The Inverted Cylindrical Magnetron Sputtering (ICMS) technique been used to fabricate YBCO step-edge dc SQUIDs. Steps are obtained by standard ion milling procedure on LaAlO/sub 3/ (100) substrates using Nb-masks patterned by reactive ion etching. Thin films are then deposited under different conditions (both step and deposition angles) and patterned by standard lithography and wet chemical etching. An analysis of junction properties in terms of step height and film thickness has been carried out. Measurements on current vs magnetic field and SQUID voltage response measurements have been performed. Their temperature dependences have been also considered. Operating temperature as high as 77 K has been achieved. At 4.2 K the SQUIDs show a maximum voltage to flux transfer function (/spl part/V//spl part//spl phi/)/sub max/=870 /spl mu/V//spl Phi//sub 0/ and a good periodicity of the V-/spl phi/ modulation up to 20 /spl Phi//sub 0/ without any sign of hysteresis.< <ETX xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">></ETX>