*** Treasuries marching higher on a....>

US TSY FLOWS: *** Treasuries marching higher on a combo of factors: Tsy block

buy of 15,000 TYZ at 9:05am ET, as noted earlier; but also on cross-market

support from firmer German 10Y Bunds, which are hovering around the session high

prices. "It's all coming from Europe: Bunds are doing much better," said one

trader. 

- Meanwhile Tsys also saw FX-tied buying from black boxes as the US dollar

remained weaker vs. the Japanese yen. "The dollar has been falling all morning,"

said one trader. 

- He noted that ironically, despite firmer US housing data, the black boxes

still are able to push around the market for their aims via "correlated" trades

of US$/yen/Tsys. "It's all about the algo bid," he added. "The economic data

continues to improve. But that never matters."