Pagination on custom query

Hi again.

I’m sorry for this rather beginner question, but I’ve tried many things and I couldn’t get it working.

I’m using a custom query to display posts on the homepage (index.php):

$paged = ( get_query_var( 'paged' ) ) ? get_query_var( 'paged' ) : 1;
$query=new WP_Query(array(
	'post_type' =>'release',
	'paged'	=> $paged,
	'posts_per_page' => 10,
	'post__not_in' => $swiftFeatured,
));

Everything works as expected, except when I define a page in the url like this: /page/3/, I’m getting “page not found” error, but again, the expected posts are being displayed without a problem whatsoever.

I’ve tried changing the permalink structure and reverting it back.

Any help would be appreciated.