LONDON - Iraq's dollar bonds fell on Monday as tensions between Baghdad and the Kurdistan Regional Government (KRG) escalated in the region of Kirkuk.

The 2028 sovereign bond fell almost 1 cent to a 2-1/2 month low and the 2023 bond fell 0.9 cents to a record low, according to Thomson Reuters data.

The Iraqi government and the KRG have been at loggerheads since a Sept. 25 Kurdish independence referendum, rejected as illegal by Baghdad.

(Reporting by Claire Milhench, editing by Karin Strohecker) ((; +44)(0)(207 542 3571; Reuters Messaging: