,367

$(297,210,925)

$—

$—

$16,359,736

16,359,736

$1,132,893

Total

Affiliated

Securities

...

$36,021,294

$277,549,367

$(297,210,925)

$—

$—

$16,359,736

$1,132,893

Templeton

International

Bond

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.034%

$10,620,409

$16,243,756

$(22,046,353)

$—

$—

$4,817,812

4,817,812

$348,513

Total

Affiliated

Securities

...

$10,620,409

$16,243,756

$(22,046,353)

$—

$—

$4,817,812

$348,513

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.034%

$706,837

$9,814,591

$(9,923,103)

$—

$—

$598,325

598,325

$51,579

Total

Affiliated

Securities

...

$706,837

$9,814,591

$(9,923,103)

$—

$—

$598,325

$51,579

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

91

franklintempleton.com

Annual

Report

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,

2024.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

Transfer

agent

fees

on

Class

R6

shares

of

the

Funds

have

been

capped

so

that

transfer

agent

fees

for

that

class

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2024.

h.

Other

Affiliated

Transactions

At

December

31,

2023,

Advisers

owned

24.9%

of

Templeton

Sustainable

Emerging

Markets

Bond

Fund's

outstanding

shares.

4.

Expense

Offset

Arrangement

Templeton

Global

Total

Return

Fund

and

Templeton

International

Bond

Fund

ha

d

previously

entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the

year

ended

December

31

,

2023,

the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

Effective

July

10,

2023,

earned

credits,

if

any,

will

be

recognized

as

income.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2023,

the

capital

loss

carryforwards

were

as

follows:

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

1

1

1

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

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

$

88,242,583

$

9,548,082

$

4,811,786

$

1,151,281

Long

term

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

2,515,761,911

555,124,481

19,419,225

2,589,271

Total

capital

loss

carryforwards

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

$2,604,004,494

$564,672,563

$24,231,011

$3,740,552

3.

Transactions

with

Affiliates

(continued)

g.

Waiver

and

Expense

Reimbursements

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

92

franklintempleton.com

Annual

Report

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2023

and

2022,

was

as

follows:

At

December

31,

2023,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation) for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

defaulted

securities,

foreign

currency

transactions,

payments-in-kind,

bond

discounts

and

premiums,

tax

straddles,

derivative

financial

instruments

and

net

operating

losses.

In

accordance

with

U.S.

GAAP

permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

At

the

year

ended

December

31,

2023,

such

reclassifications

were

as

follows:

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

2023

2022

2023

2022

Distributions

paid

from:

Return

of

capital

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

$206,891,091

$350,874,878

$23,587,957

$46,927,073

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

2023

2022

2023

2022

Distributions

paid

from:

Ordinary

income

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

$—

$—

$121,899

$—

Return

of

capital

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

1,379,739

2,120,701

779,225

962,043

$1,379,739

$2,120,701

$901,124

$962,043

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

a

a

a

a

a

Cost

of

investments

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

$4,582,485,043

$434,923,951

$29,489,148

$16,858,001

Unrealized

appreciation

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

$184,926,605

$15,560,189

$1,043,217

$833,344

Unrealized

depreciation

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

(259,724,243)

(125,824,398)

(1,584,095)

(1,612,639)

Net

unrealized

appreciation

(depreciation)

.......

$(74,797,638)

$(110,264,209)

$(540,878)

$(779,295)

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

1

1

1

1

Paid-in

Capital.

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

$(499,248,598)

$(39,811,175)

$(1,553,345)

Total

distributable

earnings

(loss)

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

499,248,598

39,811,175

 1,553,345

5.

Income

Taxes

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

93

franklintempleton.com

Annual

Report

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2023,

were

as

follows:

7.

Credit Risk

and

Defaulted

Securities

At December

31,

2023,

certain

or all

Funds

had

a

portion

of

their

portfolio

invested

in high

yield

securities

or

other

securities

rated

below

investment

grade

and

unrated

securities.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.  

Templeton

Global

Total

Return

Fund

held

defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

December

31,

2023,

the

aggregate

value

of

these

securities

was

$2,170,060,

representing

0.7%

of

the

Fund's

net

assets.

The

Fund

discontinues

accruing

income

on

securities

for

which

income

has

been

deemed

uncollectible

and

provides

an

estimate

for

losses

on

interest

receivable.

The

securities

have

been

identified

in

the

accompanying

Schedule

of

Investments.

8.

Concentration

of

Risk

Investing

in

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities,

such

as

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

Political

and

financial

uncertainty

in

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

of

investing

in

foreign

securities.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

9.

Restricted

Securities

Certain

or

all

Funds

invest

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The

Funds

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Purchases

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

$4,293,795,991

$254,496,176

$19,213,699

$12,863,037

Sales

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

$4,820,342,820

$352,488,557

$18,217,164

$11,447,085

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Credit

risk

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

8.8%

24.6%

8.4%

28.3%

Templeton

Income

Trust

Notes

to

Financial

Statements

94

franklintempleton.com

Annual

Report

At

December

31,

2023,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

10.

Other

Derivative

Information

At

December

31,

2023,

investments

in

derivative

contracts

are

reflected

in

the

Statements

of

Assets

and

Liabilities

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

$—

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

—

450,660

Reventazon

Finance

Trust,

Senior

Secured

Bond,

144A,

8%,

11/15/33

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

12/18/13

450,660

450,124

Total

Restricted

Securities

(Value

is

2.7%

of

Net

Assets)

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

$465,658

$450,124

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$

0

as

of

December

31,

2023.

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

Interest

rate

contracts

.......

Variation

margin

on

centrally

cleared

swap

contracts

$

4,227,049

a

Variation

margin

on

centrally

cleared

swap

contracts

$

7,768,377

a

Foreign

exchange

contracts

..

Investments

in

securities,

at

value

5,208,229

b

Options

written,

at

value

5,263,311

Unrealized

appreciation

on

OTC

forward

exchange

contracts

60,716,440

Unrealized

depreciation

on

OTC

forward

exchange

contracts

12,890,002

Total

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

$70,151,718

$25,921,690

9.

Restricted

Securities

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

95

franklintempleton.com

Annual

Report

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

Interest

rate

contracts

.......

Variation

margin

on

centrally

cleared

swap

contracts

$

—

Variation

margin

on

centrally

cleared

swap

contracts

$

144,250

a

Foreign

exchange

contracts

..

Investments

in

securities,

at

value

456,239

b

Options

written,

at

value

461,038

Unrealized

appreciation

on

OTC

forward

exchange

contracts

4,985,794

Unrealized

depreciation

on

OTC

forward

exchange

contracts

985,850

Total

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

$5,442,033

$1,591,138

Templeton

International

Bond

Fund

Foreign

exchange

contracts

..

Investments

in

securities,

at

value

77,416

b

Options

written,

at

value

78,233

Unrealized

appreciation

on

OTC

forward

exchange

contracts

436,801

Unrealized

depreciation

on

OTC

forward

exchange

contracts

54,796

Total

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

$514,217

$133,029

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

90,292

Unrealized

depreciation

on

OTC

forward

exchange

contracts

28,716

Total

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

$90,292

$28,716

a

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

centrally

cleared

swap

contracts

as

reported

in

the

Schedules

of

Investments.

Only

the

variation

margin

receivable/payable

at

year

end

is

separately

reported

within

the

Statements

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

b

Purchased

option

contracts

are

included

in

investments

in

securities,

at

value

in

the

Statements

of

Assets

and

Liabilities.

10.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

96

franklintempleton.com

Annual

Report

For

the

year

ended

December

31,

2023,

the

effect

of

derivative

contracts

in

the

Statements

of

Operations

was

as

follows:

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:

Interest

rate

contracts

..........

Swap

contracts

$(10,273)

Swap

contracts

$(3,541,328)

Foreign

exchange

contracts

.....

Investments

(3,542,797)

a

Investments

(1,818,744)

a

Written

options

834,672

Written

options

(765,573)

Forward

exchange

contracts

(100,848,261)

Forward

exchange

contracts

(27,269,315)

Total

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

$(103,566,659)

$(33,394,960)

Templeton

Global

Total

Return

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Swap

contracts

3,564,458

Swap

contracts

(4,402,325)

Foreign

exchange

contracts

.....

Investments

(310,327)

a

Investments

(159,320)

a

Written

options

73,101

Written

options

(67,052)

Forward

exchange

contracts

(12,528,709)

Forward

exchange

contracts

2,879,641

Total

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

$(9,201,477)

$(1,749,056)

Templeton

International

Bond

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Investments

(46,523)

a

Investments

(28,309)

a

Written

options

21,059

Written

options

(11,379)

Forward

exchange

contracts

(670,840)

Forward

exchange

contracts

(105,962)

Total

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

$(696,304)

$(145,650)

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Swap

contracts

23,747

Swap

contracts

(35,688)

Foreign

exchange

contracts

.....

Forward

exchange

contracts

398,432

Forward

exchange

contracts

(19,454)

Total

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

$422,179

$(55,142)

10.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

97

franklintempleton.com

Annual

Report

For

the

year

ended

December

31,

2023,

the

average

month

end

notional

amount

of

options

and

swap

contracts,

and

the

average

month

end

contract

value

for

forward

exchange

contracts,

were

as

follows:

At

December

31,

2023,

the

Funds'

OTC

derivative

assets

and

liabilities

are

as

follows:

a

Purchased

option

contracts

are

included

in

net

realized

gain

(loss)

from

investments

and

net

change

in

unrealized

appreciation

(depreciation)

on

investments

in

the

Statements

of

Operations.

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Swap

c

ontracts

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

$229,460,000

$15,163,385

$—

$173,846

Forward

exchange

contracts

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

2,932,585,616

289,572,070

21,284,695

5,818,116

Options

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

237,788,308

20,829,308

3,534,462

—

Gross

Amounts

of

Assets

and

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Assets

a

Liabilities

a

Templeton

Global

Bond

Fund

Forward

exchange

contracts

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

$

60,716,440

$

12,890,002

Options

purchased

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

5,208,229

—

Options

written

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

—

5,263,311

Total

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

$65,924,669

$18,153,313

Templeton

Global

Total

Return

Fund

Forward

exchange

contracts

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

4,985,794

985,850

Options

purchased

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

456,239

—

Options

written

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

—

461,038

Total

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

$5,442,033

$1,446,888

Templeton

International

Bond

Fund

Forward

exchange

contracts

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

436,801

54,796

Options

purchased

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

77,416

—

Options

written

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

—

78,233

Total

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

$514,217

$133,029

a

Absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statements

of

Assets

and

Liabilities.

10.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

98

franklintempleton.com

Annual

Report

At

December

31,

2023,

OTC

derivative

assets,

which

may

be

offset

against

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Assets

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Received

a,b

Cash

Collateral

Received

a

Net

Amount

(Not

less

than

zero)

Templeton

Global

Bond

Fund

Counterparty

BNDP

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

$8,448,315

$—

$(8,393,560)

$—

$54,755

BOFA

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

10,508,170

(576,024)

(7,841,161)

(1,660,000)

430,985

BZWS

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

5,208,229

(5,208,229)

—

—

—

CITI

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

2,640,537

(1,802,078)

—

(730,000)

108,459

DBAB

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

7,950,281

—

(6,981,203)

—

969,078

GSCO

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

1,077,474

—

—

(930,000)

147,474

HSBK

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

3,245,724

(651,249)

—

(2,594,475)

—

JPHQ

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

7,911,161

(356,757)

(4,980,197)

(2,190,000)

384,207

MSCO

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

18,934,778

(9,503,894)

(8,840,588)

—

590,296

Total

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

$65,924,669

$(18,098,231)

$

(37,036,709)

$(8,104,475)

$2,685,254

Templeton

Global

Total

Return

Fund

Counterparty

BNDP

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

144,623

—

—

—

144,623

BOFA

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

169,953

—

(166,566)

—

3,387

BZWS

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

456,239

(456,239)

—

—

—

CITI

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

14,802

—

—

—

14,802

DBAB

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

1,213,976

—

(1,213,976)

—

—

HSBK

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

23,604

(11,795)

—

—

11,809

JPHQ

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

713,127

—

(552,864)

—

160,263

MSCO

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

2,705,709

(974,055)

(1,454,138)

—

277,516

Total

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

$5,442,033

$(1,442,089)

$

(3,387,544)

$—

$612,400

2

10.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

99

franklintempleton.com

Annual

Report

At

December

31,

2023,

OTC

derivative

liabilities,

which

may

be

offset

against

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Assets

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Received

Cash

Collateral

Received

Net

Amount

(Not

less

than

zero)

Templeton

International

Bond

Fund

Counterparty

BNDP

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

$9,734

$—

$—

$—

$9,734

BOFA

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

26,584

(2,075)

—

—

24,509

BZWS

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

77,416

(77,416)

—

—

—

CITI

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

190,595

(46,015)

—

—

144,580

DBAB

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

75,301

—

—

—

75,301

GSCO

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

79,095

—

—

—

79,095

HSBK

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

40,050

(4,095)

—

—

35,955

JPHQ

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

15,442

(2,611)

—

—

12,831

Total

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

$514,217

$(132,212)

$

—

$—

$382,005

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

a

Net

Amount

(Not

less

than

zero)

Templeton

Global

Bond

Fund

Counterparty

BNDP

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

$—

$—

$—

$—

$—

BOFA

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

576,024

(576,024)

—

—

—

BZWS

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

5,263,311

(5,208,229)

—

(193)

54,889

CITI

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

1,802,078

(1,802,078)

—

—

—

DBAB

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

—

—

—

—

—

GSCO

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

—

—

—

—

—

HSBK

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

651,249

(651,249)

—

—

—

JPHQ

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

356,757

(356,757)

—

—

—

MSCO

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

9,503,894

(9,503,894)

—

—

—

Total

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

$18,153,313

$(18,098,231)

$—

$(193)

$54,889

10.

Other

Derivative

Information

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

100

franklintempleton.com

Annual

Report

See

Note

1(c) regarding

derivative

financial

instruments. 

See

Abbreviations

on

page

104

.

11.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matured

on

February

2,

2024.

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

2,

2024,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

January

31,

2025,

for

a

total

of

$2.675

billion.

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Pledged

Cash

Collateral

Pledged

Net

Amount

(Not

less

than

zero)

Templeton

Global

Total

Return

Fund

Counterparty

BNDP

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

$—

$—

$—

$—

$—

BOFA

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

—

—

—

—

—

BZWS

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

461,038

(456,239)

—

—

4,799

CITI

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

—

—

—

—

—

DBAB

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

—

—

—

—

—

HSBK

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

11,795

(11,795)

—

—

—

JPHQ

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

—

—

—

—

—

MSCO

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

974,055

(974,055)

—

—

—

Total

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

$1,446,888

$(1,442,089)

$—

$—

$4,799

Templeton

International

Bond

Fund

Counterparty

BNDP

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

—

—

—

—

—

BOFA

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

2,075

(2,075)

—

—

—

BZWS

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

78,233

(77,416)

—

—

817

CITI

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

46,015

(46,015)

—

—

—

DBAB

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

—

—

—

—

—

GSCO

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

—

—

—

—

—

HSBK

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

4,095

(4,095)

—

—

—

JPHQ

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

2,611

(2,611)

—

—

—

Total

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

$133,029

$(132,212)

$—

$—

$817

a

At

December

31,

2023,

the

Fund

received

U.S.

Treasury

Bonds

and

Notes

and

U.S.

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

of

over

collateralization. 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

101

franklintempleton.com

Annual

Report

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

year ended

December

31,

2023,

the

Funds

did

not

use

the

Global

Credit

Facility.

12.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

December

31,

2023,

in

valuing

the

Funds'

assets

and

liabilities

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Templeton

Global

Bond

Fund

Assets:

Investments

in

Securities:

a

Foreign

Government

and

Agency

Securities

....

$

—

$

3,397,642,268

$

—

$

3,397,642,268

U.S.

Government

and

Agency

Securities

.......

—

472,204,027

—

472,204,027

Options

purchased

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

—

5,208,229

—

5,208,229

Short

Term

Investments

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

361,448,074

232,163,008

—

593,611,082

Total

Investments

in

Securities

...........

$361,448,074

$4,107,217,532

$—

$4,468,665,606

Other

Financial

Instruments:

Forward

exchange

contracts

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

$—

$60,716,440

$—

$60,716,440

Swap

contracts

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

—

4,227,049

—

4,227,049

Total

Other

Financial

Instruments

.........

$—

$64,943,489

$—

$64,943,489

Liabilities:

Other

Financial

Instruments:

Options

written

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

$

—

$

5,263,311

$

—

$

5,263,311

Forward

exchange

contracts

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

—

12,890,002

—

12,890,002

Swap

contracts

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

—

7,768,377

—

7,768,377

Total

Other

Financial

Instruments

.........

$—

$25,921,690

$—

$25,921,690

11.

Credit

Facility

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

102

franklintempleton.com

Annual

Report

Level

1

Level

2

Level

3

Total

Templeton

Global

Total

Return

Fund

Assets:

Investments

in

Securities:

a

Common

Stocks

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

$

—

$

—

$

—

b

$

—

Corporate

Bonds

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

—

—

—

b

—

Foreign

Government

and

Agency

Securities

....

—

273,672,308

—

273,672,308

U.S.

Government

and

Agency

Securities

.......

—

23,997,743

—

23,997,743

Escrows

and

Litigation

Trusts

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

—

—

—

b

—

Options

purchased

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

—

456,239

—

456,239

Short

Term

Investments

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

16,359,736

6,779,060

—

23,138,796

Total

Investments

in

Securities

...........

$16,359,736

$304,905,350

$—

$321,265,086

Other

Financial

Instruments:

Forward

exchange

contracts

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

$—

$4,985,794

$—

$4,985,794

Total

Other

Financial

Instruments

.........

$—

$4,985,794

$—

$4,985,794

Liabilities:

Other

Financial

Instruments:

Options

written

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

$

—

$

461,038

$

—

$

461,038

Forward

exchange

contracts

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

—

985,850

—

985,850

Swap

contracts

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

—

144,250

—

144,250

Total

Other

Financial

Instruments

.........

$—

$1,591,138

$—

$1,591,138

Templeton

International

Bond

Fund

Assets:

Investments

in

Securities:

a

Foreign

Government

and

Agency

Securities

....

$—

$21,418,727

$—

$21,418,727

Options

purchased

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

—

77,416

—

77,416

Short

Term

Investments

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

4,817,812

2,330,543

—

7,148,355

Total

Investments

in

Securities

...........

$4,817,812

$23,826,686

$—

$28,644,498

Other

Financial

Instruments:

Forward

exchange

contracts

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

$—

$436,801

$—

$436,801

Total

Other

Financial

Instruments

.........

$—

$436,801

$—

$436,801

Liabilities:

Other

Financial

Instruments:

Options

written

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

$

—

$78,233

$

—

$78,233

Forward

exchange

contracts

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

—

54,796

—

54,796

Total

Other

Financial

Instruments

.........

$—

$133,029

$—

$133,029

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Assets:

Investments

in

Securities:

a

Common

Stocks

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

$—

$—

$—

b

$—

Corporate

Bonds

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

—

—

450,124

b

450,124

Foreign

Government

and

Agency

Securities

....

—

14,968,681

—

14,968,681

Escrows

and

Litigation

Trusts

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

—

—

—

b

—

Short

Term

Investments

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

598,325

—

—

598,325

Total

Investments

in

Securities

...........

$598,325

$14,968,681

$450,124

$16,017,130

Other

Financial

Instruments:

Forward

exchange

contracts

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

$—

$90,292

$—

$90,292

Total

Other

Financial

Instruments

.........

$—

$90,292

$—

$90,292

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

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

$—

$28,716

$—

$28,716

Total

Other

Financial

Instruments

.........

$—

$28,716

$—

$28,716

12.

Fair

Value

Measurements

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

103

franklintempleton.com

Annual

Report

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the year.

At

December

31,

2023,

the

reconciliation is

as follows:

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,

2023,

are

as

follows:

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

b

Includes

financial

instruments

determined

to

have

no

value.

Balance

at

Beginning

of

Year

Purchases

Sales

a

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(

Amortiza

-

tion

)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciation

(Depreciation)

Balance

at

End

of

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

End

a

a

a

a

a

a

a

a

a

a

a

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

South

Africa

..

$

—

b

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

b

$

—

Corporate

Bonds

:

Costa

Rica

...

450,492

—

(27,240)

—

—

—

—

26,872

450,124

25,305

South

Africa

..

—

b

—

—

—

—

—

—

—

—

b

—

Escrows

and

Litigation

Trusts

—

b

—

—

—

—

—

—

—

—

b

—

Total

Investments

in

Securities

.......

$450,492

$—

$(27,240)

$—

$—

$—

$—

$26,872

$450,124

$25,305

a

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

b

Includes

financial

instruments

determined

to

have

no

value.

Description

Fair

Value

at

End

of

Year

Valuation

Technique

Unobservable

Inputs

Amount

Impact

to

Fair

Value

if

Input

Increases

a

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Assets:

Investments

in

Securities:

Corporate

Bonds:

Costa

Rica

..........

$450,124

Discounted

cash

flow

Discount

rate

(

b

)

8.1%

Decrease

All

Other

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

—

c

Total

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

$450,124

a

Represents

the

directional

change

in

the

fair

value

of

the

Level

3

financial

instruments

that

would

result

from

a

significant

and

reasonable

increase

in

the

corresponding

input.

A

significant

and

reasonable

decrease

in

the

input

would

have

the

opposite

effect.

Significant

increases

and

decreases

in

these

inputs

in

isolation

could

result

in

significantly

higher

or

lower

fair

value

measurements.

b

The

discount

rate

is

comprised

of

the

risk-free

rate,

the

10-year

Costa

Rican

CDS

spread,

and

an

incremental

issuer

credit

spread

combined

to

arrive

at

an

8%

yield

on

issue

date

for

an

8%

coupon

bond

issued

at

par.

The

incremental

issuer

spread

is

further

adjusted

to

reflect

the

current

market

spread

for

similar

credits

above

the

Costa

Rican

credit

spread.

c

Includes

financial

instruments

determined

to

have

no

value.

12.

Fair

Value

Measurements

(continued)

Templeton

Income

Trust

Notes

to

Financial

Statements

104

franklintempleton.com

Annual

Report

13.

Subsequent

Events

The

Fund

s

ha

ve

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.

BZWS

Barclays

Bank

plc

CITI

Citibank

NA

DBAB

Deutsche

Bank

AG

GSCO

Goldman

Sachs

Group,

Inc.

HSBK

HSBC

Bank

plc

JPHQ

JPMorgan

Chase

Bank

NA

MSCO

Morgan

Stanley

Cu

r

rency

AUD

Australian

Dollar

BRL

Brazilian

Real

COP

Colombian

Peso

CZK

Czech

Koruna

EUR

Euro

GHS

Ghanaian

Cedi

HUF

Hungarian

Forint

IDR

Indonesian

Rupiah

INR

Indian

Rupee

JPY

Japanese

Yen

KRW

South

Korean

Won

MXN

Mexican

Peso

MYR

Malaysian

Ringgit

NOK

Norwegian

Krone

RSD

Serbian

Dinar

SGD

Singapore

Dollar

THB

Thai

Baht

UYU

Uruguayan

Peso

Selected

Portfolio

PIK

Payment-In-Kind

SOFR

Secured

Overnight

Financing

Rate

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

Reference

Index

Reference

Rate

1-day

SOFR

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

5.38%

Templeton

Income

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

105

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Templeton

Income

Trust

and

Shareholders

of

Templeton

Global

Bond

Fund,

Templeton

Global

Total

Return

Fund,

Templeton

International

Bond

Fund

and

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Opinions

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

schedules

of

investments,

of

Templeton

Global

Bond

Fund,

Templeton

Global

Total

Return

Fund,

Templeton

International

Bond

Fund

and

Templeton

Sustainable

Emerging

Markets

Bond

Fund

(constituting

Templeton

Income

Trust,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

December

31,

2023,

the

related

statements

of

operations

for

the

year

ended

December

31,

2023,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2023,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2023

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

as

of

December

31,

2023,

the

results

of

each

of

their

operations

for

the

year

then

ended,

the

changes

in

each

of

their

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2023

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2023

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinions

These

financial

statements

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2023

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

20,

2024

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)

106

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Funds

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

their

fiscal

year.

The

Funds

hereby

report

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2023:

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

Funds

below

intend

to

elect

to

pass

through

to

their

shareholders

the

following

amounts,

or

amounts

as

finally

determined,

of

foreign

taxes

paid

and

foreign

source

income

earned

by

the

Funds

during

the

fiscal

year

ended

December

31,

2023:

Pursuant

to:

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Section

163(j)

Interest

Dividends

Earned

§163(j)

—

—

$864,240

Interest

Earned

from

Federal

Obligations

Note

(1)

$23,382,297

$754,005

—

Templeton

Global

Bond

Fund

Templeton

Global

Total

Return

Fund

Templeton

International

Bond

Fund

Templeton

Sustainable

Emerging

Markets

Bond

Fund

Foreign

Taxes

Paid

$7,805,197

$414,624

$26,531

$12,497

Foreign

Source

Income

Earned

$195,319,238

$22,911,167

$1,101,227

$746,770

Templeton

Income

Trust

Board

Members

and

Officers

107

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

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1992

118

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

29

Ares

Strategic

Income

Fund

(closed-end

investment

management

company)

(September

2022-present);

Ares

Capital

Corporation

(specialty

finance

company)

(2010-present),

United

Natural

Foods,

Inc.

(food

distribution)

(2013-present),

formerly

,

Navient

Corporation

(loan

management,

servicing

and

asset

recovery)

(2014-2016).

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Executive

Vice

President

and

Chief

Financial

Officer,

NHP

Incorporated

(manager

of

multifamily

housing)

(1995-1997);

and

Vice

President

and

Treasurer,

US

Airways,

Inc.

(until

1995).

Terrence

J.

Checki

(1945)

Trustee

Since

January

2023

118

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2016

118

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

108

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

1

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

118

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-2023);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

118

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

the

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(2019-2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

David

W.

Niemiec

(1949)

Trustee

Since

2005

29

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

118

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

109

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

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Constantine

D.

Tseretopoulos

(1954)

Trustee

Since

2003

19

None

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Physician,

Chief

of

Staff,

owner

and

operator

of

the

Lyford

Cay

Hospital

(1987-present);

director

of

various

nonprofit

organizations;

and

formerly

,

Cardiology

Fellow,

University

of

Maryland

(1985-1987);

and

Internal

Medicine

Resident,

Greater

Baltimore

Medical

Center

(1982-

1985).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Gregory

E.

Johnson

(1961)

2

Chairman

of

the

Board,

Trustee

and

Vice

President

Chairman

of

the

Board

and

Vice

President

since

2023

and

Trustee

since

2007

128

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)

3

Trustee

Since

2013

118

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.

Ted

P.

Becker

(1951)

Chief

Compliance

Officer

Since

June

2023

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Vice

President,

Global

Compliance

of

Franklin

Templeton

(since

2020);

Chief

Compliance

Officer

of

Franklin

Templeton

Fund

Adviser,

LLC

(since

2006);

Chief

Compliance

Officer

of

certain

funds

associated

with

Legg

Mason

&

Co.

or

its

affiliates

(since

2006);

formerly

,

Director

of

Global

Compliance

at

Legg

Mason

(2006-2020);

Managing

Director

of

Compliance

of

Legg

Mason

&

Co.

(2005-2020).

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

four

of

the

investment

companies

in

Franklin

Templeton.

Independent

Board

Members

(continued)

Templeton

Income

Trust

110

franklintempleton.com

Annual

Report

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.

1.

Information

is

for

the

calendar

year

ended

December

31,

2023,

unless

otherwise

noted.

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.

2.

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.

3.

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

a

major

shareholder

of

Resources,

which

is

the

parent

company

of

the

Fund's

investment

manager

and

distributor.

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Susan

Kerr

(1949)

Vice

President

-

AML

Compliance

Since

2021

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

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,

Franklin

Distributors;

and

officer

of

certain

funds

in

the

Franklin

Templeton/

Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Executive

Officer

-

Finance

and

Administration

Since

January

2024

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;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Edward

D.

Perks

(1970)

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:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

and

Secretary

Vice

President

since

2015

and

Secretary

since

June

2023

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.

Jeffrey

W.

White

(1971)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2024

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Financial

Officer,

Chief

Accounting

Officer

&

Treasurer

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Director

and

Assistant

Treasurer

within

Franklin

Templeton

Global

Fund

Tax

and

Fund

Administration

and

Financial

Reporting

(2017-2023).

Christine

Zhu

(1975)

Vice

President

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Advisers,

Inc.;

and

officer

of

three

of

the

investment

companies

in

Franklin

Templeton.

Interested

Board

Members

and

Officers

(continued)

Templeton

Income

Trust

111

franklintempleton.com

Annual

Report

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.

Interested

Board

Members

and

Officers

(continued)

Templeton

Income

Trust

Shareholder

Information

112

franklintempleton.com

Annual

Report

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust,

on

behalf

of

the

Fund,

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

TINT

A

02/24

©

2024

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Templeton

Income

Trust

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics. 

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial experts are Ann Torre Bates and David W. Niemiec and they are "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services.

(a)      Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $329,485 for the fiscal year ended December 31, 2023 and $351,385 for the fiscal year ended December 31, 2022.

(b)      Audit-Related Fees

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements. 

(c)      Tax Fees

There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $70,000 for the fiscal year ended December 31, 2023 and $70,000 for the fiscal year ended December 31, 2022. The services for which these fees were paid included global access to tax platform International Tax View.

(d)      All Other Fees

There were no 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.

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 $163,926 for the fiscal year ended December 31, 2023 and $240,211 for the fiscal year ended December 31, 2022. The services for which these fees were paid included professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection with a license for accounting and business knowledge platform Viewpoint, fees in connection with a license for employee development tool ProEdge, professional fees relating to security counts 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 $233,926 for the fiscal year ended December 31, 2023 and $310,211 for the fiscal year ended December 31, 2022.

(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

(i) N/A

(j) N/A

Item 5. Audit Committee

of Listed Registrants.       

N/A

Item 6. Schedule of Investments.                     

N/A

Item 7

. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.         N/A

Item 8. Portfolio Managers of Closed-End Management Investment Companies.  N/A

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.        N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSRS, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) Changes in Internal Controls.

There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                                               N/A

Item 13. Recovery of Erroneously Awarded Compensation.

(a) N/A

(b) N/A

Item 14. Exhibits.

(a)(1) Code of Ethics

codeofethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, Chief Financial Officer, Chief Accounting Officer and Treasurer

section302

(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.

(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, 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\CHRISTOPHER KINGS _________________

Christopher Kings

      Chief Executive Officer - Finance and Administration

Date  February 26, 2024

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\CHRISTOPHER KINGS _________________

Christopher Kings

      Chief Executive Officer - Finance and Administration

Date  February 26, 2024

By S\JEFFREY WHITE______________________

      Jeffrey White

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  February 26, 2024