Cast on 77 sts.
Rows 1, 3, 5 (RS): Sl1, k1, yo, k2tog, k to last 4 sts, k2tog, yo, k2.
Rows 2, 4, 6: Sl1, k across row.
Row 7: Sl1, k1, yo, k2tog, *p8, k1, p3, k1, rep from * once, p17, **k1, p3, k1, p8, rep from ** once, end k2tog, yo, k2.
Row 8: Sl1, k3, *k8, p1, k3, p1, rep from * once, k17, **p1, k3, p1, k8, rep from ** once, end k4.
Row 9: Sl1, k3, *p8, k1, p3, k1,
rep from * once, p17, ** k1, p3, k1, p8, rep from ** once, end k4.
Rows 10, 12, and 14: Rep Row 8.
Row 11: Rep Row 7.
Row 13 (cable twist row): Sl1, k3, *p8, sl next st to CN and hold to front of work, sl next 3 sts to 2nd
CN, hold to back of work, k next st from left-hand needle, p3 from 2nd CN, then k st from first CN, p8, rep from * once, p17, rep from * twice, k4.
Rep Rows 7–14 for pattern until piece measures 26" (66 cm).
Rep Rows 1-6.
Twisted Cord (Make 2)
Cut two strands of yarn, each 4½ yd. (4 m), hold together, fold in half. Anchor the folded end, twist these strands until they become very tightly wound. Being sure not to release ends, bring cut ends and folded ends together, hold up and allow to twist into a cord. Tie the loose side tightly, about 1½" (4 cm) from end, to form a small tassel and to anchor cord. Make a second cord. Set cords aside to be used to form top of bag.