Yes, the PE should do next-hop-self, the RR should not do it
Route reflector can also be EBGP-Border Router, 
General use of next-hop self can result in inefficient forwarding

 use next-hop self only for EBGP learned routes

policy-statement bgp-export {
        term ebgp {
            from route-type external;
            then {
                next-hop self;
                accept;
            }
        }
        term ibgp {
            from route-type internal;
            then accept;
        }
    }

regards

alexander


-----Ursprüngliche Nachricht-----
Von: juniper-nsp [mailto:juniper-nsp-boun...@puck.nether.net] Im Auftrag von 
tim tiriche
Gesendet: Donnerstag, 16. August 2018 16:40
An: juniper-nsp@puck.nether.net
Betreff: [j-nsp] L3VPN/RR/PE on Same router

Hello,

I have a MPLS PE (L3VPN) router that is acting as full mesh iBGP within the
US.  The other routers in the US are not RR and regular iBGP.  This router
also acts as RR for Europe and takes in full BGP table.  Is there some
caveats to watch out for?
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