salt.renderers.jinja with (false) option only renders 1 level correctly

Description of Issue/Question

without (false) option

gitfs_saltenv:
                   [{sdev: [{ref: master}]}]

with (false) option

gitfs_saltenv:
    - sdev:
    - ref: master

Expected

 gitfs_saltenv:
    - sdev:
      - ref: master

Setup

(Please provide relevant configs and/or SLS files (Be sure to remove sensitive info).)

pillar.sls
      gitfs_saltenv:
        - sdev:
           - ref: master

state.sls
gitfs_saltenv:
  {{ remote.gitfs_saltenv|yaml(false) }}

Steps to Reproduce Issue

(Include debug logs if possible and relevant.)

Versions Report

(Provided by running salt --versions-report. Please also mention any differences in master/minion versions.)

root@salt-master-dev:/home/ubuntu# salt --versions-report
Salt Version:
           Salt: 2016.11.0

Dependency Versions:
           cffi: Not Installed
       cherrypy: Not Installed
       dateutil: 1.5
          gitdb: 0.5.4
      gitpython: 0.3.2 RC1
          ioflo: Not Installed
         Jinja2: 2.7.2
        libgit2: Not Installed
        libnacl: Not Installed
       M2Crypto: Not Installed
           Mako: 0.9.1
   msgpack-pure: Not Installed
 msgpack-python: 0.4.6
   mysql-python: 1.2.3
      pycparser: Not Installed
       pycrypto: 2.6.1
         pygit2: Not Installed
         Python: 2.7.6 (default, Jun 22 2015, 17:58:13)
   python-gnupg: Not Installed
         PyYAML: 3.10
          PyZMQ: 14.0.1
           RAET: Not Installed
          smmap: 0.8.2
        timelib: Not Installed
        Tornado: 4.2.1
            ZMQ: 4.0.5

System Versions:
           dist: Ubuntu 14.04 trusty
        machine: x86_64
        release: 4.4.0-34-generic
         system: Linux
        version: Ubuntu 14.04 trusty

Reproduce the nested-data case from pillar.sls through the salt.renderers.jinja entry point in state.sls, comparing yaml(false) with the default rendering. Trace how the renderer handles nested lists and verify that the output preserves the expected sdev/ref hierarchy.