Hi Steve,
What you're describing is known as the Dawn Phenomenon. It's very common for diabetics to experience high blood sugars in the morning hours and need more basal insulin during this time.
Basically our livers release stored glycogen during the night which slowly raises blood sugar. I'm sure some of the medical professional experts could explain the physiological details...
If you're taking insulin, you'll probably need to increase your basal insulin to cover the dawn phenomenon. Also, the kind of snack you eat before bed can help minimize the effect. Usually eating some extra protein will stablize your blood sugar.
Thanks, Kelsey