What drives the Bond Market

I have been reading on the Bonds the past few days and I found it really interesting.The only point is that beside of the interests rates that drives the price of the bonds what else moves it is the Supply/Demand is part of these moves ?

I am also confused about the rates, does the rates change daily or they are adjusted ounce a month depending of the auction results.

Yes, supply and demand for that debt @ that yield. Government bonds can rise (lower yields) from central bank intervention as we're seeing from the BoJ(Bank of Japan) and Federal Reserve. Bonds can fall (yields rise) if say, the country faces bankruptcy and may not be able to pay back their debt. Both are extremes but bonds do correlate with that country's currency and stock markets.

I believe bond prices change daily.

Yeah bond prices fluctuate just like any other commodity or security. Reasons for price change can include various macro factors e.g. the ones that EE mentioned, as well as technicals and other intraday stuff, overall just supply/demand like any other market. Auctions happen when they happen and and the interest rate paid will come from that, but that's generally a reflection on what the market already is willing to pay which can be seen in realtime in e.g. ZN, FGBL, etc.

If you want to see price moving check this out for example: http://www.investing.com/rates-bonds...advanced-chart

Further to what's been said, in simple terms, investor sentiment is what matters eventually. This could translate to a strong currency, GDP to debt ratio, inflation and of course interest rates. When the economy is growing, bond's yields tend to fall because there is more confidence in the markets, so investors would flock to high risk markets like equities for example which gives higher returns than bonds (which is more attractive when growth stagnates).