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UPDATE 1-Bank of Canada says it will provide more liquidity for markets

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OTTAWA, March 12 (Reuters) - The Bank of Canada on Thursday said it would provide more liquidity to ensure markets continue to operate smoothly amid increasing uncertainty sparked by a coronavirus outbreak.

In a statement, the central bank said it would extend its bond buy back program across all benchmark maturity sectors until further notice.

It will also temporarily add new term repo operations with terms of 6 and 12 months. Regular one-month and three-month term repo operations will remain in effect but could change with regards to size, frequency and term, it added.

"The Bank of Canada continues to closely monitor global market developments and remains committed to providing liquidity as required to support the functioning of the Canadian financial system," it said.

Earlier in the day the U.S. Federal Reserve said it would make $1.5 trillion available for overnight lending markets and start purchasing a broader range of U.S. Treasury securities as part of its monthly purchases. (Reporting by David Ljunggren; Editing by Sandra Maler and Daniel Wallis)