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Okay, after a little looking I found the book I remembered. It is Type 2 Diabetes, the First Year, An Essential Guide for the Newly Diagnosed by Gretchen Becker.

She talks about how insulin and glucagon are the two important protein hormones that determine whether one's BG levels will go up or down. From the book "but sometime in the early morning hours, levels of other hormones such as cortisol and growth hormone begin to increase. Some of these hormones, called insulin antagonists or counterregulatory hormones, seem to make the insulin less effective. The net result is a sort of temporary morning insulin resistance. In some people the BG level begins to rise around three or four in the morning and keeps going up all day until they have something to eat. Remember that some kind of dawn effect is normal and keep testing until you understand how yours usually works. Then you can design your menu choices around your particular dawn effect."

She goes on to discuss another supposed cause which is called the Somogyi phenomenon. This is a rebound from episodes of low BG levels, and then the body overcompensates so that if the lows occur during the night, then the morning readings are too high.

I am still trying to understand all this myself, but I hope this helps!!
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