Interest Rates: Rising interest rates generally decrease bond prices, as newly issued bonds offer higher yields, making older bonds less attractive. Conversely, falling interest rates increase bond prices.

Inflation: Higher inflation erodes the real value of future bond payments, leading to lower bond prices. Lower inflation expectations tend to increase bond prices.

Credit Rating: A downgrade in the issuer's credit rating typically lowers the bond's price, reflecting increased risk of default. An upgrade usually increases the price.

Economic Growth: Strong economic growth may lead to higher interest rates and inflation expectations, potentially lowering bond prices. Weak growth may have the opposite effect.

Market Sentiment: Overall investor optimism or pessimism can influence bond prices. Risk-averse investors often flock to bonds in times of uncertainty, driving up prices.

Supply and Demand: Increased supply of similar bonds can lower prices, while higher demand can increase them. Government bond issuance policies play a role.