diff -r 57fe5aca86af -r 3d1a781b23c0 mercurial/hg.py
--- a/mercurial/hg.py	Tue Oct 02 14:31:25 2012 -0700
+++ b/mercurial/hg.py	Thu Oct 04 10:11:17 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: