SSH login between servers still asking for passwor

I have two servers identified as server-1 - 192.168.3.128 and server-2 - 192.168.3.130. I am setting up capifony for automatic deployment from server-1 to server-2 and this is what I have done so far:

In both servers I have created a user deploy without password since that's the user I will use for deployment.
In server-1 I setup a SSH keys by running the command: ssh-keygen and I leave without pass-phrase and default directories.
I have copied the content of /home/deploy/.ssh/id_rsa.pub at server-1 into server-2 at /home/deploy/.ssh/authorized_keys.

From server-1 I try to reach server-2 by running ssh deploy@192.168.3.130 and it's asking for a password (below is the output)

$ ssh deploy@192.168.3.130
The authenticity of host '192.168.3.130 (192.168.3.130)' can't be established.
RSA key fingerprint is 3c:81:da:7a:78:0f:b0:2f:44:3b:62:fb:c9:6f:33:86.
Are you sure you want to continue connecting (yes/no)? yes
Warning: Permanently added '192.168.3.130' (RSA) to the list of known hosts.
deploy@192.168.3.130's password:

This is the -v output of the command above:

OpenSSH_5.3p1, OpenSSL 1.0.1e-fips 11 Feb 2013
debug1: Reading configuration data /etc/ssh/ssh_config
debug1: Applying options for *
debug1: Connecting to 192.168.3.130 [192.168.3.130] port 22.
debug1: Connection established.
debug1: identity file /home/deploy/.ssh/identity type -1
debug1: identity file /home/deploy/.ssh/identity-cert type -1
debug1: identity file /home/deploy/.ssh/id_rsa type 1
debug1: identity file /home/deploy/.ssh/id_rsa-cert type -1
debug1: identity file /home/deploy/.ssh/id_dsa type -1
debug1: identity file /home/deploy/.ssh/id_dsa-cert type -1
debug1: identity file /home/deploy/.ssh/id_ecdsa type -1
debug1: identity file /home/deploy/.ssh/id_ecdsa-cert type -1
debug1: Remote protocol version 2.0, remote software version OpenSSH_5.3
debug1: match: OpenSSH_5.3 pat OpenSSH*
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_5.3
debug1: SSH2_MSG_KEXINIT sent
debug1: SSH2_MSG_KEXINIT received
debug1: kex: server->client aes128-ctr hmac-md5 none
debug1: kex: client->server aes128-ctr hmac-md5 none
debug1: SSH2_MSG_KEX_DH_GEX_REQUEST(1024<1024<8192) sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_GROUP
debug1: SSH2_MSG_KEX_DH_GEX_INIT sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_REPLY
debug1: Host '192.168.3.130' is known and matches the RSA host key.
debug1: Found key in /home/deploy/.ssh/known_hosts:1
debug1: ssh_rsa_verify: signature correct
debug1: SSH2_MSG_NEWKEYS sent
debug1: expecting SSH2_MSG_NEWKEYS
debug1: SSH2_MSG_NEWKEYS received
debug1: SSH2_MSG_SERVICE_REQUEST sent
debug1: SSH2_MSG_SERVICE_ACCEPT received
debug1: Authentications that can continue: publickey,gssapi-keyex,gssapi-with-mic,password
debug1: Next authentication method: gssapi-keyex
debug1: No valid Key exchange context
debug1: Next authentication method: gssapi-with-mic
debug1: Unspecified GSS failure.  Minor code may provide more information
Cannot determine realm for numeric host address

debug1: Unspecified GSS failure.  Minor code may provide more information
Cannot determine realm for numeric host address

debug1: Unspecified GSS failure.  Minor code may provide more information


debug1: Unspecified GSS failure.  Minor code may provide more information
Cannot determine realm for numeric host address

debug1: Next authentication method: publickey
debug1: Trying private key: /home/deploy/.ssh/identity
debug1: Offering public key: /home/deploy/.ssh/id_rsa
debug1: Authentications that can continue: publickey,gssapi-keyex,gssapi-with-mic,password
debug1: Trying private key: /home/deploy/.ssh/id_dsa
debug1: Trying private key: /home/deploy/.ssh/id_ecdsa
debug1: Next authentication method: password
deploy@192.168.3.130's password:

Why? What I am doing wrong?

In addition to running the client in verbose mode, start a new server instance in debug mode on another port:

server-2 as root: