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setup site to site VPN Cisco 881 to Azure Dynamic Gateway. What is this Auto IP under INT TUNNEL 1 IP Address 169.254.0.1?

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Hello

I am trying to setup a S2S Azure VPN to our office.  When I select static gateway, it works fine with Cisco 881.

I created another azure network with DYNAMIC Gateway and not able to setup S2S.

1. Do I need a separate IP address for both end of tunnels  ( tunnel IP address?)?

2. I downloaded the vpnscript from portal for Dynamic routers. What is the auto ip in the last section under 'INT TUNNEL 1' IP Address 169.254.0.1.....? 

3. How do I define route based  ( Azure Dynamic Gateway) vpn in Cisco and connect to Azure?

Please advise. Thank you very much.


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