LONDON, July 30 (Reuters) - Irish government bond yield spreads over Germany hit their widest levels in over a month on Tuesday, as worries grow over the potential impact of a no-deal Brexit on Ireland.
Sterling has dropped to 28-month lows against the dollar and euro on worries that Britain may be crashing out of the European Union without a deal on Oct. 31 under new Prime Minister Boris Johnson.
In the euro zone bond market, Ireland has been hardest hit; Britain is Ireland’s biggest trading partner, and the border between Northern Ireland and the Republic of Ireland is a key issue in negotiations.
The Ireland/Germany 10-year bond yield spread widened to 54 basis points on Tuesday, the widest since June 20. (Reporting by Abhinav Ramnarayan; editing by Sujata Rao)