Increase in wealth is a factor that doesn’t affect the bond
market. There is an inverse relationship between interest rate and
price of bond. A higher interest rate makes bonds more attractive
to lenders and less attractive to borrowers, that leads to lower
prices. Also, higher the inflation, the less valuable the future
payments to bond holders become. When inflation expectations falls,
investors are more willing to lend money. Demand rises, bond prices
rise, and interest rates fall. On the other hand the supply falls.
This causes higher bond prices and lower interest rates.