Tying rest notes incorrectly ties succeeding normal notes?

[Parham FH]

Here is an example that generates a score where the g2. note is 
incorrectly tied to the first g16 note due to 
the tie between r1 and r8.

\version "2.16.1"
\relative c'' {
  r1~r8
  g2.
  g16
  g16
}
\addlyrics {
  Tom ten par 
}

This causes the lyrics to be misaligned as well. If the tilde is 
removed it works fine.
Is this expected behaviour or am I missing something?

Thanks!