A 28-year-old Canberra man, who allegedly spat blood in his neighbour's face and assaulted her husband with a knife, has been granted bail in the ACT Magistrates Court.

Matthew David Hayman, from Wanniassa, appeared before the court on Monday, charged with possessing a weapon with intent, assault occasioning actual bodily harm and a further count of assault.

The court heard about 10:30pm Sunday, Hayman's neighbour was inside her home on Guthridge Crescent when she heard her son fighting with Hayman across the road on Hayman's driveway.

In a statement of facts tendered to the court, the woman said she went outside to find her son and Hayman punching and striking each other.

The woman told police she tried to pull the pair apart before Hayman spat blood onto her face.

She allegedly managed to get hold of Hayman's shirt allowing her son to break free, before Hayman struck her arm.

Court documents showed the woman's husband, who was inside their house at the time, saw her return with blood on her face and went outside to confront Hayman.

It is alleged Hayman then struck the man with an object, believed to be a knife, resulting in a cut to the man's head.

Officers said when they arrived just before 11:00pm, they approached Hayman's house and found him holding a 32 centimetre knife.

He then allegedly lunged towards police with the knife causing police to draw their guns and a Taser.

Hayman dropped the knife and was arrested.

Officers said Hayman appeared to be heavily intoxicated.

Prosecutors opposed bail on Monday saying "tensions would continue to result in violence" if he was released on bail.

But bail was granted under conditions Hayman not contact his neighbours and not consume alcohol.

He is expected to reappear in court next month.