Is this a bug in the C# 4.0 compiler?

This code compiles successfully, but I think it should fail to compile. Also, when you run it you get a NullReferenceException. The missing code is the "new Bar" in the initialization of the Bar property.

class Bar
{
    public string Name { get; set; }
}

class Foo
{
    public Bar Bar { get; set; }
}


class Program
{
    static void Main(string[] args)
    {
        var foo = new Foo
                      {
                          Bar = { Name = "Hello" }
                      };
    }
}

Is this a known bug?