Distortion sine waveform from LT1227 amplifier
The circuit is oscillating.

The reason is as follows: The opamp is a current-feedback amplifier which needs a feedback resistor that must exceed a certain limit (specified by the manufacturer).

You should consult the data sheet to see the lower limit of this feedback resistor - typically, some hundreds of ohms.

(By the way: Don´t worry about capacitors in parallel to the power supply; they are useless in simulation as long as the dc source is ideal).