Centos – Yum repo basic auth not working

So we've got this yum repo that is protected via basic auth. My yum.repo definition looks like this

[custom-repo]
name=Releases Repository
baseurl=http://user:password@our-corporate-yum.devops.company.com:8080/mrepo/nexus-noarch/RPMS.releases-rpm/
enabled=1
gpgcheck=0
sslverify=0

Yum is able to pull the metadata and find the packages on my repo. I even confirmed via a sniffer that the correct basic auth is happening. But when I try to install a package it fails with the typical 401.

From the message shown and from the info grabbed from the sniffer I can tell that no authentication is been used at all.

Total download size: 34 M
Installed size: 39 M
Downloading packages:
http://user:password@our-corporate-yum.devops.company.com:8080/mrepo/nexus-noarch/RPMS.releases-rpm/com/company/artifact/xxxxx/0.9-SNAPSHOT/artifact-0.9-20140515.171948-39-   rpm.rpm: [Errno 14] PYCURL ERROR 22 - "The requested URL returned error: 401 Unauthorized"
Trying other mirror.

Based on yum.conf I also tried adding username and password params as described there, but that didn't work.

What is that that I'm doing wrong?

Any ideas?

Cheers!