INSERT GRAPH base URI question

What is

BASE <http://example.com/bar>
INSERT DATA {
  GRAPH <http://example.com/foo> {
    <> a <Thing> .
  }
}

supposed to insert?

I would expect

  <http://example.com/foo> a <http://example.com/Thing> .

but I don't see anything in the spec that justifies that, or anything in the test cases, though I could easily have missed it.

The alternative would be

  <http://example.com/bar> a <http://example.com/Thing> .

Which I think is what I'd get to from following the spec to the letter.

Cheers,
   Steve

-- 
Steve Harris, CTO, Garlik Limited
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