Seems like it's not done conditioning. Yeast works slower in bottle conditioning. After bottling they now have to work under pressure in an alcoholic solution as well as not having oxygen to get them kick started. Make sure the bottles are nice and warm (70 ish). Ten days really isn't enough time for bottle conditioning. Wait atleast two more weeks.
As far as the hydrometer readings. Dissolved co2 will mess up the readings. That being said a beer that finished at 1.016 is going to be pretty sweet.