Thoughts on how to manage interview conversations for other roles with managers?

Currently interning at a growth equity PE fund and I have an upcoming interview for an EB IB FT analyst role. Is it best to be transparent with your manager about interviews? I am a rising senior and my manager understands that I am still looking for FT roles post-graduation. I am interested in working at my current company post-graduation and don't want to diminish my chances of a return offer. Thoughts? 

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