First observation of the collision-induced IR-fundamental band of hydrogen deuteride (HD) in liquid neon is described. A developed intracell rattling model yields highly accurate fits to the measured diffuse Q1-branch profiles enabling a detailed shape analysis of the adjacent spectral lines. Strong intracollisional anticorrelation found at the location of the permanent dipole-allowed R1(0) transition is interpreted in the frame of the Fano-Mori theory. A new striking narrowing effect (by 30%) is observed on the sharp Q(q)(1)(0) vibrational line with increasing HD concentration in solutions. The T1(0), U1(0) and a few pair transitions are identified in the spectrum.