git fetch with fetch.prune set bug?

Hi,

Doing the following commands:
$ git config fetch.prune true
$ git co -b bug/bug-1
Switched to a new branch 'bug/bug-1'
$ touch bugfix
$ git add .
$ git commit -a
$ git push --set-upstream origin bug/bug-1
Counting objects: 2, done.
Delta compression using up to 8 threads.
Compressing objects: 100% (2/2), done.
Writing objects: 100% (2/2), 242 bytes | 0 bytes/s, done.
Total 2 (delta 1), reused 0 (delta 0)
To git@github.com:petervanderdoes/Testing.git
 * [new branch]      bug/bug-1 -> bug/bug-1
Branch bug/bug-1 set up to track remote branch bug/bug-1 from origin.
$ git fetch origin bug/bug-1:refs/remotes/origin/bug/bug-1
From github.com:petervanderdoes/Testing
 x [deleted]         (none)     -> origin/bug/bug-1
$ git branch -r
  origin/master
$ git branch
* bug/bug-1
  master

The branch still exists on the remote repository. Is it correct that the git fetch deletes the remote reference?

Peter