Performance of Underlying Assets: The fund's price closely reflects the performance of the bonds it holds. Higher bond prices drive up the fund's value, while lower bond prices decrease it.

Interest Rate Changes: As interest rates rise, bond prices generally fall, negatively affecting the fund's value. Conversely, falling rates tend to increase bond prices and the fund's value.

Credit Quality of Holdings: Downgrades in the credit ratings of bonds within the portfolio can decrease their value, impacting the fund's price. Upgrades have the opposite effect.

Market Sentiment: General investor confidence or anxiety about the economy or specific sectors can influence demand for the fund, affecting its price regardless of underlying asset performance.

Fund Management Fees: The fund's expense ratio, which covers management and operational costs, directly affects investor returns. Higher fees can reduce the overall fund value.

Supply and Demand: High demand for the fund can push its price up, even if the underlying assets remain stable. Conversely, high selling pressure can lead to a price decrease.

Inflation Expectations: Rising inflation typically leads to higher interest rates, which can negatively impact bond prices and consequently the fund's value.

Economic Growth: Strong economic growth may lead to higher interest rates and lower bond prices, while slower growth can have the opposite effect, impacting the fund's price.