Inflation Expectations: Rising inflation expectations typically increase demand for TIPs, pushing their prices up as investors seek inflation protection. Conversely, falling inflation expectations decrease demand and lower prices. Real Interest Rates: Real interest rates, nominal interest rates minus inflation expectations, influence TIP prices. Higher real rates make TIPs less attractive compared to nominal bonds, decreasing their price. Lower real rates boost TIP appeal, increasing their price. Treasury Yields: Changes in overall Treasury yields impact TIP prices. If Treasury yields rise, TIP prices tend to fall as they become less attractive relative to higher-yielding alternatives. Conversely, declining Treasury yields often lead to higher TIP prices. Market Sentiment: Investor sentiment and risk appetite affect TIP demand. In times of economic uncertainty or market volatility, investors often seek safe-haven assets like TIPs, increasing demand and pushing prices higher. Periods of optimism may reduce demand.