Abstract: A spindle is mounted to a frame for rotation about the spindle axis. A core yarn package of elastic core yarn is held stationary on the spindle. Elastic core yarn is withdrawn from the core yarn package in a direction substantially along the spindle longitudinal axis. A nonelastic covering yarn is drawn from a supply package, through the spindle and along a confined yarn guide passageway from the spindle guide passageway outwardly, upwardly and inwardly around and in spaced relation to the core yarn package for confining and guiding the covering yarn, and then into wrapping engagement with the withdrawn core yarn to form a corespun yarn.