Can anybody confirm whether this is a bug? about circumflex's meaning

Hello,
   I am a newbie of this maillist, and after some search, my doubt is still
there, can anybody help me to confirm whether this is a bug or not?

Windows XP Pro SP3 English
Grep2.5.4

in command line:
*echo 123456 | grep -E -o ^1.*

result:
*12*

but I think the result should be empty due to circumflex's meaning described
in manual.

Best regards,
ts
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