fill paragraph curly braces bug?

[Mark Senn]

Not sure if this is a bug or a feature.  Do you know offhand?

emacs-version gives "GNU Emacs 22.2.1 (sparc-sun-solaris2.10, X toolkit, Xaw3d 
scroll bars) of 2008-04-09 on breakwater.ecn.purdue.edu".

As for as I know this is a normal install.

START WITH THIS TEX FILE IN LaTeX Abbrev MODE.
No whitespace at end of lines.
No blank lines.

This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
{\bf This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.}
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.
This is a test.

Doing M-x fill-paragraph gives

This is a test.  This is a test.  This is a test.  This is a test.
This is a test.  This is a test.  This is a test.  This is a test.
This is a test.  This is a test.  {\bf This is a test.  This is a test.
  This is a test.  This is a test.  This is a test.  This is a test.
  This is a test.  This is a test.  This is a test.  This is a test.}
This is a test.  This is a test.  This is a test.  This is a test.
This is a test.  This is a test.  This is a test.  This is a test.
This is a test.  This is a test.

I did a quick web search and didn't see anything about the
indentation.  Xemacs didn't indent the lines within the curly braces.

Thanks for Emacs.

Mark Senn, Engineering Computer Network, Purdue University