1) To tell a story, which more or less at any given moment contains a dubious amount of exaggeration. (To spin a yarn)
2) To have conversation with someone, most likely pertaining to trivial matters.
1) To spin a yarn - "One time I saw this dog driving a car, and it was wearing a cape!"
2)"I'll see you later on, we'll catch up and have a bit of a yarn"
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