Unconventional phases often occur where two competing mechanisms compensate. An excellent example is the ionic Hubbard model where the alternating local potential δ, favoring a band insulator (BI), competes with the local repulsion U , favoring a Mott insulator (MI). By continuous unitary transformations we derive effective models in which we study the softening of various excitons. The softening signals the instability towards new phases that we describe on the mean-field level. On increasing U from the BI in two dimensions, we find a bond-ordered phase breaking orientational symmetry due to a d-wave component. Then, antiferromagnetic order appears coexisting with the d-wave bond order. Finally, the d-wave order vanishes and a Néel-type MI persists.PACS numbers: 71.30.+h,71.10.Li,71.10.Fd,74.20.Fg Searching for unconventional states of matter and nontrivial elementary excitations (quasiparticles (QPs)) is one of the crucial objectives of the research in strongly correlated lattice models. Outstanding examples range from the quasi long-range ordered Mott insulator (MI) in one dimension (1D) where the neutral spin-1/2 particle "spinon" represents the elementray excitation to quantum spin ice in three dimensions (3D) where magnetic monopoles represent the QPs. In order to find unexpected phases, it is a good idea to focus on parameter regions where two antagonists compensate because then subtle subleading mechanisms can take over.The present article addresses the IHM in two dimensions (2D) on the square lattice in order to understand which phases possibly arise between the band insulator (BI) and the MI. Its Hamiltonian readswhere r := ix + jŷ spans the square lattice, c † r,σ (c r,σ ) is the fermionic creation (annihilation) operator at site r with spin σ, and n r,σ := c † r,σ c r,σ is the occupation operator. The sum over rr ′ restricts the hopping to nearest-neighbor sites. Initially, the IHM was introduced to describe the neutral-ionic transition in mixed-stack organic compounds 1 and was later used for the description of ferroelectric perovskites 2 .In 1D, it is well understood that the BI at small Hubbard interaction U is separated from quasi-long-range ordered MI at large U by an intermediate phase with alternating bond order (BO) 3 . The position of the two transition points (U c1 from BI to BO and U c2 from BO to MI) 4,5 and the excitation spectrum 6,7 of the model are determined quantitatively. We highlight that the transition to the BO phase is signaled by the softening of an exciton 3-5 located at momentum π (setting the lattice constant to unity) 6,7 .In 2D, the limiting BI and MI phases are expected at low and high U , respectively. We study the 2D IHM by continuous unitary transformations (CUTs) 12 realized in real space up to higher orders in the hopping t. The flow equations are closed using the directly evaluated enhanced perturbative CUT (deepCUT) 13 . In this way, an effective model is derived in terms of the elementary fermionic QPs. The virtual processes are eliminated as in the derivatio...