169.254.0.0 is a Special Purpose IP Address.

169.254.0.0/16 - Link Local
169.254.0.0/16 was allocated on May of 2005.

Addresses in 169.254.0.0/16 may be used as the source address of an IP datagram that transits two devices.

Addresses in 169.254.0.0/16 may be used as the destination address of an IP datagram that transits two devices.

Addresses in 169.254.0.0/16 are NOT forwardable.
A router may NOT forward an IP datagram to Addresses in 169.254.0.0/16 between external interfaces

Addresses in 169.254.0.0/16 are NOT globally reachable
An IP datagram may NOT be forwarded to Addresses in 169.254.0.0/16 beyond a specified administative domain.

The RFC that created 169.254.0.0/16 requires all compliant IP implementations to behave in a special way when processing packets either to or from addresses contained by 169.254.0.0/16

The 169.254.0.0/16 is allocated for communication between hosts on a single link. Hosts obtain addresses within 169.254.0.0/16 by auto-configuration, such as when a DHCP server cannot be found.

[ RFC3927, ^ ] , Dynamic Configuration of IPv4 Link-Local Addresses

  
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