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Retention Policy sends mails to Deleted folder

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Have  we done a misconfiguration or what. We have setup retetion tags that have only archive after 30, 60, 90 days without any delete policy tags. So that you can only choose to send messages to online archive without deleting after either 30, 60 or 90 days. We applied the retention  policy to both personal folders and default folders, but what we see is that all messages are sent to deleted folder after the number of days set in the retention policy. I have gone through the docs before setting up retention policies. So is there something I missed ? Exchange 2010 sp2


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