Superconducting quantum interference devices (SQUIDs) using YBa2Cu3O7, step-edge grain boundary junctions on LaAlO3 substrates were fabricated. The I-V and V-φ characteristics of these step-junction dc-SQUIDs were studied. At 77 K, a square washer configuration with inductance Ls = 150 pH yields flux noise of about 5.08×10-5 φ0/√Hz, corresponding to a magnetic field and energy resolutions were 270 fT/√Hz and 3.68×10-29 J/Hz respectively above 100 Hz.