U.S. net Aug capital outflow rises to 1990 record

NEW YORK, Oct 16 (Reuters) - Foreign investors were net sellers of long-term U.S. securities in August to the tune of $69.3 billion, the biggest outflow since 1990, the Treasury Department said on Tuesday, showing the current global credit crisis has dented demand for U.S. assets.

Demand for long-maturity securities such as bonds, notes and equities plummeted in August, the month that losses on risky mortgage debt sparked a massive credit squeeze. That compared with an upwardly revised inflow of $20.6 billion in July.

Including short-term securities such as Treasury bills, foreigners sold a net $163 billion in August, a record outflow, and not enough to cover that month's $57.6 billion trade deficit.