Interest Rate Changes: When interest rates rise, bond prices generally fall, as newly issued bonds offer higher yields. Conversely, when interest rates fall, bond prices generally rise.

Inflation Expectations: Higher inflation expectations can erode the real value of fixed-income securities, leading investors to demand higher yields and lower bond prices. Lower inflation expectations have the opposite effect.

Creditworthiness of the Issuer: A downgrade in the issuer's credit rating can signal increased risk of default, causing bond prices to fall. An upgrade has the opposite effect.

Market Sentiment: Overall market sentiment, including risk appetite and economic outlook, can impact bond prices. In times of uncertainty, investors may flock to safer assets like government bonds, driving up prices.

Supply and Demand: Basic economic principles of supply and demand affect bond prices. High demand and low supply drive up prices, while low demand and high supply drive down prices.