Interest Rate Changes: Rising interest rates generally cause bond prices to fall, as newly issued bonds offer more attractive yields. Conversely, falling interest rates tend to increase bond prices. Inflation Expectations: Higher inflation erodes the real value of fixed-income investments, leading to lower bond prices to compensate for this risk. Credit Rating Changes: Downgrades in the credit rating of the issuer increase perceived risk and lower bond prices. Upgrades tend to have the opposite effect. Economic Growth: Strong economic growth can lead to higher interest rates, indirectly lowering bond prices. Weaker growth may support bond prices. Market Sentiment: General investor risk appetite influences bond prices. During risk-off periods, bonds are often seen as safer investments. Supply and Demand: Large issuances of new bonds can increase supply and potentially lower prices. Higher demand, like from institutional investors, raises prices.