The IPs in the 169.254.0.0/16 block are so called "link-local" (or APIPA in Microsoft terms) addresses and are usually assigned automatically to network interfaces that don't get an IP address otherwise.
That your network interface get such an IP assigned although it already has a static IP may be caused by a running DHCP client that never gets a lease and therefore uses and address from that block. Check your system for running DHCP clients.
https://en.wikipedia.org/wiki/Apipa