About a year ago the Honda service person had said that the brakes are
worn about 50 something percent (he gave different percentages for
front and rear) and said that I don't need to worry just yet and I
should wait till they hit the 25% mark or so. So, I asked them during
the 30,000 mile service in July and they said that they were still
good. Though they did not give the percentages. So, I am thinking it
must be the brakes now. But I didn't know that *this* is how it tells
me.

Thanks gentlemen! I would schedule a check up, I guess.

PS: It is definitely like the sound of a small metal ring rotating on
a metal rod. And I have a feeling it is coming from the front
passenger side. Outside the vehicle, as I said. Braking definitely
stops it but only while I am braking.