In addition to the above said here is an explanation from Tektronix.
http://www.cbtricks.com/miscellaneous/tech_publications/scope/floating.pdfOn site 5 i found the following and tried it out on your circuit, this works fine for me.
Differential Measurement System
Pseudo-Differential Techniques.The most popular
solution to the need for a
“floating” measurement is the
“A minus B” pseudo-differential technique. Most generalpurpose dual-trace oscilloscopes have an ADD Mode
where the two channels can
be electrically subtracted
(invert CH 2), giving a display
of the difference signal.
To make things clear for you, take a ohmmeter or continuity tester and make a measurement between the BNC ground of the signalgenerator and the BNC ground of both channels of the scope. As mentioned above, they are all at the same potential and a measurement with scopeground on minus side of the rectifier and generatorground on one side on the ac input of the rectifier will definitely shorten one diode.