Municipal bond mutual funds continue to hemorrhage money as investor demand remains low.

Those funds that report flows weekly recorded outflows of $1.56 billion to muni bond funds for the week ended July 17, its eighth straight week of losses, according to Lipper FMI.

That's up from $1.20 billion investors withdrew the previous week.

Weekly reporting long-term muni bond funds had heavy outflows for the week, as well, at $1.03 billion. That compares with $857 million that flowed from long-term muni bond funds last week.

High-yield muni bond funds that report flows weekly also recorded outflows, at $246 million, against $207 million one week ago.