Interest Rate Changes: When interest rates rise, newly issued bonds offer higher yields, making existing bonds with lower yields less attractive, thus decreasing their price. Conversely, falling interest rates increase the price of existing bonds.

Inflation Expectations: Higher inflation erodes the real value of fixed income payments, leading investors to demand higher yields, which pushes bond prices down. Lower inflation expectations increase bond prices.

Economic Growth: Strong economic growth may lead to higher interest rates, impacting bond prices negatively. Slow or negative growth can push investors towards safer assets like bonds, increasing their price.

Credit Rating Changes: A downgrade in India's credit rating (or the specific bond's issuer) increases the perceived risk, making the bond less attractive and decreasing its price. Upgrades have the opposite effect.

Market Sentiment: General investor confidence or risk aversion can significantly impact bond prices. During periods of uncertainty, investors often flock to government bonds, increasing demand and prices.

Liquidity: The ease with which a bond can be bought or sold affects its price. Less liquid bonds may trade at a discount.

Supply and Demand: Increased issuance of similar government bonds can increase supply, potentially lowering the price of existing IN1Y.GBOND bonds, and vice-versa if the supply decreases.

Global Events: International events such as global recessions, geopolitical instability, or changes in global trade policies can impact investor sentiment and risk appetite, affecting bond prices.

RBI Policy: Actions taken by the Reserve Bank of India (RBI), such as changes to the repo rate or open market operations, directly influence interest rates and bond yields, subsequently affecting bond prices.