Q1.
I'm seeing a pretty high distortion on a matching transformer at a low frequency. I can understand that this can be from a saturing in the core. Is there any way we can reduce this kind of distortion without changing to a more expesive transformer.
Q2.
I'm seeing a third harmonic being the most strongest of a distortion. Is there any explanation for this.
A1 Operate your circuit at a lower impedance level. This way the inductancive reactance of the transformer winding is higher compared to the circuit impedance.
A2 The transformer clips on both polarities of signal swing which makes the signal more into a square wave. The third harmonic is the highest level of all of the harmonics of a square wave.