--- a/mercurial/hg.py	Mon Oct 01 23:11:28 2012 -0500
+++ b/mercurial/hg.py	Tue Oct 02 09:26:42 2012 +0200
@@ -410,6 +410,8 @@
                 bn = destrepo[uprev].branch()
                 destrepo.ui.status(_("updating to branch %s\n") % bn)
                 _update(destrepo, uprev)
+                if update in destrepo._bookmarks:
+                    bookmarks.setcurrent(destrepo, update)
 
         return srcpeer, destpeer
     finally: