"set protocols ospf redistribute connected" will redistribute routes for physical interfaces- but does not appear to redistribute routes for virtual tunnel interfaces.
For example on the originating router:
$ show ip route 169.254.1.0 Routing entry for 169.254.1.0/30 Known via "connected", distance 0, metric 1, best * directly connected, vti0
if I then do:
# set protocols ospf redistribute connected
On the ospf neighbors I see all the connected routes for normal interfaces (eth0, eth1, eth2, lo, etc.) however none of the connected routes associated with virtual tunnel interfaces show up.