Newspaper yarn is awesome and pretty easy to make if you have a little pit of patience. I like using the funny pages and think they make the best yarn!
First of all, I was lucky enough to find an old wooden spindle that fit on my drop spindle so that I can just wind my “finished” yarn right to it, plus it gives the drop spindle a little more weight so it makes the newspaper spin tighter. Basically you do the same as if you were going to spin roving. Start by pinching the end of a 1 inch strip of newspaper so you can tie it to the top of the spindle. Once it is securely attached start spinning and slowly letting sections of the newspaper twist, the tighter it twists the stronger it will be. Once you are near the end of a strip of newspaper. Take a piece of double-sided tape and attach another piece (overlap by about an inch). I have found the tape really helps to secure the pieces to make spinning easier. Keep spinning and when the spindle hits the floor, wrap your “yarn” around the spindle, reattach the top and keep going!
My crocheted newspaper yarn basket on my desk at work. I get so many great compliments on it!