The child was granted bail in Tamworth Children's Court this week on charges of aggravated break-and-enter and custody of a knife in a public place.

He was not required to enter pleas, but magistrate Julie Soars granted the 12-year-old bail on conditions he live at a Tamworth home, and remain there every night.

He's also been ordered to attend school; not commit any offences; and must remain under a curfew from 8pm until 7.30am at the address, and present to police when they conduct a bail check.

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Police allege he broke into the Croydon Avenue home in Hillvue just before 3am on February 19.

A woman inside woke to the sound of smashing glass and intruders ransacking her house, and locked herself in a room before alerting police.

Police said the child was arrested in Anne Street after a short foot pursuit at about 2.50am on Monday. Officers allege he was in possession of a 20cm knife in a bag.

Police said they had been carrying out patrols of South Tamworth as part of Operation Southbreak and spotted a group of juveniles in the street in the early hours of Monday morning.

When they stopped to talk to the group, police claim the 12-year-old was identified as being wanted by officers and ran from them before he was arrested.

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