As of version 2.1, opt-space now produces a non-breaking space. This is indicated by the non-breaking space symbol shown on the right side of the space bar when opt is active. Non-breaking hyphen is the first option in the key popup menu for the hyphen key.

Please note that not all iOS apps support these characters and may convert them into their regular equivalents. For example, the Mail app does this conversion. On the other hand, Nebulous Notes is an example of an app which preserves the non-breaking attributes.