Not necessarily. Recall that with eBGP sessions it is typical
to peer with the physical address. There are times when you
want to use the lo0 for eBGP (two parallel links, etc.) but
you'll need to specify both ebgp_multihop and define a route
to the peer's loopback.
Priscilla Oppenheimer
You only have to use the update-source command when someone is peering to
your loopback address. This is true for an iBGP peer and an eBGP peer.
More info here:
http://www.cisco.com/en/US/partner/tech/tk826/tk365/technologies_tech_note09186a0080093fb8.shtml#updatesource
Message Posted at:
What's with the update-source Loopback0 that you see popping up in BGP
examples in books and white papers with no explanation? :-) What does it mean?
For example
router bgp 75
neighbor 10.100.65.1 remote-as 50
neighbor 10.100.65.1 update-source Loopback0
The example I'm looking at is much more
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