The 10-year U.S. Treasury yield rose Thursday, as investors digested economic data that showed an unexpected contraction in gross domestic product.

The yield on the benchmark 10-year Treasury note was up 1.6 basis points at 2.832% by 4:07 p.m. ET. The yield on the 30-year Treasury bond was marginally lower at 2.901%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

GDP unexpectedly declined 1.4% in the first quarter, marking an abrupt reversal for an economy coming off its best performance since 1984, the Commerce Department reported Thursday. The negative growth rate missed even the subdued Dow Jones estimate of a 1% gain for the quarter.

Still, consumer spending held up fairly well for the quarter, rising 2.7% as inflation kept pressure on prices.

Some investors shook off the economic contraction, citing the jump in prices and trade deficit as contributing the most to the decline.

"Blame the record high trade deficit for the contraction in real GDP, along with an 8% price deflator," Peter Boockvar, CIO of Bleakley Advisory Group, said in a note. "Going forward, the big question is whether the consumer eventually cracks in response to ever rising prices and wage growth that isn't keeping up."

Investors remain worried about developments in the Russia-Ukraine war, the surge in Covid-19 cases in China, as well as the effect of the Federal Reserve's attempt to combat inflation by raising interest rates.

Russia's President Vladimir Putin warned the West of a "lightning fast" response to any country intervening in the Ukraine war.

— CNBC's Yun Li and other CNBC.com staff contributed to this market report.