Why does open() create my file with the wrong permissions?

I am trying to read some text from a file and write it to another using open(), read() and write().

This is my open() for the file-to-write-to (I want to create a new file and write into it):

fOut = open ("test-1", O_RDWR | O_CREAT | O_SYNC);

This is setting file-permissions to something I don't understand at all. This is the output of ls -l:

---------T 1 chaitanya chaitanya 0 2010-02-11 09:38 test-1

Even the read permission is locked. I tried searching for this, but could not find ANYTHING. Strangely, write() still successfully writes data to the file.

Also, if I do a 'chmod 777 test-1', things start working properly again.

Could someone please let me know where I am going wrong in my open call?

Thanks!

For your reference, I have pasted the complete program below:

#include <stdio.h>
#include <stdlib.h>
#include <unistd.h>
#include <fcntl.h>

int main () {

    char buffer[512], ch;

    int fIn, fOut, i;
    ssize_t bytes;
    FILE *fp = NULL;

    //open a file
    fIn = open ("test", O_RDONLY);
    if (fIn == -1) {
        printf("\nfailed to open file.");
        return 1;
    }

    //read from file
    bytes =  read (fIn, buffer, sizeof(buffer));
    //and close it
    close (fIn);

    printf("\nSuccessfully read %d bytes.\n", bytes);

    //Create a new file
    fOut = open ("test-1", O_RDWR | O_CREAT | O_SYNC);

    printf("\nThese are the permissions for test-1\n");
    fflush(stdout);
    system("ls -l test-1");

    //write to it and close it.
    write (fOut, buffer, bytes);
    close (fOut);


    //write is somehow locking even the read permission to the file. Change it.
    system("chmod 777 test-1");

    fp = fopen ("test-1", "r");
    if (fp == NULL) {
        printf("\nCan't open test-1");
        return 1;
    }

    whi