The peer next-hop-local command configures an BGP MVPN device to set its IP address as the next hop of routes when the MBGP device advertises the routes to an IBGP peer group.
The undo peer next-hop-local command restores the default setting.
By default, an BGP MVPN device sets its IP address as the next hop address of routes when advertising them to its EBGP peer; the BGP MVPN device does not change the next hop address of routes when advertising them to its IBGP peer group.