Readline's `capitalize-word' / bash read -e issue with UTF-8 multibyte character

[Eduardo Bustamante]

dualbus@debian:~$ LC_ALL=en_US.UTF-8 ~/src/gnu/bash/bash -c 'read -e;
declare -p REPLY'
Ñu
woops
declare -- REPLY="�w�u"

I typed: <ñ><u><\C-a><\ec><return><w><o>...<return>