Interest rates set on 2016-17 federal loans

Wednesday’s auction of 10-year Treasury notes had a high yield of 1.71%. (https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160511_1.pdf)

As I understand the set-up, that makes the interest rate on direct undergrad loans next year 3.76% (10 year auction yield + 2.05%), which seems a bit lower than in recent years.

What about grad direct loans?

5.31% down from 5.84%
See http://time.com/money/4326510/federal-student-loan-interest-rates-2016/