Bug on CHARACTER(n) ?

Hello list,
maybe I am missing something. Look at this:

CREATE TABLE test (name character(10));

INSERT INTO test VALUES ('test');

SELECT '<' || name || '>' FROM test;

  ?column?
----------
  <test>

SELECT length(name), name from test;
  length |    name
--------+------------
       4 | test


Should not a char(10) insert 6 padding spaces? Or am I missing something
like an update in the SQL standard?
Sorry if this is an already known issue, I had no time lately to check the
bugs mailing list.

Ciao,
   Stefano