bgp md5 and update-source loopback

Hi.

So i am getting MD5 messages whenever i configure update-source loopback on my ibgp peers, and i don't know why. Without it the peers come up fine.

I'm sure i am overlooking something stupid. Or is there some rule i am forgetting? Do i need to advertise the loopbacks in bgp or something?

 

Any ideas?

 

 

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