From Knitty.com:

This bag is roomy enough for the necessities and
then some. I’ve left the structure rather simple,the shaping coming from the gusset and lining support. I highly suggest lining the bag simply to prolong the life of your knitting (well, that and the added structure and support the lining gives). Applied i-cord edging and i-cord handles give it a finished look.

The slip stitch pattern is from Le Dictionnaire Harmony des Points de Tricot Volume III. The textured slip stitch pattern and contrasting colors make for one eye-catching bag. The pattern works beautifully using a solid and variegated yarn combination as well!

A Note on Yarn Substitution: If Grignasco Mexico is not available, try Kertzer’s Butterfly Super 10 mercerized cotton or Elann Endless Summer Collection Sonata.