diff --git a/mercurial/hg.py b/mercurial/hg.py
--- a/mercurial/hg.py
+++ b/mercurial/hg.py
@@ -353,6 +353,21 @@ def clone(ui, peeropts, source, dest=Non
         if dircleanup:
             dircleanup.close()
 
+        # clone all bookmarks
+        if destrepo.local() and srcrepo.capable("pushkey"):
+            rb = srcrepo.listkeys('bookmarks')
+            for k, n in rb.iteritems():
+                try:
+                    m = destrepo.lookup(n)
+                    destrepo._bookmarks[k] = m
+                except error.RepoLookupError:
+                    pass
+            if rb:
+                bookmarks.write(destrepo)
+        elif srcrepo.local() and destrepo.capable("pushkey"):
+            for k, n in srcrepo._bookmarks.iteritems():
+                destrepo.pushkey('bookmarks', k, '', hex(n))
+
         if destrepo.local():
             fp = destrepo.opener("hgrc", "w", text=True)
             fp.write("[paths]\n")
@@ -381,21 +396,6 @@ def clone(ui, peeropts, source, dest=Non
                 destrepo.ui.status(_("updating to branch %s\n") % bn)
                 _update(destrepo, uprev)
 
-        # clone all bookmarks
-        if destrepo.local() and srcrepo.capable("pushkey"):
-            rb = srcrepo.listkeys('bookmarks')
-            for k, n in rb.iteritems():
-                try:
-                    m = destrepo.lookup(n)
-                    destrepo._bookmarks[k] = m
-                except error.RepoLookupError:
-                    pass
-            if rb:
-                bookmarks.write(destrepo)
-        elif srcrepo.local() and destrepo.capable("pushkey"):
-            for k, n in srcrepo._bookmarks.iteritems():
-                destrepo.pushkey('bookmarks', k, '', hex(n))
-
         return srcrepo, destrepo
     finally:
         release(srclock, destlock)
diff --git a/tests/test-https.t b/tests/test-https.t
--- a/tests/test-https.t
+++ b/tests/test-https.t
@@ -118,9 +118,9 @@ clone via pull
   adding manifests
   adding file changes
   added 1 changesets with 4 changes to 4 files
+  warning: localhost certificate with fingerprint 91:4f:1a:ff:87:24:9c:09:b6:85:9b:88:b1:90:6d:30:75:64:91:ca not verified (check hostfingerprints or web.cacerts config setting)
   updating to branch default
   4 files updated, 0 files merged, 0 files removed, 0 files unresolved
-  warning: localhost certificate with fingerprint 91:4f:1a:ff:87:24:9c:09:b6:85:9b:88:b1:90:6d:30:75:64:91:ca not verified (check hostfingerprints or web.cacerts config setting)
   $ hg verify -R copy-pull
   checking changesets
   checking manifests