The price of a sovereign bond

All elements that affect the credibility of a sovereign bond are all related to its economy's performance. Government budget and monetary stability could affect the credibility of a sovereign bond, but depend on the economic performance. However, when the economy is in a bad shape, these sovereign bonds become alternatives to investors, leading to an increase in bond prices. To combine these two factors together, we may conclude that the price of a bond is in a positive relationship with the domestic economic performance but in a negative relationship with the world economic performance.