I believe Patrick Gundlach said this around Sun, 2 Feb 2003:

>Version 3.14159-1.00b-pretest-20020211-2.1 (Web2C 7.3.7x)
>\write18 enabled.

Same version (on MacOSX), and pretty much same results. Using 
\setupfontsynonym[Serif][handling=punctuation]
does in fact seem to hang the hyphens (partially).

>
>I get hanging, but the hyphen is not in the margin.
>
>See attached image.


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 Adam Lindsay                  +44(0)1524 594 537
 atl@comp.lancs.ac.uk
 http://www.comp.lancs.ac.uk/computing/users/atl/
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