Abstract: Method and apparatus for producing high quality wrapped yarn by a wrapping operation wherein a binder strand, carried by a supply package supported by a rotatably driven hollow spindle, is fed to the free end of the hollow supply spindle and wrapped around a core strand moving through the hollow spindle. The binder strand inherently balloons outwardly in its path of travel from its rotating supply package to the core strand being wrapped. The zone in which the binder strand balloons is enclosed to isolate it from the ambient air about the wrapping apparatus to thereby substantially preclude pick up of fiber waste on the binder strand. Suction means communicates with the hollow spindle to attract the core yarn and facilitate passage of the wrapped yarn therethrough. Isolation of the zone in which the binder strand balloons is obtained by enveloping the package and balloon-forming region of the binder strand with an enclosure.