indyank - 4:54 pm on Jul 13, 2011 (gmt 0)
I see something similar. Bounce rate increased dramatically after panda 1 to around 80% and it still continues to remain at 80%. A drop to 10% in your case seem to be helping your cause.
I will have to add that all my metrics went bonkers after panda. The dashboard reports a very low avg. time on site while the internal reports show better ones.The bounce rate jumped to 80%.
I am sure that in my case, a return to the pre-panda metrics will automatically bring in better traffic as I see a clear change in metrics between pre-panda and post-panda.