How can I bind my Azure Functions return value to a output?

Yes, if you set your binding name to $return then whatever your function returns will be sent to your output binding. This will avoid you having to specify an out <T> boundParam parameter to your function.

Example:

Binding

Using a manual trigger

{
  "bindings": [
    {
      "type": "blob",
      "name": "$return",
      "path": "testoutput/{rand-guid}.txt",
      "connection": "AzureWebJobsDashboard",
      "direction": "out"
    },
    {
      "type": "manualTrigger",
      "name": "input",
      "direction": "in"
    }
  ],
  "disabled": false
}

Code (synchronous)

using System;

public static string Run(string input, TraceWriter log)
{
    log.Info($"C# manually triggered function called with input: {input}");
    await Task.Delay(1);

    return input;
}

Code (async)

using System;

public static async Task<string> Run(string input, TraceWriter log)
{
    log.Info($"C# manually triggered function called with input: {input}");
    await Task.Delay(1);

    return input;
}